With the current scramble to offer Hollywood filmmakers major tax credits and incentives, it couldn't be long before there were some who started questioning how far it should go.
Lowell L. Kalapa, of Hawaii talks of his opposition to recent incentives approved by Governor Linda Lingle.
His major concern is that the advocates of the credit have argued the usual benefit that the credits will help attract new productions and make them competitive with other states in attracting those productions.
The problem is that not only do out-of-state companies get the credit, but in-state companies also.
Essentially taxpayers without any tax break will be called upon to subsidize those who claim the credit, without any benefit to themselves.
Kalapa adds that "Finally, one has to ask what is the contribution to Hawaii when that film or television series makes huge profits? All Hawaii taxpayers will see is a pocketbook that is a little bit lighter."
I knew this would eventually come up as I've studied the various agreements that many states and Canadian provinces, among others, are starting to offer production companies.
The question in my mind is what benefit is there when all the states and provinces and numerous other contries basically offer the same incentives? This is moving toward becoming a commodity that benefits Hollywood alone.
Comment Preview