TUCSON, Ariz. (KGUN) — Last week, Arizona lawmakers passed a bill providing tax refunds for movie studios in an attempt to revive the state’s film industry.
House Bill 2156 passed with bipartisan support.
It offers tax credits for studios that film in Arizona. The tax rebates start at $75 million in 2023, increasing to $100 million the following year before topping out at $125 million in 2025 and subsequent years.
Each individual movie can receive up to $25 million.
Republican state senator David Gowan of Sierra Vista sponsored the bill. He represents District 14, covering southeastern Arizona.
He says Southern Arizona is an easy sell for Hollywood filmmakers because of its proximity to Southern California and its diverse terrain.
“We have all the different sceneries they would need for any look they would need for a film,” he said. “That’s what we have here.”
Gowan says his constituents have pushed for the bill, many of whom used to work on productions in their home state.
“We get a lot of people who actually worked in the business for a long time,” Gowan explained. “And would say: ‘When are we ever gonna get these guys back here?”
Facing economic strain, Arizona stopped tax incentives for studios more than a decade ago.
Since then, states like New Mexico and Georgia have lured productions with their tax incentives.
HBO’s Duster moved production from Tucson to New Mexico this spring because of the lack of tax credits in Arizona.
Now, this new bill could re-write the proverbial script.
“Kevin Costner’s been scouting around,” Gowan claimed. “Yellowstone’s huge and the Westerns are becoming bigger now. So we have that stuff for us in Southern Arizona. We have those sets ready to roll.”
The bill is pushing to revive that legacy and bring in jobs.
But critics question if it helps Tucson’s Hollywood neighbors more than Arizonans.
Gowan believes the state will make more tax dollars than it gives out. He says studios are required to complete the entire production process in the state.
“If you’re going to come here and film, you have to produce the whole production here,” he said. “Everything that’s done for a movie will be done here and taxed here. And so that’s all up front. And at the end, they actually have to be audited, send it to the Arizona Commerce Authority… Make sure that they are qualified to get that tax credit.”
Those credits will apply to eligible costs beginning in 2023.
Governor Doug Ducey is expected to sign the bill in the coming days.
RELATED: Filmmaking in Southern Arizona gets boost from bill
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Ryan Fish is an anchor and reporter for KGUN 9 and comes to the Sonoran Desert from California’s Central Coast after working as a reporter, sports anchor and weather forecaster in Santa Barbara. Ryan grew up in the Chicago suburbs, frequently visiting family in Tucson. Share your story ideas and important issues with Ryan by emailing ryan.fish@kgun9.com or by connecting on Facebook and Twitter.
