Study Finds Film & Entertainment Industry Financial Incentive Program Returns $5 Back to the State for Every $1 Issued
Tallahassee, Fla. – Film Florida today announced new study findings that demonstrate the significant, positive impact the Film and Entertainment Industry Financial Incentive Program has on Florida’s economy. These latest figures supplement a study conducted in March 2013 by the public accountancy and business advisory firm, MNP LLP, and sponsored by the Motion Picture Association of America (MPAA), that found the incentive supported 87,870 jobs, $2.3 billion in labor income, and $7.2 billion in economic spending across the state, both through production spending and induced tourism.
The study released today, which can be viewed by clicking here, was commissioned by MPAA and independently prepared by MNP for the Florida Department of Economic Opportunity and focuses on film-induced tourism’s impact on Florida’s businesses and local governments. Survey data found that 19.5 percent of all visitors to the state indicated viewing a movie or television series filmed in Florida contributed to their decision to travel there. After taking into consideration all of the data impacted by the incentive, the study estimates the production incentive’s return on investment (ROI) based on a range from 5.6 percent to 20.5 percent. The result means for every dollar of incentive issued, between $5.60 and $20.50 is returned back to Florida in state taxes.
Today’s findings are a supplement to MNP’s March 2013 study, which can be viewed by clicking here.
“As evidenced by the findings announced today by Film Florida, Florida’s Film and Entertainment Industry Financial Incentive Program is second to none in terms of return on investment for the State of Florida,” said Leah Sokolowsky, president of Film Florida. “In fact, the incentive program is so successful, it maintains a track record of a minimum 5:1 return on investment for the state. The program attracts a significant amount of entertainment projects, and in turn, Florida gains direct and indirect jobs, tax revenue, and film-induced tourism dollars from the film and entertainment industry.”
“And, if leveraged to its full potential, the incentive program has the ability to infuse even more capital into our state’s economy,” said Sokolowsky. “Simply put, a long-term funding commitment and continued investment in Florida’s Film and Entertainment Industry Financial Incentive Program is an investment in Florida’s economy.”
“Today’s findings released by our friends at Film Florida support what has been demonstrated in the U.S. and internationally – that a competitive, reliable production tax incentive is incredibly beneficial for state and local economies,” said Vans Stevenson, senior vice president for State Government Affairs at MPAA. “As was demonstrated by last year’s study, film and television production in Florida is creating tens of thousands of jobs and infusing billions in economic spending across the state. I commend the entire Florida film community, the Governor and Florida Legislature for their efforts in making the state one of the country’s premier markets for film and television production.”
“Florida has been successfully utilizing tax credits to lure the film and entertainment industry to shoot major motion pictures, television series and other independent productions around the state since its inception,” said Gus Corbella, chairman of the Florida Film and Entertainment Advisory Council. “The benefits have been great: high-wage jobs, boosts to our local economies and worldwide publicity for our state. This supplementary study reinforces what we already know, that the film and entertainment industry has the ability to be a major economic driver in our state and in diversifying our economy. On behalf of the Florida Film and Entertainment Advisory Council, I encourage lawmakers this session to help establish a reliable and stable funding mechanism that will help this growing industry take root in our state and become a more permanent contributor to Florida’s economy.”
“This report demonstrates how accountable, carefully constructed incentives that build off a state or community’s core strengths help drive local economies, create new job opportunities and provide new avenues for development,” said Tom Foulkes, vice president of State Government Affairs at the Entertainment Software Association. “These investments in communities and local employers fuel an economic engine that helps drive forward the state economy.”
Florida’s Film and Entertainment Industry Financial Incentive Program was enacted in July 2010 by the Florida Legislature in order to encourage the use of the State of Florida as a site for film, entertainment and digital media production, and to develop and sustain the workforce and infrastructure for film, entertainment and digital media production.