Mass. Gov. Proposes Lowering Film & TV Tax Credit

Posted January 28, 2010

In response to the state budget crisis, Governor Patrick today suggested to the legislature that the Massachusetts Film and TV Tax Credit be capped at $50 million per year. The proposal is to impose the cap as early as March of 2010 and to have it extend for the next two fiscal years – 2011 and 2012. With tax credits averaging between $75 to $100 million per year, this could reduce potential production in our state by as much as one-half.

AFTRA and SAG, working with the greater community through the Massachusetts Production Coalition, is already addressing this issue. Please be assured that just as we did during a similar offense on the credit last year, we will work closely with the legislature and the governor’s office to eliminate the proposed cap. At this time we are not asking members to take any action. We will keep you informed and reach out to our members for your direct support should that be needed in our efforts to protect production in our state and jobs for our members. 

Following is the MPC press statement that was released today. 

STATEMENT OF THE MASSACHUSETTS PRODUCTION COALITION REGARDING
THE FILM TAX CREDIT AND THE GOVERNOR’S PROPOSED BUDGET

The Massachusetts film credit has created more than $1 billion in new economic activity in the Commonwealth since it was created four years ago. It has been a tremendous boon to the Commonwealth, acting as an incentive to local investment by production companies that have come here in large numbers.

Now, as Governor Patrick attempts to close a record budget deficit, he has suggested placing a temporary cap of $50 million per year on the film credit. The Governor’s office proposes that this cap take effect immediately, and that it remain in place for two years.

We agree that in these difficult times every sector of the economy must contribute to the well being of the Commonwealth. However, we believe that this proposal may do more harm than good in helping our state to recover, since it does not fully take into account the far-reaching jobs creation and economic stimulation benefits of the film credit throughout the Commonwealth. Just as we did during a similar offense on the credit last year, we will work closely with the legislature and the governor’s office to remove the cap. We believe it is in our mutual best interest for the film industry to continue to grow in Massachusetts, bringing with it jobs and economic activity for the scores of Massachusetts businesses and the thousands of working men and women in the Commonwealth who have benefited from it.

In the meantime, the suggested cap will allow for $400 million in film expenditures in calendar years 2010 and 2011. We encourage filmmakers to proceed with plans to pursue production in the Commonwealth with full confidence that those who qualify for the credit under this suggested change will receive the credits they earn here.

We hope to preserve hard-won gains for the scores of Massachusetts businesses and the thousands of working men and women in the Commonwealth who have benefited from the film credit.

For more information on the Massachusetts Film/TV Tax Credit please click here to see FILM TAX CREDIT FICTION AND FILM TAX CREDIT FACT.

AFTRA Partners