There’s a debate over how much California’s economy benefits from its Film & Television Tax Credit program. A report issued last summer by the L.A. County Economic Development Corp. and financed by the Motion Picture Association of America pegged an impact of $1.13 for every dollar the state allocated for the program, based on the assumption that any production availing itself of the incentives would otherwise take its business elsewhere.
By contrast, a UCLA study released last week estimated that a more accurate return figure would be $1.04 after concluding that nearly eight-and-a-half percent of the subsidy went to films and TV shows that would have shot in California regardless.
Yet even with this lowered estimated return, the UCLA study supports expanding California’s tax credit program to cover more projects, reasoning that its current “limited size” translates into only one out of five qualified applicants being able to tap into the benefit. This in turn spurs productions to seek incentives in other states, if not countries.
While the bottom line is still the pivotal determining factor in assessing the viability of tax credits, rebates and the like, there are other considerations that go into making the case for incentives, as reflected in this week’s Hot Locations feature story focusing on the impact of The Help on Mississippi and The Descendants on Hawaii.
For example, Walea Constantinau, film commissioner, Honolulu Film Office, noted that The Descendants is “by far the most successful film by a local author [the film is based on the novel by Kaui Hart Hemmings]….As a result of this success, we’ve heard from mainland production companies who have expressed interest in meeting with other authors in Hawaii, asking us for any finished scripts. There’s interest bubbling in stories of Hawaii.”
Constantinau observed that in the same way that Bridesmaids changed the perception of female comedy leads in a film, The Descendants has changed perceptions about Hawaii, underscoring that “movies made in Hawaii can also be about Hawaii and have universal appeal. A new storytelling capacity has been revealed.”
Meanwhile the music of Hawaii, showcased in the score of The Descendants, has picked up mainstream momentum, “Local musicians,” said Georja Skinner of the Hawaii Film Office, “have been able to monetize their creative talents across many platforms….The film has really amped up the exposure for Hawaii’s creative music talent.”
As for tangible benefits generated by The Help for Mississippi beyond production dollars, Bill Crump, chairman of the Greenwood-Leflore County Economic Development Foundation, noted that tourism is on the rise. This realization sank in for him when he saw that a showcase prize package on TV game show The Price Is Right included a vacation to Greenwood to see where The Help was filmed.
The Greenwood community of Baptist Town also figures to benefit for years to come thanks to The Help. A cast and crew collection drive and a world premiere of the film in Jackson, Miss., raised $180,000 for city revitalization, funds that will be put towards a Baptist Town community center and a mentoring program for children.
Utah Leaders and Locals Rally To Keep Sundance Film Festival In The State
With the 2025 Sundance Film Festival underway, Utah leaders, locals and longtime attendees are making a final push — one that could include paying millions of dollars — to keep the world-renowned film festival as its directors consider uprooting.
Thousands of festivalgoers affixed bright yellow stickers to their winter coats that read "Keep Sundance in Utah" in a last-ditch effort to convince festival leadership and state officials to keep it in Park City, its home of 41 years.
Gov. Spencer Cox said previously that Utah would not throw as much money at the festival as other states hoping to lure it away. Now his office is urging the Legislature to carve out $3 million for Sundance in the state budget, weeks before the independent film festival is expected to pick a home for the next decade.
It could retain a small presence in picturesque Park City and center itself in nearby Salt Lake City, or move to another finalist — Cincinnati, Ohio, or Boulder, Colorado — beginning in 2027.
"Sundance is Utah, and Utah is Sundance. You can't really separate those two," Cox said. "This is your home, and we desperately hope it will be your home forever."
Last year's festival generated about $132 million for the state of Utah, according to Sundance's 2024 economic impact report.
Festival Director Eugene Hernandez told reporters last week that they had not made a final decision. An announcement is expected this year by early spring.
Colorado is trying to further sweeten its offer. The state is considering legislation giving up to $34 million in tax incentives to film festivals like Sundance through 2036 — on top of the $1.5 million in funds already approved to lure the Utah festival to its neighboring... Read More