Quantcast

Thursday July 24, 2014

Study: #TaxCredit Vital to NY #Film Industry, Critics Doubtful

Film Crew: Law & Order

Law & Order (credit: smenzel)

A recent study found that the NY movie industry generated $6.9 billion in economic activity and sustained 29,000 jobs due to a tax break from the state. The report released by HR&A Advisors for the Motion Picture Association of America said that jobs in the TV and film industry grew in NY State by almost 25 percent between 2008 and 2011. The industry receives state tax credit of a $400 million.

Industry executives say that if the tax credit goes away, so will jobs, especially since other states are attempting to lure business away with tax subsidies. But some say a tax-credit study funded by recipients isn’t credible. E.J. McMahon, a Manhattan Institute senior fellow, said NBC Studios and “Law and Order” existed long before the tax credit. Nicole Gelinas, another Manhattan Institute senior fellow, said that giving a tax break to one industry means higher taxes for others. The study said that the growth of the film industry also spurs economic activity in other businesses, including catering. It said the credit created $4.2 billion in personal income in the state. Taxed at the local rate, that yields $288 million in state taxes.

Crain’s New York Business