Written by on Oct 29, 2012. Posted in Incentive News

Filming incentives criticised as unpopular short-term benefits in the US

Tax experts in the US have criticised the value of filming incentives and say that state authorities are increasingly disillusioned. They argue that local economic benefits are short-term and that US communities are tired of being used as doubles for elsewhere in the country.

Cara Griffith is with State Tax Notes and spoke to NBC News: “I think states are realising that [filming tax credits] are not worth the cost. The reality is that most states have not seen a corresponding increase in jobs created or dollars of revenue brought into the state.”

I think states are realising that [filming tax credits] are not worth the cost.

Cara Griffith, State Tax Notes

The US has had a tricky relationship with filming incentives and tax credits over the past few years as most state authorities have set aside money to attract Hollywood during tough economic times. Conflicting figures reported by partisan organisations haven’t helped.

Views of filming tax credits tend to fall down party lines – conservatives tend to oppose attracting liberal Hollywood – but the benefits of some productions are difficult to argue against. New Mexico paid nearly USD25 million in tax credits to host Marvel’s The Avengers, but the film spent around US90 million locally during the lengthy shoot.


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