LA Times
Despite the economic downturn that has left many states with deficits, the rollback in state tax incentives that some anticipated has yet to occur. Although some states have reduced or even suspended their programs, others, such as Florida, have greatly expanded their programs. More than 40 states still offer some form of financial enticement to filmmakers. “The fact that these states are continuing their programs is an indication they are working,” said Jeff Begun, a partner in the Incentives Office. Begun cited a recent study by a University of Rhode Island economist who found that the state’s tax credit program for film and TV productions generated $8 in economic activity for every $1 invested between 2005 and 2009. Beyond rosy economic projections, penny-pinching by studios has also accelerated the trend as executives face more pressure to cut costs. And with fewer banks lending, tax credits and rebates have become an increasingly vital means for financing movies and TV shows. “For producers, tax incentives have become an absolutely essential component for financing pictures,” said producer Andrew Sugerman. To read the full article follow the link and to learn about filmmaking incentives here in Washington and Seattle, check out our website.