Colorado Governor Jared Polis signed a bill into law that aims to incentivize film festivals to do business in the state. The Tax Incentive for Film Festivals bill, also known as HB25-1005, offers two refundable tax credits to film festivals in Colorado. One will provide $34 million in tax incentives to the Sundance Film Festival as it moves to Colorado, while the other will inject $500,000 annually to support existing or small film festivals in the state. The bill, supported by both Democrats and Republicans, aims to boost the film industry in Colorado and strengthen the state’s reputation as a top film festival destination.
The economic impact report of the 2024 Sundance Film Festival in Utah revealed significant benefits, including the creation of jobs, wages, GDP, and tax revenue. The bill will decrease income tax revenue subject to TABOR, depending on state revenue exceeding the TABOR limit, which caps the amount of tax revenue the state can retain year-to-year. Critics of the bill, including Republican Rep. Ken DeGraaf, raised concerns about investing taxpayer money into a program that benefits other counties, particularly Boulder. However, supporters like Democratic Rep. Bob Marshall argue that while the bill benefits Colorado as a whole, Boulder will reap the majority of the benefits.
Overall, the bill’s passage signals Colorado’s commitment to supporting the film industry and attracting prestigious festivals like Sundance. The incentives provided by the bill aim to promote economic growth, create opportunities for filmmakers, and establish Colorado as a global hub for the arts.
