PHOENIX — A court battle over the fate of film incentives in Arizona has taken another plot twist.
On April 28, the board of the Arizona Commerce Authority filed a motion to dismiss a lawsuit targeting Arizona's Motion Picture Production Program (MPPP), which offers up to 20% tax credits to film production companies that meet specific requirements. The program's goal is to spur economic activity in the state, according to the ACA.
The Goldwater Institute filed a lawsuit focused on an alleged infringement on the Gift Clause, challenging “the constitutionality of a state program that subsidizes the film industry and private film companies to the tune of millions of dollars in refundable tax credits each year.” Among the defendants named in the suit were the ACA board of directors and its representatives, the Arizona Department of Revenue and Gov. Katie Hobbs.
The ACA's motion aims to have the lawsuit permanently dismissed, stating that “the Court should dismiss Plaintiffs’ Complaint under Rule 12(b)(6) because their claims fail as a matter of law. Alternatively, the Court should dismiss under Rule 12(b)(1) because Plaintiffs lack standing to bring their claims in the first place.”
