News Summary
The Goldwater Institute has filed a lawsuit against Arizona’s Motion Picture Production Program (MPPP), claiming it violates the state constitution’s gift clause. The Arizona Commerce Authority has moved to dismiss the case, asserting that it lacks legal standing. The MPPP provides tax incentives to filmmakers, aimed at boosting the state’s film industry. This legal battle could significantly impact film production and economic strategies in Arizona.
Arizona
The Goldwater Institute has initiated a legal challenge against Arizona’s Motion Picture Production Program (MPPP), arguing that the program contravenes the state constitution. The lawsuit claims that the incentives granted under this program violate the “gift clause” of Arizona’s constitution, which prohibits the government from providing substantial assets to private entities without serving a public purpose.
The Arizona Commerce Authority (ACA) filed a motion to dismiss the lawsuit on April 28, maintaining that the complaint lacks legal standing and fails on legal grounds. The MPPP offers tax credits of up to 20% to film production companies that satisfy specific eligibility requirements, with the potential to award up to $125 million annually in tax breaks aimed at attracting filmmakers to Arizona.
At present, at least six films have been approved under the MPPP, collectively expecting a total of $901,815 in tax credits. The Goldwater Institute contends that since the program’s inception, previous film tax incentive efforts in Arizona have been unsuccessful, resulting in greater costs to the state than the revenue generated.
Details of the Legal Proceedings
The lawsuit names several entities as defendants, including the ACA board, the Arizona Department of Revenue, and Governor Katie Hobbs. The Goldwater Institute’s legal representation insists that the MPPP lacks “quantifiable direct benefits” to the public, which they argue is essential for compliance with the gift clause outlined in the state constitution.
In contrast, proponents of the MPPP, including lawmakers like Senator David Gowan, support the initiative as a necessary catalyst for revitalizing Arizona’s film industry. They argue that it will generate significant economic benefits for the state and its residents.
Background Context
The MPPP was established in 2022 through House Bill 2156, which received bipartisan support from both Republican and Democratic lawmakers in the Arizona Legislature. The program aims to promote the state’s film industry by providing financial incentives that encourage production companies to choose Arizona for filming.
As the case unfolds, a ruling that could potentially halt the distribution of tax incentive payments is expected to be announced in the coming weeks. The outcome of this legal battle will have significant implications for the future of film production in Arizona and the state’s strategy for attracting businesses through tax incentives.
Deeper Dive: News & Info About This Topic
- ABC 15 News
- AZ Family
- 12 News
- Arizona Mirror
- KOLD News
- Wikipedia: Arizona
- Google Search: Arizona film incentives
- Google Scholar: Arizona film tax credits
- Encyclopedia Britannica: Arizona
- Google News: Arizona film industry
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
