Key Points:
- Judge rules Arizona film tax credits are legal
- State allows up to $125 million in credits for film productions
- The state has repealed similar film credit programs in the past
A judge has concluded that there’s nothing illegal about the state giving tax credits to companies that make their movies and even their commercials in Arizona.
That’s according to a new ruling from Maricopa County Superior Court Judge Adele Ponce, who said the Arizona Constitution bars the state from providing grants or subsidies to any individual or corporation. And Ponce acknowledged that lawmakers approved a statute allowing the Arizona Commerce Authority to issue up to $125 million in credits each year that producers can use to offset any tax liability they owe.
But she said there’s no Gift Clause violation here because the state isn’t giving away anything.
Instead, the judge ruled the program simply allows people and corporations to pay less of their own money to the state if they qualify.
