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State policy makers across the United States have ramped up efforts to attract film and television production through tax-based subsidies that provide producers with money to finance productions. To better understand the role of tax-based financing, we examine evidence concerning the fiscal impacts of film and television subsidy programs, and the methods used to calculate job creation and tourism impacts. We also look at the potential for developing film and television industries outside Los Angeles and New York. Our findings illuminate why policy makers need to carefully evaluate the methods used to rationalize public expenditures on incentives for economic development.