Film Tax Credit program being recommended for elmination

Film Tax Credit program being recommended for elmination

Source: MGN Published: CHARLESTON, W.Va. (WSAZ)– This legislative session might see the elimination of the film tax credit in West Virginia. The state’s Legal Auditor is suggesting cutting the program in a brand-new report.

The report says 2 questions were important to their review of film tax credits: exists a continued requirement for the credit and exists a continued requirement for the West Virginia Film Office?

The report discovered “the movie tax credit program has produced minimal economic advantage to West Virginia” and that’s why it’s suggested to be removed. The report states the economic impact of the credit has actually been roughly $8.6 million given that it started a decade earlier, indicating less than $1 million typically each year. Additionally, the report states the Film Office “enabled questionable expenditures to count”, consisting of paint and paper towel holders.

The Legal’s Auditor report also points out problems with insufficient records and inaccurate reports. The report discovered the Movie Workplace’s reports “do not offer an accurate representation” of the effect of the tax credit program in regards to cash. The report likewise states the Film Office’s record keeping was “outdated and undependable”.

Other factors provided to eliminate the program include competition with surrounding states for movie tax credits, approved productions not really satisfying eligibility requirements, expenses being paid for things like utility expenses, mobile phone expenses, personal property taxes, pest control, and automobile interest, in addition to reporting West Virginia does not have the facilities to attract top tier productions.