What are benefits of state & county tax incentives?

• A. They increase production costs.
• B. They are only available to large studios outside the region.
• C. They have no impact on local businesses.
• D. They reduce production costs and boost local economies by creating jobs.

Answer: (D)

State and county tax incentives are designed to attract production by offsetting costs and boosting local economies. They typically provide tax credits, rebates, or exemptions tied to qualified expenditures and to hiring local workers. By lowering the net cost of a project, these incentives make filming in a jurisdiction financially viable that might otherwise go elsewhere. The spending required to qualify, plus the dollars paid to local crews, vendors, hotels, and restaurants, injects money into the local economy and creates jobs. This combination of reduced production costs and increased local economic activity is the principal benefit of these programs, and while eligibility and generosity vary by program, the overall effect is to make production cheaper and to stimulate community growth.