One of my book club members is in the movie business -- sort of. She’s an extra in movies shot in the Greater Boston area. It’s a second career born when she was between jobs. This year she’s been tapped for multiple casting calls -- one sign that the local movie scene is bigger than ever.
Business is booming because of the Massachusetts tax-film credit.
Movie companies get a 25 percent break on production and a 25 percent break on payroll. The state is one of 43 offering tax credits to entice motion picture production companies to do business outside of Hollywood.
But Governor Charlie Baker wants to get rid of the tax-film credit because it’s not giving the state the most bang for its buck. Baker says there aren’t enough local folks, like my book club member, directly benefiting from getting jobs. In fact, a Department of Revenue study indicates that most movie money leaves the state, with Massachusetts keeping just 16 cents on the dollar.
But I’m convinced, as are many state legislators, that the indirect benefit of the film credit has not been fully captured. I’ve seen that indirect benefit first hand in another state while visiting Shreveport, Louisiana. This coastal town, nearly 400 miles northwest of New Orleans, is where the motion picture companies set up shop after hurricane Katrina leveled many parts of New Orleans. Pretty soon, Shreveport was boasting the kind of fine dining restaurants that New Orleans was known for. I know. I sampled my way across the city. My local guides bragged about the new commerce, which brought local jobs for waiters, chefs, farmers and a myriad of other small businesses. And, the same week I was in town Bruce Willis was scouting a film shoot at one of the high schools.
Other states facing budget shortfalls have stopped short of eliminating the film tax credit; instead, opting to trim the total amount of the credit benefit. Governor Baker’s proposal would use the entire tax credit money to boost the earned-income tax credit for low-income families. Republicans support him, saying the film credit is all about Hollywood fat cats. However, Democrats claim Baker’s proposal effectively pits working families against another group of working people. Governor Baker has made clear that he would let the tax credit stand, IF lawmakers can identify another way to pay for the earned income credit.
I think cutting the tax-film credit is bad business long term and I disagree with those who claim the film tax credit is not paying off. Full disclosure—WGBH my employer is among the film credit beneficiaries, but I am speaking for myself.
Boston may not yet be a production powerhouse like New York City, but a lot of local businesses are now thriving because of movie production. Lawmakers—please vote to keep the tax film credit. A little Tinsel town magic can go a long way toward creating real dollars in this economy.
