Wednesday, May 6, 2015

In early March 2015, Massachusetts Governor Charlie Baker proposed in his state budget to eliminate the state's film tax credit program. With the elimination of the film tax credit program, the governor would divert the funds to double the state's Earned Income Tax Credit for low-income working families with three or more children.

Governor Baker commented that eliminating the tax credit would help a vulnerable population as well as simplify the state's tax code, which would fulfill two of his campaign promises. Also, the governor was influenced by a 2012 Department of Revenue report that said the film tax credit cost the state more than it returned. Since then, proponents and critics of the film tax credit programs on both sides of the aisle have been spiritedly debating the continuation of the credit.

On April 27, Rep. Angelo Scaccia (Readville – D) introduced an amendment to cap film tax credit expenditures at $40 million a year, but the House rejected the proposal on a voice vote and included the film tax credit program in House Ways and Means budget bill (H 3400).
 

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