Although economists are skeptical that the value matches the cost, a New York Times survey found that states across the U.S. have spent more than $25 million on providing incentives for movies and TV shows to film in their locales.
Nearly 40 states now allocate taxpayer dollars to Hollywood production, with Arizona, Indiana, Kentucky, Missouri and West Virginia all having introduced initiatives over the past two years. Michigan and Wisconsin have legislation in the works to do the same.
Georgia, which lures in plenty of film and tv productions, has spent at least $5 billion on its incentive programs. However, a report prepared for state auditors determined that the tax revenue returned equals just 19 cents on the dollars. A similar estimate for New York was between 15 and 31 cents.
“You could find almost an unlimited number of better uses for the same dollars,” said Michael Thom, a tax expert at the University of Southern California. “Who on earth would say, ‘Keep giving the money to Hollywood; my kid’s school doesn’t need new books’?”
