Since it was first established as a port in 1630 and then later as a city in 1822, Boston has been a site of great historical and economic importance. However, in recent decades, it has become a notable site for the film industry, as well. Since the 1940s with films like 13 Rue Madeleine, filmmakers have taken a liking to making their films there due to a wide range of reasons, the first being its location. It is situated along the scenic and iconic New England coast, yet is close to the gorgeous and foliaged countryside and state parks that lie just outside the metropolitan area. Next is its ambiance, which harbors both a modern and classic New England look, yet without the cost of filming in other major cities in the region, such as New York or Philadelphia. With that said, the cost for the right to film there is relatively low compared to that in Los Angeles, Chicago, San Francisco, and many others. In short, Boston is an ideal city to film in due to its proximity to so many different types of environments, its colonial and modern atmosphere (making it perfect for movies set in assorted time periods), and its low costs for the frugal filmmaker. Listed below are just some of the many films that have been made in the city.

The Women
The Pink Panther 2
The Game Plan
(some of ) The Departed
A Series of Unfortunate Events
Mona Lisa’s Smile
Fever Pitch
Mystic River
Legally Blonde
Good Will Hunting

Hey, brentw

Great question. There’s never a simple answer when it comes to why someone makes art, which film certainly is. Boston has a feel about it, whether it comes to history, romance, politics, cop dramas, baseball, or just plain attitude, Boston just works. I don’t know if anyone else would describe the city this way but to me, Boston seems to have a lot of stories locked up within it. Like a hundred year old oak tree that’s seen some stuff, that’s Boston. And since movies are all about the story, or as the old saying goes, “the play is the thing”, Boston draws the heart of the film maker who is really just a storyteller at heart.

Now on the other hand there is a pretty simple answer to this question when it comes to business. It’s all about the money. Boston is now more than three years into a state program that awards lucrative tax incentives to lure filmmakers to Massachusetts. "A 2009 report by Governor Deval Patrick’s administration says that Massachusetts is getting only 16 cents for every dollar the state spends on the incentives, and that much of the benefits from the program are going to out-of-state companies and workers.
Enacted in 2005, the program effectively underwrites a quarter of filmmakers’ production costs, in hopes that the movie industry will in turn hire Massachusetts workers and generate economic activity in the state. The state handed out about $166 million worth of tax credits to 267 projects from 2006 through 2008, according to the report. The state is set to spend nearly $100 million more on 30 projects in the works, the report says."

See the link below for details of the report.

Hope this helps to shed some light on this. I'd propose a follow up question to you. What are your favorite movies either filmed in Boston or featuring Boston? Some that qualify could include:

Fever Pitch
Good Will Hunting
The Town
Blown Away
The Paper Chase
Paul Blart: Mall Cop
Mystic River