Last summer, film productions poured millions of dollars into local businesses across Alaska.
Movies like "Everybody Loves Whales" were attracted to the state because of the film tax credits.
But Saturday, the State House turned down a bill seeking to extend those credits until 2013.
Legislators say they are concerned that some production companies using the credit are not licensed to produce films in Alaska.
Film production companies that spend $100,000 or more in production costs during a consecutive three-year period would be eligible for the tax credit under Senate Bill 23.
Ultimately, the House decided to table the bill until next session.