Sunday, May 19, 2024
Hawai'i Free Press

Current Articles | Archives

Monday, May 7, 2012
Movie Production Incentives in the Last Frontier
By NCPA @ 12:45 PM :: 5758 Views :: Energy, Environment, National News, Ethics


State film tax incentives have exploded in popularity in the last decade. In 2000, only three states offered the subsidies. By 2010, the number of states offering incentives had peaked at 40. Among these, the state government of Alaska offers one of the most generous incentive systems, say I. Harry David and Mark Robyn of the Tax Foundation.

  • They receive a base rate of 30 percent of expenditures, and additional credits for spending on wages to Alaskan residents (10 percent), filming in rural locations (2 percent) and for filming in the off-season (2 percent).
  • The state's Film Office is currently authorized to disburse up to $100 million between 2008 and 2013.
  • As of January 13, 2012, over $14 million in credits had been issued.
  • Simultaneous with this tax structure, the state's film business has boomed in recent years, rising from about $745,000 in 2010 to more than $54 million in 2012.

Recognizing these benefits on face, Alaska lawmakers have sought to expand the program to take greater advantage of the nation's film industry. Legislators recently passed a bill, waiting for the governor's approval, to renew the program to run through June 2023 and to expand many of its provisions.

Advocates of the bill make several claims about its benefits:

  • Supporters assert that renewal would prevent the already-established industry from collapsing and making the film infrastructure and workers' skills worthless.
  • Additionally, some point out that since several other states are scaling back their programs, Alaska can defend its industry at low cost.
  • Many claim the program increases total tax revenue for the state, stimulates economic activity and creates jobs.

However, a comprehensive review of other states' programs finds that these claims are unfounded.

  • Film incentives generally only serve to shift economic activity and jobs from one area to another instead of producing new ones.
  • They result in a net revenue loss for states as the credits forgo more revenue than taxation on the productions brings in.
  • They fail to create self-sustaining industries: production companies only remain in-state until tax conditions are made more favorable elsewhere.

Source: I. Harry David and Mark Robyn, "Movie Production Incentives in the Last Frontier," Tax Foundation, April 26, 2012.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii