These data are consistent with the experiences of other states. All told, every dollar spent on the film tax credit created just 14 cents of new revenue. Furthermore, jobs created by the program tend to be short-term most lasted less than three months, some lasting a matter of weeks or days. During that time period, the program only created 3,000 jobs for state residents at a net cost of $109,000 per job. Supporters of the film tax credit argue that it attracts production companies to the Commonwealth, which means more jobs for residents, and more in-state spending.Įvidence from Massachusetts and around the country indicates that film tax credits are a very ineffective way to generate economic growth or create jobs.Ī 2014 DOR report found that from 2006 to 2012, the Commonwealth offered $411 million in film tax credits, which increased state spending by $261 million. What’s the Argument for the Film Tax Credit? For example, last December the Department of Revenue (DOR) released a report showing that the state awarded $88.9 million in film tax credits in 2016, as opposed to the roughly $62 million originally reported. State government often underestimates the full annual cost of the credit, because the Commonwealth does not release data for pending tax credits awarded to films released in previous years. They can either carry forward the full value of the credit for up to five years, sell the credit, or cash in the credit immediately to receive 90 percent of its value from the Commonwealth.Īccording to the state Department of Revenue’s most recent tax expenditure budget, the film tax credit will cost the state $80 million dollars a year in lost revenue in fiscal year 2019. In that sense, the film tax credit is better understood as a government subsidy.Īs the Massachusetts Budget and Public Policy Center explained in 2015, businesses have three options. If the value of the film tax credit calculated using the above formula is greater than the amount of taxes the film production company owes to the state of Massachusetts, the government pays the company the difference between the tax credit owed and the company’s tax liability. The film tax credit is refundable, which means that it can go beyond simply reducing the fiilm production company’s tax liability. The production expenses do not include payroll expenses used to calculate the payroll tax credit. To be eligible for the production tax credit, the company has to either spend at least half its film production budget in-state or spend at least 50 percent of filming days in Massachusetts. Under current law, film production companies that spend more than $50,000 in Massachusetts are eligible for a sales tax exemption, a payroll tax credit worth 25 percent of its total salary costs, and a 25 percent production expense tax credit. One place that’s ripe for reform is Massachusetts’s film tax credit program. State Senate President Karen Spilka is taking preliminary steps towards reforming the state’s tax code, assembling a group of policymakers, academics, and other specialists to look for ways to make the Massachusetts tax code more progressive and possibly raise revenue. Pioneer Young Professionals (PYP) Network.Book: U-Turn: America’s Return to State Healthcare Solutions.Pioneer Institute’s Life Sciences Initiative.Common Core National Education Standards.BOOK: A Vision of Hope – Catholic Schooling in Massachusetts.Our Boston freelancers on CROOW Marketplace will already have familiarity with CROOW software, making your relationship with them as seamless and easy as possible. Furthermore, with CROOW Marketplace, all projects will be done through CROOW software, guaranteeing that the production is going to be efficient, organized, and easy. We have talked to and vetted the best Boston freelancers to ensure you are working with the city's best. You can utilize the search function to find top Boston video production talent for your next production. Plus, our platform is here to help each step of the way. We have created a platform to connect agencies and production teams with the top Boston video production talent. Having trouble finding talented vendors for your Boston Video Production projects? The CROOW Marketplace is designed to help connect you with the best Boston Video Production talent. Why Choose CROOW for Boston Video ProductionĪt CROOW, our video production company in Boston can help you create videos that tell your story and showcase what makes your business unique.
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