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Film Tax Subsidies Cost More Than They Give Back, New Report Says

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By JANICE PODSADA, [email protected]

6:47 p.m. EST, November 17, 2010

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State subsidies for movie and TV production generate hype and bring in stars, but they don’t create permanent jobs or enough tax revenue to offset their cost, a new national report claims.

"Policymakers love this stuff. It’s Hollywood. They’re just snowed by the glitziness and glamor," said Bob Tannenwald, author of the report issued Wednesday by the Center on Budget and Policy Priorities, a left-leaning think-tank in Washington, D.C.

Connecticut offers an "open-ended" subsidy of 30 percent of production costs to any producer who meets the requirements. That translates to 30 cents back on each production dollar spent in the state. For example, a film company that spends $10 million to make a movie here could receive a credit of $3 million.

In recent years, the state has attracted some high-profile projects, including the Maury Povich and Jerry Springer shows, which are filmed in Stamford, and several major feature films.
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The center examined subsidies in 43 states, including Connecticut, and found that a large portion of the jobs they create — in particular the higher paying jobs — are filled by non-residents.

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