New York taxpayers are picking up the shaft again — this time, in the form of the state giving Hollywood $700 million a year in tax incentives for TV and movie shoots.
A new state-commissioned report finds the plan is a huge failure. For every dollar the state awarded in Hollywood tax breaks from 2018 to 2022, the program generated just 15 cents in direct tax revenue.
Even after accounting for indirect induced employment, such as local vendors and suppliers who benefit from Hollywood movies, the revenue is only 31 cents on the dollar.
Gotham Mist is be the first to discover The state published the report with much fanfare in late January.
The state report also found that most television and film productions that took advantage of taxpayer-funded benefits would have chosen New York even without the incentives.
NBC is among the beneficiaries of New York’s largesse of taxpayers. saturday night live, We always broadcast from New York.
The report was commissioned by the New York Department of Taxation and Finance and written by consulting firm PFM Group.
Gov. Kathy Hochul (D) and other Democratic state lawmakers have vigorously defended Hollywood incentives, even increasing them by $280 million a year last year.
Although intended to create jobs and revitalize the local economy, the state tax break for Hollywood productions has sparked widespread skepticism about its effectiveness.
A USC study found Despite nearly $10 billion in spending since 2002, the incentives have had “no statistically significant impact” on employment.
Democrats tend to support Hollywood incentives, while Republicans see them as a waste of taxpayer money.
In addition to New York, states offering significant tax breaks to Hollywood include Georgia, California, New Jersey, Massachusetts, Louisiana, and New Mexico.
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