Millions of Dollars in Economic Benefit to Alaska Come From Film Tax Credit Extension
10-Year Analysis Produced By Former KPMG Partner
Shows $2.50 to $3.00 Benefit For Every Tax Credit Dollar
According to a ten-year economic pro forma developed by former KPMG Partner Diane Fejes, passing Senate Bill 23 will lead to between $200 and $900 million in economic impact to Alaska. NANA Development Corporation (NDC) and the Alaska Film Group paid for the study.
NDC Vice President of Communications and Marketing Robin Kornfield said, “The answer that came from this work is clear, if Senate Bill 23 passes with a ten-year extension, we will see a new growth industry in our state that will provide significant economic benefit to residents.”
ASRC Senior Vice President of External Affairs Tara Sweeney has seen the evidence first hand. Her son, Ahmaogak Sweeney, had a lead role in the feature film “Big Miracle”. “I am thrilled with the opportunity this has given my son, but it goes well beyond actors. ASRC shareholders benefit through training and job opportunities as well. This is a way to diversify and strengthen the Alaska economy.”
The research includes evaluations of economic reports from other state incentive programs, including, Hawaii, Georgia, Louisiana and New Mexico, as well as the jurisdictions of British Columbia and New Zealand.
Three different analyses are in the document: conservative, moderate and aggressive. The full report, including all the assumptions used to develop the report and a closer look at other state and jurisdiction programs is attached. Here are the bottom line results
· $360 million in economic benefit for Alaska/tax credit of $160 million
· $200 million in overall economic impact
· $2.48 back to Alaska on each tax credit dollar.
· $514 million in economic benefit for Alaska/tax credit of $206 million
· More than $300 million in overall economic impact
· $2.95 back to Alaska on each tax credit dollar.
· $1.4 billion in economic benefit for Alaska/tax credit of $454 million
· More than $900 million in overall economic impact
· $3.08 back to Alaska on each tax credit dollar.