What are film/TV tax credits?
Movie and television incentives are tax benefits offered by many regions in the U.S. and abroad to encourage film/TV production in that region. These incentives began in the U.S. in the 1990s in response to the flight of movie productions to countries such as Canada. Today, these tax incentives are offered by countries around the world, and most states in the U.S. such as California, New York, Louisiana, New Mexico, Virginia, Georgia and Ohio.
How have tax credits impacted the industry worldwide?
Tax credits — whether they’re in California or any other state, or abroad — have become part and parcel of film and television financing. Financiers of a film or television project will look to maximize tax credits wherever they can in order to subsidize the production budget. It’s often said that now, when a film or TV show is being planned, the first very conversation is about the location of available tax credits! In general, tax incentives do not create NEW employment; instead they shift jobs from one state or country to another. As the number of tax credit programs around the world has grown, the number of films released to wide distribution each year has remained steady (or even shrunk). Continue reading →