Massachusetts officials are drafting legislation that would grant tax credits to video game companies, an industry that continues to rise despite the poor economy.
The legislation would give financial incentives to new video game companies and those looking to relocate to Massachusetts based on job creation and accomplishing company goals.
A “clawback provision” would also be enacted to reclaim assets from companies that leave or are unsuccessful.
According to the Entertainment Software Association, Massachusetts has the fifth largest video game industry in the country, employing 1,295 workers. Legislators hope to expand the states video game industry from $2 billion to $20 billion in five years.
Supporters of the tax credits believe video game companies have the potential to have the same impact on economic growth that the biotechnology industry had on Massachusetts 15 years ago.
However, opponents argue that it is unwise to focus on one area of development in the current fiscal environment.
Seventeen other states and the Province of Quebec have similar financial incentives for video game companies.
The idea was formed after Rhode Island lured former Red Sox pitcher Curt Shilling to move his video game production company, 38 Studios, from Massachusetts in July. Shilling had wanted to remain in Massachusetts, but Rhode Island offered his company a $75 million loan in exchange for his relocation.
Massachusetts legislators are collaborating with Becker College, which offers a video game design major, to create the bill. With three of the top ten video game design programs in the country residing in Massachusetts, the state is hoping the bill, which is expected to be completed by Jan. 21, will encourage graduates to stay in Massachusetts.
“Everybody understands the entertainment aspect, but it’s the aspects of video games that are beyond entertainment that are really interesting and what probably fits what (Massachusetts) does better than anything else,” said Tim Loew, director of academic planning at Becker College, to The Associated Press.
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