What is the impact on employment from Film Tax Credits?
January 26, 2008 5:14 pm NewsAdvocates of film tax credits put forth the proposition that because film production can so easily be done in a wide variety of locales, that financial considerations quickly become one of the most important factors in site selection. One film executive suggested that film producers would shoot a movie on Mars if they could get a 25% tax break. This belief is one of the key factors behind the development and utilization of film tax credits as incentives for production to be used in a location. At least one state reported a 10 fold increase in the dollar value of film production within their state after implementing a film tax credit.
But what is the impact on employment? Evaluating this impact is significantly more difficult, how many people are employed due to the tax credit, how many people would be employed without the tax credit. What portion of these employment bases are permanent and what portion are part-time or temporary. Gauging the impact on employment is one of the most difficult characteristics to asess.