Some Ohio lawmakers want to increase the tax credits the state gives to movie studios to attract more film production to the Buckeye State.
State Sens. Tom Patton, R-Strongsville, and Jane Timken, R-Jackson Township, filed Senate Bill 159 last month. They say that amending the Ohio Motion Picture Tax Credit would result in even more film production in the Buckeye State.
The measure doubles the appropriation for qualifying productions to $100 million annually. The bill also eliminates $5 million in capital projects not being used for industry-related investments.
The legislation would require reviewing applications and awarding credits on a first-come, first-served basis, replacing the current application rounds and ranking process. As proposed, it also allows an investment intent letter to be used as documentation showing the credit applicant has secured at least half of the production’s budget.
The bill reintroduces Senate Bill 283 from the previous General Assembly. According to Patton, at least 18 states have implemented or expanded film tax incentives since 2021.
“We are not seeking to favor one industry over another; we simply want to remain competitive with other states,” Patton said in prepared testimony to the Senate Ways and Means Committee. “The latest economic study on the Ohio Motion Picture Tax Credit program found that we saw a return on investment of $3.09 for every $1.00 spent on credits.
“The film tax credit has proven economic benefits that we don’t want to leave on the table by turning away new applicants,” Patton added. “The increased cap will incentivize new productions to come to Ohio. These productions are currently going to other states that offer greater access to tax credits.”
Experts have routinely questioned the veracity of the return on investment for film tax credits. In 2022, Kennesaw State University economist J.C. Bradbury, for example, studied the state’s tax credits for the movie industry and found Georgia gave away $6.5 billion in film tax credits between 2011 and 2021, adding 15,611 jobs — costing more than $416,000 per job — which aren’t full-time, The Center Square reported at the time.
Ohio policymakers aren’t alone in their efforts to lure film production to the state.
According to Patton, Pennsylvania has a $100 million annual film tax credit cap, Kentucky has a $75 million cap, and Georgia has an unlimited cap. Patton said Texas legislators are considering a $500 million biennial cap, while California’s governor has proposed increasing his state’s film tax credit cap to $750 million annually.
According to State Affairs, Georgia awarded film tax credits totaling around $887 million in 2024. According to the report, the credits are the largest tax incentive for corporations in Peach State.
According to the Ohio Department of Development, the Ohio Motion Picture Tax Credit, created in 2009, “provides a refundable, tax credit of 30 percent on production cast and crew wages plus other eligible in-state spending.”
Applications are reviewed and awarded twice annually — by July 31 and by Jan. 31. Under the current process, $25 million is awarded per round, plus any rollover amounts from the preceding period.
Of the total awarded, $2.5 million in tax credits per round are designated for Broadway or theatrical productions.
“Ohio has the opportunity to highlight its beauty and unique landscape by bringing film and theater production to Ohio,” Timken said in a release. “SB 159 will bring more local jobs and is estimated to have a return on investment over 300%. This will be a win for Ohio and allow us to be competitive with states like Georgia and Texas.”
