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1 State Film Production Incentives & Programs 1 (2016)

handle is hein.scsl/stflmpic0001 and id is 1 raw text is: I NATIONAL CONFERENCE of STATE LEGISLATURES The Forum for America's Ideas STATE F LM PR UCT ON NCENTIYES April 12, 2016 Hollywood has long been associated with America's dominance in the motion picture industry. But, in the 1980s and early 1990s, a favorable currency exchange rate and government sponsored tax incentives lured film production from California to Canada. It wasn't long before state policy makers took matters into their own hands to compete for the film industry. Louisiana was the first state to adopt state tax incentives for film and television production in 1992. In 2002, Louisiana expanded its program and the state's film industry began to experience strong growth. Other states responded to Louisiana's success. By 2009, 44 U.S. states, Puerto Rico and Washington D.C. offered some form of film and television production incentives. However, popularity for these programs has waned, and support for the film industry has decreased in recent years. In 2016, only 37 states continue to maintain film incentive programs, and several of these states are tightening the requirements for qualifying expenses and reeling-in per-project and annual program caps. Most states' policymakers walk a fine line and try to balance film production incentives in ways that limit forgone revenue, yet still reduce the chances of losing the state's film industry to competing incentive programs. Since 2009, 10 states have ended their incentive programs. Most recently, growing budget deficits or unclear economic benefits caused Michigan, New Jersey, and Alaska to cut their incentive programs. The U.S. Virgin islands is the only territory or state to introduce an incentive program recently-it was enacted in March, 2015. However, Kentucky, Maryland, and California have expanded or extended their programs to better compete with other states' film industries. Notable changes include Louisiana-a state known for attracting big-budget films because it has no production credit cap-has introduced a per-project cap of $30 million and an annual program cap of $180 for fiscal years 2016-2018. In addition, Montana and North Carolina replaced their tax incentive programs with grant programs capped at $1 million and $30 million per year respectively- increasing state discretion over the type of films that are eligible for funding. Connecticut suspended its incentives for film production through July 2017, but maintains tax credits for other types of media. NCSL

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