The state Senate voted to create up to $150 million in state tax credits to attract producers to Arizona to make movies and television shows.
The measure was approved Thursday with bipartisan support from lawmakers who said it would create jobs for people working directly on productions as well as the hotels, restaurants and other local businesses that support them.
Several Republican critics said the bill was an unnecessary giveaway to Hollywood production companies.
Film tax credits have become increasing popular in states looking to entice film producers from California.