Kentucky’s program of tax incentives for film companies has generated millions of dollars of profit. Many people incorrectly believe these tax breaks are bad investments, but these incentives have paid handsome dividends in other states.
To say the state is losing revenue is false. The state taxes every dollar the film industry spends.
The taxes aren’t lost — they are paid by cast members, production staff, technical crew, drivers, tutors, car and van rentals, camera and lighting equipment rentals, gas stations, truck stops, trailers, portable bathrooms, generators, caterers, restaurants, hardware, lumber and other assorted vendors.
Kentucky’s economy benefits from every dollar spent here by the studios.
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Companies are also concerned about social issues as much as tax breaks. Film companies can be very loyal, yet they are easily frightened off by discriminatory state laws.