As ABC’s “Nashville” looks toward a new season and a new producer, a key question remains: Will the series be filmed in Music City next season?
The filming this year was estimated to have a $40 million impact on the local economy, and state and city officials say they are open to a deal to keep the production in Nashville this fall…..
Even before the first season aired, the studio was lobbying the state to grandfather the production into a more generous incentive package than the one that cleared the legislature last year.
The first season’s production was able to recoup 32 percent of its production costs in the form of a 17 percent grant from the Tennessee Department of Economic and Community Development to reimburse production costs and a 15 percent refundable tax credit from the Tennessee Department of Revenue….
TNReport wrote on the subsidies back in January
All sorts of industries get special state incentives. But film might be the silliest industry for states to subsidize, because, with all these other states offering their own incentives, the price has been bid up pretty high. Josh Barro discussed this a couple of years back at Real Clear Markets:
Over the past year, film incentives weren’t just teed up for the show “Nashville,” but to productions such as the faith-based drama “Unconditional,” and “Water for Elephants,” the circus-train romance/animal cruelty flick starring Reese Witherspoon.
We are in a film subsidy bubble, and states that trail Michigan and New York would be unwise to bid high enough to win film productions back. Instead, states should foster economic development by improving their infrastructure, human capital, and tax and regulatory environment. Or if they’re going to offer incentives to specific industries, they should at least pick less crowded fields than film.