Film Tax Credits Boost Local Economies, Opportunities for Clients

Associated Press

26-02-2025

Originally published on U.S. Bank company blog
It's awards season and that means movie fans are trying to see all the nominees and predict who is going to win. A little-known fact is that U.S. Bancorp Impact Finance, best known for its work in affordable housing and environmental finance, plays a role in helping to finance some of the films we see.
In the 2000s, when iPods, reality television and movie streaming were rising in popularity, Impact Finance closed on its first film tax credit deal. To date, the U.S. Bank subsidiary has purchased $433 million in film credits involving 244 different productions in 15 different states.
'It's remarkable how much this aspect of our business has grown as states and communities across the country have embraced the economic benefits of film production,' said Robert Espeland, Impact Finance senior vice president of State Tax Credits.
The Impact Finance role begins after a production company, network or studio contacts a state's film office with a potential project and applies for tax credits that will be certified before the project goes into production.
Once the tax credits are awarded, the applicant commits to spending within the state on qualified expenditures such as labor, rentals, food, hotels, etc. Once the project is complete and the state has issued the credits, Impact Finance purchases the credits from the film company.
'By U.S. Bank being a part of these transactions, we support economic development across the country,' Espeland said. 'Additionally, it allows us to interconnect business lines across the bank and the clients we serve.'
State governments typically offer film tax credits because they generate spending and jobs in their jurisdiction, Espeland said. The film and TV production industry is a multibillion-dollar business in the U.S., and incentives give states a tool to attract production and spending. A few of the states where U.S. Bank has been involved with numerous productions include California, Georgia, Illinois, Minnesota and Montana.
Melodie Bahan started in 2017 as executive director of the non-profit that preceded Explore Minnesota Film, where she's currently deputy director. Since 2022 in Minnesota, Impact Finance has purchased $4.05 million in tax credits from 11 different productions, and Bahan has worked with U.S. Bank on multiple occasions.
'The goal of our program is to benefit Minnesota, so we love that U.S. Bank is a Minnesota-based company,' she said. 'When a financial institution understands what we do, wants to help and support us – that's a win for everyone.'
'From the talent to the producers to the lighting and makeup experts to the caterers and everyone in between, 'a lot of jobs are created locally to bring one production to life.'
- Robert Espeland, Impact Finance senior vice president of State Tax Credits
Espeland said it's an honor to work with production companies on these films and then watch them come to fruition.
'To see them come together from the early phases is unique because many of the films, for example, start with a working title that later morphs into something else,' he said. 'I've enjoyed the opportunity to visit film sets and am always amazed at the number of people involved, from the talent to the producers to the lighting and makeup experts to the caterers and everyone in between. A lot of jobs are created locally to bring one production to life.'