The Upside-Down Math of Film Subsidies

Since 2009, California has given away $100 million in annual tax credits to companies producing TV shows and movies in the state, in an effort to lure Hollywood back to Hollywood. But as other states have ramped up the competition to offer ever-larger subsidies in recent years (see House of Cards), California’s generosity isn’t keeping up. The state legislature is mulling providing more to the studios, but a new report from the nonpartisan Legislative Analyst’s Office (LAO) cautions: not so fast.