Estimating the Impact of the Massachusetts Film Production Tax Incentives: A Preliminary Analysis

The REMI model simulated the structure of and interrelationships among the various parts of the Massachusetts economy for the Department of Revenue’s hypothetical “dynamic” analysis of the Massachusetts film industry tax incentives. For this type of analysis, the REMI model required that assumptions be made regarding the amount of total spending on Massachusetts-based film productions and how that spending was divided between payroll and other production expenses. It also required that, if known, the inputs be adjusted to account for the amount of payroll paid to non-Massachusetts residents. These assumptions were total film production spending, payroll expenses for non-residents, film production spending that would have occurred in the Commonwealth in the absence of tax incentives, and a balanced budget requirement. The model projected that with no balanced budget requirement, Massachusetts total output would increase by $368 million and total employment would increase by 4,044-5,314, of which 1,693-2,963 would be direct employment in the film industry.

Massachusetts Department of Revenue – Estimating the Impact of the Massachusetts Film Production Tax Incentives: A Preliminary Analysis [full PDF]

Economic Impact of Property Tax Cut with and without Changing Sales Tax

The Florida REMI econometric model was used to model the economic impact of two primary scenarios across the Florida economy. The first scenario adjusted property tax rates from a “rollback” perspective that examined both property tax reductions to residential and commercial sectors of the economy. The second scenario involved adjusting the property tax rate and corresponding sales tax rate. The model measured changes in consumer and producer behaviors and their impacts on the state Gross Regional Products, real disposable personal income, employment, population growth, relative cost of production, and a few other economic indicators. The model also measured both one-year and five-year effects of changes in property and/or sales tax.

Florida TaxWatch Research Institute – Economic Impact of Property Tax Cut with and without Changing Sales Tax [full PDF]

The Economic and Fiscal Impacts of Connecticut’s Film Tax Credit

The Connecticut Commission on Culture and Tourism requested the Department of Economic and Community Development perform an evaluation of the economic and fiscal impacts of the state’s film tax credit program. The study period was July 1, 2006 through September 30, 2007 during which thirteen productions filed final application seeking the issuance of tax credits from the Commission. Analysts found that within the study period, Connecticut’s film tax credit program stimulated $55.1 million in film production spending that generated $20.72 million in new real gross state product and added 395 full-time equivalent jobs that created $6.58 million in new real disposable personal income through multiplier effects. If the government paid for the tax credit by reducing expenditures, this analysis suggested the state could receive additional revenue from induced economic activity.

Connecticut Department of Economic and Community Development – The Economic and Fiscal Impacts of Connecticut’s Film Tax Credit [full PDF]

Evaluating the Economic Impact of the Eastern States Exposition on Western Massachusetts

REMI constructed this comprehensive study evaluating the economic impact of the Eastern States Exposition on Western Massachusetts based upon economic activity generated by the planning and implementation of the fair. Using data inputs provided by the Eastern States Exposition and its own Policy Insight model for the primary analysis, REMI was able to recreate economic interactions on a regional basis and the report of economic indicators included changes in measures of employment, gross regional product, income, consumer spending, and total population. The analysis relayed that the Eastern States Exposition generated $150,588,000 of Gross Regional Product and $83,617,000 of personal disposable income, in addition to averaging 2,800 jobs a year over a fifty-year span.

Regional Economic Models, Inc. – Evaluating the Economic Impact of the Eastern States Exposition on Western Massachusetts [full PDF]

Evaluation and Discussion of Potential Economic Impacts of the Draft AQMD Air Quality-Related Energy Policy

This report accompanied the draft Air Quality-Related Energy Policy that provided information on current energy usage in the South Coast Air Basin, a list of policies to guide Air Quality Management District efforts, and a list of actions to be undertaken to support these policies and presented an evaluation and discussion of the potential economic impacts resulting from the draft policy. The REMI model projected that the gross domestic product in the four-county area studied would grow at an annual rate of 3.62 percent, reaching $946 billion in 2015. The model also quantified the clean air benefit of the Air Quality Management Plan from 2007 to be $23 billion in 2023, including that the benefit of more stringent ozone standards could elevate that estimate by 2023.

South Coast Air Quality Management District – Evaluation and Discussion of Potential Economic Impacts of the Draft AQMD Air Quality-Related Energy Policy [full PDF]