BOSTON (AP) – Gov. Mitt Romney has signed legislation that will reimburse communities for increased education costs they face when families move into new, moderately priced housing built within so-called smart growth districts.

He also signed a law that provides the film industry with tax credits designed to attract movie and television production to Massachusetts.

The smart growth measure complements zoning reform legislation enacted last year that provide financial incentives to communities that build new housing near transit stations, town centers and other locations.

In the past, some cities and towns have been reluctant to add family housing, citing the increased costs that follow. The new law ensures that school aid rises with enrollment for housing production in smart growth districts.

“We need to build more housing to keep our state economically competitive. This bill acknowledges community costs that may be associated with increased housing production,” Romney said in a statement Wednesday.

Smart growth, or sustainable development, seeks to direct growth to areas where it makes the most sense: in and around city or town centers, near transit stations and in areas that were previously developed for commercial, industrial or institutional uses. Growing in these locations allows cities and towns to take advantage of existing infrastructure and utilities.

In another bill-signing announced Wednesday, filmmakers who incur at least $250,000 of production costs in the state will be eligible for income and corporate excise tax credits equal to 20 percent of their total Massachusetts payroll, excluding salaries of $1 million and higher.

In addition, filmmakers who site more than half of their total production in Massachusetts, or expend more than half of their total production costs in the state, will be eligible for a 25 percent tax credit for all Massachusetts production expenses, excluding payroll.

Also, filmmakers who expend over $250,000 in Massachusetts production costs in any one-year period will be eligible for a sales tax exemption. The total credits available for any one production are capped at $7 million.

“Whether it’s the revenue and jobs generated by a local shoot or the tourism dollars that can be traced back to projecting the state on the big screen, making movies in Massachusetts just makes sense,” House Speaker Salvatore DiMasi said in a statement. “This law will send a very strong message to a multibillion-dollar industry that Massachusetts is back and open for business.”

AP-ES-11-23-05 1546EST