New York taxpayers are getting the shaft yet again — this time in the form of the state’s annual $700 million giveaway to Hollywood in the form of tax incentives for TV and movie shoots.
A new report commissioned by the state found that the program is turning out to be a major flop. For every dollar the state gave in Hollywood tax breaks from 2018 through 2022, the program generated a paltry 15 cents in direct tax revenue.
Even when accounting for indirect and induced jobs — such as local vendors and suppliers who benefit from Hollywood productions — the return only rises to 31 cents on the dollar.
Gothamist was the first to discover the report, which the state posted without fanfare in late January.
The state’s report also found that most of the TV and movie productions taking advantage of the taxpayer-funded giveaway would have chosen New York even without the incentives.
Among the beneficiaries of New York taxpayer largesse is NBC’s Saturday Night Live, which has always broadcast from New York.
The report was commissioned by New York’s Department of Taxation and Finance, and was authored by the consulting firm PFM Group.
Gov. Kathy Hochul (D) and other Democrat state lawmakers have vigorously championed the Hollywood incentives, even increasing the amount by $280 million annually last year.
While they are intended to create jobs and juice local economies, state tax incentives for Hollywood productions are facing broadening skepticism about their efficacy.
One USC study found that despite nearly $10 billion in spending since 2002, the incentives have had “no statistically significant effects” on employment.
Democrats have tended to be in favor of Hollywood incentives, while Republicans see them as a waste of taxpayer money.
In addition to New York, states that offer significant tax breaks to Hollywood include Georgia, California, New Jersey, Massachusetts, Louisiana, and New Mexico.
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