According to a recent article by the Richmond Times-Dispatch, the future of the current film incentives in Virginia may be in doubt after The Joint Legislative Audit and Review Commission received the results of staff study this month. According to the study, the benefit of film incentives to the State of Virginia may be mixed. Measured in jobs, personal income and contribution to the state economy, the film industry has returned about 20 cents for every dollar it received in tax credit and 30 cents for every dollar in grants over the five-year study period.
It is not clear if the state will abandon the program or instead restructure the incentives to create a more effective program that yields greater economic benefit and return in state revenue. Some factors that might make the program more effective are a higher incentive rate (Virginia is currently 5-15% lower than other states), a transferable credit, or an in-state vendor requirement. In any case, it is clear that a state without a film tax incentive hardly stands a chance of attracting new productions.
Regardless of the state a production chooses to shoot in, KPM is well versed in the intricacies of the film incentive landscape and can provide valuable consulting and audit services from the inception of a film through the entire tax credit application process.