Film producers and industry professionals across the Commonwealth of Massachusetts, and across the country for that matter, are pushing the state legislature to remove the sunset date for Massachusetts Film Tax Credits. Over the years, supporters of the film tax credit have defended the program by extending the sunset date to subsequent years, effectively keeping the program alive to sustain the 25% tax credit on eligible production expenses in the state. While this defensive strategy has worked in the past, supporters are now going on the offensive and pushing for a permanent removal of the sunset date.
The removal of the sunset date would keep the well-functioning film tax credit incentive in place, and give assurance to current and future filmmakers that they can continue to operate business as normal in the state. Opponents raise the issue that the film tax credit does not create enough jobs relative to the cost, while supporters argue that it keeps an industry stable and creates positive externalities such as infrastructure (New England Studios, for example) that are not directly accounted for in the film tax credit analysis. Regardless of supporter or opponent momentum, expect more political lobbying and activity throughout the Commonwealth.
Traditionally, the Massachusetts Production Coalition (MPC) orchestrated lobbying efforts among industry supporters to extend the credit. Now the MPC is taking a more proactive approach instead of reacting to opponents’ proposals. MPC is supporting House Docket 388, filed by Representative Tackey Chan and Senate Docket 424, filed by Senator Michael Moore, to eliminate the 2022 sunset date. The goal of the MPC is to create enough industry buzz to add additional cosponsors to the bill, which will ultimately result in the Governor signing the bill into law.
Clocktower Tax Credits, LLC, supports the elimination of the sunset. Since 2010, Clocktower has helped dozens of Massachusetts filmmakers finance their films by selling their film tax credits to taxpayers across the Commonwealth. Nathan Howe works with producers and can be reached at (978) 460-4244 or NHowe@ClocktowerTC.com.