Charting the Costs and Benefits of Film Tax Credits in Massachusetts

GDP Chart

CHART 1: This first chart shows that, between 2006 and 2008, the percentage increase in Gross Domestic Product generated by the film tax credit (in yellow) dramatically outpaced the overall percentage increase in Massachusetts GDP (in blue) during that same period.

Film Job Growth 2006-2008

CHARTS 2 and 3: These charts plainly show that while the overall employment rate in Massachusetts (below) was either flat or declining, the number of film industry-related jobs (above) has been steadily increasing.

State Job Growth 2006-2008

Cost vs Economic Impact

CHART 4: Here, we see that DOR’s 2009 measure of local economic benefit (economic output) is more than six times the cost of the credit.

DOR 2009 Cost/Benefit Charts

CHART 5: Finally, for those who feel that DOR’s estimate of local economic output (Chart 4 above) paints too rosy a picture, this last chart clearly demonstrates that—no matter which of DOR’s 2009 measures of local economic impact is used (GDP, New Direct Spending, or Economic Output)—the benefit of the film tax credit to the state’s economy (in green) always far outweighs its cost to taxpayers (in red).

This entry was posted in Article. Bookmark the permalink.