$10M Film Tax Credits Axed: Gov. Laura Kelly Sparks Debate on Economic Growth and Job Creation in Kansas – Must Check!

Kansas Gov. Laura Kelly Vetoes $10M Film Tax Credits

Gov. Laura Kelly Sparks Economic Growth Controversy

According to The Kansas City Star, Kansas Gov. Laura Kelly recently vetoed a policy that would have provided $10 million in tax credits for filmmakers sparking debate about whether such incentives could spur economic growth in the state. The policy which offered tax credits equal to 30% of production expenditures aimed to attract out-of-state productions to Kansas. However, Gov. Laura Kelly rejected it saying it was too costly and could jeopardize other state tax policies. Industry professionals like producer Justin Begnaud argue that the lack of tax incentives is why shows like “Supernatural” which is set in Kansas are filmed elsewhere. Begnaud claims major players like Netflix avoid Kansas due to the absence of financial benefits making the state less competitive. Supporters of the incentives such as Stuart Little of Grow Kansas Film believe the real economic benefits come from local spending by film crews. They argue that productions would boost local businesses by spending money on lodging, food, and materials within the state. Sen. J.R. Claeys adds that these incentives could help build a local film industry infrastructure and create jobs.

On the other hand, some economists and studies suggest that film tax credits do not necessarily promote economic growth. For instance a 2020 audit in Georgia found significant revenue losses from their film incentives. Economist John Bradbury’s research supports this showing that the costs of subsidies often outweigh the economic benefits. Opponents like Ganon Evans from the Kansas Policy Institute suggest alternative solutions such as reducing sales tax on film equipment to attract filmmakers without risking taxpayer money.

READ ALSO: IL Senator Celina Villanueva’s Bill Extends Financial Aid For Minors Seeking Abortions, Protects Healthcare Privacy

$10M Film Tax Credits Axed: Gov. Laura Kelly Sparks Debate on Economic Growth and Job Creation in Kansas – Must Check! (PHOTO: Blue Fox Financing)

Film Incentives Debate Amid $10M Tax Credit Veto

The lack of film incentives in Kansas is also causing a talent drain. Many film school graduates leave the state due to limited job opportunities. Melanie Addington of the Tallgrass Film Association argues that tax credits could help retain these graduates and build a local industry. With neighboring states offering film incentives Kansas struggles to compete. Alan Carr of Visit Kansas City Kansas highlights that Missouri’s incentives have attracted major projects boosting tourism and local economies. The debate continues with the possibility of revisiting the bill during the upcoming special election. Proponents hope that with the right incentives Kansas could see increased film production, job creation, and economic benefits while opponents remain cautious about the financial risks involved.

READ ALSO: Debate Over Biden’s SAVE Plan: Alleviating Student Debt, Federal Vs. State Powers, And Fiscal Responsibility