Hollywood accounting

Has the move by several states to provide tax incentives for movie and TV production companies really paid off? Well, Greg Albrecht, chief economist for the Louisiana legislature, tells NPR's "Day to Day" that the state is giving up about $100 million a year because of the credits. And the return? Albrecht says sales tax revenue from the extra business - stuff like hotels, restaurants and catering firms - amounts to $25 million a year. Math whiz that I am, that would appear to be a loss of $75 million. Albrecht explains:

We like the film industry. It's a clean industry, we're trying to build an industry. Many people here would look at it as an investment. You have to take some losses when you build up your employment skill sets.
Concerns in California about runaway production have always been a little overdone. Only NY and a few other locales are really making a go of it.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
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