The debate over Arizona’s film tax incentive program has escalated with the Goldwater Institute’s legal action. According to ABC 15, the conservative think tank filed for an injunction last Tuesday to suspend payments to filmmakers. A court hearing scheduled for September 12 will address the lawsuit against state entities including the Arizona Commerce Authority and the office of Governor Katie Hobbs.
The Goldwater Institute argues, as reported by 12 News, that the tax credits offered through the Arizona Motion Picture Production Program violate the state constitution’s “gifts clause,” which prohibits government benefits to private companies that do not serve a direct public purpose. They claim these benefits are given without sufficient oversight. This challenge comes despite bipartisan support and the program’s aim to stimulate economic growth by supporting the film industry in Arizona, a state with a historic connection to filmmaking at locations such as Old Tucson Studios and the Superstition Mountains.
The institute’s lawsuit contends that the incentives do not deliver measurable direct benefits to the public and questions the use of tax dollars for private sector gains. It references an earlier film tax program that ended in 2010, whose effectiveness remains debated. From the institute’s perspective, that program did not generate sufficient returns to justify continued government support, despite claims by some proponents about the past or potential future advantages of the film industry in the state.
The lawsuit involves a dispute between Arizona residents and state officials, with the institute seeking a court injunction to stop the issuance of tax credits under the film program.
