Motion Picture & Television Production Incentive Program Results in Significant Economic Impact, Investment Return in Florida
A study released today on the economic impact of The Florida Film and Entertainment Industry Financial Incentive Program found a return on investment (ROI) of 4.7, with estimated state and local tax revenues in Florida last fiscal year totaling $547 million and the present value of the tax credit totaling $117 million. The ROI is 4.7 when the state and local tax revenue effects of film induced tourism, production spending, and infrastructure spending are taken into account. The incentive also supported an estimated 87,870 jobs and $7.2 billion in economic spending across the state, both through production spending and induced tourism. Production induced tourism is defined as the “phenomenon of motion pictures and television programs encouraging viewers to visit the region where location production occurred” and was found through surveys of tourism industry leaders. The study was commissioned by the Motion Picture Association of America and conducted by MNP LLP, and evaluates the economic and social impact of the state’s production incentive for the 2011/2012 fiscal year.
“The state of Florida has been a beacon for motion picture and television production in the United States”, said Vans Stevenson, Senior Vice President for State Government Affairs at the Motion Picture Association of America. “As these productions come to town, they create thousands of Florida jobs, are a major boost to local economies, and as we can see, give the state of Florida a significant return on its investment. These major productions, created by hard working Floridians and Florida businesses, are then exported worldwide and expose audiences across the globe to Florida’s diverse beauty, drawing visitors year after year to the sunshine state. From major theatrical releases like ‘Magic Mike’ and ‘Dolphin Tale’ to some of television’s most watched shows like ‘Burn Notice’ and ‘The Glades’, the entertainment industry is a fundamental element to Florida’s economy and today’s findings confirmed that important fact.” Key findings from the study include:
• Estimated state and local tax revenues in Florida last FY totaled $547 million. Compared to the present value of the tax incentive of $117 million, this results in a return on investment (ROI) of 4.7 for the incentive, i.e. for every $1.00 of credit distributed, the state and local governments received a combined $4.70 in taxes. The ROI is 4.7 when the state and local tax revenue effects of film induced tourism, production spending, and infrastructure spending are taken into account.
• In the 2011/2012 fiscal year, the incentive supported 87,870 jobs across all industries, $2.3 billion in labor income, and $284 million in state taxes, all of which incorporates film induced tourism and is a product of spending related to incentivized productions, including qualified digital media productions, over the given time period.
• The incentive also generated $7.2 billion in economic spending and contributed $4.2 billion of the gross state product in Florida for the 2011/2012 FY.
About the MPAA: The Motion Picture Association of America, Inc. (MPAA) serves as the voice and advocate of the American motion picture, home video and television industries from its offices in Los Angeles and Washington, D.C. Its members include: Walt Disney Studios Motion Pictures; Paramount Pictures Corporation; Sony Pictures Entertainment Inc.; Twentieth Century Fox Film Corporation; Universal City Studios LLC; and Warner Bros. Entertainment Inc.
About MNP LLP: MNP is the fastest growing chartered accountancy and business advisory firm in Canada. Founded in 1945, MNP has grown to more than 70 offices and nearly 3,000 team members. MNP is a member of Praxity, a global alliance of leading business advisory firms.
MNP’s Economics and Research practice is one of the largest of its kind, and its team members have an established track record in conducting economic impact and industry studies, including studies involving the film and television production industry.
Examples of similar studies conducted by MNP include economic impact studies for film and television industries in jurisdictions across North America. In addition, MNP has a long track record in carrying out economic and statistical studies within the North American tourism, travel and major event sectors.For more information, contact: MPAA Washington, D.C. Kate Bedingfield (202) 293-1966 Kate_Bedingfield@mpaa.org