Audit looks at Alaska film tax-credit program
A legislative audit report finds Alaska’s film tax-credit program has had a positive economic impact but does not pay for itself.
The report looked at program performance issues.
It cited a consultant’s findings, indicating that between July 2008 and February 2012, the program generated an estimated $2 in economic activity in Alaska for every $1 in tax credits issued.
Direct spending by production companies resulted in 432 full-time equivalent jobs for Alaskans.
Eighty-four percent of direct wages for qualified productions went to non-Alaska residents.
Recommendations include strengthening documentation requirements to ensure tax credit calculations are accurate.
The report states that information submitted by production companies often lacked sufficient detail to verify non-wage goods and services spending was made to Alaska businesses, and resident wages were paid to Alaska residents.