States Race to Woo TV and Film

An arms race has broken out among states hoping to lure big-budget movie and television productions with financial incentives. In the past month and a half, at least four states -- Georgia, New York, Mississippi and Michigan -- have increased the scope of tax credits, cash rebates and other incentives to encourage spending money in the state and hiring local workers. They are competing with nearly 40 other states and U.S. territories that have incentive programs on the books, some with established film- and TV-production infrastructure, including New Mexico, Texas, Louisiana and Pennsylvania. California, Hollywood's home state, offers no incentives to producers despite several efforts in the state legislature. Concerns about "runaway production" cropped up again this spring when the producers of ABC's TV hit "Ugly Betty" decided to move production to New York from Los Angeles. New York recently sweetened incentives so that producers can receive back up to 30% of their production expenses via a tax credit, or 35% of expenses in New York City.
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