Senate Tax holds work session on expanded ("dynamic") fiscal analysis for media tax credit ahead of hearing

The Montana Senate Taxation Committee on the morning of its work session heard from Legislative Fiscal Division staff about what an "expanded" or dynamic fiscal analysis would look like for a proposed change to the state's media production tax credit.

Sam Schafer, a staff economist with the Legislative Fiscal Division, told committee members the bill under consideration tomorrow would raise the annual cap on transferable media tax credits from $12 million to $30 million and that, under current assumptions, "the credits claimed will be an additional $18,000,000 a year." He emphasized that the standard fiscal note reports direct effects only and that an expanded analysis attempts to show spillover economic activity not captured in the fiscal note.

Why it matters: the state captures some tax revenue…