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Film credits: maybe they're an economic disaster, but oh, the intangibles!

September 30, 2010

Now that the truth about the economic benefits and revenue costs of film tax credits is receiving more attention, backers of the credits seem to be retreating to arguments about the intangibles of film tax credits: that they provide an image enhancement and boost collective state self-esteem, and that you "can't measure the intangibles". But the price tags associated with film tax credits, often in the hundreds of millions of dollars, seem to far outweigh the intangible benefits.

We've heard that argument here in Iowa:

But some benefits can't just be measured on a dollar-for-dollar basis. The movies provide employment to local actors, construction crews, artists, caterers, drivers and a host of others. They expose non-Iowans to what the state has to offer. More intangible is the benefit of interactions in a state that can be cut off from the trends and centers of power. Not to mention the excitement factor. We've relied on caucuses every four years to bring action and celebrities to town. Now, sightings are anytime, any place.

So what if you have to lay off some teachers? Look, it's Tom Arnold!

Tags: Corporate welfare.Economic Development.film credits.harold hill.Tax Policy Blog.