A tax credit is by definition an amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. In the world of film and television, certain states and countries throughout the world will provide a tax credit to production companies who film their respective locations and hire local crew. The amount ranges depending on which country or state. This is a very common tactic used by governments to stimulate employment in their constituencies. Refer to soft money to see what types of tax credits are offered within the USA.
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