Research Areas
Film Credits
In the last decade, state governments have enacted numerous movie production incentives (MPIs), including tax credits for film production. MPIs are popular with state officials and many of their constituents but often escape routine oversight about benefits, costs and activities. Based on fanciful estimates of economic activity and tax revenue, states invest in movie production projects with small returns and take unnecessary risks with taxpayer dollars.
MPIs fail to live up to their promises to encourage economic growth overall and to raise tax revenue. States claim MPIs create jobs, but the jobs created are mostly temporary positions—often transplanted from other states—with limited options for upward mobility. Furthermore, the competition among states transfers a large portion of potential gains to the movie industry, not to local businesses or state coffers.
Additional questions about film tax credits? Contact us at (202) 464-6200.
Articles from the Tax Foundation
- Testimony on Film Tax Incentives to the Oklahoma Task Force on State Tax Credits and Economic Incentives, by Joseph Henchman, October 12, 2011
- Motion Picture Association Attacks Tax Foundation Critique of Film Tax Subsidies, by Joseph Henchman, June 29, 2011
- Joseph Henchman on Film Tax Credits in the States, June 2, 2011
- More States Abandon Film Tax Incentives as Programs’ Ineffectiveness Becomes More Apparent, by Joseph Henchman, June 2, 2011
- Film Production Incentives: a Game California Shouldn't Play (Testimony Before California Legislature), by Mark Robyn, March 21, 2011
- A Review of 2010’s Changes In State Tax Policy, by Joseph Henchman and Xander Stephenson, August 23, 2010
- Michigan should stop red-carpet tax treatment of film industry, by Natasha Altamirano, May 4, 2010
- Map: Film Tax Credits by State, 1992 - Present (April 2010), April 20, 2010
- Florida Sales Tax Holiday, Film Tax Credit Plans Won't Deliver on Promises, February 17, 2010
- Florida’s Sales Tax Holiday and Film Tax Credit Proposals Will Not Deliver on Exaggerated Promises, by Mark Robyn, February 17, 2010
- Joe Kristan on Film Tax Credits in Iowa, January 20, 2010
- Study: Film Tax Credits, Production Incentives Fail to Spur Economic Growth, January 14, 2010
- Movie Production Incentives & Film Tax Credits: Blockbuster Support for Lackluster Policy, by Will Luther, January 14, 2010
- Top 10 Tax Stories of the Decade, by TF Staff, December 30, 2009
- Letter to Governor Culver of Iowa Regarding the Iowa Tax Credit Review Panel, by Joseph Henchman, November 24, 2009
- Remarks to the Tax Analysts Conference on the State Fiscal Crisis, by Joseph Henchman, October 30, 2009
- State Budget Shortfalls Present a Tax Reform Opportunity, by Joseph Henchman, February 11, 2009
- Arkansas Times Discusses Film Tax Credits, Uses Staff Economist Josh Barro’s Testimony before Legislature, January 12, 2009