Arizona is not alone in providing a tax-exemption system for film production. Oklahoma was the first state to create a tax break for film productions in 2001, and many states have followed the example and now offer tax incentive programs in an attempt to take part in the economic benefits the film industry offers.
Film and music productions in the United States contribute over $5 billion in annual revenue to the national economy, according to the Arizona Film and Media Coalition.
“Hollywood is America’s number one export,” said Mike McGinn, director of the Arizona Film and Media Coalition. 
Some of the most successful programs include those in New Mexico, Massachusetts and Louisiana, according to a story published on stateline.org.
New Mexico was the example state lawmakers used in 2005 to create Arizona’s own tax-incentive program for the film industry.
New Mexico enacted its program in 2002. New Mexican officials reported a $475 million increase to the statewide economic impact from film production in the first year after the program’s inception.
Arizona resembles New Mexico in that it has similar weather and geographical conditions. Both states have diverse landscapes that include deserts, mountains and city skylines. 
The similarities of the region and the success of the New Mexican program created an ideal example of the type of program Arizona needed to implement. 
In the three years since Arizona lawmakers voted to create film production tax incentives, the state also has seen significant economic benefits, according to a report published by the Arizona Film Commission. 
“The film industry in Arizona has generated nearly $56.6 million in wages and $201.5 million in total economic impact,” the report stated.    
 Similar programs have also been enacted in 46 other states.  Each state has reported economic benefits created by the program.