Uncapping the Film Production Tax Credit: A Fiscal and Economic Analysis
May 31, 2013 | Tax Credit Review
This report contains an overview of film industry employment and wages, a fiscal analysis, and an economic analysis. The fiscal analysis establishes a projected range for average annual authorizations under an uncapped credit. This range is the basis for a cash flow analysis that projects when the authorized credits will be awarded and ultimately used. The range is also used to estimate the contribution to gross state product from productions receiving a credit due to removal of the cap. The economic analysis includes the calculation of a net fiscal impact and a revenue ratio, both of which include a balanced budget component to reflect alternate uses of the funds devoted to the credit.