Virginia’s legislative watchdog recently reported on the impact of tax benefits given to the TV and film industries in the Commonwealth.
According to the report from Virginia’s Joint Legislative Audit and Review Commission, the state has spent about $30 million a year on film and TV tax incentives since 2015. That’s led to a “moderate” return on investment while bringing about 1% of total film production in the U.S. to the Commonwealth.
According to Virginia’s Film Office, the agency that helps bring and keep such production in the Commonwealth, the state’s incentive program is much less than other states. But Prince William County Democratic Delegate Josh Thomas wondered if that moderate return was worth the investment. He comes from the Georgia locality that has become famous for film production in recent years, and after spending billions in tax incentives…
“On a good year, they’ve still only captured only six percent [of film production]," Thomas said at the recent JLARC committee meeting. "And so, I’m having trouble as to why Virginia would have a program at all.”
But Fairfax Democratic Delegate Charniele Herring, who sponsored the budget amendment which extended the film tax incentives to 2031, said it was about keeping Virginia’s film industry competitive. According to JLARC staff, California, which holds about 20% of the nation’s film industry, offered no tax incentives until recently in an effort to be more competitive. Herring said it’s also about making sure films about Virginia are made in Virginia.
“Make sure we’re telling our stories, benefiting our economy, providing opportunities for independent businesses that help support, whether it be a catering business, costume design,” Herring said.
Andy Edmunds runs the Virginia Film Office. He said Virginia’s $30 million figure is actually too low as the industry changes and gets more competitive.
“And in Virginia we should be leaders in this space in understanding how to use these tools and how to integrate it into the storytelling process,” Edmunds told Radio IQ.
The film tax incentive sponsored by Herring is in the current budget which is yet to be finalized. Lawmakers return to Richmond to finish the budget later this month.
