Research Shows Film Subsidies Are A Flop For Taxpayers

LOS ANGELES (CBSLA.com) — States that spend millions of dollars to lure film and television production get little in return, according to researchers at USC.

A study led by a professor at USC's Price School of Public Policy showed tax credits and incentives had no long-term effect on employment, and only a temporary effect on wages. The study also found the giveaways failed to draw production as a long-term, sustainable source of jobs and revenue.

"The incentives are a bad investment," said USC professor Michael Thom. "On average, the only benefits were short-term wage gains, mostly to people who already work in the industry. Job growth was almost non-existent."

States have poured $10 billion into production incentives since 1997, according to Thom's research. The data also showed California and New York have seen virtually no change in film production employment despite generous incentives.

A handful of states have ended their film incentive programs, but 36 states including California are still spending to attract lights and cameras.

"After a state has invested tens of millions of dollars, no politician wants to acknowledge that the program is a waste of taxpayer money," Thom said in a press release.