This chapter explains how labor's preference for tax incentives is conditioned by the highly concentrated ownership structure, flexible production system, and fragmented bargaining relations that characterize the film industry. Labor's preference for a tax incentive-based approach in New York encouraged greater coordination between local film unions, policymakers, employers, and local studios, and was successful in generating employment in the specific context of the city's deep talent and qualified labor pool. The chapter also shows how the strategy induced tensions among local film unions over the distribution of tax benefits within the sector, and between film unions and representatives of low-income urban residents, who find themselves subsidizing a high-skill/high-wage industry from which they are largely excluded.