A recent Boston Globe editorial also echoed the pitfalls of the film credit, supporting the conclusion that it has been a poor investment. Unfortunately, since annual spending on the credit is uncapped, spending may continue to increase, as film companies seek to access the favorable incentives.
Now the House has approved a similar credit for theater productions as part of a broader economic development bill that also cites general claims about job creation and stimulus for Boston as a cultural center and destination as its benefits. While this bill does cap spending at $5 million, it is disheartening that our representatives have not learned their lessons from the failure of the film tax credit.
As the Globe points out, this proposal comes in the midst of declining revenue estimates that have necessitated large spending cuts; hardly the time to introduce frivolous new spending on tax breaks. Luckily, the bill faces strong opposition in the Senate, and even it if were to be passed, it would likely be vetoed by Governor Baker, who has spoken out against the film incentives. Let’s hope our legislators don’t get stage fright and pass this ill-advised bill.
