A bill has been advanced by the House Finance Committee that looks to repeal Alaska’s film tax credit program.
In 2012 lawmakers reauthorized the program which was created four years prior which authorized an additional $200 million in credits issued through June 30th 2023.
We spoke with Alaska Film Group Board Member Thomas Daly who said this is creating some real problems for investors.
Daly: “The legislature had some concerns about the pilot project that lasted five years and it took about five years, by the end of the five years we were actually starting to see some big things happen The Big Miracle, Frozen Ground those were on the old program and what happens when the legislature vacillates on these things, because it took us about two years to get the new program written and passed with all the improvements asked for by the legislature I mean they signed off on this thing and voted it into being and then each time they try to bring up legislation to defund, you put that much more doubt in the minds of the investors that want to spend money up here.”
The legislature has claimed that they are not seeing the revenue generated from this project that they would have hoped, however the Alaska Film Group says otherwise based off the last legislative audit.
Daly: “As of the last legislative audit of the Film Incentive Program we’re getting $2.10 in economic impact for every dollar spent so 2.1 to 1 in an otherwise dire marketplace that is maybe returning %1, over a %100 return on investment is an absolutely good return on the money spent.”
Several members of the House Finance Committee said they were unsure how they would vote on the repeal.