Monday, May. 29, 2023
Do film tax credits always cost more money than they bring in?
Some states, such as Virginia and Connecticut, report net gains from film tax credits. However, those gains are negligible compared with other tax credit programs in the same state.
A 2010 study from the Center on Budget and Policy Priorities also found that states such as Massachusetts lost money from their film tax credit programs, resulting in funding cuts to other state programs.
Another research study, conducted by a USC professor in 2019, found that film tax credits did not create a statistically significant increase in employment in the states with the largest programs, and many of the highest paying industry jobs go to non-residents.
The Nevada Legislature is currently considering a bill that would increase the state’s film tax credits from $10 million annually to $190 million over a period of more than 20 years.
This fact brief is responsive to conversations such as this one.
Sources
- Center on Budget and Policy Priorities State Film Subsidies: Not Much Bang For Too Many Bucks
- SAGE Journals Do State Corporate Tax Incentives Create Jobs? Quasi-experimental Evidence from the Entertainment Industry
- State of Connecticut 2022 Annual Report
- Commonwealth of Virginia Evaluation: Film Incentives
- Nevada Independent Massive Nevada film tax credit expansion touted as transformational in first hearing
About fact briefs
Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.
See all fact briefs
The Nevada Independent is a nonpartisan, nonprofit news and opinion website founded in 2017 by veteran political journalist and commentator Jon Ralston. The site and its supporting channels are focused on ethical, unbiased and transparent journalism. In general, we aim to gather and disseminate important public information and increase civic engagement. We are supported by corporate donations, memberships, event ticket sales and sponsorships and foundation grants. We disclose all our members and donors. Donors have no influence over our content, ever. The Nevada Independent is the dba for Nevada News Bureau, Inc., a 501(c)3 nonprofit founded in 2010 by Elizabeth Thompson, who now serves as one of The Nevada Independent's managing directors and its Editor.
Learn MoreLatest Fact Briefs
Does preschool increase the likelihood that a child will attend college?
Tuesday, Feb. 11, 2025
Was a large percentage of votes received after Election Day in Nevada in 2024?
Monday, Feb. 3, 2025
Did Nevada lag most of the nation in job growth in 2024?
Monday, Jan. 27, 2025