Industry advocates say the investments are worth it. Tax dollars can successfully attract projects, and government funding spurs other economic activity. Productions pay catering businesses to feed workers, hoteliers to house their crews and dry cleaners to do the laundry — all of which creates a ripple effect.
Outside experts say that the effects of such spending are overstated and that the initiatives are incredibly costly for state governments. But their academic papers are competing against the promises of lobbyists and the allure of Hollywood stars and exclusive parties.
Jim Runestad, a Michigan state senator who opposes the proposed tax credits, recalled being wined and dined at the residence of a big-name producer in 2015, just before the state eliminated its film incentives.
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