Written by new-contact on Oct 22, 2012. Posted in Incentive News

Alaska Film Office urged to ensure film tax credits benefit state

The Alaska Film Office has been urged to prioritise productions that work “in the state’s best interests” following an audit of its filming incentive programme. Alaska’s filming tax credit was recently confirmed for ten years with a USD200 million film fund, although it remains controversial.

Part of the audit quoted by the Alaska Despatch questions the film credit’s true value: “The consultant's analysis estimated that the total USD21.2 million in tax credits issued by the State generated economic activity resulting in an estimated USD1.2 million in additional taxes and fees."

The report continues: “The programme does not pay for itself and, through February 2012, has created a fiscal deficit totalling USD20 million.”

Alaska has had an uneasy relationship with filming incentives over the past couple of years. The programme has polarised opinion and controversy has coloured issues ranging from companies losing out on the chance to pitch to incoming productions, through to how much money is actually being fed back into the Alaskan economy.