New Massachusetts Report Finds Film Tax Incentives Not Worth It

November 22, 2011

The Massachusetts Department of Revenue recently released a report detailing that $14.6 million in tax credits were given to filmmakers in 2010, yet the film tax-incentive program only generated $800,000 in new state revenue. While these numbers certainly make the program look like a drag on the tax code, the results could have been worse. In 2009, the special tax program gave out $82.4 million in credits, and only collected $10.4 million in revenue.

Fortunately, these sorts of tax credits (or tax expenditures) are being targeted for another look by the Massachusetts Department of Revenue. In fact, they recently created the Tax Expenditure Commission to examine each of the state's tax expenditures and consider reform. Jay Gonzalez, the Chair of the Commission, said in their October meeting:

"The tax expenditure system represents years and years of ad hoc decisions. There is no real, comprehensive rationale holding all the tax expenditures together. One goal of this Commission should be to start from the understanding that no tax expenditures are sacrosanct, in essence start from scratch."

I couldn't have said it better myself.

For more on film tax credits, click here and here.

For more on Massachusetts, click here.

Follow Scott Drenkard on Twitter @ScottDrenkard

Get Email Updates from the Tax Foundation

We will never sell or share your information with third parties.

Follow Us

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

Monthly Archive