LED overstated the impact of the Motion Picture Tax Credit

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All three of these programs now have statutorily mandated issuance caps that LED cannot exceed and the estimates of project expenditures in process for which tax credits are issued indicated that the caps would be reached. Consequently, the major forecasting factors are known and there is no finding by your office of inaccuracy in the projections that were provided. These known factors are avoided in the report, which over emphasizes “documentation” in lieu of common sense without ever identifying the “documentation” that should have been used or should be used when confronted with similar circumstances in the future. As a result, this recommendation is neither well-founded in fact nor utility.

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While there is a low and high range of estimates presented in the independent study commissioned every two years to review the entertainment programs, LED feels the best data to present demonstrates the highest economic impact, and conversely the highest (worst) negative impact to the state’s fiscal standing. LED feels strongly that the state fiscal impact should not be reported without reporting the state economic impact. LED believes that this is sound and prudent fiscal management for the program and finds nothing in the report that would contradict this fact.

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