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State Leaders Look To Cut Movie Tax Credits

Groups Debate Move At Public Hearing

POSTED: 6:18 pm EST March 3, 2010
UPDATED: 6:37 pm EST March 3, 2010

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State leaders want to cap the tax breaks given to the film industry. But those working in the field say it's like a director yelling "cut" on a growing industry.

The Legislature's revenue committee is being asked by Gov. Deval Patrick to limit the 25 percent tax credits, saying the state cannot afford it next year.

"Many of my students no longer automatically move to New York or California as soon as they graduate," Boston University professor Charles Merzbacher said.

"If a crew spends $100 million, taxpayers, in effect, cut them a check for $25 million," Rep. Steven D'Amico said.

"This is the most costly tax credit with the least economic benefit, in my experience," said Michael Widmer, of the Massachusetts Taxpayers Foundation.

The two sides have conflicting numbers on how much we are paying for each job created, but with 40 percent of the tax credit going toward the salary of individuals making more than $1 million per movie, the question remains: Could the money be spent more wisely?

"Contrast that with youth jobs where that same $94,000 could provide 94,000 jobs," said Yawa Miller, of ONE Massachusetts.

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