BOSTON — A battle over tax credits in Massachusetts could mean it’s a wrap for the state’s booming movie industry.

Big names have come here to film movies partly due to a generous tax credit that saves studios millions.

However, some argue it doesn’t add up for the cash-strapped Bay State to offer big tax giveaways.

It’s an argument about how much is too much.

Right now, filmmakers are receiving as much as a 25 percent credit for projects in the Bay State, money some lawmakers say could be better used somewhere else.

“Let me state right up front that the Massachusetts current film and tax credit has functioned as Miracle-Grow for our business,” Tug Yourgrau, President of Powerhouse Productions said on Wednesday.

Representatives from the movie industry pleaded their case at the State House on Wednesday to keep the Bay State’s tax credit for movies.

“We have a unique chance to keep growing Massachusetts into a national center for production,” Yourgrau said.

They are fighting a proposal that would limit the amount the state would pay out for movies.

“These tax credits, they’re uncapped. In a sense, they’re a blank check to Hollywood. They’re free to carry away as much money as they can handle,” said Rep. Steven D’Amico (D) Seekonk of the current tax credit.

Over the past months, the Hub has been a prime location for filmmakers.

Over the past few months, local actor/director Ben Affleck was shooting “The Town” about a series of bank robberies, and Kevin James took over part of the Franklin Park Zoo while shooting “Zookeeper.” Meanwhile, Tom Cruise and Cameron Diaz made an explosive impact, blowing up a plane in Bridgewater and shutting down street in the South End.

Supporters of the bill admit the current tax credits help create jobs, but say that work is only temporary and in the end can cost the state even more to keep it.

“You will be forced to up the ante or bow out of the game. And all of the people who are going to be working now, and in the next few months and next few years, will be forced to either reach deeper into the pockets or move somewhere else,” said Tim McHugh, a film worker.

D’Amico’s proposal would cap tax credits at $7 million and exclude anyone whose salary caps $1 million. Governor Deval Patrick has a less extreme proposal to cap credits at $50 million.

To watch Video go to http://www1.whdh.com/news/articles/local/BO136903/

(Copyright (c) 2010 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)