BOSTON -- A new tax incentive may make Massachusetts a more desirable state for producers to film their movies.

NewsCenter 5's Janet Wu reported Tuesday that during the past 10 years, 51 movies were based in Massachusetts, but only eight were filmed in the Bay State.

"The Departed," which stars actors Leonardo DiCaprio and Matt Damon, shot less than 20 percent of the film in Massachusetts.

"I spoke to the producer of that production, and they told me that if we had the tax incentives that are in place today they would have spent an extra $16 million here in Massachusetts," House Speaker Rep. Sal DiMasi said.

"Stiffs," a new film starring actor Danny Aiello, was being shot in the North End on Tuesday. It is the first movie to benefit from a brand new tax cut package. The package will save producers several hundred thousand dollars.

"No longer does the movie industry have to film footage in Toronto, Philadelphia or other locations to suggest that they are some how in the North End of Boston," Senate President Sen. Robert Travaglini said.

"Stiffs" Executive Producer Roger Marino said that even if the tax package were not approved, he would still film his movie in Massachusetts.

"We happened to hit it right, that's correct," Marino said. "This bill is important."

Officials estimate Massachusetts has lost at least $100 million dollars in local spending over the last five years, with five movies shooting in other states.

The new law provides a 20 percent employment tax credit, exemption from the sales and use tax and a production tax credit if most of the movie is shot in the Bay State. Movie producers must also have a minimum payroll tax of $250,000 in Massachusetts -- excluding salaries over $1 million.

Lawmakers said that losing $15 million to $20 million in tax receipts over the next year would bring in $110 million in economic spending.