Although, I really wish the feds/state would improve benefits for those who lack dependents as the EITC simply sucks if you don't have any. Not all working poor have children.
The tax credits have changed what once was a very sleepy industry of mostly corporate shoots with the occasional 2nd unit. Film making is big business with hundreds of on-set crew members being employed plus hundreds more in related fields. It's great PR for the city. I know a lot of people who have done well as a result.
Is the overall benefit to the state and economy worth the loss in direct tax gains? It's hard to say. Supporters would point to the jobs being created as the type of high skill, high pay that makes them more desirable plus all the low paid service jobs which are also helped.
Remote crews for film shoots are no longer the "hundreds and hundreds". For something like 100 different shoots in MA that got tax credits in 2012, they created about 700 jobs. Or about 7 per shoot. No word on how permanent those 7 jobs were once the shoot was over. http://www.mass.gov/dor/docs/dor/news/reportcalend...
They shoot the movie digitally and send it wherever it needs to go. The idea was to start the industry here by having them shoot scenes and then have them eventually want to grow roots and become a sustainable part of the economy (remember "Hollywood East"?). However, that hasn't happened because the film industry has learned how to airdrop in and then drive away everywhere it goes.
Furthermore, the film industry has learned how to play all the post-production staff like a fiddle. Companies that make the films what they are today with all the retouching, background replacement, and computer manipulation are extremely boom/bust. They exist for the time it takes to do the movie and then nothing. There's no way to tide them over and they are constantly going bankrupt. They don't share in the success of the movie as they end up getting paid from their bid and their bid only which comes from a portion of whatever tax break can be gained. The tax breaks are even one of the CAUSES for this chronic destruction of jobs: http://www.siggraph.org/discover/news/whats-wrong-...
So, the only effect our tax break has had is to increase the number of disruptions in the city and the fact that Ted lived in Boston instead of Boston (as played by Vancouver).
Post-production is my business. Yes, footage is sent everywhere. But having a DIT and crew and on-set/local processing is more common now then ever. There has been a huge jump in the number of post-production companies and their clients in the last 10 years which is directly related to the tax credits. Where there is film production there is local post-production if for any other reason then the turn around is so much quicker and even if final posting is going to be done in LA, etc they want to start the process during the shoot. Sure, some of these company are created and killed overnight but the employees still exist with their skills and income taxes.
I'm on the fence about the value of the tax credits myself -- as you say they are easy to manipulate, resell, and otherwise leverage in ways that doesn't help the local economy. But to claim that because everything is digital so local shooting doesn't equal local posting is just wrong.
My statement on post was probably over-encompassing and over-stated. As the Rhythm & Hues article states pretty accurately though, the reason you have a local VFX job is because it means they can use the tax incentive to its "intended purpose" of local spending while simultaneously forcing your budget to be within the tax incentive cap size AND making sure that their biggest footprint is no bigger than it needs to be to justify the incentive.
In 1970, it was necessary to do EVERYTHING on site. It's just not the case today and anything on-site is extremely lightweight. You do initial post so they can "see the result" and determine if they need a reshoot. Great. Tomorrow, you're out of a job because they packed up and went back to Hollywood/China/India to finish up and start determining their next project and whether they'd be back in Boston or not. You still exist as an employee even if shell pops up and disappears overnight, but you're gainfully unemployed if they don't come back here. So, to see those job gains remain is going to require ALWAYS bringing them back here. It's a race to the bottom at that point as other states think they're going to be the one that turns it all around and actually gets a new Hollywood instead of us.
Money is not glue. Throwing it at the film industry is not going to get them to stay here. If the tax incentives end tomorrow, you're going to be VancouverDog or TorontoDog or LouisianaDawg in no time. That was my bigger point. Sorry that my misstatement got in the way of that.
Throwing it at the film industry is not going to get them to stay here. If the tax incentives end tomorrow, you're going to be VancouverDog or TorontoDog or LouisianaDawg in no time.
Ha. Too many other things tying me to Boston.
This and all tax incentives are expensive ways of gaining a small amount. A lot, but not all, production will chase the lowest cost of doing business and major film production is surprisingly easy to relocate rapidly. However, there are people/businesses which have grown to the point of being self-sustaining and won't leave. This is the goal of the credits.
As I've said in other comments, tax credits are questionable. I know a lot of people who are employed due to them and it's unclear what will happen to them if production stops as they have families and can't just up and move to whatever state if offering the best deal. But from an economic point of view there are better (and worst) ways of spending tax dollars.
1. It's not all about Boston. The tax credit is state-wide.
2. While I'm a believer in scrutinizing vague happy-sounding "jobs created" claims, I think that focus on permanent jobs created largely misses the point. I don't know much at all about the film industry, but the purpose of the tax credit wasn't to create permanent production facilities in Massachusetts, was it? It was to create an incentive for filming in the state, and that's itinerant work by definition. Why would you expect anything different?
3. There's definitely spillover benefit in areas where filming takes place. Film production companies bring in their own catering and workers, yes, but I know a cafe owner whose business got a nice shot in the arm when a production company working nearby opened a tab with him for all their workers. I know other business owners who were paid to have their stores used as locations, people who rented houses, babysitting gigs, local equipment rental. Also a lot of benefit from film tourists, people who want to see a film with their favorite actor being shot.
"Hollywood East"? How about "Siberia West"?! So much cheaper here then trekking there, Alaska, or Greenland for snow! OK, so Ice Road Truckers is filmed in Alaska, but a small production.
These tax credit fuel movies can help some tourism here, though I can't say I'm all that interested in visiting North Carolina or Louisiana where much is being filmed now.
Of course if you pay people to make movies here they will, but the question is whether it is worth it. The credits can be sold to others who spend money here, and I don't really think that paying to have Paul Blart Mall Cop filmed at the Burlington mall did anything good for Mass tourism, you could argue that subsidizing crappy movies makes MA look desperate.
Gone Baby Gone was made before the credit was in effect, as were most of the films on this list. The Departed. Mystic River. Mona Lisa Smile. State and Main (which supposedly takes place in VT, and is a gem of a movie). The Perfect Storm. Cider House Rules. A Civil Action. The Friends of Eddie Coyle. And many, many more. Plus a bunch of TV series.
It's worth noting that The Departed filmed only a handful of absolutely necessary scenes in Boston, the rest was shot in New York (which doubled as Boston in the film because they offered tax incentives that Boston didn't at the time). That's right, we had an opportunity to have an Oscar-winning film with an all-star cast shot here by a renowned director and instead they were here for like 2 weeks.
The way the tax credit is written, the money must be spent here first. The movie industry has spent a lot of money on ancillary services over those 10 years, and the indirect benefit of advertising the state has been priceless.
Why just target the film industry with tax credits? Why not give them to manufacturing companies, pharma/biotech companies, etc? Of course if you offer credits to all businesses, it's called lowering taxes.
Was that it the movie industry had the added benefit of advertising the state, much in the same way that we are being sold the Olympics. That in turn brings in more revenue which you would not get from traditional manufacturing etc.
Is it fair that one industry gets a tax break and another doesn't?
Will shifting the tax break to low income earners bring any extra income to the state?
Boosting incomes at the bottom of the wage scale generally has positive knock-on effects, as these are the people that are most likely to spend any extra cash instead of saving it.
The tech/pharma groups already get tons of tax credits. Anyone with money and a half-way decent legal/lobby group can get some form of tax credit.
The idea with these credits is to target specific industries which have greater effect on the economy in ways that general tax cuts would not. Simply lowing the tax rate slightly won't result in business coming to MA -- it just starves the state of money to spend on things like roads. By attracting a very specific business you bring along with it all the related fields and this overall increases the tax returns + jobs in more ways then a simple 1/2% cut in taxes.
I'd rather see less people get tax cuts and more money spent on improving roads / schools which in the long run is going to improve quality of life and help the economy as a whole.
I'd think if I owned a sub shop or a dry cleaning business that I'd love to get the same deal that favored industries get. Subsidizing a movie so that Cameron Diaz can get paid more certainly doesn't seem like a good deal for them.
If you owned a sub shop you likely wouldn't be in a position to relocate anyway and while you'd prefer to get more cash via lower taxes you might not mind if you had more customers.
The idea behind tax credits is rise the overall economy with the idea that Cameron Diaz might not be buying much locally but her team of assistants will be. I'm not sold on this idea as the best way of boosting the economy but that's the theory.
should be temporary. The idea behind this one was two fold:
It would establish a film industry in Massachusetts by using favorable tax policies to lure production;
It would generate economic activity to offset the cost of the credits.
It has arguably done the first, but I have yet to see any analysis confirming validity of the second. That said, I don't mind losing some money with a short term credit if it creates a viable industry that remains long term. I think we are at the point where film production needs to exist for reasons beyond tax incentives, else we need to recognize that it isn't viable in Massachusetts. Either way, phasing out the tax credit is probably a good idea, and I can't argue with where Baker would redirect the resource.
It is difficult to quantify. Are there any sources that show the benefits?
Now this part is unfair (to both parties), but it just sounds so similar...
[quote]The way the tax credit is written, the money must be spent here first. The movie industryBoston 2024 has spent a lot of money on ancillary services over those 10 years, and the indirect benefit of advertising the state has been priceless.
All that will stop when the tax credit goes away.[/quote]
What does that even mean? People are going to watch the Departed or Mystic River and then move to MA? People move for jobs, quality of life, and family mostly. Seeing DiCaprio's hand get smashed up in a Southie bar isn't bringing anyone to town.
I am 1000% anti-Olympics, but that is more of a real advertisement as it's specifically part of the deal. We host the games and NBC pumps our regional tires for two weeks.
Advertising works. It's why it's a billion dollar industry. People buy soft drinks and cars because they saw it in a movie, why is it so hard to fathom that advertsing MA may influence people to move to or visit MA?
In addition to stuff like Paul Blart, there are other movies filmed here where we've only served as a stand-in for New York City or even Paris (at least one of the Steve Martin Pink Panther movies). That's not going to increase tourism here any more than I developed a burning desire to visit Vancouver when it was the stand-in for big American cities back in the day. Good Will Hunting and Cheers (granted, TV, not a movie) are the exceptions to the rule.
I moved to Boston so that a bum that I took in from the cold could teach me the finer lessons of love and humanity that I'd never get by focusing solely on my graduate work.
Eliminate all special interest tax breaks and lower the business tax rate by whatever % needed to offset the $$$ amount to give everyone a break. Then the largest corporation to single person company is getting the same discount.
But ending a tax credit results in new taxes. So Charlie is a liar. Sounds similar to Mitt's strategy of calling all new taxes "fees", so he could maintain his own "no new taxes" lie.
Btw, I don't support tax breaks for the film industry. Good move, but his no new taxes pledge is officially a lie now.
Just a way to enhance revenue. This happens all the time when politicians need to get revenue and don't want the ire of voters. What are fees, then? It is much easier to raise DCR parking fees or registration renewal fees at the RMV than it is to raise taxes. Countless governors from the Duke to now raised fees, but only a few had the balls to actually raise taxes.
No new taxes, just getting rid of tax credits. And a dubious tax credit at that. Much better to end credits that only a few enjoy than to even raise fees.
Not decreasing taxes is the same as raising taxes, since people are paying more and more every year. Still, keeping rates the same is not increasing taxes, and removing any tax credits or deductions does not affect the overall tax rate. Yes, to the taxpayer, and the end of the day, your tax bill goes up, but the rate is constant.
And, finally, a reporter gets it right: it's not a "tax credit" in the sense your taxes are reduced based on what you spend. The state GIVES the film companies money - up to 25% of what they spend.
Director: Oh, here he comes.
Director: What is it now, Quimby?
Mayor Quimby: Nothing. Nothing. Only the, uh, city has just passed another tax on puffy directing pants.
Director: But I don't wear puffy pants!
Mayor Quimby: I meant a, uh, tax on not wearing puffy pants.
Director: Yeah, well, we only have $1,000 left anyway.
Mayor Quimby: Ah, there's a $1,000 "leaving town" tax.
Director: I hope you're all satisfied. You bankrupted a bunch of naive movie folks. Folks from a Hollywood where values are different. We weren't thinking about the money. We just wanted to tell a story. A story about a radioactive man and you slick small-towners took us for all we're worth.
Mayor Quimby: Should we give them some of their money back?
Crowd: No.
The two guys and their realty /construction firm involved in the "reality" show Flipping Boston used the tax credits during their production of the series over the last several seasons.
No film credits = no more shows, IMHO.
The above does point out that the film tax credit is was not just for theatrical releases. Helped in a small way perhaps to spiff up some distressed properties in Eastern Mass...
This old house is kinda a joke now.. Its no longer about having the owners re-do their home and helping do the work themselves, it's more about expensive, over-the-top projects where the owners just write checks and go broke trying to remodel their home.
Sure its a local show still, but it's almost not any better than most of these shows you see on HGTV now. Sadly, they've sold out for better ratings (and better syndication rights)
Wake me up when Dean Johnson is on.. Hometime is far better for this stuff.
Even back in the Bob Vila days, it was 'bankrupt the homeowner' most of the time. He was the worst. I remember one homeowner who wanted to leave a brick chimney exposed in her kitchen, and Vila actually said "No, you don't want that," and it was for supposed esthetic reasons, not because of any structural problem that would result.
I can't see that show relocating because of the tax credit going away. They started and stayed for all those years before there was a credit, so its disappearing is not likely to make them move.
back in the Bob Vila days.. hell even the guy who followed him (Steve Thomas) wasn't all that bad.
It just seemed like in the past 10-15 years the projects have gotten more grand, cost a hellva lot more, and moved from 'small somewhat affordable and achievable' remodels to 'way over the top' remodels.
A few years ago, someone I worked for wanted to be on that show, so he investigated it. The guy was a multimillionaire so the issue wasn't money.. he just didn't like losing almost losing the entire control of the project to them. They pretty much gave/give the home owner no options or say in the matter. You had to use their contractors, their suppliers, their everything.. even if it cost 2x as much to do. All to be on TV...
I don't think that show is going anywhere anyways.. its a WGBH production, and brings in a lot of viewers and dare I say "donation dollars" to the station because it's so highly regarded.
However, you want real home improvement with answers to your questions.. watch Hometime or Ask This Old House
McMorrow said the film tax credit program’s meager returns to Massachusetts don’t justify its cost to taxpayers. “The numbers are pretty stark: of the 2,000 jobs created, only 700 went to Massachusetts residents,” said McMorrow, who added that each job created cost the state $108,000. “You have an $80 million program that only creates 700 jobs. There’s got to be a better way.”
Comments
Sold me...
By b from Ros
Tue, 03/03/2015 - 8:31am
Well that was an easy sell, at least for me...
Although, I really wish the feds/state would improve benefits for those who lack dependents as the EITC simply sucks if you don't have any. Not all working poor have children.
How many films were made here
By anon
Tue, 03/03/2015 - 9:00am
How many films were made here prior to the tax credit? From my 30k ft view, it definitely seems to have had an effect.
Big Effect
By BostonDog
Tue, 03/03/2015 - 9:25am
The tax credits have changed what once was a very sleepy industry of mostly corporate shoots with the occasional 2nd unit. Film making is big business with hundreds of on-set crew members being employed plus hundreds more in related fields. It's great PR for the city. I know a lot of people who have done well as a result.
Is the overall benefit to the state and economy worth the loss in direct tax gains? It's hard to say. Supporters would point to the jobs being created as the type of high skill, high pay that makes them more desirable plus all the low paid service jobs which are also helped.
Except it doesn't happen here
By Kaz
Tue, 03/03/2015 - 9:48am
Remote crews for film shoots are no longer the "hundreds and hundreds". For something like 100 different shoots in MA that got tax credits in 2012, they created about 700 jobs. Or about 7 per shoot. No word on how permanent those 7 jobs were once the shoot was over. http://www.mass.gov/dor/docs/dor/news/reportcalend...
They shoot the movie digitally and send it wherever it needs to go. The idea was to start the industry here by having them shoot scenes and then have them eventually want to grow roots and become a sustainable part of the economy (remember "Hollywood East"?). However, that hasn't happened because the film industry has learned how to airdrop in and then drive away everywhere it goes.
Furthermore, the film industry has learned how to play all the post-production staff like a fiddle. Companies that make the films what they are today with all the retouching, background replacement, and computer manipulation are extremely boom/bust. They exist for the time it takes to do the movie and then nothing. There's no way to tide them over and they are constantly going bankrupt. They don't share in the success of the movie as they end up getting paid from their bid and their bid only which comes from a portion of whatever tax break can be gained. The tax breaks are even one of the CAUSES for this chronic destruction of jobs: http://www.siggraph.org/discover/news/whats-wrong-...
So, the only effect our tax break has had is to increase the number of disruptions in the city and the fact that Ted lived in Boston instead of Boston (as played by Vancouver).
http://www.bostonglobe.com/business/2014/09/18/cos...
You're wrong
By BostonDog
Tue, 03/03/2015 - 9:52am
Post-production is my business. Yes, footage is sent everywhere. But having a DIT and crew and on-set/local processing is more common now then ever. There has been a huge jump in the number of post-production companies and their clients in the last 10 years which is directly related to the tax credits. Where there is film production there is local post-production if for any other reason then the turn around is so much quicker and even if final posting is going to be done in LA, etc they want to start the process during the shoot. Sure, some of these company are created and killed overnight but the employees still exist with their skills and income taxes.
I'm on the fence about the value of the tax credits myself -- as you say they are easy to manipulate, resell, and otherwise leverage in ways that doesn't help the local economy. But to claim that because everything is digital so local shooting doesn't equal local posting is just wrong.
Fair enough
By Kaz
Tue, 03/03/2015 - 12:15pm
My statement on post was probably over-encompassing and over-stated. As the Rhythm & Hues article states pretty accurately though, the reason you have a local VFX job is because it means they can use the tax incentive to its "intended purpose" of local spending while simultaneously forcing your budget to be within the tax incentive cap size AND making sure that their biggest footprint is no bigger than it needs to be to justify the incentive.
In 1970, it was necessary to do EVERYTHING on site. It's just not the case today and anything on-site is extremely lightweight. You do initial post so they can "see the result" and determine if they need a reshoot. Great. Tomorrow, you're out of a job because they packed up and went back to Hollywood/China/India to finish up and start determining their next project and whether they'd be back in Boston or not. You still exist as an employee even if shell pops up and disappears overnight, but you're gainfully unemployed if they don't come back here. So, to see those job gains remain is going to require ALWAYS bringing them back here. It's a race to the bottom at that point as other states think they're going to be the one that turns it all around and actually gets a new Hollywood instead of us.
Money is not glue. Throwing it at the film industry is not going to get them to stay here. If the tax incentives end tomorrow, you're going to be VancouverDog or TorontoDog or LouisianaDawg in no time. That was my bigger point. Sorry that my misstatement got in the way of that.
Agree
By BostonDog
Tue, 03/03/2015 - 2:21pm
Ha. Too many other things tying me to Boston.
This and all tax incentives are expensive ways of gaining a small amount. A lot, but not all, production will chase the lowest cost of doing business and major film production is surprisingly easy to relocate rapidly. However, there are people/businesses which have grown to the point of being self-sustaining and won't leave. This is the goal of the credits.
As I've said in other comments, tax credits are questionable. I know a lot of people who are employed due to them and it's unclear what will happen to them if production stops as they have families and can't just up and move to whatever state if offering the best deal. But from an economic point of view there are better (and worst) ways of spending tax dollars.
Three points
By lbb
Tue, 03/03/2015 - 10:40am
1. It's not all about Boston. The tax credit is state-wide.
2. While I'm a believer in scrutinizing vague happy-sounding "jobs created" claims, I think that focus on permanent jobs created largely misses the point. I don't know much at all about the film industry, but the purpose of the tax credit wasn't to create permanent production facilities in Massachusetts, was it? It was to create an incentive for filming in the state, and that's itinerant work by definition. Why would you expect anything different?
3. There's definitely spillover benefit in areas where filming takes place. Film production companies bring in their own catering and workers, yes, but I know a cafe owner whose business got a nice shot in the arm when a production company working nearby opened a tab with him for all their workers. I know other business owners who were paid to have their stores used as locations, people who rented houses, babysitting gigs, local equipment rental. Also a lot of benefit from film tourists, people who want to see a film with their favorite actor being shot.
"Hollywood East"? Siberia West!
By Markk02474
Tue, 03/03/2015 - 10:54am
"Hollywood East"? How about "Siberia West"?! So much cheaper here then trekking there, Alaska, or Greenland for snow! OK, so Ice Road Truckers is filmed in Alaska, but a small production.
These tax credit fuel movies can help some tourism here, though I can't say I'm all that interested in visiting North Carolina or Louisiana where much is being filmed now.
Ice Road Busers
By Ari O
Tue, 03/03/2015 - 2:06pm
They could have filmed that anywhere along the Braintree Line a couple weeks back.
Of course if you pay people
By anon
Tue, 03/03/2015 - 9:34am
Of course if you pay people to make movies here they will, but the question is whether it is worth it. The credits can be sold to others who spend money here, and I don't really think that paying to have Paul Blart Mall Cop filmed at the Burlington mall did anything good for Mass tourism, you could argue that subsidizing crappy movies makes MA look desperate.
Lots of films predate the tax credit
By perruptor
Tue, 03/03/2015 - 9:46am
Gone Baby Gone was made before the credit was in effect, as were most of the films on this list. The Departed. Mystic River. Mona Lisa Smile. State and Main (which supposedly takes place in VT, and is a gem of a movie). The Perfect Storm. Cider House Rules. A Civil Action. The Friends of Eddie Coyle. And many, many more. Plus a bunch of TV series.
It's worth noting that The
By Marty Scorcese
Tue, 03/03/2015 - 1:07pm
It's worth noting that The Departed filmed only a handful of absolutely necessary scenes in Boston, the rest was shot in New York (which doubled as Boston in the film because they offered tax incentives that Boston didn't at the time). That's right, we had an opportunity to have an Oscar-winning film with an all-star cast shot here by a renowned director and instead they were here for like 2 weeks.
So?
By anon
Tue, 03/03/2015 - 2:15pm
Still an entertaining movie, regardless of where it was filmed. This is provincialism at its most inane.
A lot of movies made here because of tax credit
By FredQuimby
Tue, 03/03/2015 - 9:03am
10 years ago, virtually nothing was filmed here.
The way the tax credit is written, the money must be spent here first. The movie industry has spent a lot of money on ancillary services over those 10 years, and the indirect benefit of advertising the state has been priceless.
All that will stop when the tax credit goes away.
So the question is:
What do we gain by eliminating the tax credit?
according
By cybah
Tue, 03/03/2015 - 9:09am
To the globe article I read.. the eliminated tax credit would be used to expand one for low-income workers. That's the gain.
Why just target the film
By piscis
Tue, 03/03/2015 - 9:12am
Why just target the film industry with tax credits? Why not give them to manufacturing companies, pharma/biotech companies, etc? Of course if you offer credits to all businesses, it's called lowering taxes.
The purpose of the tax credit
By FredQuimby
Tue, 03/03/2015 - 9:31am
Was that it the movie industry had the added benefit of advertising the state, much in the same way that we are being sold the Olympics. That in turn brings in more revenue which you would not get from traditional manufacturing etc.
Is it fair that one industry gets a tax break and another doesn't?
Will shifting the tax break to low income earners bring any extra income to the state?
Boosting incomes at the
By anon
Tue, 03/03/2015 - 9:57am
Boosting incomes at the bottom of the wage scale generally has positive knock-on effects, as these are the people that are most likely to spend any extra cash instead of saving it.
Exactly
By Gary C
Tue, 03/03/2015 - 2:01pm
Every cent of that money going to poor folks is going to get spent right back into the local economy. Can't say that about the film tax credit money.
Targets
By BostonDog
Tue, 03/03/2015 - 9:32am
The tech/pharma groups already get tons of tax credits. Anyone with money and a half-way decent legal/lobby group can get some form of tax credit.
The idea with these credits is to target specific industries which have greater effect on the economy in ways that general tax cuts would not. Simply lowing the tax rate slightly won't result in business coming to MA -- it just starves the state of money to spend on things like roads. By attracting a very specific business you bring along with it all the related fields and this overall increases the tax returns + jobs in more ways then a simple 1/2% cut in taxes.
I'd rather see less people get tax cuts and more money spent on improving roads / schools which in the long run is going to improve quality of life and help the economy as a whole.
I'd think if I owned a sub
By piscis
Tue, 03/03/2015 - 9:49am
I'd think if I owned a sub shop or a dry cleaning business that I'd love to get the same deal that favored industries get. Subsidizing a movie so that Cameron Diaz can get paid more certainly doesn't seem like a good deal for them.
Not disagreeing
By BostonDog
Tue, 03/03/2015 - 10:01am
If you owned a sub shop you likely wouldn't be in a position to relocate anyway and while you'd prefer to get more cash via lower taxes you might not mind if you had more customers.
The idea behind tax credits is rise the overall economy with the idea that Cameron Diaz might not be buying much locally but her team of assistants will be. I'm not sold on this idea as the best way of boosting the economy but that's the theory.
Economic development tax credits
By HenryAlan
Tue, 03/03/2015 - 9:29am
should be temporary. The idea behind this one was two fold:
It has arguably done the first, but I have yet to see any analysis confirming validity of the second. That said, I don't mind losing some money with a short term credit if it creates a viable industry that remains long term. I think we are at the point where film production needs to exist for reasons beyond tax incentives, else we need to recognize that it isn't viable in Massachusetts. Either way, phasing out the tax credit is probably a good idea, and I can't argue with where Baker would redirect the resource.
You may be right but...
By b from Ros
Tue, 03/03/2015 - 9:29am
It is difficult to quantify. Are there any sources that show the benefits?
Now this part is unfair (to both parties), but it just sounds so similar...
[quote]The way the tax credit is written, the money must be spent here first.
The movie industryBoston 2024 has spent a lot of money on ancillary services over those 10 years, and the indirect benefit of advertising the state has been priceless.All that will stop when the tax credit goes away.[/quote]
"Virtually nothing"?
By perruptor
Tue, 03/03/2015 - 9:47am
See my reply to the comment above yours. You're wrong.
Advertising the state?
By anon
Tue, 03/03/2015 - 10:31am
What does that even mean? People are going to watch the Departed or Mystic River and then move to MA? People move for jobs, quality of life, and family mostly. Seeing DiCaprio's hand get smashed up in a Southie bar isn't bringing anyone to town.
I am 1000% anti-Olympics, but that is more of a real advertisement as it's specifically part of the deal. We host the games and NBC pumps our regional tires for two weeks.
Yes.
By anon
Tue, 03/03/2015 - 11:29am
Advertising works. It's why it's a billion dollar industry. People buy soft drinks and cars because they saw it in a movie, why is it so hard to fathom that advertsing MA may influence people to move to or visit MA?
Movies aren't ads
By anon
Tue, 03/03/2015 - 12:09pm
Paul Blart Mall Cop or the Departed aren't ads for the state, they are simply movies filmed here.
'Movies aren't ads'
By TommyJeff
Tue, 03/03/2015 - 1:00pm
Uh.....say what?!?
Have you ever seen a Star Wars figure?
Well, they're not ads for Massachusetts ...
By adamg
Tue, 03/03/2015 - 2:01pm
In addition to stuff like Paul Blart, there are other movies filmed here where we've only served as a stand-in for New York City or even Paris (at least one of the Steve Martin Pink Panther movies). That's not going to increase tourism here any more than I developed a burning desire to visit Vancouver when it was the stand-in for big American cities back in the day. Good Will Hunting and Cheers (granted, TV, not a movie) are the exceptions to the rule.
To be fair
By Kaz
Tue, 03/03/2015 - 2:23pm
I moved to Boston so that a bum that I took in from the cold could teach me the finer lessons of love and humanity that I'd never get by focusing solely on my graduate work.
Eliminate all special
By anon
Tue, 03/03/2015 - 9:22am
Eliminate all special interest tax breaks and lower the business tax rate by whatever % needed to offset the $$$ amount to give everyone a break. Then the largest corporation to single person company is getting the same discount.
No new taxes says Charlie
By anon
Tue, 03/03/2015 - 10:14am
But ending a tax credit results in new taxes. So Charlie is a liar. Sounds similar to Mitt's strategy of calling all new taxes "fees", so he could maintain his own "no new taxes" lie.
Btw, I don't support tax breaks for the film industry. Good move, but his no new taxes pledge is officially a lie now.
Not a lie, not a tax
By Waquiot
Tue, 03/03/2015 - 12:07pm
Just a way to enhance revenue. This happens all the time when politicians need to get revenue and don't want the ire of voters. What are fees, then? It is much easier to raise DCR parking fees or registration renewal fees at the RMV than it is to raise taxes. Countless governors from the Duke to now raised fees, but only a few had the balls to actually raise taxes.
No new taxes, just getting rid of tax credits. And a dubious tax credit at that. Much better to end credits that only a few enjoy than to even raise fees.
The GOP nationally has said
By anon
Tue, 03/03/2015 - 12:14pm
The GOP nationally has said that removing tax credits or subsidies was the same as new taxes.
And George W. Bush said
By Waquiot
Tue, 03/03/2015 - 2:32pm
Not decreasing taxes is the same as raising taxes, since people are paying more and more every year. Still, keeping rates the same is not increasing taxes, and removing any tax credits or deductions does not affect the overall tax rate. Yes, to the taxpayer, and the end of the day, your tax bill goes up, but the rate is constant.
There is a god
By JohnAKeith
Tue, 03/03/2015 - 10:50am
This is heaven to my ears.
And, finally, a reporter gets it right: it's not a "tax credit" in the sense your taxes are reduced based on what you spend. The state GIVES the film companies money - up to 25% of what they spend.
New Taxes
By anon
Tue, 03/03/2015 - 10:54am
But there are so many new taxes we could add!
Director: Oh, here he comes.
Director: What is it now, Quimby?
Mayor Quimby: Nothing. Nothing. Only the, uh, city has just passed another tax on puffy directing pants.
Director: But I don't wear puffy pants!
Mayor Quimby: I meant a, uh, tax on not wearing puffy pants.
Director: Yeah, well, we only have $1,000 left anyway.
Mayor Quimby: Ah, there's a $1,000 "leaving town" tax.
Director: I hope you're all satisfied. You bankrupted a bunch of naive movie folks. Folks from a Hollywood where values are different. We weren't thinking about the money. We just wanted to tell a story. A story about a radioactive man and you slick small-towners took us for all we're worth.
Mayor Quimby: Should we give them some of their money back?
Crowd: No.
There goes another season of Flipping Boston
By AMCoffee
Tue, 03/03/2015 - 11:14am
The two guys and their realty /construction firm involved in the "reality" show Flipping Boston used the tax credits during their production of the series over the last several seasons.
No film credits = no more shows, IMHO.
The above does point out that the film tax credit is was not just for theatrical releases. Helped in a small way perhaps to spiff up some distressed properties in Eastern Mass...
yeah
By cybah
Tue, 03/03/2015 - 12:39pm
I could go the rest of my life not seeing a show about flipping..
You know.. flipping... one of many reasons why the housing economy tanked a few years ago.
I'm more upset that Ghostbusters reboot may not be filmed here after all....
Ending Flipping Boston alone
By anon
Tue, 03/03/2015 - 1:11pm
Ending Flipping Boston alone is reason to end tax credits.
...and This Old House?
By Markk02474
Wed, 03/04/2015 - 4:00am
will it stop doing local stories entirely?
This old house
By cybah
Wed, 03/04/2015 - 6:46am
This old house is kinda a joke now.. Its no longer about having the owners re-do their home and helping do the work themselves, it's more about expensive, over-the-top projects where the owners just write checks and go broke trying to remodel their home.
Sure its a local show still, but it's almost not any better than most of these shows you see on HGTV now. Sadly, they've sold out for better ratings (and better syndication rights)
Wake me up when Dean Johnson is on.. Hometime is far better for this stuff.
That must have happened a long time ago.
By perruptor
Wed, 03/04/2015 - 8:52am
Even back in the Bob Vila days, it was 'bankrupt the homeowner' most of the time. He was the worst. I remember one homeowner who wanted to leave a brick chimney exposed in her kitchen, and Vila actually said "No, you don't want that," and it was for supposed esthetic reasons, not because of any structural problem that would result.
I can't see that show relocating because of the tax credit going away. They started and stayed for all those years before there was a credit, so its disappearing is not likely to make them move.
I used to watch
By cybah
Wed, 03/04/2015 - 9:03am
back in the Bob Vila days.. hell even the guy who followed him (Steve Thomas) wasn't all that bad.
It just seemed like in the past 10-15 years the projects have gotten more grand, cost a hellva lot more, and moved from 'small somewhat affordable and achievable' remodels to 'way over the top' remodels.
A few years ago, someone I worked for wanted to be on that show, so he investigated it. The guy was a multimillionaire so the issue wasn't money.. he just didn't like losing almost losing the entire control of the project to them. They pretty much gave/give the home owner no options or say in the matter. You had to use their contractors, their suppliers, their everything.. even if it cost 2x as much to do. All to be on TV...
I don't think that show is going anywhere anyways.. its a WGBH production, and brings in a lot of viewers and dare I say "donation dollars" to the station because it's so highly regarded.
However, you want real home improvement with answers to your questions.. watch Hometime or Ask This Old House
Here's some numbers from today's Globe
By merlinmurph
Thu, 03/05/2015 - 8:11am
From an article today (may be blocked):
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