Massachusetts
Massachusetts issued nearly $100 million in film tax subsidies in 2019, the most in a decade – The Boston Globe
There are sometimes pending movie tax credit score purposes when the state releases its annual transparency report, that means the totals for annually — corresponding to these for 2019, which the state beforehand reported at $77 million — usually change. On Thursday, the state additionally launched knowledge displaying it issued one other $47.5 million in movie tax credit in 2020, although that quantity might additionally develop.
Many of the credit issued so removed from 2020 went to 2 tasks: The Mark Wahlberg-led movie “Spenser Confidential,” which acquired $17.2 million, and the second season of “Fortress Rock,” the Hulu collection primarily based on the tales of Stephen King, which obtained almost $16.1 million. The drama “CODA,” which was filmed in Gloucester, amongst different communities, and gained Greatest Image at this yr’s Academy Awards, acquired $2.2 million.
The brand new knowledge come lower than a yr after the Legislature voted to reshape the movie tax credit score program, together with to make it everlasting. The choice, advocates say, injected stability into the rising {industry} inside Massachusetts and made the state — already amongst these spending essentially the most on movie tax credit nationwide — a extra enticing vacation spot for movies and scripted collection.
The Massachusetts Movie Workplace recognized at the least 33 tasks that have been filmed in Massachusetts in 2021, together with the sequel to 2018′s “Clean Panther” and an adaptation of “Salem’s Lot.” That’s in comparison with 17 in pandemic-hampered 2020, and 28 the earlier yr, based on knowledge the workplace maintains on its web site.
“We’ve all of a sudden hit the accelerator on tasks coming to Massachusetts,” stated Ryan Cook dinner, a location supervisor, who stated he and his spouse usually mentioned probably shifting earlier than buying their first dwelling right here final yr. “We might not have completed that if it wasn’t for the tax incentive turning into everlasting. . . . We’re going to see extra work coming in. Frankly, I’m having a tough time discovering employees to fill the positions.”
The choice to increase this system in perpetuity wasn’t with out controversy. Governor Charlie Baker, who repeatedly sought to kill or cut back the credit score, has argued it’s an inefficient use of taxpayer cash. A state fee agreed in 2021, discovering that the movie tax credit score program prices the state $100,000 per job created and concluding it was “not the most effective use of the state’s cash.”
Since 2011, the Massachusetts has issued $618.7 million in subsidies by way of this system to greater than 1,300 tasks, together with movies, commercials, and tv reveals, based on a Globe evaluation of state knowledge.
However supporters declare this system has spurred the creation of a whole bunch, if not 1000’s, of jobs for native tradespeople whereas supporting companies in methods not captured in state knowledge. This system additionally has had an ardent supporter in Home Speaker Ronald Mariano, a Quincy Democrat who watched a studio spring up in his personal metropolis, one in every of a rising variety of soundstages which were, or are being, constructed within the state.
“The financial advantages that this program brings to Massachusetts are immense, creating native jobs, extra financial alternatives, and award-winning movies proper right here within the Commonwealth,” Mariano stated in a press release Friday.
Whereas the brand new state knowledge embody some credit issued in 2020, it seems to largely cowl movies and collection that have been filmed earlier than the onset of the pandemic. Different tasks that acquired taxpayer cash embody the movie “I Care A Lot,” for which actor Rosamund Pike gained a Golden Globe and that obtained greater than $2.4 million in tax credit, and the TV collection “The Mistaken Mans,” which acquired $1.3 million however whose pilot wasn’t picked up by Showtime.
The tax credit score to “Fortress Rock” in 2020 is the best incentive issued to a scripted collection, topping the earlier report of $13.8 million — which went to the identical collection for its first season. The present was the primary episodic collection to be filmed in Massachusetts in almost three many years when manufacturing started in 2017 at New England Studios in Devens.
Gary Crossen, the studio’s common supervisor, stated he and others have since thought of including to the compound of 4 soundstages however have but to make any determination.
“We are able to’t be any busier than we’re,” Crossen stated. “You possibly can see industry-wide on this state, there are extra options and extra streaming collection being shot right here. I’d count on some modest will increase [in tax credits issued] within the upcoming years.”
Launched in 2006, the state’s movie tax program features a 25 p.c payroll credit score for any undertaking that spends greater than $50,000 inside Massachusetts. Beneath different adjustments that legislators handed final yr, productions that spend greater than 75 p.c of their whole finances in Massachusetts, or movie greater than 75 p.c of the time within the state, are additionally eligible for a manufacturing credit score and a gross sales tax exemption. The state beforehand had set a threshold of fifty p.c.
There’s no annual cap on the credit score, and it’s transferable, permitting a manufacturing firm to promote it to insurance coverage firms, companies, and even people.
The 2016 model of “Ghostbusters,” which acquired $26.7 million in movie tax credit, owns the report for the most important subsidy issued by way of this system whereas one other Reynolds undertaking, 2013′s “R.I.P.D.,” obtained $26.6 million.
Initiatives involving Wahlberg, a Dorchester native, have additionally repeatedly been among the many largest recipients of taxpayer-funded assist. Of the tasks that acquired the ten highest tax credit in state historical past, he’s been concerned in three: “Spenser Confidential,” the 2017 movie “Daddy’s Residence 2,” which acquired $17.9 million, and “Patriots Day,” the 2016 movie in regards to the Boston Marathon bombings, which collected $15.7 million.
Matt Stout may be reached at matt.stout@globe.com. Comply with him on Twitter @mattpstout.