Red States Cracking Down on Disney’s Business Practices
Many states are facing financial challenges, with 27 states at risk of bankruptcy. The pandemic brought federal funds to support essential programs and workers, but now that money is running out. With the new administration promising budget cuts, states are looking for ways to balance their books. Louisiana recently made a move that could impact Disney’s film and TV productions by cutting $55 million from tax incentives. This could cost Disney millions per film and affect popular projects like The Haunted Mansion and National Treasure: Edge of History.
In Georgia, a bill to eliminate the state’s film tax incentive was narrowly defeated, but it may resurface with a new legislature. Disney has taken advantage of this incentive for filming Marvel movies, bringing significant revenue to the state and boosting local economies. Other states like New York and California offer generous tax credits, but they are also facing budget shortfalls, making them potential targets for future cuts.
Disney might consider shifting its filming locations to the United Kingdom, which offers attractive incentives for production. With states looking to balance their budgets, Disney will need to navigate changing landscapes in the film industry.
