Senate Passes Bill to Repeal Film Tax Credits
Program generates little general fund revenue while adding heavy costs to treasury
JUNEAU-Today, the Alaska State Senate passed legislation to repeal the State’s film production tax credit program. Senate Bill 39, sponsored by Senator Bill Stoltze, R-Mat-Su Valley, ends the tax credit program but leaves the film production program office in place.
Created in 2008, the original film tax credit program authorized $100 million in credits, and was reauthorized in 2013 for $200 million, totaling $300 million. So far, the State has spent almost $80 million on these credits with little return to the state’s treasury. The program was recently suspended by the Administration in light of the state’s fiscal crisis.
The bill also authorizes the Department of Revenue to review and audit the record for previous recipients of film tax credits and allows the Department of Revenue the ability to recover certain damages.
SB39 now heads to the House for further consideration.