"The Cost of Courting Hollywood: Are States' $25 Billion Investments Paying Off?"

1 min read
Source: The New York Times
"The Cost of Courting Hollywood: Are States' $25 Billion Investments Paying Off?"
Photo: The New York Times
TL;DR

States have spent over $25 billion in the past 20 years to attract film and TV productions through incentives, with 38 states currently offering some form of incentive. While supporters see these incentives as a way to create jobs and stimulate local economies, economists warn that the return on investment is minimal, with tax revenue generated often being a fraction of the amount invested. Incentives come in the form of cash rebates, grants, or transferable tax credits, which studios can sell to companies with high state-tax liabilities. Despite the high cost and minimal returns, states like Michigan are considering rejoining the race to attract Hollywood productions.

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