H.2487 and H.2606 would both extend the film tax credits to video game companies. They would provide tax credits to Massachusetts video game companies as high as to 25% of their operating costs.
Rhode Island lost $75 million backing video game developer 38 Studios. If H.2487 passes, Massachusetts tax payers could lose that amount every year and a half. Our own calculations indicate that Massachusetts could be giving away $50 million every year in tax payer money to video games companies. Over ten years, the cost could be at least half a billion dollars. What government services will we need to cut over the next ten years to balance this $500 million dollar subsidy?
This subsidy will benefit large established game companies the most. Under H.2487, video game companies must incur a minimum of $50,000 in qualified expenses during a consecutive twelve-month qualification period. Entrepreneurs working part-time in their garages are unlikely to take advantage of this tax credit.
Massachusetts has a vibrant software industry that has fostered hundreds of companies. This industry was built without the benefit of tax credits from Massachusetts tax payers. The video game industry does not need special treatment and it certainly doesn’t need to be subsidized $500 million over the next ten years.
H.2487 and H.2606 are before the Joint Committee on Revenue and if they cannot get out of committee, they are dead. Please sign our petition opposing these bills and tell your friends and family.
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