The Ohio Department of Development has announced their new Motion Picture Tax Credit.
Up to $5 million in credits will be available per production with a total of $10 million available in the 2010 fiscal year and $20 million available in the 2011 fiscal year.
They even have a website to make subsidy shopping easier for film makers (which includes an online application for the credit and tips for green filmmaking). As noted before, a state film tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. is bad policy. It’s movie star welfare. Those that argue luring movies to their state will produce sustainable jobs provide no evidence. Cost-benefit analysis is ignored. And the film credits don’t pay for themselves, as The Center for Community Solutions reminded Ohio.
The bottom line is that they are a net loss to state treasuries even when the film industry grows. That, in turn, means that state services or programs must be cut – or taxes raised — to keep the budget in balance due to the loss from tax credits.
So Ohio will join the list of 43 other states and the District of Columbia that offer movie production incentives—all competing to provide the best benefits to one glamorous industry.
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