The Arizona Commerce Authority is asking a judge to uphold a $125 million tax credit program for filmmakers.
The outcome of the lawsuit could determine whether the state is competitive in luring film production.
The lawsuit from the Goldwater Institute claims the program runs afoul of the state’s gift clause. The clause forbids Arizona agencies from paying more for something than benefits it would get in return.
But in a new legal filing, an attorney for the commerce authority says that argument fails because the state does not own any future taxable income.
The attorney said the state would not be able to give out future tax revenues if it followed the Institute’s argument.
Reports have estimated the state lost money from previous movie tax credit programs passed in the 2000’s.
