Film Tax Incentives Keeps Filming Movies and Television Shows in the States
Film Tax Incentives are the new backbone of film financing equations. Tradable tax credits, refundable tax credits, film tax rebates, and reductions in state taxes all figure into the equity investors exit strategy… and make green lighting films more attractive.
To deal with Runaway Productions taking their cash flow overseas, state and federal governments created tax based incentive programs to keep the jobs at home. The theory is, if Producers find it more beneficial to film in a particular state economically, they will. And they were right.
California’s film tax credit program gave taxpayers a bang for their buck. The Los Angeles County Economic Development Corp. reported that the state’s tax credit program pumped $3.8 billion into the California economy and created more than 20,000 jobs in a two year span.
Michigan, Louisiana, Georgia, Ohio, New Mexico and several other states have reported positive economic contributions from similar programs.