The 'Breaking Bad' Ripple Effect on Small Business

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Aug. 9 (Bloomberg) -- Executive Vice President EP Financial Solutions Joseph Chianese discusses state incentives for film and TV production with Alix Steel on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Their next big hit should play.

Is this all about taxes, are there other things they can do to sweeten the deal?

It is taxes, and it is not just tax credits, but rebates and grants.

The other thing that is important to producers is crew base as well as studio space.

But in addition to that, also what the state has to offer in terms of a look and feel.

New mexico at a very good look and feel for a project like "breaking bad." a studio or a production company comes to you and says, here is what we have in mind.

What is the back and forth like?

Describe a typical situation.

On a daily basis i will get a call from a producer saying they have a project and they are pretty specific about what they need, or they might have a look.

Where should i go?

They're asking me that question because they are interested in the incentives available.

The the right now, i there are more than 40 states in the u.s. offering incentives.

Outside the u.s., many countries.

We usually go through the the list of states and countries that might offer them things for their project.

And they want certainty as it relates to the law, the process, as well as certainty as it relates to funding.

And then we narrow it down to how the incentives work for that particular project.

What have you noticed when you bring a specific set to a state?

We have here a fake crystal meth that and on charter were made as an offshoot of "breaking that." -- "breaking bad." clearly, incentives create jobs as well as local incentives.

But any time a dollar is spent in a state, but beyond that it is impacting restaurants and hotels and just keep going.

That is the ripple effect that just keeps going.

We have taken a look at individual states, new mexico for example, new york, georgia, california, to see what kinds of incentives they are for production companies.

Some of these are pretty generous, aren't they?

Extremely generous.

You can get anywhere from 20% to 40% back on your local spending.

And in places like canada you can get up to 60% back from the government based on where your spending.

It is pretty significant.

What are the downside?

If you look at, let's say, "the wire" that filmed in baltimore , is there a risk of state not making their money back?

Correct in terms of publicity, you could use the old adage of things like bad publicity.

The show like "breaking out," it was about crystal meth.

In terms of the negative, there will always be an economic analysis to see if it makes sense for the state.

There is a sort of an ad and flow -- an ebb and flow, because it has to make sense for the producer.

There is a direct benefit in terms of the taxes collected by the state.

But it is the ripple effect that is hard to quantify that is the true benefits to the state.

That ripple effect far outweighed any negative impact that any direct impact may highlight.

Thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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