Hollywood Trying to Dupe Wisconsin Once Again into Lopsided Deal

By Dylan Wilder

Special interest groups want the state to establish a film office and production tax incentives to attract Hollywood to Wisconsin. This would cost at least $10 million in tax credits and other incentives. Supporters claim the bill would generate seven times that amount in taxes and local economic activity. However, Wisconsin’s experience with film production tax incentives, such as the 2008 film Public Enemies, tells a different story.

At that time, the film industry promised the production would bolster Wisconsin’s struggling film and arts community, support the state economy, and create competitive job opportunities while hiring in-state talent. The program ultimately failed to deliver those economic benefits.

The production spent over two months in Wisconsin and reportedly spent $18 million, but the state never received its promised payday. Afterward, the State Audit Bureau investigated what happened. Its report found that most production spending left the state and that the job creation program was highly inefficient and costly.

Public Enemies, supported by a 2008 tax credit, cost Wisconsin $4.6 million but returned only $270,000 in state taxes, including income taxes, according to the 2009 Wisconsin Department of Commerce audit. The audit showed the credits far outweighed fiscal returns.

Most production spending on Public Enemies did not benefit Wisconsin’s economy, as funds went to out-of-state workers and services. Of the $18 million spent in-state, only $5 million stayed, per the audit, limiting economic impact.

The 2008 film incentive program was highly inefficient, costing up to 20 times more per job created than other state initiatives. The Department of Commerce noted it was 75 times less effective at generating employment than the next least effective program, recommending its discontinuation.

That audit was released in 2009, a lifetime ago in politics. Enough people have forgotten the film industry’s previous false promises, and so they’re being resurrected as lawmakers draft the next state budget.

If the new bill passes, proponents claim it could tap into Wisconsin’s production market, leveraging state assets to boost tourism and attract businesses and skilled labor, thereby stimulating the economy. However, the bill lacks stipulations ensuring production expenditures remain in Wisconsin, and the absence of a clawback provision severely limits guarantees that taxpayer money will stay in-state if production moves elsewhere. Moreover, the certification process lacks detailed regulations (which the bill authorizes but does not specify), and the audit program focuses on evaluating the accreditation program rather than individual credit claims.

Wisconsin’s history with tax incentives highlights the limited economic benefits of film subsidies, challenging current lobbyists’ push for a state film office and new incentives. The $4.6 million cost for minimal tax revenue, out-of-state spending, and program inefficiency underscore the risks. Thirteen other states have recently ended their film production offices due to inefficiencies and financial losses. As advocates claim $7 returns per $1 invested, past failures urge scrutiny to avoid repeating mistakes.