The Deal With Tax Credits For Filmmakers
by Leigh ScottA lot has been written about state tax credit programs on this site and many others. I’ve produced and/or directed seven feature films that have used state tax credits as part of their financing structure. I feel it necessary to impart a little wisdom and clear up some misconceptions.
As a businessman, libertarian, and someone who understands economics let me flatly state that I am against excessive taxes. That’s a pretty simple and popular position. Lowering and eliminating onerous taxes would be ideal. My first choice would be to cut taxes across the board. Put more money into the hands of the private sector.

Film tax incentive programs are not the same as “corporate welfare.” They are, in fact, a sneaky conservative or libertarian style way to circumvent the excessive taxes that government loves to heap on us.
Let me explain how they work and why they are a good thing.
Let’s say my film has a $15 million dollar budget. Now, the critics would lead you to believe that the state (in my current situation, Connecticut) would simply cut me a check for $5 million out of the state treasury. Not so. Not so by a long shot. (more…)






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