How Your State Tax Credits Fund Hollywood Blockbusters

When a movie studio picks a location, a state's tax credit can be worth tens of millions. In this episode, Lucas and Luna break down how film tax credits work, from the economics of production spending to the controversial transfer market where credits are bought and sold. They dig into the specific case of a $100 million production that can effectively lower its costs by 25 percent, and ask whether the promised job creation ever really shows up in the data. With the current wave of state budget pressure in August 2026, states are now capping or clawing back credits — and some studios are suddenly rethinking their shooting schedules. If you've ever wondered why blockbusters shoot in Atlanta, Louisiana, or New Mexico instead of Los Angeles, this episode explains the hidden tax math behind the credits, the economists who say they're a race to the bottom, and what happens when the incentives dry up. #FilmTaxCredits #StateTaxPolicy #HollywoodEconomics #ProductionIncentives #TaxIncentives #LucasAndLuna #FexingoBusiness #BusinessPodcast #Economics #TaxPolicy #GeorgiaFilm #LouisianaTaxCredits #NewMexicoFilm #TaxTransferMarket #JobCreationDebate #StateBudgets #BlockbusterEconomics #MovieProduction Keep every episode free: buymeacoffee.com/fexingo