New research has concluded that state tax breaks for film productions do little to boost local economies, but the main trade association for the industry says that conclusion is "false and misleading."

The study by Michael Thom, an assistant professor of public policy at University of Southern California, examined tax breaks for the film industry in 40 states to see if they enticed movie productions out of California and New York State, where most TV and movie productions are filmed. Many states have enacted tax breaks for the industry in recent years in hopes of attracting jobs and spending.

Thom found no evidence that tax breaks had any appreciable impact on wages, employment or even attracting movie productions to certain states. The findings "should inform future economic development policy design," he concluded. http://bit.ly/2cI8Sc1

The Motion Picture Association of America shot back in a statement arguing Thom's paper had "a number of fundamental scientific flaws." Among other things, the group alleged the study failed to take into account the size of the tax breaks in different states.

"It is troubling and without excuse that such a false and misleading study, without statistical and intellectual foundation, would be recklessly promoted by an otherwise respected educational institution such as USC," said Vans Stevenson, MPAA's senior vice president of state government affairs. "It severely tarnishes the reputation of the university as well as the academic credentials of the author."

Stevenson also called the study "academic malpractice, designed to make a provocative statement rather than offer sound policy analysis."

MPAA said the U.S. film industry supports 1.9 million jobs and generates $50 billion in wages. http://bit.ly/2cLKlEf

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