Between 2006 and 2010 Arizona’s Film Tax Incentive Program Brought in $110 Million
With its proximity to Hollywood as well as diverse mountainous and desert landscapes, Arizona provides a strong backdrop for the film industry, but without an incentive program, the state’s production activity remains largely limited. The state’s previous film incentive program, effective from 2006 to 2010, brought approximately $110 million in qualified expenditures, but provided a low return as measured by the state and ultimately caused the program’s demise. While legislators have introduced bills to replace the program in recent years, they’ve been unsuccessful in reviving the program. Even without a program, Arizona still hosted about 700 productions in 2016 and brought in over $32 million to the local economy, mostly through “Transformers: The Last Knight” which spent approximately $15 million in the state.
Industry professional groups such as the Arizona Film and Media Coalition hope that activity like this a state without a program will encourage lawmakers to see the benefits that a renewed incentive program would provide. Many of the productions that could film in Arizona choose New Mexico with its thriving film industry based on incentives. The production industry for commercials still thrives as the weather provides consistent warmth and predictability; commercial production provided over $10 million alone in spending in Phoenix during 2016 through 341 productions. This type of economic activity in a state without a program gives optimism to those advocating for incentives as they push forward efforts to bring back a permanent industry to the Grand Canyon state.
Which States Offer the Best Film Tax Incentive Programs?
States are always changing their film tax incentive programs. New administrations, the economy and what neighoring states are doing all have an impact on which states are offering to film and TV producers. To keep up on what all the States are offering for tax incentives, check out our State Tax Incentives Map. and follow us on twitter @KPMFILM.