House Speaker Robert DeLeo was noncommittal when I asked him if he would support another effort to water down the tax credits. He said he needed to talk with his chairman on the revenue committee to make sure the program is effective. DeLeo was careful not to sound negative, though, and he conveyed an anecdote about one time earlier this year when he bumped into a number of Massachusetts residents happily at work on the makeshift set of a TV pilot at the State House.
DeLeo seems to be waiting until the revenue committee is done studying the issue before he makes up his mind. An ad hoc revenue subcommittee recently began the elaborate process of analyzing the state’s many tax credits, exemptions and incentives. Like her Beacon Hill boss, Rep. Alice Peisch says she is keeping an open mind on the issue. Peisch, a Democrat from Wellesley and the House vice chairwoman of the revenue committee, says the film industry’s tax incentive program is one small piece of her panel’s wide-ranging review.
Peisch says it’s clear that the tax credits - which first took effect in 2006, and were sweetened in mid-2007 - bring plenty of film activity to the state. But Peisch says her committee still needs to assess whether the tax credits generate enough of an economic benefit to justify the costs. She hopes to have a report done by the end of the year or - at the very latest - in time for next spring’s annual budget debate.
Nick Paleologos, executive director of the Massachusetts Film Office, says he’s less worried about the tax incentives’ fate now that they survived this year’s grueling budget season. Paleologos, who met with Peisch’s subcommittee on Sept. 15 to defend the credits, says he believes legislative leaders are reluctant to tamper with an economic stimulus program that’s actually working. He points out that the state’s 25 percent tax credit on local production spending is more moderate than what’s been adopted in several states - something that should help shield it from criticism.
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