The city of Cincinnati has had a prominent role in a number of Hollywood movies. Most notably, the films “The Old Man and the Gun” and “Carol” feature Cincinnati. And this city is appealing to production companies because of a tax break the state is generous enough to provide. However, some lawmakers suggested that this amenity should be eliminated. If the Ohio House of Representatives gives the green light to this proposal, then it will be effective in the state’s two-year budget.
What’s more, these lawmakers are more keen on reducing income tax rates. And Speaker Larry Householder said that they should not be in the business of choosing winners and losers. And that the state should go to great lengths to establish a balance.
Additionally, the Buckeye Institute and Policy Matters Ohio share his opinion. They think that this break is quite simply a waste of taxpayers’ money. Yet those who are in favor of it state that it attracts companies to Ohio. In fact, the Film Cincinnati made it clear that the removal of this credit would be a serious error.
The University of Cincinnati Economics Center conducted a research into the matter. Following this, they concluded that about $3.69 was spent for every $1 taken from tax breaks in Cincinnati alone. At a state level, the residents receive a $1.98 return for every dollar they give to this program.
Furthermore, the Ohio Senate is controlled by Republicans who seem to be in favor of receiving more money. In point of fact, they voted unanimously to include Broadway productions in the tax break. And this disagreement between the Senate and Ohio House will certainly lead to an argument. They should negotiate an agreement as soon as possible. In other words, they will send the state’s two-year budget to Governor Mike DeWine soon. To be specific, the lawmakers have to pass that budget by 30th June.
Some Movies that Received Tax Credits
As this debate is ongoing, people are wondering which productions have made use of this benefit. Well, “Captain America: The Winter Soldier” received the biggest tax credit, which amounted to $4,858,595. Then the “Fast & Furious” franchise did not pass on it either. Namely, the film obtained a $4,540,354 tax credit. Also, the lauded “Carol”, which was shot in Cincinnati, got $2,905,302.00.
How Does This Tax Credit Work
In the last 10 years, this state has spent around $109.2 million on tax breaks. But how do they actually work? Well, if someone wants to invest $300,000 in a production, be it a film or music video, then the state of Ohio can help them. Namely, they can ask the state to allow them to reduce the sum of income that is subject to taxes.
And if the Ohio Film Office approves their request, then they will receive 30% of the approved spendings and wagers as credit. Also, Ohio can invest up to $40 million in these particular tax credits. And they can use any extra money they have left over from the previous years.
As stated above, “Captain America: Winter Soldier” received the biggest credit. And the movie only shot one chase scene in Cleveland. According to some estimates, about 30 movies got $27 million in tax breaks when they were filming in Southwest Ohio. One of them is Robert Redford’s “The Old Man and the Gun”.