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Production companies usually owe very little in taxes to the state. You can actually owe literally nothing in taxes, and still receive the credit. Thus "Refundable Tax Credit" is a pretty misleading name. It's more of a cash grant or subsidy. The industry will probably leave, but your state has been losing money trying to keep it there. Every $1 dollar spent, you make .60¢ back, so that math doesn't quite add up to a good deal.


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