Flip Flopping on Film Tax Credits
Gov. Jay Nixon recently approved $1 million in tax credits for a film to be made in Saint Louis.
Yes, this is the same policymaker who once said that he wanted to cut this particular program. It’s also the same governor who appointed a commission that recommended for this particular credit to be eliminated. He certainly delivers a mixed message.
Regular readers of Show-Me Daily will know that the Missouri film tax credit program is my favorite topic to discuss on the blog. Even though the state government spends less on this program than on other
targeted tax credit programs, the film tax credit program clearly demonstrates the negative effect of targeted tax credits in general. Missourians would be better off if it were eliminated.
From the article in the Saint Louis Business Journal:
“I told Paramount there may be an outside chance to get tax credits so we have to start making plans to look elsewhere,” [executive producer Michael] Beugg said.
In many states, waiting for approval for a film tax credit application usually takes one or two days, he said. But in Missouri, he’s been waiting two months for an answer.
If the wait for approval discourages a filmmaker from coming to the area, taxpayers have a reason to celebrate — it would mean that there’s one fewer film that they are forced to subsidize.