ARKANSAS, USA — After a presentation by Arkansas Senator Jonathan Dismang (R-Beebe), Arkansas lawmakers have approved $5 million in funding for film tax incentives, according to the Arkansas Cinema Society (ACS). The funds will be going to the Arkansas Economic Development Commission where film productions can be approved.
What are film tax rebates?
According to the National Conference of State Legislatures, film tax incentives usually come in the form of tax credits "equal to a percentage of a film or television production’s qualified in-state spending and/or exemptions from sales tax on qualified transactions."
Why is this important?
According to ACS, producing films in Arkansas helps jobs and expenses in the state. It can also help raise tourism by as much as 31% according to a study by Champion Traveler, thus increasing money for cities.
Moreover, the Arkansas Economic Development Institute's (AEDI) October report stated that "for every $1 million spent on the film rebate, $4 million was returned to the state's economy."
Dismang explains how he thinks this is beneficial to Arkansas.
“Filmmaking is a fast-growing part of our economy in Arkansas and it’s something we need to support so we can remain competitive with our neighbors like Oklahoma,” said Dismang. “These jobs are bringing in tax revenue that exceeds their investment cost to the state."
In addition, a study by AEDI showed that "for every $1 million spent on the film rebate, $4 million was returned to the state's economy."
Filmmaking in Arkansas
A study by AEDI shows that in 2022, Arkansas had a total of 260 employees in Motion and Video Production, while Oklahoma had around 6,000.
Dr. Brandon Goldsmith, Executive Director of the Fort Smith International Film Festival and ACS's newly named Director of Advocacy, said these numbers demonstrate the effectiveness of rebates.
"We need the legislature to add career readiness requirements to the incentives because focusing on creating jobs is how we create a sustainable film industry," said Goldsmith. "You have to understand movie hires are small business hires, your hair and makeup people own salons and the caterers have restaurants."
ACS says the funding will provide film rebates until June 30, 2024.
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