Signs of incentive fatigue are starting to emerge in states that have had lucrative tax credits for the entertainment industry. From North Carolina to Missouri, where “Winter’s Bone” was filmed, lawmakers are debating or have settled on sunsetting their incentives, while states such as Michigan have added tighter controls—and fewer dollars—to their programs. “There’s been a lot of rethinking,” said Joe Henchman, vice president of legal and state projects at the Tax Foundation, a Washington, D.C.–based think tank. “I think what’s driving that is certainly the cuts that had to happen during the recession where a state had to choose between subsidizing one of America’s most profitable and transient industries or spending on other important priorities.” But experts warn that Los Angeles– and New York–based actors shouldn’t unpack their suitcases just yet. “I think actors still have to be prepared to travel, still have to be prepared to do dialects,” said Dama Claire, a Los Angeles–based production executive well-versed in states’ incentive programs. “I think we’ve already seen the stepping back. What happened in the few states that pulled out is that those states didn’t have a crew base; they didn’t have infrastructure.” While some 40 states have varying degrees of incentives, Claire noted that states such as Arizona, Kansas, and Iowa, which she called a “sad example” after its misused tax credits created a scandal, have ended their programs.
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