E&Y and MPAA Release Tax Credit Benefits Study

Ernst & Young LLP earlier this month released a study assessing the “economic benefits of film production tax incentives”.  The study, entitled “Evaluating the effectiveness of state film tax credit programs” was commissioned by the Motion Picture Association of America (MPAA) and is available for download from the E&Y site.

The study attempts to devise a methodology for evaluting film- and TV-related tax incentive programs, and, as noted by Deadline Hollywood, E&Y argues that “The economic benefits to residents extend beyond the production activities themselves and include increased activity by suppliers to the film industry and increased consumer spending from higher incomes”.  While the study is a little light on actual numbers, it rather sensibly notes that “Whether the costs of the programs are justified by these
economic benefits must be answered by comparing the benefit-cost ratios of film credit programs with those achieved by other economic development programs.”

Bob Tarantino

About Bob Tarantino

Bob Tarantino is Counsel at Dentons Canada LLP and focuses his practice on the interface between the entertainment industries and intellectual property law, with an emphasis on film and television production, financing, licensing, distribution, and IP acquisition and protection. His clients range from artists and independent producers to Canadian distributors and foreign studios and financiers at every stage of the creative process, from development to delivery and exploitation.

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