State Filming Incentives are the single most important influence on the industry today, but most actors don't understand them, and don't know why it would affect them. We're here to provide you the short, sweet, and plain English version.
What is a Filming Incentive?
Filming incentives are state-funded programs passed by individual states to encourage Hollywood productions to come to their location. When the work leaves the expected or usual location, it is commonly called "runaway production". This is the practice of taking film production to other non-traditional areas with a more favorable financial environment (cheaper labor, tax credits, etc).
Currently, 44 states have some sort of "filming incentive". Each of them are hoping to lure production to their state so that the costs related to the production will infuse money into their local economy. No state can really compete with California, New York, or Vancouver in terms of technical skill and experience of the workers, so they have responded by saving studios a bundle of money in taxes instead. California and New York see this as "runaway production" and have passed their own filming incentives. In short, the states are battling for Hollywood's production dollar and a savvy producer is going to do the most financially lucrative thing possible.
The incentive package for each state is a little different, but typically the programs have four components: local hiring requirements (usually applying to crew and background performers), a tax credit (usually 15%-40%), a logo of the film to encourage tourism, and a minimum amount of spending in the local community (for things like restaurants, hotels, props, and equipment rentals). In addition, some states such as North Carolina and Michigan have built physical studios to encourage film makers to find a more permanent home there. The current hotspot is Detroit, which offers a 40% tax credit. They are desperate to replace the failed auto industry, and are hoping they can transition to an entertainment based economy instead.
Filming incentives seem to work, at least temporarily. According the Georgia's Entertainment Office, the entertainment industry producers invested more than $521 million in Georgia in 2008-2009. Louisiana, who hosted one of the original film incentives, says they have infused $2 billion into the economy since 2002 when their program began. That's big bucks.
The news isn't all good though:
--Some critics say that the affect is only temporary, because most jobs being "created" are just short term. Not to mention, when the state next door offers a better incentive, the production easily flees there.
--The money pot is not bottomless. New York's hugely popular program ran out of money in 2009 after luring shows like Ugly Betty from Los Angeles. Film makers who planned to film there had to re-group and move to other states in order to keep within their budget. California's new program was already "sold out" as of May 2010.
--Ethical issues abound. North Carolina's film office was criticized in 2007 when Dakota Fanning's controversial film "Hound Dog" was filmed there, using a government subsidy. Many felt that the state should not be encouraging child exploitation in the name of art, and that the filming incentive created a conflict of interest when it came to investigating complaints. Iowa's film program was suspended last year under allegations of mis-management. And lastly, in a recession economy where teachers and fire fighters are being laid off, should the government be financing the private entertainment industry? As an example, M. Night Shyamalan's 2010 film, The Last Airbender, garnered $25 Million in tax credits from Pennsylvania. Many people felt that cash payment was just contributing to the profits of Paramount Studios when the tax payer money could have been used for a more worthy cause.
--Independent film makers are frustrated at the endless sea of paperwork, waiting lists (because funding has run out), and local officials who don't really understand how the industry works.
Why Should I Care?
Three reasons: location, safety and legislation.
Film Incentives may be creating job opportunities in your neighborhood. Yes, it is true that the big leads may be cast from Hollywood, but the career building roles, the co-stars and supporting characters, will be cast in smaller markets. Opportunities for kids to succeed locally abound. Advertising yourself as a "local hire" can be a big selling point to producers who are desperate to fill their quota of locals. Get a local agent. You may want to forego the trip to Los Angeles and research the states around you instead.
Parents need to be aware that child labor problems typically follow filming incentives. The state's "investment" in a film may color their willingness to investigate labor violations or safety issues as politicians want to make it appear that the economic impact of the tax program is working. States lure filming, but very few have any guidelines specific to the entertainment industry for work hours, education or child safety on set, and often the crew members aren't aware of child needs. You aren't in an area with much historical child actor experiences anymore. Look for union sets if you can, as SAG regulations are at least close to California's tight safety regulations. And know that YOU will have to be your child's best advocate; negotiate for everything you need, and speak up for industry standards.
Trust account legislation typically follows a couple of years after a filming incentive. We've seen it in New Mexico, Louisiana, Florida and several other states. Example: Florida attempted two bills in 2010: HB697, a $225M incentive plan, and HB499, a new child performer law.
When production moves in, states with no child labor guidelines for the entertainment industry quickly figure out that they should create some structure to deal with the problems they encounter. This is often problematic, because legislators don't understand how to structure those kinds of laws. They don't have the practical first hand experience, and often 'piece meal' legislation together from existing laws in other states. These laws affect our children's money, education, and work hours. Eventually, we'll end up with a patchwork of mis-matched laws that we must all abide by, a different set in every state. There isn't much we can do about this pattern of behavior, except be aware that it is happening and we encourage you to get involved when legislation is proposed in your state. Voice the concerns you have based on your own experience. With 44 states sponsoring tax incentives, the new laws will be close behind.
It is often easy to forget that the entertainment biz really IS an industry. That means profits, losses and budgets are critical to the growth and survival of the entities in it. We may be so focused on our teeny little corner of the world (getting an audition) that we forget how many other things are at play, and the affect filming incentives have on our employers, the producers. It's just good business to watch the trends, and wisely increase your opportunities.
Saturday, July 31, 2010
From The Wrap, Article by Lisa Horowitz
Calif. Tax Incentives Generated $2B in Direct Spending, Arnold Says
By Lisa Horowitz
Published: July 30, 2010
California Gov. Arnold Schwarzenegger announced on Friday that the California Film & Television Tax Credit Program generated $2 billion in direct spending, thanks to its keeping scores of film and TV shoots in the state.
Arnold SchwarzeneggerIn its first year, the program, administered by the California Film Commission, allocated $200 million in tax credits to 77 projects. This year, another 30 projects are set to receive an additional $100 million in tax credit allocations.
Together, they are estimated to bring $2 billion in direct spending to California, including $736 million in below-the-line wages, according to data compiled by the Film Commission.
“This is exactly why I fought so hard for tax credits in last year’s budget. Already, the film and television incentive has led to thousands of retained jobs and increased economic activity. Just the first two years of this incentive will generate $2 billion in direct spending, with even more to come,” Schwarzenegger said in a statement.
“It is the private sector that will bring California’s economy back, and our tax incentives are clearly helping employers along the way. That’s why it’s important that we continue to be a partner to employers and not a roadblock,” he added.
The California Film Commission reports that the 77 first-year projects approved for tax credits will hire 18,200 crew members, 4,000 cast members and more than 100,000 extras. The approved projects include 51 feature films, both studio and independent, seven TV series and 14 made-for-TV movies.
Filmmaker Kevin Smith said he owed his movie "Red State" to the California program. “For three years, I've been trying to make 'Red State,'" he said in a statement. "It wasn't until my project qualified for the tax credit program that the flick fast-tracked into reality."
* Report: California Needs to Battle Runaway Production
* L.A. Location Days Up 18% in First Quarter
* L.A. County Added 21,600 Showbiz Jobs in Past Year
As of June 1, 2010, production companies could apply to California’s tax credit program for allocations from the program’s second year. Thirty productions were approved, exhausting the fiscal year funding. The remaining applicants have been added to a waiting list. The 30 productions include 19 feature films, eight TV series and three made-for-TV movies.
“The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California,” California Film Commission executive director Amy Lemisch said in a statement. “I am thrilled with how effective this program has been.”
By Lisa Horowitz
Published: July 30, 2010
California Gov. Arnold Schwarzenegger announced on Friday that the California Film & Television Tax Credit Program generated $2 billion in direct spending, thanks to its keeping scores of film and TV shoots in the state.
Arnold SchwarzeneggerIn its first year, the program, administered by the California Film Commission, allocated $200 million in tax credits to 77 projects. This year, another 30 projects are set to receive an additional $100 million in tax credit allocations.
Together, they are estimated to bring $2 billion in direct spending to California, including $736 million in below-the-line wages, according to data compiled by the Film Commission.
“This is exactly why I fought so hard for tax credits in last year’s budget. Already, the film and television incentive has led to thousands of retained jobs and increased economic activity. Just the first two years of this incentive will generate $2 billion in direct spending, with even more to come,” Schwarzenegger said in a statement.
“It is the private sector that will bring California’s economy back, and our tax incentives are clearly helping employers along the way. That’s why it’s important that we continue to be a partner to employers and not a roadblock,” he added.
The California Film Commission reports that the 77 first-year projects approved for tax credits will hire 18,200 crew members, 4,000 cast members and more than 100,000 extras. The approved projects include 51 feature films, both studio and independent, seven TV series and 14 made-for-TV movies.
Filmmaker Kevin Smith said he owed his movie "Red State" to the California program. “For three years, I've been trying to make 'Red State,'" he said in a statement. "It wasn't until my project qualified for the tax credit program that the flick fast-tracked into reality."
* Report: California Needs to Battle Runaway Production
* L.A. Location Days Up 18% in First Quarter
* L.A. County Added 21,600 Showbiz Jobs in Past Year
As of June 1, 2010, production companies could apply to California’s tax credit program for allocations from the program’s second year. Thirty productions were approved, exhausting the fiscal year funding. The remaining applicants have been added to a waiting list. The 30 productions include 19 feature films, eight TV series and three made-for-TV movies.
“The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California,” California Film Commission executive director Amy Lemisch said in a statement. “I am thrilled with how effective this program has been.”
Wednesday, July 28, 2010
Variety Article: N C Sees The Big Picture/Iowa Doesn't
North Carolina beefs up incentive
Tax refund program boosts maximum payout
By SAM THIELMAN
North Carolina Gov. Bev Perdue signed the bill amending the program into law last week. A separate bill, also recently signed, eliminates the 6.9% corporate income tax on the incentive refunds.
The state, which refunds 25% of taxes paid on qualifying film productions, will offer a 15% incentive to videogame developers or those "developing interactive digital media," reflecting the growth of the vidgame production community in Raleigh-Durham's Research Triangle Park.
The state's film office said showbiz brought $326 million into the state last year -- the CW's "One Tree Hill" is shooting its eighth season in North Carolina.
During her March visit to Los Angeles, film execs complained to Perdue that the caps on per-production and per-person payouts were too low and should be removed.
The newly raised per-production payout cap may help to attract business, but the $1 million per-person cap remains in place. However, expenses that qualify for the incentive have been broadened to include labor fringe benefits, per diems, stipends, and living expenses.
The state's film office originally proposed a complete removal of both caps, but the legislature balked. In her signing of the bill, Perdue remarked that she ultimately hoped to see both limitations removed.
Tax refund program boosts maximum payout
By SAM THIELMAN
North Carolina Gov. Bev Perdue signed the bill amending the program into law last week. A separate bill, also recently signed, eliminates the 6.9% corporate income tax on the incentive refunds.
The state, which refunds 25% of taxes paid on qualifying film productions, will offer a 15% incentive to videogame developers or those "developing interactive digital media," reflecting the growth of the vidgame production community in Raleigh-Durham's Research Triangle Park.
The state's film office said showbiz brought $326 million into the state last year -- the CW's "One Tree Hill" is shooting its eighth season in North Carolina.
During her March visit to Los Angeles, film execs complained to Perdue that the caps on per-production and per-person payouts were too low and should be removed.
The newly raised per-production payout cap may help to attract business, but the $1 million per-person cap remains in place. However, expenses that qualify for the incentive have been broadened to include labor fringe benefits, per diems, stipends, and living expenses.
The state's film office originally proposed a complete removal of both caps, but the legislature balked. In her signing of the bill, Perdue remarked that she ultimately hoped to see both limitations removed.
Tuesday, July 27, 2010
Great Article by Mark R. Smith
Heartland Serves Up Big Slice of American Pie
By Mark R. Smith
For a region that's often identified with broad sweeps of flat land, the states that comprise America's Heartland actually offer a range of landscapes and cityscapes that the production community knows can help make a production.
What the states in MidAmerica lack in incentives — Missouri has the fullest till at $4.5 million — they make up for in looks, from the beauties of The Great Outdoors to the charms of small-town America.
Minnesota Looks to Build on Snowbate, 3D Prospects
While Minnesota has been limited in what it can offer the production community in the way of incentives, Lucinda Winter is hoping that the rising stereoscopic 3D market will help propel Minnesota's strong production and postproduction base toward the forefront of the industry.
The executive director of the Minnesota Film & TV Board thinks that "eventually, some percentage of TV series and spots will be acquired and produced in 3D. And that will be a wide-open market. We're trying to get everyone on board before the wave hits. That way, producers can come here to find people who are experienced in lighting, shooting and posting in 3D. Major League Baseball just announced that it will broadcast a game on our local CBS affiliate, WCCO, in 3D, so that's already happening."
Splice Dishes Up Edwards Ice Cream
Minneapolis-based post house Splice (www.splicehere.tv) recently edited "Awards Show," a national :30 spot for Edwards Ice Cream's Singles Hot Molten Lava Chocolate Cake from agency Brew/Minneapolis. Peter Chelsom of Independent Media directed in LA with DP Barry Peterson manning two Sony F-35s and a RED camera. "Just about every single shot has some type of effects work," notes executive producer Kel Nelson. "We did everything on the post side — but I was the agency's producer and our VFX designer, Tom Reiner, assisted."
Splice did the edit and color grading on Apple's Final Cut Studio 3 tapping Adobe After Effects, CS4, Imagineer Systems' Mocha, Syntheyes and CINEMA 4D for the extensive effects. The commercial airs this summer, when viewers will see how Splice "made a small-scale food idea more cinematic."
Winter hopes for more incentive money after the state's administration changes in November. The Snowbate rebate program offers a reimbursement of 15-20% of Minnesota production expenditures. The incentive is available to feature films, national television or Internet programs, commercials, music videos and documentaries. Funding for the current fiscal year is just $1.25 million, available until expended. "We would like to build on what we have and increase the funds available for Snowbate," she says.
Minnesota's metrics point to the value of film and video production. The state's most recent report on revenues, from June 2009, reveals a $15 million direct spend; during that same period the state picked up the equivalent of 349 full-time jobs.
Cinequipt Supplies Geek Squad
Among recent work for Cinequipt (www.cinequipt.com) in Minneapolis is a corporate project for locally-based Best Buy's Geek Squad service. The company supplied two Panasonic AG-HPX500 cameras, a tungsten lighting package, several Panasonic BT LH17-10 monitors and a studio grip package for the three-day shoot. "Best Buy has been a consistent user of the company throughout the past couple decades," says Cinequipt general manager Greg Meyers.
Billed as the #1 source for film, video, lighting and grip equipment rental in the Upper Midwest, Cinequipt also rents the Canon 5D Mark II and EOS 7D Digital SLRs, "which have made a strong entry into our market," Meyers reports. The company is adding a 3-ton grip truck with another tungsten package, has acquired two 1800-watt Arrimaxs and a wider variety of LED lighting, and has two ARRI Alexa digital cameras en route.
The most recent feature to shoot in Minnesota wrapped in March and had "a good indie-sized budget" in the $4-5 million range. The Convincer tells the story of a salesman's search for a rare musical instrument that triggers a series of dramatic consequences. The Midwestern crime drama starred Greg Kinnear, Alan Arkin, Billy Crudup and Leah Thompson, and was financed and produced by the Minnesota company Werc Werk Works. A fall release is planned.
Next will come Stuck Between Stations, an indie film inspired by a song by Minneapolis rock band The Hold Steady. Starring Sam Rosen, it was written and directed by Brady Kiernan and concerns a couple thrown together by the whirlwind of a strange evening's events.
Minnesota Twins Tap Pixel Farm System
New Major League Baseball parks are meant to generate business, and one beneficiary of the commerce fueled by the Minnesota Twins' Target Field is Minneapolis-based Pixel Farm (www.pixelfarm.com).
The postproduction and design studio created "more than 300 graphic elements for the five—story, 54,000 square-foot, main Daktronics HD display" in the ballpark as well as graphics for three ribbon boards, the bullpen board and the out-of-town scoreboard, says senior animator Rich Haesemeyer. Pixel Farm shot "all 90 players who came to spring training" and combined the live action with 3D elements crafted with Autodesk Maya; Apple's Shake was used for compositing and Autodesk Inferno and Fire for additional effects and compositing. Music was composed on Digidesign Pro Tools. The ballpark graphics give Twins fans "an almost theme park-like experience," Haesemeyer reports. "The animations tumble, turn and rotate with this great kinetic energy that is awesome."
Minnesota also hosted some cable TV series, including The History Channel's Monster Quest, The Sportsmen's Channel's Born to Be Wild, Food Network's Diners, Drive-Ins & Dives and segments for Travel Channel's Bizarre Foods With Andrew Zimmern.
The state does a considerable amount of spot work, says Winter, "because we have a number of large corporate headquarters here," including Best Buy (which last year spent $18 million through its Yellow Tag Productions), Target and Buffalo Wild Wings. Also, the four major sports leagues have franchises in Minneapolis/St. Paul, which keeps superstars such as Joe Mauer of the Minnesota Twins in demand for commercial appearances.
soundstage stages
Des Moines skyline and downtown Blue Bridge.
Photo by Colby Clark
Iowa Struggles to Overcome Scandal
Iowa governor Chet Culver has suspended the state's film incentive program until 2013 in the wake of allegations of abuses by former Iowa Film Office manager Tom Wheeler and others. Wheeler has been criminally charged with nonfelonious misconduct in office, and two filmmakers have been charged with first-degree theft.
Prosecutors say more than $1.85 million in tax credits were fraudulently obtained for the movie The Scientist; another incident charges other filmmakers with attempting to turn tax credits into luxury-vehicle purchases.
Also at issue is the state's liability to reimburse the producers of projects completed in Iowa last year. Nineteen films that wrapped before the September suspension are presumably due tax credits.
Preserving Iowa's Land at Full Spectrum
The mention of Iowa conjures up bucolic landscapes, and Full Spectrum Productions of Des Moines (www.fullspectrumproductions.com) addressed those musings by producing The Land Remains, a one-hour program for Iowa Public Television on conservation and stewardship options for landowners.
The project "invokes the spirit of Aldo Leopold, author of A Sand County Almanac," says president Kent Newman (at left in picture), and includes interviews with Tom Vilsack, former Iowa governor and current U.S. Secretary of Agriculture. "Iowa has some of the richest soil in the world. It's the # 1 producer of corn and soybeans in the country — but we're losing soil and they are not making any more of it."
Shot in spring 2009 with the RED camera and five Nikon lenses, the show is being edited on an Apple Final Cut Pro HD system with RAID array; the RED Rocket accelerator card expedites posting RED RAW files. Also underway: the low-budget indie, Fortnight, with Newman serving as DP.
To date, more than half of 99 active projects in various stages of preproduction and production have either been halted, lack funding or moved to another state, reports Becky Gruening, director of the Greater Des Moines Film Commission. She notes that just six major film productions are likely to proceed with filming in Iowa in 2010 "if their tax credits are honored at the percentage rate that they were given, which was 50 percent of the total (cost of production) before September 18. Today, the producers are being offered less."
Film commissions in Des Moines, southeast Iowa and the Quad Cities are still waiting to hear about "the status of 14 projects and if their agreement/contracts will be honored as written in 2009," Gruening says. Filmmakers are lobbying to delay the suspension of Iowa's incentives until Jan. 1, 2011. "That would give us a year to put a much stronger program together and prevent the state from losing two full seasons of filming," she points out.
MediaWork Tells Diverse Range of Stories
It's the contention of Davenport, Iowa's MediaWork Productions (www.mediaworkproductions.com) that "every person and every company has a story" and the company can "help them tell it," says co-owner/president Rich Webster (pictured seated with Joe Brown). The full-service video production house shoots a wide range of stories in HD, DVCAM and Beta SP and edits in its Media 100 suite.
MediaWork does fund-raising videos for non-profits and healthcare-education programs such as surgical demos which mix footage of procedures with physician interviews and commentary. "We've gotten good at having a small footprint and staying out of the way of people doing jobs more important than ours," says Webster of shooting in the OR. The company recently completed a shoot for America's Most Wanted and enjoys repeat business from Montel Williams and FOX News. In addition, every four years MediaWork sees "a spike" in political work as presidential hopefuls flock to the state.
A number of state legislatures want to revisit the issue in January to create a better program, too. In the meantime, the Iowa Film Office remains open under interim director Jessica Montana.
While Iowa currently has no incentives to offer to producers, Gruening says, "We are still selling what we always sell here: our diverse landscapes, such as flat lands, hills, cliffs and rivers, plus small-town America and rural communities. That's how The Bridges of Madison County and Field of Dreams came to be shot in Iowa in the days before our film incentives."
Missouri Shows Producers the Money
Missouri has a little more money in its incentive fund than many of the smaller players in the Hollywood sweepstakes: The state's fund is set at $4.5 million, with $3.3 million left for calendar 2010.
"We're trolling for a Hollywood feature now," says Jerry Jones, director of the Missouri Film Commission, who explained the state's offer. "A film with a $10 million budget typically spends $6 million on location for qualifying expenses. So that would earn the production about a $2 million credit, since we reimburse 35%."
Missouri also counts out-of-state wages as part of the local spend, and applies them toward the tax credit. "So if the DP comes here from out of state and Missouri income tax is withheld, that counts," says Jones.
Like many film office heads nationwide, Jones feels fortunate that Missouri has the same amount in its till as it did last year. "The legislature was contentious on the subject, due to the economy and because our state has numerous tax credit programs," he says. "So that made it tougher to get more money for our program this year."
Healthy Market for Avatar
From its St. Louis home Avatar Studios (www.avatar-studios.com) has kept busy with Illinois-based Christie Clinic, the subject of a three-spot campaign shot and posted by Avatar via agency Jones & Thomas/Decatur, Illinois. Avatar shot in its studio on greenscreen then lensed footage in and around St. Louis using the Sony XDCAM EX camcorder, Pro35 Zeiss lenses, Fisher 11 dolly and Jimmy Jib. The offline was done on Apple's Final Cut Pro with the online, compositing and graphics performed on the Avid Nitris DS. Avatar owner Bill Faris was the campaign's director and Doug Hastings its DP.
Faris says the company is expanding its global reach through Avatar International working on projects "such as content, distribution and display on big HD boards" for clients like Anheuser-Busch Satellite Network.
Recent shoots in Missouri include Paramount's Up In the Air, which shot in St. Louis for seven weeks, and Winter's Bone, a winner at Sundance in the dramatic competition category, which shot in Branson and Forsyth. Directed by Deborah Granik (a prior Sundance winner), Winter's Bone was picked up by distributor Coming Attractions and is set for release in June.
Missouri's TV credits include a segment for The History Channel's Life After People, shot at Bonne Terre Mine, which encompasses the largest underground lake in the world; part of an HBO doc about St. Louis Post-Dispatch founder Joseph Pulitzer, which shot in that city; and a segment for CBS's 48 Hours about Josh Keezer, who was wrongly incarcerated in the Missouri State Penitentiary.
Also in the mix are Branson, a soon-to-be released doc from producer David Wilson about the entertainment mecca, the "Money Talks" music video from St. Louis native Nelly and various spots.
House of Motion Finds Itself in Sin Bin
St. Louis-based House of Motion's (www.motionphotography.us) owner/operator Dave Rutherford recently relied on the G-70 Steadicam equipped with an ARRI Lite 35mm with anamorphic lenses to shoot an indie comedy in Chicago, Sin Bin, from director Billy Federighi.
"It's interesting shooting anamorphic lenses since they're so wide," says Rutherford (pictured shooting Steadicam for the action flick The Tournament), "but you have to watch your horizon levels a little more, plus the lenses are heavier than the camera and the magazine combined." His rig also consisted of an MK-V four-post sled used to shoot taller actors.
Lately, Rutherford's biggest client is the Four Seasons hotel chain. He's been traveling nationwide shooting its customized TV program, Luxury Explorer, on the Sony F-900 HDCAM. In addition he's shooting MonsterFish for National Geographic Channel on Panasonic's VariCam and AJ-HDX900 cameras.
With the sesquicentennial of the Pony Express approaching "and a group of indie filmmakers already on hand to make a doc," Jones has upcoming productions to look forward to. But what he wants for Missouri is something most filmmakers want, too.
"Producers from Up In the Air have told me that, from the executive producer's standpoint, a state should have a pool of $30 million" in its incentive fund, "because that way there are no worries that the money will be gone by wrap time. And while no one would take (incentive) money away (from a production already shooting in the state), that's the reality vs. the perception."
soundstage stages
Mount Rushmore National Memorial, South Dakota
Photo by South Dakota Office of Tourism
On the set of Meet Bill in O'Fallon, Missouri.
The Convincer shot in and around the Twin Cities for 30 days in February and March; Dick Pope was the DP.
Kansas Pitching to Resume Funding
Peter Jasso is feeling the pain that many film office directors around the country are also experiencing — Kansas had its relatively small $2 million incentive fund suspended by the state's legislature for 2009 and 2010.
What to do? "We'll be working within the industry to make our pitch at the start of the 2011 legislative session," which starts in January, says Jasso, the director of the Kansas Film Commission, who now works as a solo act.
Still, some indie films shot in the state during the past year. One was a "Bollywood"-style Telugu-language film called Afterlife (or Maro Charitra), a romance directed by Indian cinematographer Ravi Yadav. It included an Indian cast and crew that visited various locations in Kansas and other states.
ObliquityHD's Full-Service Capabilities Prove Advantageous
Diversity reigns at ObliquityHD (www.obliquityhd.com) in Lenexa, Kansas where owner Scott Henson (pictured, left, with jib) writes, produces and directs a wide range of projects originating in the Kansas City, Missouri metro area. In the current economic climate "everyone is trying to figure out what they can do to move forward," he says. "My ability to do a number of things works to my advantage."
Henson's production company creates high-end corporate marketing and web videos, regional and local spots and documentaries, including Inside the Presidency, about the Eisenhower-Nixon relationship, which aired on The History Channel. He typically hires crew and shoots with Panasonic HD cameras, "from VariCams to P2s," and edits on Apple's Final Cut Pro. Henson is also in demand to write, produce and direct for others. His long-term goal is "to make documentaries of substance and interest to me," and to that end he has several docs in development.
Almost ready for the marquee in Kansas is the horror film Nailbiter which was still in production at press time. From local filmmaker and horror vet Patrick Rea, the movie tells the story of a mother and her daughters taking cover from a tornado and discovering they've sheltered with a terrifying creature.
The Only Good Indian, a period drama directed by University of Kansas professor, Kevin Willmott, also wrapped within the last year. Shot in various Kansas locations, including Lawrence and Wichita, it starred Wes Studi and is airing on Starz cable.
One popular attraction in Kansas is Western Frontier Adventure, a combination tourist and production locale in the town of Easton. It's often employed for projects ranging from movies and spots to cable programming, including several scenes for The History Channel's America: The Story of Us.
Wichita's Intake Studio Launches Kansas City Division
Intake Studio (www.intakestudio.com), the Wichita-based motion graphics, VFX, animation, editorial and production company, has opened a satellite division in Kansas City, Missouri, reports president Troy Lott (pictured, left, with fellow principals Heath Balderston and Todd Schwartz). The new space expands the company's offerings for commercials, cross-platform advertising and interactive media and provides a centrally-located creative resource for agencies in the region. Earlier, Intake Studio's flagship office doubled its size and talent roster. It netted a dozen wins at this year's Wichita and Tulsa ADDYs, including Best of Broadcasting honors for its animated Tulsa Health Department campaign. "Intake Studio is like the little engine that could — steadily building a reputation and brand that reflect our philosophy and commitment to our craft as we gain momentum, attract more challenging work and maximize the production value our clients get out of every dollar," says Lott.
Speaking of television, promos for Kirstie Alley's A&E reality show, Kirstie Alley's Big Life, were shot in Wichita. John Deere produced a long-form spot in the Lawrence area.
While its tax incentives are on hold, Kansas (a right-to-work state) does offer a break on its hotel occupancy tax for stays of longer than 28 days. Jasso is looking at other avenues to promote the industry, too, such as working with the University of Kansas's film department to stage programs and workshops and maximizing PR opportunities at the Kansas City FilmFest, Kansas International Film Festival and the Tallgrass Film Festival.
Nebraska Showcases Strong Indie Presence
Nebraska is another MidAmerican state that does not offer film incentives, yet film officer Laurie Richards of the Nebraska Film Office says the locals are tuned into the fact that the industry is a big moneymaker.
While she doesn't foresee getting any incentive money anytime soon, "the Nebraska Film Association has been coordinating an effort to promote incentives, and there have been several senators that are interested in film legislation," she reports.
Nevertheless, the indie film industry has made its presence felt in Nebraska with recent productions such as April Showers from director Andrew Robinson, which shot in Plattsmouth; Lovely, Still, directed by Nik Fackler, which lensed in Omaha; and For Love of Amy, directed by Ted Lange, which shot in Omaha and Council Bluffs, Iowa.
And in mid-spring, there was a casting call from LA for the suspense/mystery thriller, Geocachers. Directed by David Willnerd, shooting commenced in June in the town of Western, Nebraska. Another indie, Trunked, is slated to lens at the same time in Lincoln.
Great Plains Motion Picture Company Zips Through Traffic
Director partners Rod Jensen and Steve Thiesfeld enjoy "the best of both worlds," says Jensen, working independently or with the support of Omaha's The Great Plains Motion Picture Company (www.thegreatplains.com), which they opened 20 years ago. The company offers a 5-ton grip and lighting truck plus three HD editing suites, one with an Autodesk Smoke. Jensen and Thiesfeld shoot coast to coast, often lensing spots for fast-food, banking/financial and healthcare clients.
Jensen recently directed and shot a promotional video from Ervin Integrated/Omaha for Sacramento-based Barrier Systems, which makes movable concrete barriers for traffic management. He gathered six additional DPs and mustered two RED cameras, a Canon 5D for timelapse and HD stick cameras on Philadelphia's Ben Franklin Bridge and a stretch of the I-30 in Dallas. "They were very challenging locations. No camera cars were allowed, and we couldn't pose any traffic hazards while we captured the Zipper machine moving the barriers."
The only Hollywood movie to visit in recent years was Up In the Air, which spent just one day in Omaha where the story was set. If Nebraska had film incentives would the producers have shot in state?
"Absolutely," Richards says. "The director, Jason Reitman, and the producers made it known that they would have spent a lot more time in Omaha if we had been able to offer film incentives."
While there isn't much TV production in Nebraska, the state does have an active spot market. "The locals know where they want to shoot and it is beneficial that there is no permitting process necessary in the state," Richards reports.
One location hotspot is the Old Market in an early 20th-century building in Omaha's warehouse district. There are a plethora of prairies and interesting geological features in the area, like Chimney Rock, Jail Rock and Courthouse Rock.
"We have little pockets of activity here and we have all of the basics, just not the incentives," says Richards. "I would say that we're a well-kept secret."
Dakotas Offer Own Cost Savings
While North Dakota doesn't offer film tax incentives and sticks to assisting producers with scouting through referrals from its tourism division, the effort is more focused south of the border, where the South Dakota Film Office does offer incentives.
To qualify, a production must exceed $250,000 in taxable costs incurred within the state; at that point, 100% of the sales and excise tax can be refunded. That typically amounts to about 6% of the total spend, according to spokesperson Katlyn Richter.
Also, if production crew (or anyone else) rents a hotel room in South Dakota for 28 consecutive days, the production is exempt from the city and state tax. The only caveat is that productions must apply 30 days before a shoot, and then send in receipts for the refund within 60 days after completion of the project.
Richter says shooting in South Dakota actually has more to do with what the state promotes as its "built-in" incentive — that is, no income tax on its citizens and corporations. "That makes for a bigger bang for the buck and has proven to be a good bargaining wedge."
Video Arts Delivers National TV Programming
Art and Mary Ann Phillips are the married co-owners of Fargo's Video Arts Studios (www.videoartsstudios.com), but this is no mom & pop business. The company has produced radio and TV commercials, corporate presentations and TV programming around the world since 1982; Hired Gums (www.hiredgums.com) is their national voiceover service. Video Arts shoots HD or SD on location or on its 2,000 square-foot greenscreen stage. The John Storyk-designed facility features two audio studios and a pair of HD online edit suites; a 1-ton grip truck is also available.
Continued work in the commercial and corporate arenas is Video Arts' mainstay, but general manager Art Philiips notes that "it is exciting to be working with Discovery Health, The History Channel and other networks producing television programming." The company's most recent "delivery" was Births Beyond Belief, a one-hour show that aired on Discovery Health (Troy Parkinson, Mitch Lee and Zach Marion pictured, left to right, shooting in Hawaii).
Richter also notes that obtaining products and services is very cost effective in the state, since its cost of living is relatively low compared to most of the country. "And we also have a talented crew base that's willing to travel the entire 400-plus miles across the state to work on productions," she says.
Another part of the equation is that the state is home to several universities offering arts programs with film classes. "All of those factors help, as do our various landscapes, from agricultural Midwest to mountains for that rugged, western look to the endless, wide-open spaces with roaming buffalo and rolling prairies," Richter notes.
Recent productions include a BBC doc about "Wizard of Oz" author L. Frank Baum, most of which was shot on location in the central part of South Dakota last spring.
On the indie front, Ephraim Media's Courageous Hart was shot 100% in the state. Written and directed by Tim Appel, it's the story of a young boxer who uses the talents he learned from his boxer-father to rise from poverty and pay for an operation for his childhood sweetheart.
Crow Ridge Grip and Audio Go Full Throttle
The reality TV phenomenon has been a revenue generator for Rapid City-based Crow Ridge Productions (www.crowridgeproductions.com), which offers professional services for film and video as well as western South Dakota's only grip truck. Husband and wife Rick and Chris Van Ness provided the grip truck to TruTV's Full Throttle Saloon set in Sturgis, South Dakota at "the biggest biker bar in the country," says Chris. As one of a crew of five, Rick also provided production sound, recording with a 5-channel Wendt mixer and Lectrosonic wireless lavaliers. The show's California-based production concern, A. Smith & Co., had five crews going 24/7 for 10 consecutive days, which paid off with six episodes that aired last fall.
What's next? "More of the same next season," reports Chris. Plus spot work for the Black Hills Playhouse and the Black Hills Film Festival and the indie film, You Don't Know Bertha Constantine, in the Badlands.
Also of note is You Don't Know Bertha Constantine, an indie short that illustrates the beauty of love and the outrageous acts it inspires. Written, directed and produced by Andrew Kightlinger, it's set in the Badlands.
Sara Coleman, director of the North Dakota Tourism Division office, says there has been some indie film activity in the state in recent years but has no way to track it. She reports more calls to her office and more interest in shooting in North Dakota in the last six months than in the past several years. Not having to get permits from the state is a big advantage for producers, she notes, although some cities do require permitting.
By Mark R. Smith
For a region that's often identified with broad sweeps of flat land, the states that comprise America's Heartland actually offer a range of landscapes and cityscapes that the production community knows can help make a production.
What the states in MidAmerica lack in incentives — Missouri has the fullest till at $4.5 million — they make up for in looks, from the beauties of The Great Outdoors to the charms of small-town America.
Minnesota Looks to Build on Snowbate, 3D Prospects
While Minnesota has been limited in what it can offer the production community in the way of incentives, Lucinda Winter is hoping that the rising stereoscopic 3D market will help propel Minnesota's strong production and postproduction base toward the forefront of the industry.
The executive director of the Minnesota Film & TV Board thinks that "eventually, some percentage of TV series and spots will be acquired and produced in 3D. And that will be a wide-open market. We're trying to get everyone on board before the wave hits. That way, producers can come here to find people who are experienced in lighting, shooting and posting in 3D. Major League Baseball just announced that it will broadcast a game on our local CBS affiliate, WCCO, in 3D, so that's already happening."
Splice Dishes Up Edwards Ice Cream
Minneapolis-based post house Splice (www.splicehere.tv) recently edited "Awards Show," a national :30 spot for Edwards Ice Cream's Singles Hot Molten Lava Chocolate Cake from agency Brew/Minneapolis. Peter Chelsom of Independent Media directed in LA with DP Barry Peterson manning two Sony F-35s and a RED camera. "Just about every single shot has some type of effects work," notes executive producer Kel Nelson. "We did everything on the post side — but I was the agency's producer and our VFX designer, Tom Reiner, assisted."
Splice did the edit and color grading on Apple's Final Cut Studio 3 tapping Adobe After Effects, CS4, Imagineer Systems' Mocha, Syntheyes and CINEMA 4D for the extensive effects. The commercial airs this summer, when viewers will see how Splice "made a small-scale food idea more cinematic."
Winter hopes for more incentive money after the state's administration changes in November. The Snowbate rebate program offers a reimbursement of 15-20% of Minnesota production expenditures. The incentive is available to feature films, national television or Internet programs, commercials, music videos and documentaries. Funding for the current fiscal year is just $1.25 million, available until expended. "We would like to build on what we have and increase the funds available for Snowbate," she says.
Minnesota's metrics point to the value of film and video production. The state's most recent report on revenues, from June 2009, reveals a $15 million direct spend; during that same period the state picked up the equivalent of 349 full-time jobs.
Cinequipt Supplies Geek Squad
Among recent work for Cinequipt (www.cinequipt.com) in Minneapolis is a corporate project for locally-based Best Buy's Geek Squad service. The company supplied two Panasonic AG-HPX500 cameras, a tungsten lighting package, several Panasonic BT LH17-10 monitors and a studio grip package for the three-day shoot. "Best Buy has been a consistent user of the company throughout the past couple decades," says Cinequipt general manager Greg Meyers.
Billed as the #1 source for film, video, lighting and grip equipment rental in the Upper Midwest, Cinequipt also rents the Canon 5D Mark II and EOS 7D Digital SLRs, "which have made a strong entry into our market," Meyers reports. The company is adding a 3-ton grip truck with another tungsten package, has acquired two 1800-watt Arrimaxs and a wider variety of LED lighting, and has two ARRI Alexa digital cameras en route.
The most recent feature to shoot in Minnesota wrapped in March and had "a good indie-sized budget" in the $4-5 million range. The Convincer tells the story of a salesman's search for a rare musical instrument that triggers a series of dramatic consequences. The Midwestern crime drama starred Greg Kinnear, Alan Arkin, Billy Crudup and Leah Thompson, and was financed and produced by the Minnesota company Werc Werk Works. A fall release is planned.
Next will come Stuck Between Stations, an indie film inspired by a song by Minneapolis rock band The Hold Steady. Starring Sam Rosen, it was written and directed by Brady Kiernan and concerns a couple thrown together by the whirlwind of a strange evening's events.
Minnesota Twins Tap Pixel Farm System
New Major League Baseball parks are meant to generate business, and one beneficiary of the commerce fueled by the Minnesota Twins' Target Field is Minneapolis-based Pixel Farm (www.pixelfarm.com).
The postproduction and design studio created "more than 300 graphic elements for the five—story, 54,000 square-foot, main Daktronics HD display" in the ballpark as well as graphics for three ribbon boards, the bullpen board and the out-of-town scoreboard, says senior animator Rich Haesemeyer. Pixel Farm shot "all 90 players who came to spring training" and combined the live action with 3D elements crafted with Autodesk Maya; Apple's Shake was used for compositing and Autodesk Inferno and Fire for additional effects and compositing. Music was composed on Digidesign Pro Tools. The ballpark graphics give Twins fans "an almost theme park-like experience," Haesemeyer reports. "The animations tumble, turn and rotate with this great kinetic energy that is awesome."
Minnesota also hosted some cable TV series, including The History Channel's Monster Quest, The Sportsmen's Channel's Born to Be Wild, Food Network's Diners, Drive-Ins & Dives and segments for Travel Channel's Bizarre Foods With Andrew Zimmern.
The state does a considerable amount of spot work, says Winter, "because we have a number of large corporate headquarters here," including Best Buy (which last year spent $18 million through its Yellow Tag Productions), Target and Buffalo Wild Wings. Also, the four major sports leagues have franchises in Minneapolis/St. Paul, which keeps superstars such as Joe Mauer of the Minnesota Twins in demand for commercial appearances.
soundstage stages
Des Moines skyline and downtown Blue Bridge.
Photo by Colby Clark
Iowa Struggles to Overcome Scandal
Iowa governor Chet Culver has suspended the state's film incentive program until 2013 in the wake of allegations of abuses by former Iowa Film Office manager Tom Wheeler and others. Wheeler has been criminally charged with nonfelonious misconduct in office, and two filmmakers have been charged with first-degree theft.
Prosecutors say more than $1.85 million in tax credits were fraudulently obtained for the movie The Scientist; another incident charges other filmmakers with attempting to turn tax credits into luxury-vehicle purchases.
Also at issue is the state's liability to reimburse the producers of projects completed in Iowa last year. Nineteen films that wrapped before the September suspension are presumably due tax credits.
Preserving Iowa's Land at Full Spectrum
The mention of Iowa conjures up bucolic landscapes, and Full Spectrum Productions of Des Moines (www.fullspectrumproductions.com) addressed those musings by producing The Land Remains, a one-hour program for Iowa Public Television on conservation and stewardship options for landowners.
The project "invokes the spirit of Aldo Leopold, author of A Sand County Almanac," says president Kent Newman (at left in picture), and includes interviews with Tom Vilsack, former Iowa governor and current U.S. Secretary of Agriculture. "Iowa has some of the richest soil in the world. It's the # 1 producer of corn and soybeans in the country — but we're losing soil and they are not making any more of it."
Shot in spring 2009 with the RED camera and five Nikon lenses, the show is being edited on an Apple Final Cut Pro HD system with RAID array; the RED Rocket accelerator card expedites posting RED RAW files. Also underway: the low-budget indie, Fortnight, with Newman serving as DP.
To date, more than half of 99 active projects in various stages of preproduction and production have either been halted, lack funding or moved to another state, reports Becky Gruening, director of the Greater Des Moines Film Commission. She notes that just six major film productions are likely to proceed with filming in Iowa in 2010 "if their tax credits are honored at the percentage rate that they were given, which was 50 percent of the total (cost of production) before September 18. Today, the producers are being offered less."
Film commissions in Des Moines, southeast Iowa and the Quad Cities are still waiting to hear about "the status of 14 projects and if their agreement/contracts will be honored as written in 2009," Gruening says. Filmmakers are lobbying to delay the suspension of Iowa's incentives until Jan. 1, 2011. "That would give us a year to put a much stronger program together and prevent the state from losing two full seasons of filming," she points out.
MediaWork Tells Diverse Range of Stories
It's the contention of Davenport, Iowa's MediaWork Productions (www.mediaworkproductions.com) that "every person and every company has a story" and the company can "help them tell it," says co-owner/president Rich Webster (pictured seated with Joe Brown). The full-service video production house shoots a wide range of stories in HD, DVCAM and Beta SP and edits in its Media 100 suite.
MediaWork does fund-raising videos for non-profits and healthcare-education programs such as surgical demos which mix footage of procedures with physician interviews and commentary. "We've gotten good at having a small footprint and staying out of the way of people doing jobs more important than ours," says Webster of shooting in the OR. The company recently completed a shoot for America's Most Wanted and enjoys repeat business from Montel Williams and FOX News. In addition, every four years MediaWork sees "a spike" in political work as presidential hopefuls flock to the state.
A number of state legislatures want to revisit the issue in January to create a better program, too. In the meantime, the Iowa Film Office remains open under interim director Jessica Montana.
While Iowa currently has no incentives to offer to producers, Gruening says, "We are still selling what we always sell here: our diverse landscapes, such as flat lands, hills, cliffs and rivers, plus small-town America and rural communities. That's how The Bridges of Madison County and Field of Dreams came to be shot in Iowa in the days before our film incentives."
Missouri Shows Producers the Money
Missouri has a little more money in its incentive fund than many of the smaller players in the Hollywood sweepstakes: The state's fund is set at $4.5 million, with $3.3 million left for calendar 2010.
"We're trolling for a Hollywood feature now," says Jerry Jones, director of the Missouri Film Commission, who explained the state's offer. "A film with a $10 million budget typically spends $6 million on location for qualifying expenses. So that would earn the production about a $2 million credit, since we reimburse 35%."
Missouri also counts out-of-state wages as part of the local spend, and applies them toward the tax credit. "So if the DP comes here from out of state and Missouri income tax is withheld, that counts," says Jones.
Like many film office heads nationwide, Jones feels fortunate that Missouri has the same amount in its till as it did last year. "The legislature was contentious on the subject, due to the economy and because our state has numerous tax credit programs," he says. "So that made it tougher to get more money for our program this year."
Healthy Market for Avatar
From its St. Louis home Avatar Studios (www.avatar-studios.com) has kept busy with Illinois-based Christie Clinic, the subject of a three-spot campaign shot and posted by Avatar via agency Jones & Thomas/Decatur, Illinois. Avatar shot in its studio on greenscreen then lensed footage in and around St. Louis using the Sony XDCAM EX camcorder, Pro35 Zeiss lenses, Fisher 11 dolly and Jimmy Jib. The offline was done on Apple's Final Cut Pro with the online, compositing and graphics performed on the Avid Nitris DS. Avatar owner Bill Faris was the campaign's director and Doug Hastings its DP.
Faris says the company is expanding its global reach through Avatar International working on projects "such as content, distribution and display on big HD boards" for clients like Anheuser-Busch Satellite Network.
Recent shoots in Missouri include Paramount's Up In the Air, which shot in St. Louis for seven weeks, and Winter's Bone, a winner at Sundance in the dramatic competition category, which shot in Branson and Forsyth. Directed by Deborah Granik (a prior Sundance winner), Winter's Bone was picked up by distributor Coming Attractions and is set for release in June.
Missouri's TV credits include a segment for The History Channel's Life After People, shot at Bonne Terre Mine, which encompasses the largest underground lake in the world; part of an HBO doc about St. Louis Post-Dispatch founder Joseph Pulitzer, which shot in that city; and a segment for CBS's 48 Hours about Josh Keezer, who was wrongly incarcerated in the Missouri State Penitentiary.
Also in the mix are Branson, a soon-to-be released doc from producer David Wilson about the entertainment mecca, the "Money Talks" music video from St. Louis native Nelly and various spots.
House of Motion Finds Itself in Sin Bin
St. Louis-based House of Motion's (www.motionphotography.us) owner/operator Dave Rutherford recently relied on the G-70 Steadicam equipped with an ARRI Lite 35mm with anamorphic lenses to shoot an indie comedy in Chicago, Sin Bin, from director Billy Federighi.
"It's interesting shooting anamorphic lenses since they're so wide," says Rutherford (pictured shooting Steadicam for the action flick The Tournament), "but you have to watch your horizon levels a little more, plus the lenses are heavier than the camera and the magazine combined." His rig also consisted of an MK-V four-post sled used to shoot taller actors.
Lately, Rutherford's biggest client is the Four Seasons hotel chain. He's been traveling nationwide shooting its customized TV program, Luxury Explorer, on the Sony F-900 HDCAM. In addition he's shooting MonsterFish for National Geographic Channel on Panasonic's VariCam and AJ-HDX900 cameras.
With the sesquicentennial of the Pony Express approaching "and a group of indie filmmakers already on hand to make a doc," Jones has upcoming productions to look forward to. But what he wants for Missouri is something most filmmakers want, too.
"Producers from Up In the Air have told me that, from the executive producer's standpoint, a state should have a pool of $30 million" in its incentive fund, "because that way there are no worries that the money will be gone by wrap time. And while no one would take (incentive) money away (from a production already shooting in the state), that's the reality vs. the perception."
soundstage stages
Mount Rushmore National Memorial, South Dakota
Photo by South Dakota Office of Tourism
On the set of Meet Bill in O'Fallon, Missouri.
The Convincer shot in and around the Twin Cities for 30 days in February and March; Dick Pope was the DP.
Kansas Pitching to Resume Funding
Peter Jasso is feeling the pain that many film office directors around the country are also experiencing — Kansas had its relatively small $2 million incentive fund suspended by the state's legislature for 2009 and 2010.
What to do? "We'll be working within the industry to make our pitch at the start of the 2011 legislative session," which starts in January, says Jasso, the director of the Kansas Film Commission, who now works as a solo act.
Still, some indie films shot in the state during the past year. One was a "Bollywood"-style Telugu-language film called Afterlife (or Maro Charitra), a romance directed by Indian cinematographer Ravi Yadav. It included an Indian cast and crew that visited various locations in Kansas and other states.
ObliquityHD's Full-Service Capabilities Prove Advantageous
Diversity reigns at ObliquityHD (www.obliquityhd.com) in Lenexa, Kansas where owner Scott Henson (pictured, left, with jib) writes, produces and directs a wide range of projects originating in the Kansas City, Missouri metro area. In the current economic climate "everyone is trying to figure out what they can do to move forward," he says. "My ability to do a number of things works to my advantage."
Henson's production company creates high-end corporate marketing and web videos, regional and local spots and documentaries, including Inside the Presidency, about the Eisenhower-Nixon relationship, which aired on The History Channel. He typically hires crew and shoots with Panasonic HD cameras, "from VariCams to P2s," and edits on Apple's Final Cut Pro. Henson is also in demand to write, produce and direct for others. His long-term goal is "to make documentaries of substance and interest to me," and to that end he has several docs in development.
Almost ready for the marquee in Kansas is the horror film Nailbiter which was still in production at press time. From local filmmaker and horror vet Patrick Rea, the movie tells the story of a mother and her daughters taking cover from a tornado and discovering they've sheltered with a terrifying creature.
The Only Good Indian, a period drama directed by University of Kansas professor, Kevin Willmott, also wrapped within the last year. Shot in various Kansas locations, including Lawrence and Wichita, it starred Wes Studi and is airing on Starz cable.
One popular attraction in Kansas is Western Frontier Adventure, a combination tourist and production locale in the town of Easton. It's often employed for projects ranging from movies and spots to cable programming, including several scenes for The History Channel's America: The Story of Us.
Wichita's Intake Studio Launches Kansas City Division
Intake Studio (www.intakestudio.com), the Wichita-based motion graphics, VFX, animation, editorial and production company, has opened a satellite division in Kansas City, Missouri, reports president Troy Lott (pictured, left, with fellow principals Heath Balderston and Todd Schwartz). The new space expands the company's offerings for commercials, cross-platform advertising and interactive media and provides a centrally-located creative resource for agencies in the region. Earlier, Intake Studio's flagship office doubled its size and talent roster. It netted a dozen wins at this year's Wichita and Tulsa ADDYs, including Best of Broadcasting honors for its animated Tulsa Health Department campaign. "Intake Studio is like the little engine that could — steadily building a reputation and brand that reflect our philosophy and commitment to our craft as we gain momentum, attract more challenging work and maximize the production value our clients get out of every dollar," says Lott.
Speaking of television, promos for Kirstie Alley's A&E reality show, Kirstie Alley's Big Life, were shot in Wichita. John Deere produced a long-form spot in the Lawrence area.
While its tax incentives are on hold, Kansas (a right-to-work state) does offer a break on its hotel occupancy tax for stays of longer than 28 days. Jasso is looking at other avenues to promote the industry, too, such as working with the University of Kansas's film department to stage programs and workshops and maximizing PR opportunities at the Kansas City FilmFest, Kansas International Film Festival and the Tallgrass Film Festival.
Nebraska Showcases Strong Indie Presence
Nebraska is another MidAmerican state that does not offer film incentives, yet film officer Laurie Richards of the Nebraska Film Office says the locals are tuned into the fact that the industry is a big moneymaker.
While she doesn't foresee getting any incentive money anytime soon, "the Nebraska Film Association has been coordinating an effort to promote incentives, and there have been several senators that are interested in film legislation," she reports.
Nevertheless, the indie film industry has made its presence felt in Nebraska with recent productions such as April Showers from director Andrew Robinson, which shot in Plattsmouth; Lovely, Still, directed by Nik Fackler, which lensed in Omaha; and For Love of Amy, directed by Ted Lange, which shot in Omaha and Council Bluffs, Iowa.
And in mid-spring, there was a casting call from LA for the suspense/mystery thriller, Geocachers. Directed by David Willnerd, shooting commenced in June in the town of Western, Nebraska. Another indie, Trunked, is slated to lens at the same time in Lincoln.
Great Plains Motion Picture Company Zips Through Traffic
Director partners Rod Jensen and Steve Thiesfeld enjoy "the best of both worlds," says Jensen, working independently or with the support of Omaha's The Great Plains Motion Picture Company (www.thegreatplains.com), which they opened 20 years ago. The company offers a 5-ton grip and lighting truck plus three HD editing suites, one with an Autodesk Smoke. Jensen and Thiesfeld shoot coast to coast, often lensing spots for fast-food, banking/financial and healthcare clients.
Jensen recently directed and shot a promotional video from Ervin Integrated/Omaha for Sacramento-based Barrier Systems, which makes movable concrete barriers for traffic management. He gathered six additional DPs and mustered two RED cameras, a Canon 5D for timelapse and HD stick cameras on Philadelphia's Ben Franklin Bridge and a stretch of the I-30 in Dallas. "They were very challenging locations. No camera cars were allowed, and we couldn't pose any traffic hazards while we captured the Zipper machine moving the barriers."
The only Hollywood movie to visit in recent years was Up In the Air, which spent just one day in Omaha where the story was set. If Nebraska had film incentives would the producers have shot in state?
"Absolutely," Richards says. "The director, Jason Reitman, and the producers made it known that they would have spent a lot more time in Omaha if we had been able to offer film incentives."
While there isn't much TV production in Nebraska, the state does have an active spot market. "The locals know where they want to shoot and it is beneficial that there is no permitting process necessary in the state," Richards reports.
One location hotspot is the Old Market in an early 20th-century building in Omaha's warehouse district. There are a plethora of prairies and interesting geological features in the area, like Chimney Rock, Jail Rock and Courthouse Rock.
"We have little pockets of activity here and we have all of the basics, just not the incentives," says Richards. "I would say that we're a well-kept secret."
Dakotas Offer Own Cost Savings
While North Dakota doesn't offer film tax incentives and sticks to assisting producers with scouting through referrals from its tourism division, the effort is more focused south of the border, where the South Dakota Film Office does offer incentives.
To qualify, a production must exceed $250,000 in taxable costs incurred within the state; at that point, 100% of the sales and excise tax can be refunded. That typically amounts to about 6% of the total spend, according to spokesperson Katlyn Richter.
Also, if production crew (or anyone else) rents a hotel room in South Dakota for 28 consecutive days, the production is exempt from the city and state tax. The only caveat is that productions must apply 30 days before a shoot, and then send in receipts for the refund within 60 days after completion of the project.
Richter says shooting in South Dakota actually has more to do with what the state promotes as its "built-in" incentive — that is, no income tax on its citizens and corporations. "That makes for a bigger bang for the buck and has proven to be a good bargaining wedge."
Video Arts Delivers National TV Programming
Art and Mary Ann Phillips are the married co-owners of Fargo's Video Arts Studios (www.videoartsstudios.com), but this is no mom & pop business. The company has produced radio and TV commercials, corporate presentations and TV programming around the world since 1982; Hired Gums (www.hiredgums.com) is their national voiceover service. Video Arts shoots HD or SD on location or on its 2,000 square-foot greenscreen stage. The John Storyk-designed facility features two audio studios and a pair of HD online edit suites; a 1-ton grip truck is also available.
Continued work in the commercial and corporate arenas is Video Arts' mainstay, but general manager Art Philiips notes that "it is exciting to be working with Discovery Health, The History Channel and other networks producing television programming." The company's most recent "delivery" was Births Beyond Belief, a one-hour show that aired on Discovery Health (Troy Parkinson, Mitch Lee and Zach Marion pictured, left to right, shooting in Hawaii).
Richter also notes that obtaining products and services is very cost effective in the state, since its cost of living is relatively low compared to most of the country. "And we also have a talented crew base that's willing to travel the entire 400-plus miles across the state to work on productions," she says.
Another part of the equation is that the state is home to several universities offering arts programs with film classes. "All of those factors help, as do our various landscapes, from agricultural Midwest to mountains for that rugged, western look to the endless, wide-open spaces with roaming buffalo and rolling prairies," Richter notes.
Recent productions include a BBC doc about "Wizard of Oz" author L. Frank Baum, most of which was shot on location in the central part of South Dakota last spring.
On the indie front, Ephraim Media's Courageous Hart was shot 100% in the state. Written and directed by Tim Appel, it's the story of a young boxer who uses the talents he learned from his boxer-father to rise from poverty and pay for an operation for his childhood sweetheart.
Crow Ridge Grip and Audio Go Full Throttle
The reality TV phenomenon has been a revenue generator for Rapid City-based Crow Ridge Productions (www.crowridgeproductions.com), which offers professional services for film and video as well as western South Dakota's only grip truck. Husband and wife Rick and Chris Van Ness provided the grip truck to TruTV's Full Throttle Saloon set in Sturgis, South Dakota at "the biggest biker bar in the country," says Chris. As one of a crew of five, Rick also provided production sound, recording with a 5-channel Wendt mixer and Lectrosonic wireless lavaliers. The show's California-based production concern, A. Smith & Co., had five crews going 24/7 for 10 consecutive days, which paid off with six episodes that aired last fall.
What's next? "More of the same next season," reports Chris. Plus spot work for the Black Hills Playhouse and the Black Hills Film Festival and the indie film, You Don't Know Bertha Constantine, in the Badlands.
Also of note is You Don't Know Bertha Constantine, an indie short that illustrates the beauty of love and the outrageous acts it inspires. Written, directed and produced by Andrew Kightlinger, it's set in the Badlands.
Sara Coleman, director of the North Dakota Tourism Division office, says there has been some indie film activity in the state in recent years but has no way to track it. She reports more calls to her office and more interest in shooting in North Dakota in the last six months than in the past several years. Not having to get permits from the state is a big advantage for producers, she notes, although some cities do require permitting.
Neil Wells on FM Radio 98.3 This Wednesday!
This Wednesday, from 7 to 8 pm, on Iowa FM radio 98.3,
filmmaker Neil Wells will talk about the film industry tax credit fiasco. Yes, with legal proceedings in progress, it's still an issue, sorry to say. Was the film tax credit an appropriate role of government? This one's not as black-and-white as you might think. I... was with Neil many times when he went face-to-face with Iowa legislators and suggest you tune in if you're in Iowa this Wednesday at 7 p.m. ... gino
(pictured is Neil with fellow actor and comedian John Bush at the Iowa rotunda)
Sunday, July 25, 2010
By Walt Belcher, Tampa Tribune
Dolphin movie may turn tide for film production
By Walt Belcher, Tampa Tribune, Fla.
July 25--TAMPA -- When production begins in September in Clearwater on a motion picture about Winter, the rescued dolphin with a prosthetic tail, it will be the first major film made in the Tampa-St. Petersburg area since 2004.
Although there have been hundreds of commercials and numerous low-budget independent films made in the area since then, the last film of note was "The Punisher."
The action thriller based on a comic book character that starred Thomas Jane and John Travolta wasn't exactly Oscar material, but it had a $12 million impact on the Tampa-area economy (according to a Florida Film Commission estimate at the time).
Florida ranked third in the nation in film production in 2004, but along came four hurricanes, a dramatic downturn in the economy and cuts in state financial incentives for filmmakers. By 2008, the state had dropped out of the top 10 in film production.
"A Dolphin's Tale," being produced by Alcon Entertainment ("The Blind Side") and distributed by Warner Bros., signals what could be a renaissance for Florida-based film production.
Follow the money
Jennifer Parramore, director of the St. Petersburg-Clearwater Film Commission, says a $242 million, five-year state tax credit incentive program signed into law this year by Gov. Charlie Crist will bring more noteworthy film production to the Bay area.
"A Dolphin's Tale," a family-friendly story, is among 14 Florida-based productions that have been identified as in the pipeline to get a share of first round of incentives. Parramore and Tampa Film Commissioner Lindsey Norris Guthrie both say they are being inundated with queries from filmmakers eager to tap into Florida's tax credit program.
"There has always been interest in filming in Florida and in the St. Petersburg area, but now there is a bigger interest," Parramore says.
Spread over the next five years, the film tax rebate program kicked in this month with $53 million available for the 2010-2011 fiscal year.
Alcon has not released a price tag for the dolphin picture, but it could have a significant economic impact during filming this fall. "And it will be like a picture postcard for our area," Parramore says.
The biggest production coming to Florida under the new tax credit program is director Michael Bay's "Transformers 3," portions of which will be filmed in the Brevard County area this fall.
Coming to the Tampa-St. Petersburg area is an independent production, "Mad Science U," a sci-fi comedy, and a small independent film, "Fifty Miles of Faith," is in line for tax credits.
"Filmmaking is a business, and as much as producers would like to shoot in Florida, they will follow the money," Guthrie says.
Faced with a state budget crunch, the Florida Legislature cut an incentive program for films from $25 million in cash rebates to $5 million in 2008. It went back up to $10 million in 2009, but that was far less than what other states offered. More than 44 states offer some kind of incentive for filmmakers.
Beginning this month, the cash-rebate program in Florida was replaced with a tax-credit program. Only money spent in the state is eligible, up to $8 million per production. Filmmakers can get bonus tax breaks by filming during the off-season and if the film is family-friendly.
Learning from mistakes
There were 52 applications approved for credits in this first round. Reportedly, nearly 60 percent of them will be made in South Florida.
"But Tampa will get its share," says Guthrie. "We will never be Miami or South Beach but we have things that offer a unique look."
The Bay area recently lost out on "The Glades," a 13-episode series on A&E being filmed in South Florida, spending about $2 million per episode.
Portions of the detective/mystery series pilot episode were filmed in the Bay area last year, and then producers relocated it to Georgia, lured by a state incentive program.
The production finally settled in South Florida. "Glades" producer Clifton Campbell says the Miami-area has a stronger infrastructure for film production than Tampa-St. Petersburg.
In defense of the Tampa-St. Petersburg efforts to help "The Glades," Guthrie says the production rushed into town for one day's work that quickly expanded to five days, but even so the necessary permits were granted in record time. The production apparently was also hampered by the weather. Guthrie calls it an unfortunate comedy of errors.
Internationally known Tampa-based casting director Kathy Laughlin, who cast "The Glades," says "we can just move on and do better the next time because under this new tax incentive program, I'm more optimistic than I've been in years.
"In recent years, productions that could have been here have gone to places like Georgia, North Carolina, Louisiana, New Mexico and even Michigan," says Laughlin, who has cast Florida actors in movies and TV series being filmed in those states.
Laughlin says the Tampa-St. Petersburg area has a solid base of acting talent and some skilled support.
"We may have lost some of our infrastructure. We can get back the support like stunt people, craft services and others. We can rebuild."
By Walt Belcher, Tampa Tribune, Fla.
July 25--TAMPA -- When production begins in September in Clearwater on a motion picture about Winter, the rescued dolphin with a prosthetic tail, it will be the first major film made in the Tampa-St. Petersburg area since 2004.
Although there have been hundreds of commercials and numerous low-budget independent films made in the area since then, the last film of note was "The Punisher."
The action thriller based on a comic book character that starred Thomas Jane and John Travolta wasn't exactly Oscar material, but it had a $12 million impact on the Tampa-area economy (according to a Florida Film Commission estimate at the time).
Florida ranked third in the nation in film production in 2004, but along came four hurricanes, a dramatic downturn in the economy and cuts in state financial incentives for filmmakers. By 2008, the state had dropped out of the top 10 in film production.
"A Dolphin's Tale," being produced by Alcon Entertainment ("The Blind Side") and distributed by Warner Bros., signals what could be a renaissance for Florida-based film production.
Follow the money
Jennifer Parramore, director of the St. Petersburg-Clearwater Film Commission, says a $242 million, five-year state tax credit incentive program signed into law this year by Gov. Charlie Crist will bring more noteworthy film production to the Bay area.
"A Dolphin's Tale," a family-friendly story, is among 14 Florida-based productions that have been identified as in the pipeline to get a share of first round of incentives. Parramore and Tampa Film Commissioner Lindsey Norris Guthrie both say they are being inundated with queries from filmmakers eager to tap into Florida's tax credit program.
"There has always been interest in filming in Florida and in the St. Petersburg area, but now there is a bigger interest," Parramore says.
Spread over the next five years, the film tax rebate program kicked in this month with $53 million available for the 2010-2011 fiscal year.
Alcon has not released a price tag for the dolphin picture, but it could have a significant economic impact during filming this fall. "And it will be like a picture postcard for our area," Parramore says.
The biggest production coming to Florida under the new tax credit program is director Michael Bay's "Transformers 3," portions of which will be filmed in the Brevard County area this fall.
Coming to the Tampa-St. Petersburg area is an independent production, "Mad Science U," a sci-fi comedy, and a small independent film, "Fifty Miles of Faith," is in line for tax credits.
"Filmmaking is a business, and as much as producers would like to shoot in Florida, they will follow the money," Guthrie says.
Faced with a state budget crunch, the Florida Legislature cut an incentive program for films from $25 million in cash rebates to $5 million in 2008. It went back up to $10 million in 2009, but that was far less than what other states offered. More than 44 states offer some kind of incentive for filmmakers.
Beginning this month, the cash-rebate program in Florida was replaced with a tax-credit program. Only money spent in the state is eligible, up to $8 million per production. Filmmakers can get bonus tax breaks by filming during the off-season and if the film is family-friendly.
Learning from mistakes
There were 52 applications approved for credits in this first round. Reportedly, nearly 60 percent of them will be made in South Florida.
"But Tampa will get its share," says Guthrie. "We will never be Miami or South Beach but we have things that offer a unique look."
The Bay area recently lost out on "The Glades," a 13-episode series on A&E being filmed in South Florida, spending about $2 million per episode.
Portions of the detective/mystery series pilot episode were filmed in the Bay area last year, and then producers relocated it to Georgia, lured by a state incentive program.
The production finally settled in South Florida. "Glades" producer Clifton Campbell says the Miami-area has a stronger infrastructure for film production than Tampa-St. Petersburg.
In defense of the Tampa-St. Petersburg efforts to help "The Glades," Guthrie says the production rushed into town for one day's work that quickly expanded to five days, but even so the necessary permits were granted in record time. The production apparently was also hampered by the weather. Guthrie calls it an unfortunate comedy of errors.
Internationally known Tampa-based casting director Kathy Laughlin, who cast "The Glades," says "we can just move on and do better the next time because under this new tax incentive program, I'm more optimistic than I've been in years.
"In recent years, productions that could have been here have gone to places like Georgia, North Carolina, Louisiana, New Mexico and even Michigan," says Laughlin, who has cast Florida actors in movies and TV series being filmed in those states.
Laughlin says the Tampa-St. Petersburg area has a solid base of acting talent and some skilled support.
"We may have lost some of our infrastructure. We can get back the support like stunt people, craft services and others. We can rebuild."
Friday, July 23, 2010
From IPTV News Review (Not Iowa Public TV though..)
New Milken Institute Report Finds Film and TV Production Flight Has Cost California More Than 36,000 Jobs
4:00 pm - July 22nd, 2010
SOURCE: Milken Institute
LOS ANGELES, CA–(Marketwire – July 22, 2010) – California has lost 10,600 entertainment industry jobs, more than 25,500 related jobs, $2.4 billion in wages and $4.2 billion in total economic output since 1997 as film and TV production has moved to other states and countries, according to a new Milken Institute study, Film Flight: Lost Production and Its Economic Impact on California.
States like New York, New Mexico and Michigan, and countries like Canada and Germany have been aggressively courting the lucrative film industry with extensive tax and wage incentives. “The Blind Side,” “No Country for Old Men” and “The Incredible Hulk” are among the many movies that have been filmed outside of California in recent years.
“There’s no doubt that incentives have been drawing jobs and wages away from California,” said Kevin Klowden, Director of the Milken Institute California Center and lead author of the report. “And while California’s incentive package, passed in February 2009, appears to be working, we have a lot of catch up to do just to get back the share of production we had in 1997.”
According to the report, forty-two states (including California), plus the District of Columbia, are currently vying for a piece of the $57 billion U.S. film production industry by offering tax incentives. In July 2009, California implemented a tax credit for projects filmed in state with budgets of $75 million or less. Since its inception, 75 projects have been approved to receive credits. These projects were estimated to spend more than $1 billion in the state, generating $500 million of wages for below-the-line staff. The report notes that California’s tax credits are set to expire in 2014 and are more attractive to independent films and television series than to big-budget studio productions, because only projects with production costs below $75 million are eligible.
Among the findings of Film Flight:
* The number of movies either wholly or partially filmed in California has fallen sharply, from 272 in 2000 to 160 in 2008.
* California’s share of North American employment in the industry has declined from 40 percent in 1997 to 37.4 percent in 2008.
* Jobs losses go beyond the movie industry, because for every job created in California’s film sector, another 2.5 jobs are created in other sectors.
The report makes a series of recommendations on how California can turn the tide, including:
* Design a two-tier film incentive program — one set of benefits to engage big-budget studio films that are not covered under the current incentive program, and another set to attract smaller independent production.
* Implement a new digital-media tax credit to attract and retain developers of digital animation, visual effects, and video games.
* Make tax incentive programs permanent, signaling long-term commitment.
The report includes an analysis of what other countries and states are doing to attract film production and post-production business such as digital special effects, animation and 3-D video game development. Included in the analysis are Canada, Australia, the U.K., Germany, New Zealand, New York, Georgia, Louisiana, New Mexico, North Carolina and Michigan.
Film Flight: Lost Production and Its Economic Impact on California is a product of the Milken Institute’s California Center, which is dedicated to measuring, evaluating and analyzing the state’s economic, demographic and social conditions and trends.
About the Institute: The Milken Institute is a nonprofit, independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It is based in Santa Monica, CA. (www.milkeninstitute.org)
4:00 pm - July 22nd, 2010
SOURCE: Milken Institute
LOS ANGELES, CA–(Marketwire – July 22, 2010) – California has lost 10,600 entertainment industry jobs, more than 25,500 related jobs, $2.4 billion in wages and $4.2 billion in total economic output since 1997 as film and TV production has moved to other states and countries, according to a new Milken Institute study, Film Flight: Lost Production and Its Economic Impact on California.
States like New York, New Mexico and Michigan, and countries like Canada and Germany have been aggressively courting the lucrative film industry with extensive tax and wage incentives. “The Blind Side,” “No Country for Old Men” and “The Incredible Hulk” are among the many movies that have been filmed outside of California in recent years.
“There’s no doubt that incentives have been drawing jobs and wages away from California,” said Kevin Klowden, Director of the Milken Institute California Center and lead author of the report. “And while California’s incentive package, passed in February 2009, appears to be working, we have a lot of catch up to do just to get back the share of production we had in 1997.”
According to the report, forty-two states (including California), plus the District of Columbia, are currently vying for a piece of the $57 billion U.S. film production industry by offering tax incentives. In July 2009, California implemented a tax credit for projects filmed in state with budgets of $75 million or less. Since its inception, 75 projects have been approved to receive credits. These projects were estimated to spend more than $1 billion in the state, generating $500 million of wages for below-the-line staff. The report notes that California’s tax credits are set to expire in 2014 and are more attractive to independent films and television series than to big-budget studio productions, because only projects with production costs below $75 million are eligible.
Among the findings of Film Flight:
* The number of movies either wholly or partially filmed in California has fallen sharply, from 272 in 2000 to 160 in 2008.
* California’s share of North American employment in the industry has declined from 40 percent in 1997 to 37.4 percent in 2008.
* Jobs losses go beyond the movie industry, because for every job created in California’s film sector, another 2.5 jobs are created in other sectors.
The report makes a series of recommendations on how California can turn the tide, including:
* Design a two-tier film incentive program — one set of benefits to engage big-budget studio films that are not covered under the current incentive program, and another set to attract smaller independent production.
* Implement a new digital-media tax credit to attract and retain developers of digital animation, visual effects, and video games.
* Make tax incentive programs permanent, signaling long-term commitment.
The report includes an analysis of what other countries and states are doing to attract film production and post-production business such as digital special effects, animation and 3-D video game development. Included in the analysis are Canada, Australia, the U.K., Germany, New Zealand, New York, Georgia, Louisiana, New Mexico, North Carolina and Michigan.
Film Flight: Lost Production and Its Economic Impact on California is a product of the Milken Institute’s California Center, which is dedicated to measuring, evaluating and analyzing the state’s economic, demographic and social conditions and trends.
About the Institute: The Milken Institute is a nonprofit, independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It is based in Santa Monica, CA. (www.milkeninstitute.org)
Wednesday, July 21, 2010
Wisconsin Is Getting Back Into the Film Act! Are WE????
New Wis. governor would change film incentives
New Wisconsin governor would likely make tax incentives for filmmakers more attractive
Carrie Antlfinger, Associated Press Writer, On Monday July 19, 2010, 10:31 am EDT
MILWAUKEE (AP) -- The three main gubernatorial candidates all support changing Wisconsin's film incentives to attract more film projects, after Gov. Jim Doyle drastically scaled back tax credits a year ago.
But when it gets down to details, none gets specific.
The closest anyone has said to what he wants to do is Democratic candidate Tom Barrett, whose spokesman said Barrett supported the previous film tax credit program -- which included a 25 percent tax break -- and would like to see something similar reinstituted.
Republican candidates Scott Walker and Mark Neumann say they also support changing Doyle's $500,000 annual grant program.
Walker said he's looking at other states' incentives and still finalizing his plan. Neumann said he didn't support the original credits, saying there was no focus on developing a thriving new industry.
But the fact that the candidates support change was good news to Dave Fantle, president of Film Wisconsin's board, which promotes filming in the state.
"It's going to be a new day, with a new governor and we're optimistic we will be able to work with both the Legislature and governor to restore the tax credits," Fantle said.
He said the board wants to ensure the new incentives emphasize growing the creative economy and adding jobs. The board plans to bring in outside experts to look at other state's programs, among other things, to come up with the best proposal.
Incentives have been dramatically curbed and interest in filming in the state has waned since "Public Enemies," starring Johnny Depp, came to Wisconsin in 2008. The movie received $4.6 million in tax rebates and credits but only generated $5 million in economic activity, prompting state officials to replace the previous incentive plan with the grant program.
Crews filmed "Transformers 3" at the Milwaukee Art Museum last week, but it was for the look of its modern building along Lake Michigan. It won't qualify for the grant program.
Walker's spokeswoman Jill Bader said Walker was disappointed that Doyle made the incentives less attractive and he is looking at what other states have done before he comes up with a final plan.
"The film tax credits can give Wisconsin the competitive advantage we need to bring jobs and investment into the state," Walker said in a statement.
Neumann's spokesman Chris Lato said Neumann supports tax credits that lead to business growth. He said Neumann would conduct a cost analysis to ensure the incentives result in measurable economic development. He said the previous credits didn't have focus on developing a thriving new industry, and "Mark would demand more accountability and would work to ensure a more favorable result."
On his website, Barrett said he thinks the field "could provide more high-tech jobs that are of interest to the young, highly educated workers that Wisconsin needs to keep."
Barrett's spokesman Phil Walzak said Barrett would look at expanding the incentives beyond the $500,000 cap if it's fiscally responsible and supports Wisconsin jobs and businesses.
RDI Stages spent millions to expand its facility in St. Francis because of the incentives, said Owner Janine Sijan Rozina. She said within three months of opening a new building the incentives changed, calling it a "tremendous gut punch." She said they are struggling to keep their doors open, supporting themselves with commercials.
"Honestly, if I don't remain optimistic, it's very tough to come in every day," she said.
Jay Schillinger used to be head of business development at Pulse Communications in Green Bay, which had planned to expand in response to the incentives. But the owner declared bankruptcy, partly because of losing business due to the changed incentives. Schillinger bought the assets and started NorthCoast Productions in Green Bay. He said it's been doing well, concentrating on video production and commercials but he's pushing for better incentives knowing he and other parts of the industry could do much better.
He said the Depp film was great, but they had a number of independent films planning to film in Wisconsin that left when the incentives changed.
He said the industry was just gaining momentum when Doyle's actions caused it to come to a "screeching halt."
"We have to give it a chance and if the candidates are sincere in this, which I think they are, it needs time," he said. "... I think it's not far-fetched to think that Wisconsin could really be a hub of film making activity, which would be great for job creation."
New Wisconsin governor would likely make tax incentives for filmmakers more attractive
Carrie Antlfinger, Associated Press Writer, On Monday July 19, 2010, 10:31 am EDT
MILWAUKEE (AP) -- The three main gubernatorial candidates all support changing Wisconsin's film incentives to attract more film projects, after Gov. Jim Doyle drastically scaled back tax credits a year ago.
But when it gets down to details, none gets specific.
The closest anyone has said to what he wants to do is Democratic candidate Tom Barrett, whose spokesman said Barrett supported the previous film tax credit program -- which included a 25 percent tax break -- and would like to see something similar reinstituted.
Republican candidates Scott Walker and Mark Neumann say they also support changing Doyle's $500,000 annual grant program.
Walker said he's looking at other states' incentives and still finalizing his plan. Neumann said he didn't support the original credits, saying there was no focus on developing a thriving new industry.
But the fact that the candidates support change was good news to Dave Fantle, president of Film Wisconsin's board, which promotes filming in the state.
"It's going to be a new day, with a new governor and we're optimistic we will be able to work with both the Legislature and governor to restore the tax credits," Fantle said.
He said the board wants to ensure the new incentives emphasize growing the creative economy and adding jobs. The board plans to bring in outside experts to look at other state's programs, among other things, to come up with the best proposal.
Incentives have been dramatically curbed and interest in filming in the state has waned since "Public Enemies," starring Johnny Depp, came to Wisconsin in 2008. The movie received $4.6 million in tax rebates and credits but only generated $5 million in economic activity, prompting state officials to replace the previous incentive plan with the grant program.
Crews filmed "Transformers 3" at the Milwaukee Art Museum last week, but it was for the look of its modern building along Lake Michigan. It won't qualify for the grant program.
Walker's spokeswoman Jill Bader said Walker was disappointed that Doyle made the incentives less attractive and he is looking at what other states have done before he comes up with a final plan.
"The film tax credits can give Wisconsin the competitive advantage we need to bring jobs and investment into the state," Walker said in a statement.
Neumann's spokesman Chris Lato said Neumann supports tax credits that lead to business growth. He said Neumann would conduct a cost analysis to ensure the incentives result in measurable economic development. He said the previous credits didn't have focus on developing a thriving new industry, and "Mark would demand more accountability and would work to ensure a more favorable result."
On his website, Barrett said he thinks the field "could provide more high-tech jobs that are of interest to the young, highly educated workers that Wisconsin needs to keep."
Barrett's spokesman Phil Walzak said Barrett would look at expanding the incentives beyond the $500,000 cap if it's fiscally responsible and supports Wisconsin jobs and businesses.
RDI Stages spent millions to expand its facility in St. Francis because of the incentives, said Owner Janine Sijan Rozina. She said within three months of opening a new building the incentives changed, calling it a "tremendous gut punch." She said they are struggling to keep their doors open, supporting themselves with commercials.
"Honestly, if I don't remain optimistic, it's very tough to come in every day," she said.
Jay Schillinger used to be head of business development at Pulse Communications in Green Bay, which had planned to expand in response to the incentives. But the owner declared bankruptcy, partly because of losing business due to the changed incentives. Schillinger bought the assets and started NorthCoast Productions in Green Bay. He said it's been doing well, concentrating on video production and commercials but he's pushing for better incentives knowing he and other parts of the industry could do much better.
He said the Depp film was great, but they had a number of independent films planning to film in Wisconsin that left when the incentives changed.
He said the industry was just gaining momentum when Doyle's actions caused it to come to a "screeching halt."
"We have to give it a chance and if the candidates are sincere in this, which I think they are, it needs time," he said. "... I think it's not far-fetched to think that Wisconsin could really be a hub of film making activity, which would be great for job creation."
Friday, July 16, 2010
It WORKS! Utah Film Program, from Deseret News
Utah film jobs doubled last year; industry calls for more incentives
By James Thalman
Deseret News
Published: Friday, July 16, 2010 12:52 a.m. MDT
SALT LAKE CITY — The film industry is one of Utah's economic bright lights, creating jobs, bringing a kind of star status to the state and a $5-to-$1 return from a tax-funded incentive program to bring projects here.
A call to keep them coming by continuing an incentive program scheduled to sunset next year went out by the state Film Commission Thursday during its summer industry luncheon.
Jobs created by film productions more than doubled — to 1,255 — during the fiscal year that ended June 30. The previous year, 520 jobs were generated. That's a total of $53 million to the economy, about five times the amount from last year, Utah Film Commission director Marshall Moore told attendees.
A bill passed in 2008 by the Legislature provided the incentive plan to lure production companies to Utah by offering $10 million in tax breaks once the film is finished.
The bill not only needs to be extended, it needs to extend for enough years in order to lure a potentially long-running TV series, Moore said.
"Touched by an Angel," which was filmed in the state for nine seasons between 1994 and 2003, spent about $1 million per episode, he said.
Story continues below
The incentive has helped land projects, the director said, noting that "John Carter of Mars," which just finished filming here, was lured by the $5.5 million in incentives. It is a live-action/animated Disney/Pixar movie.
"It won't be in theaters for more than a year, because it has a 62-week post-production schedule because of all the computer animation," Moore said. "But it's already building on a relationship that the incentive helped establish."
The bigger the budget, the longer a production company stays, and the more Utahns have jobs, he said, a link that reaches back to the 1965 movie "The Greatest Story Ever Told," when Charlton Heston starred as John the Baptist exhorting repentance from a multitude of Kane County residents in a small canyon now covered by Lake Powell.
"Unicorn City" is the latest film project to come to Utah. Its filmmakers were offered $30,000 but will bring probably five times that amount to the Alpine-area economy.
By James Thalman
Deseret News
Published: Friday, July 16, 2010 12:52 a.m. MDT
SALT LAKE CITY — The film industry is one of Utah's economic bright lights, creating jobs, bringing a kind of star status to the state and a $5-to-$1 return from a tax-funded incentive program to bring projects here.
A call to keep them coming by continuing an incentive program scheduled to sunset next year went out by the state Film Commission Thursday during its summer industry luncheon.
Jobs created by film productions more than doubled — to 1,255 — during the fiscal year that ended June 30. The previous year, 520 jobs were generated. That's a total of $53 million to the economy, about five times the amount from last year, Utah Film Commission director Marshall Moore told attendees.
A bill passed in 2008 by the Legislature provided the incentive plan to lure production companies to Utah by offering $10 million in tax breaks once the film is finished.
The bill not only needs to be extended, it needs to extend for enough years in order to lure a potentially long-running TV series, Moore said.
"Touched by an Angel," which was filmed in the state for nine seasons between 1994 and 2003, spent about $1 million per episode, he said.
Story continues below
The incentive has helped land projects, the director said, noting that "John Carter of Mars," which just finished filming here, was lured by the $5.5 million in incentives. It is a live-action/animated Disney/Pixar movie.
"It won't be in theaters for more than a year, because it has a 62-week post-production schedule because of all the computer animation," Moore said. "But it's already building on a relationship that the incentive helped establish."
The bigger the budget, the longer a production company stays, and the more Utahns have jobs, he said, a link that reaches back to the 1965 movie "The Greatest Story Ever Told," when Charlton Heston starred as John the Baptist exhorting repentance from a multitude of Kane County residents in a small canyon now covered by Lake Powell.
"Unicorn City" is the latest film project to come to Utah. Its filmmakers were offered $30,000 but will bring probably five times that amount to the Alpine-area economy.
Thursday, July 15, 2010
Media Industries Project, by David (last name unknown)
Media Industries Project
5 Things You Should Know About State Tax Credit Incentive Programs
By David ⋅ July 14, 2010
Film and television productions have been leaving Los Angeles and New York for many years, chasing cheaper production costs and a change of scenery. Recently, U.S. states have upped the ante with increasingly competitive tax credits, picking up a percentage of in-state expenses in the hopes of developing local industry, generating state revenue, and increasing film-related tourism. However, questions abound surrounding the wisdom and sustainability of these schemes, as well as their potential impacts on content.
Here are 5 key things you should know about these state tax credit programs:
1. There are three main types of credit schemes, of varying degrees of desirability. (link)
2. Questions abound about the effectiveness and long-term viability of tax credit programs. (link)
3. Tax credit incentives have contributed to both a loss of production in Los Angeles, and increased competition between LA and states offering incentives. (link)
4. Tax credits are crucial to building local film and television industries but not enough on their own. (link)
5. PR concerns cause some states to place restrictions on the content of qualifying productions. (link)
1. Three different kinds of tax credits
Currently 27 states and the District of Columbia offer refundable tax credits or rebates. Twelve states, as well as Puerto Rico, have transferable tax credits, and only two states offer non-transferable credits (California’s credit is non-transferable, but independent productions can apply for a transferable credit). For current breakdowns of tax credits offered by state, see reports published by Entertainment Partners and The Incentives Office.
There are three different categories of rebates – refundable, transferable, and non-transferable. The differences among the three are significant for studios and production companies.
* Refundable: The most desirable form of credit for producers. The state refunds a percentage of the production company’s qualified expenses upon the completion of a tax return, regardless of the amount owed in taxes.
* Transferable: The tax credit can only be applied to existing tax liability in the state, though it can be sold to another party. A broker generally handles this sale and the production company does not receive the full value of the tax credit.
* Non-Transferable: The least desirable credit, only redeemable to cover the production company’s tax liability.
Percentages of a budget that can be claimed vary, and states often cap either individual expenditure per film or the total credited in-state in a year, in addition to imposing a minimum-spend amount. Michigan’s scheme, for example, imposes no annual or project cap, but requires a minimum spend of $50,000. Missouri offers a transferable 35% tax credit, but total annual credits are capped at $4.5 million. The lack of caps on the most successful incentives suggest that they are pitched at mid- to high-budget productions, and states generally have minimum-spend amounts that commonly range from $50,000 to $500,000, although Utah and South Carolina have minimum spend amounts of $1 million, and New Mexico has no minimum spend.
2. The return on investment is unclear
While many of the programs have brought a steady flow of production activity to areas that have not historically been production centers, questions surround the wisdom of such schemes. Reports prepared by Ernst & Young for state governments in New Mexico and New York report that each dollar of incentives returns $1.50 and $1.90 respectively, on every dollar spent on incentives. But other studies have presented a less rosy picture. A study by the Arrowhead Center at New Mexico State University argued that the return on investment was only $0.14 per dollar spent, and the conservative Tax Foundation has recently issued a report opposing the incentive programs at a national level, arguing that the motion picture industry should not be favored over other industries, and that incentive schemes are usually based on questionable research.
In addition, the image of some state programs has been tarnished by accusations of corruption, most notably in Iowa. There, Governor Chet Culver has suspended the tax credit program for all new productions until the completion of an investigation into misuse of tax credit dollars, including credits issued for the purchase of vehicles unrelated to film production. Questions of corruption or accountability on a smaller scale have also marred incentive programs in Louisiana and New Mexico.
3. Production is leaving Los Angeles
Competition from locations outside the US, such as Vancouver, has already diminished Los Angeles-based production, and state-based tax credits have recently exacerbated the situation, creating difficulties for filmworkers in Los Angeles (and New York). Variety reports “estimated pilot production spending in the L.A. region dropped from $309 million in 2005 to $207 million in 2009,” with credit programs cited as an important contributing factor. To compete with increasingly lucrative offers elsewhere, both California and New York have implemented tax credit programs of their own — California offers a non-transferable tax credit of 20-25% and New York a more generous refundable 30% credit. Nonetheless, productions continue to leave the coasts to take advantage of other states’ more lucrative incentives.
States offering incentives are well aware of their position as competitors in a globalized industry. In marketing their locations, states paradoxically stress both their uniqueness and anonymity. The Louisiana Office of Film and Television touts its “range of locations from native swamp and plantations to urban cityscapes and Anywhere, USA towns,” and New Mexico’s largest purpose-built studio space, Albuquerque Studios, brags that “New Mexico can and has doubled for” locations as varied as Mexico and New York City, the Middle East and Munich. These selling points recognize the global competition in which Texas may not only be competing with California for a given film, but also with Michigan and Morocco.
4. Tax credits alone are not enough to build local industry
“Many governments have come to regret the subsidies and infrastructural investments they offered to Hollywood producers in an attempt to lure them to their cities. The short-term gains they may have enjoyed soon evaporated when the producers moved on to the next locale that offered even better subsidies and facilities.”
-Michael Curtin, forthcoming.
A major concern regarding tax credit programs is that when incentive programs are removed, or producers find a better incentive elsewhere, productions will leave.
Most states have combined their tax credit incentives with attempts to build a sustainable local industry through the creation of infrastructure and increased training opportunities for local filmmakers and crewmembers. States that have enjoyed the greatest success in luring production, like Michigan, Louisiana and New Mexico, all offer significant studio resources to supplement tax credits. In addition, a number of states include additional support to productions that employ local crewmembers. New Mexico offers a film crew advancement program that pays 50% of wages for local crew members who receive on-the-job training. West Virginia’s more modest incentive program adds 4% to its 27% transferable credit for productions that hire 10 or more residents in the cast or crew, and Alabama’s 25% rebate is bumped to 35% for the salaries of resident crew.
Despite these efforts for greater production sustainability, there is widespread agreement that the incentives are the crucial factor, as confirmed by states where incentives have been eliminated. New Jersey’s tax credit program was slashed as part of a budget reform package on June 30th, and Law & Order: SVU has already moved across the Hudson River to New York. Steve Gorelick, Executive Director of the local film commission states that films like The Messenger and The Wrestler “would not have been made here without a tax credit.”
Opponents of tax credits make the same argument, however. Dennis Kintigh, a New Mexico State Representative who has introduced legislation opposing the state’s program, says: “We’re told if we don’t provide these incentives they will pack up and leave. If that’s the case the industry doesn’t have any roots here.” State governments are in the unenviable position of needing to build infrastructure and strengthen local crew bases to supplement credit programs and ensure a steady flow of film and television production, while also knowing that without the tax credits, the production would vanish.
5. Tourism and content concerns
Tourism and positive PR are key motivators for many state tax credit schemes. Georgia’s Film, Music & Digital Entertainment Office tries to attract future activity and tourism by offering producers an additional 10% tax credit for including an animated state logo in the finished product.
Less conspicuously, other states have attempted to leverage their tax credit dollars in order to restrict how the state can be represented. Most states explicitly disallow pornography from receiving tax credits, but several states have imposed additional restrictions. Texas and Pennsylvania’s tax credit programs both withhold funding from projects that cast the state in a negative light. Michigan recently declined to award tax credits to The Women, a low-budget cannibal horror film, on similar grounds. A bill submitted to the House of Representatives in Florida earlier this year proposed an additional 5% “family-friendly” tax credit to productions that met the following criteria:
Eligible films would
“have cross-generational appeal; would be considered suitable for viewing by children age 5 or older; are appropriate in theme, content, and language for a broad family audience; embody a responsible resolution of issues; and do not exhibit or imply any act of smoking, sex, nudity, nontraditional family values, gratuitous violence, or vulgar or profane language.”
After outcry from the film industry, gay rights activists, and the media legislators removed the “nontraditional family values”from the final version of the bill. Nonetheless, even in its revised version, the “family-friendly” credit is part of a trend toward content control that, rather than attracting activity, may send producers running for the Hollywood hills.
5 Things You Should Know About State Tax Credit Incentive Programs
By David ⋅ July 14, 2010
Film and television productions have been leaving Los Angeles and New York for many years, chasing cheaper production costs and a change of scenery. Recently, U.S. states have upped the ante with increasingly competitive tax credits, picking up a percentage of in-state expenses in the hopes of developing local industry, generating state revenue, and increasing film-related tourism. However, questions abound surrounding the wisdom and sustainability of these schemes, as well as their potential impacts on content.
Here are 5 key things you should know about these state tax credit programs:
1. There are three main types of credit schemes, of varying degrees of desirability. (link)
2. Questions abound about the effectiveness and long-term viability of tax credit programs. (link)
3. Tax credit incentives have contributed to both a loss of production in Los Angeles, and increased competition between LA and states offering incentives. (link)
4. Tax credits are crucial to building local film and television industries but not enough on their own. (link)
5. PR concerns cause some states to place restrictions on the content of qualifying productions. (link)
1. Three different kinds of tax credits
Currently 27 states and the District of Columbia offer refundable tax credits or rebates. Twelve states, as well as Puerto Rico, have transferable tax credits, and only two states offer non-transferable credits (California’s credit is non-transferable, but independent productions can apply for a transferable credit). For current breakdowns of tax credits offered by state, see reports published by Entertainment Partners and The Incentives Office.
There are three different categories of rebates – refundable, transferable, and non-transferable. The differences among the three are significant for studios and production companies.
* Refundable: The most desirable form of credit for producers. The state refunds a percentage of the production company’s qualified expenses upon the completion of a tax return, regardless of the amount owed in taxes.
* Transferable: The tax credit can only be applied to existing tax liability in the state, though it can be sold to another party. A broker generally handles this sale and the production company does not receive the full value of the tax credit.
* Non-Transferable: The least desirable credit, only redeemable to cover the production company’s tax liability.
Percentages of a budget that can be claimed vary, and states often cap either individual expenditure per film or the total credited in-state in a year, in addition to imposing a minimum-spend amount. Michigan’s scheme, for example, imposes no annual or project cap, but requires a minimum spend of $50,000. Missouri offers a transferable 35% tax credit, but total annual credits are capped at $4.5 million. The lack of caps on the most successful incentives suggest that they are pitched at mid- to high-budget productions, and states generally have minimum-spend amounts that commonly range from $50,000 to $500,000, although Utah and South Carolina have minimum spend amounts of $1 million, and New Mexico has no minimum spend.
2. The return on investment is unclear
While many of the programs have brought a steady flow of production activity to areas that have not historically been production centers, questions surround the wisdom of such schemes. Reports prepared by Ernst & Young for state governments in New Mexico and New York report that each dollar of incentives returns $1.50 and $1.90 respectively, on every dollar spent on incentives. But other studies have presented a less rosy picture. A study by the Arrowhead Center at New Mexico State University argued that the return on investment was only $0.14 per dollar spent, and the conservative Tax Foundation has recently issued a report opposing the incentive programs at a national level, arguing that the motion picture industry should not be favored over other industries, and that incentive schemes are usually based on questionable research.
In addition, the image of some state programs has been tarnished by accusations of corruption, most notably in Iowa. There, Governor Chet Culver has suspended the tax credit program for all new productions until the completion of an investigation into misuse of tax credit dollars, including credits issued for the purchase of vehicles unrelated to film production. Questions of corruption or accountability on a smaller scale have also marred incentive programs in Louisiana and New Mexico.
3. Production is leaving Los Angeles
Competition from locations outside the US, such as Vancouver, has already diminished Los Angeles-based production, and state-based tax credits have recently exacerbated the situation, creating difficulties for filmworkers in Los Angeles (and New York). Variety reports “estimated pilot production spending in the L.A. region dropped from $309 million in 2005 to $207 million in 2009,” with credit programs cited as an important contributing factor. To compete with increasingly lucrative offers elsewhere, both California and New York have implemented tax credit programs of their own — California offers a non-transferable tax credit of 20-25% and New York a more generous refundable 30% credit. Nonetheless, productions continue to leave the coasts to take advantage of other states’ more lucrative incentives.
States offering incentives are well aware of their position as competitors in a globalized industry. In marketing their locations, states paradoxically stress both their uniqueness and anonymity. The Louisiana Office of Film and Television touts its “range of locations from native swamp and plantations to urban cityscapes and Anywhere, USA towns,” and New Mexico’s largest purpose-built studio space, Albuquerque Studios, brags that “New Mexico can and has doubled for” locations as varied as Mexico and New York City, the Middle East and Munich. These selling points recognize the global competition in which Texas may not only be competing with California for a given film, but also with Michigan and Morocco.
4. Tax credits alone are not enough to build local industry
“Many governments have come to regret the subsidies and infrastructural investments they offered to Hollywood producers in an attempt to lure them to their cities. The short-term gains they may have enjoyed soon evaporated when the producers moved on to the next locale that offered even better subsidies and facilities.”
-Michael Curtin, forthcoming.
A major concern regarding tax credit programs is that when incentive programs are removed, or producers find a better incentive elsewhere, productions will leave.
Most states have combined their tax credit incentives with attempts to build a sustainable local industry through the creation of infrastructure and increased training opportunities for local filmmakers and crewmembers. States that have enjoyed the greatest success in luring production, like Michigan, Louisiana and New Mexico, all offer significant studio resources to supplement tax credits. In addition, a number of states include additional support to productions that employ local crewmembers. New Mexico offers a film crew advancement program that pays 50% of wages for local crew members who receive on-the-job training. West Virginia’s more modest incentive program adds 4% to its 27% transferable credit for productions that hire 10 or more residents in the cast or crew, and Alabama’s 25% rebate is bumped to 35% for the salaries of resident crew.
Despite these efforts for greater production sustainability, there is widespread agreement that the incentives are the crucial factor, as confirmed by states where incentives have been eliminated. New Jersey’s tax credit program was slashed as part of a budget reform package on June 30th, and Law & Order: SVU has already moved across the Hudson River to New York. Steve Gorelick, Executive Director of the local film commission states that films like The Messenger and The Wrestler “would not have been made here without a tax credit.”
Opponents of tax credits make the same argument, however. Dennis Kintigh, a New Mexico State Representative who has introduced legislation opposing the state’s program, says: “We’re told if we don’t provide these incentives they will pack up and leave. If that’s the case the industry doesn’t have any roots here.” State governments are in the unenviable position of needing to build infrastructure and strengthen local crew bases to supplement credit programs and ensure a steady flow of film and television production, while also knowing that without the tax credits, the production would vanish.
5. Tourism and content concerns
Tourism and positive PR are key motivators for many state tax credit schemes. Georgia’s Film, Music & Digital Entertainment Office tries to attract future activity and tourism by offering producers an additional 10% tax credit for including an animated state logo in the finished product.
Less conspicuously, other states have attempted to leverage their tax credit dollars in order to restrict how the state can be represented. Most states explicitly disallow pornography from receiving tax credits, but several states have imposed additional restrictions. Texas and Pennsylvania’s tax credit programs both withhold funding from projects that cast the state in a negative light. Michigan recently declined to award tax credits to The Women, a low-budget cannibal horror film, on similar grounds. A bill submitted to the House of Representatives in Florida earlier this year proposed an additional 5% “family-friendly” tax credit to productions that met the following criteria:
Eligible films would
“have cross-generational appeal; would be considered suitable for viewing by children age 5 or older; are appropriate in theme, content, and language for a broad family audience; embody a responsible resolution of issues; and do not exhibit or imply any act of smoking, sex, nudity, nontraditional family values, gratuitous violence, or vulgar or profane language.”
After outcry from the film industry, gay rights activists, and the media legislators removed the “nontraditional family values”from the final version of the bill. Nonetheless, even in its revised version, the “family-friendly” credit is part of a trend toward content control that, rather than attracting activity, may send producers running for the Hollywood hills.
Tuesday, July 13, 2010
Movie Biz Book Review by Ben Goldsmith for Inside.org
The Hollywood Economist: The Hidden Financial Reality Behind the Movies
By Edward Jay Epstein
Melville House | $29.95
OVER the past couple of years a perfect storm appeared to be threatening the hegemony of the major Hollywood studios over global screen entertainment: rising internet piracy, falling DVD sales, the declining value of deals with television networks around the world and the evolving global financial crisis, which threatened to destroy the complex and shadowy system of deals and investments that are Hollywood’s lifeblood.
Six months into the new decade, and on the surface at least, the outlook is much sunnier. James Cameron’s Avatar has reportedly earned almost US$2.75 billion at cinemas around the world; unadjusted for inflation, this makes it the most successful film in history. Avatar also kickstarted the resurrection of 3D, in the process eliminating audiences’ reluctance to pay a further premium for movie tickets. It was largely made in New Zealand, where a new suite of production incentives and subsidies has been introduced to try to maintain Hollywood-scale filmmaking. Within North America, states like Louisiana, Michigan and New Mexico are vigorously contesting the incentives game, competing with established locations in Canada, Australia and Europe, and other new players in Africa, Asia and South America, for the attention of Hollywood producers. In the process, some of the risks and costs of movie production are reduced, and the majors’ bottom line improves.
But, as so often in Hollywood, all is not quite as it seems. One of the oldest of the major studios, the eighty-six-year-old Metro-Goldwyn-Mayer, or MGM, is on the brink of bankruptcy. The collective voice of the studios, the Motion Picture Association of America, has found itself increasingly stretched, waging an unwinnable war against unauthorised filesharing and lobbying against plans for a new futures market trading in predicted movie box office returns (along the lines of the popular, and free, Hollywood Stock Exchange). And it remains to be seen whether 3D can turn around the gradual decline in cinema audience numbers, and none of the major players has worked out how best to make money from internet streaming and downloads. At least, not yet.
Screenwriter and author William Goldman once wrote that to understand the business of Hollywood, you need to realise that “nobody knows anything.” Journalist and author Edward Jay Epstein’s illuminating and instructive new book The Hollywood Economist finally puts the lie to Goldman’s much-repeated aphorism. Drawing on the extraordinary access he was granted to internal studio documents, to secret reports prepared by the Motion Picture Association for the major studios, and to distribution statements, budgets and contracts between the studios and stars like Tom Cruise and Arnold Schwarzenegger, and through his role as an expert witness in a lawsuit over the ill-fated film Sahara, Epstein is able to describe authoritatively the ingenious and ever-changing ways in which money is made and moved in Hollywood. While the ultimate financial performance of any given movie remains difficult to predict, Epstein shows that a large number of Hollywood players, and in particular the much-maligned studio executives who remain largely unknown beyond the pages of Variety or Hollywood Reporter, have always known an enormous amount about how to make money, despite the fact that the vast majority of their movies make a loss at the box office.
Much of what Epstein describes will not be new to anyone who has followed the business of Hollywood in recent years. Indeed, much of The Hollywood Economist won’t be new to anyone who has followed Epstein’s recent writings; many of the chapters are based on this prolific author’s articles in publications such as Slate.com, the Financial Times and the Wall Street Journal. This explains the book’s leaps across time, from the opening chapter, which draws on Epstein’s experience over a decade ago at ShoWest, the annual meeting in Las Vegas at which distributors and exhibitors plan campaigns for forthcoming films, to the closing chapters discussing the recent demise of Miramax and the prospect of the studios’ moving into online movie distribution.
Epstein offers a great deal of insightful commentary about matters like the techniques cinema owners use to encourage patrons to spend on the things that really make money – snacks and drinks (selling movie tickets at the candy bar rather than in a dedicated ticket box, putting extra salt on the popcorn to make people thirsty, and installing drinks holders in seats for mid-movie libation) – and his extraordinary insider access means that we hear about such strategies directly from the main protagonists, but throughout the book the commentary risks being overtaken by the speed with which things change in the movie business. The most significant recent development in cinema exhibition – the rise of 3D – doesn’t rate a mention, while in the few months since the final chapters were written, negotiations for the sale (and probable resurrection) of Miramax have proceeded apace. Meanwhile, a deal between DVD-by-mail and online streaming service Netflix and film producer Relativity Media threatens to explode the well-established system of release “windows” in which movies are progressively made available first in theatres, then on DVD, and then on pay and broadcast television. And perhaps the biggest unresolved story in Hollywood – the financial woes of MGM, nearly US$4 billion in debt and recently forced to kill its major cash cow by cancelling the forthcoming (and twenty-third) James Bond film – is nowhere to be seen.
Despite these absences, and despite the fact that much of the material in the book has been published before, The Hollywood Economist will be required reading for anyone with dreams of making it in Tinseltown, or indeed for anyone who wants to know how Hollywood really works. There are clear and instructive explanations of such key Hollywood terms as “fixed or guaranteed compensation” (up-front salary) and “contingent compensation” (profit participation, which for most people involved in making a film amounts to very little); “cash breakeven” (the arbitrary and uneven point at which contingent compensation becomes payable); “adjusted gross receipts” (the studio’s total revenues from a film, minus “off the top” expenses such as union dues and taxes); “gross/net points” (a proportion of the gross/net profits that forms part of contingent compensation – although well-honed creative accounting methods mean that, as David Mamet puts it, in Hollywood “there is no net”); and “official budget” and “cost budget” (how much a film supposedly costs to make, and the closely held actual cost of a film after subsidies, tax incentives, and product placement fees are accounted for).
Epstein also breaks down the returns to the studios from US and international box office, from DVD sales, and from output deals with television networks. In the process, he shows just how much weight the American discount chain Walmart carries in determining the content of films in production. Around 25 per cent of all DVDs sold in the United States, or around US$4 billion-worth in 2007, are sold by the corporation currently ranked number one on the Fortune 500. Walmart’s “decency policy” marginalises films containing scenes – principally graphic sex and nudity – deemed likely to offend the company’s major customers: American moms. As a result, sexual content in mainstream films, and new R-rated features, are becoming rarer and rarer. While Walmart’s policy principally affects the US market, it has flow-ons for the rest of the world because most films are first released in America, with their marketing campaigns and content shaped there.
The absence of suggestive nudity and sexual activity in many contemporary films is not only due to the market power of Walmart. It is one of the nine elements of what Epstein calls the “Midas Formula,” the recipe for Hollywood’s holy grail, the franchise, or “films with licensable properties that [can] generate profits in other media over long periods of time.” The nine elements are:
1. An adaptation of a “pre-sold” property, meaning a pre-existing, familiar, popular source such as a children’s story, a comic book, or a cartoon.
2. A child protagonist, in the first instalment of the franchise at least.
3. A fairytale plot involving the transformation of a weak protagonist into a hero with a mission.
4. The absence of nudity and sexual activity, which is critical to ensuring a PG-13 rating and which enables merchandising aimed at children and advertising in media aimed at children and teenagers.
5. Characters that can readily be licensed for toys and games.
6. Stylised, unrealistic and bloodless violence, again in order to ensure a PG-13 rating.
7. A happy ending that allows for future sequels.
8. Traditional or digital animation or enhancement of fantasy scenes.
9. A cast comprising non-A-list stars, in order to limit their capacity to negotiate contingent compensation deals that will reduce a studio’s returns.
As the Midas Formula demonstrates, Epstein is an insightful if not entirely original analyst of cinema; much of this is well known, but that does not detract from its utility for both (aspiring) practitioners and students of Hollywood.
Epstein is a terrific writer, and he makes the most of the privileged access he was granted to tell some wonderful stories about the inner workings of the entertainment capital of the world. There are detailed accounts and analyses of the remarkable deal for Arnold Schwarzenegger to reprise his role for a third time in Terminator 3, and of the scramble by Disney to save face and share in the unexpected success of Michael Moore’s Palme d’Or–winning documentary Fahrenheit 9/11 after CEO Michael Eisner had repeatedly declared that the company would have nothing to do with the controversial film. Reading these stories it is hard to argue with Epstein’s conclusion – at the end of a chapter describing how a studio can minimise its investment and risk in a film through the example of Paramount’s Lara Croft: Tomb Raider – that “things in Hollywood – and especially numbers – are not what they appear to be… [I]n Hollywood, the real art of movies is the art of the deal.”
Despite the challenges they face, and in keeping with the best traditions of Hollywood movies, there is likely to be a happy ending for some if not all of the major studios. As Epstein shows, they are extraordinarily resilient and chameleon-like in their rapid ability to change deal structures, investment partnerships, production venues and platforms to profit from the latest trends and developments. While the digital future remains uncertain as the majors remain reluctant to embrace the promise of IPTV (internet protocol television) or to dismantle the system of release windows that has served them so well and move towards simultaneous releases, one thing seems certain: if there is money to be made from filmed entertainment, sooner or later the majors will know how to make it. •
Ben Goldsmith is a Research Fellow at the Centre for Critical and Cultural Studies, University of Queensland.
By Edward Jay Epstein
Melville House | $29.95
OVER the past couple of years a perfect storm appeared to be threatening the hegemony of the major Hollywood studios over global screen entertainment: rising internet piracy, falling DVD sales, the declining value of deals with television networks around the world and the evolving global financial crisis, which threatened to destroy the complex and shadowy system of deals and investments that are Hollywood’s lifeblood.
Six months into the new decade, and on the surface at least, the outlook is much sunnier. James Cameron’s Avatar has reportedly earned almost US$2.75 billion at cinemas around the world; unadjusted for inflation, this makes it the most successful film in history. Avatar also kickstarted the resurrection of 3D, in the process eliminating audiences’ reluctance to pay a further premium for movie tickets. It was largely made in New Zealand, where a new suite of production incentives and subsidies has been introduced to try to maintain Hollywood-scale filmmaking. Within North America, states like Louisiana, Michigan and New Mexico are vigorously contesting the incentives game, competing with established locations in Canada, Australia and Europe, and other new players in Africa, Asia and South America, for the attention of Hollywood producers. In the process, some of the risks and costs of movie production are reduced, and the majors’ bottom line improves.
But, as so often in Hollywood, all is not quite as it seems. One of the oldest of the major studios, the eighty-six-year-old Metro-Goldwyn-Mayer, or MGM, is on the brink of bankruptcy. The collective voice of the studios, the Motion Picture Association of America, has found itself increasingly stretched, waging an unwinnable war against unauthorised filesharing and lobbying against plans for a new futures market trading in predicted movie box office returns (along the lines of the popular, and free, Hollywood Stock Exchange). And it remains to be seen whether 3D can turn around the gradual decline in cinema audience numbers, and none of the major players has worked out how best to make money from internet streaming and downloads. At least, not yet.
Screenwriter and author William Goldman once wrote that to understand the business of Hollywood, you need to realise that “nobody knows anything.” Journalist and author Edward Jay Epstein’s illuminating and instructive new book The Hollywood Economist finally puts the lie to Goldman’s much-repeated aphorism. Drawing on the extraordinary access he was granted to internal studio documents, to secret reports prepared by the Motion Picture Association for the major studios, and to distribution statements, budgets and contracts between the studios and stars like Tom Cruise and Arnold Schwarzenegger, and through his role as an expert witness in a lawsuit over the ill-fated film Sahara, Epstein is able to describe authoritatively the ingenious and ever-changing ways in which money is made and moved in Hollywood. While the ultimate financial performance of any given movie remains difficult to predict, Epstein shows that a large number of Hollywood players, and in particular the much-maligned studio executives who remain largely unknown beyond the pages of Variety or Hollywood Reporter, have always known an enormous amount about how to make money, despite the fact that the vast majority of their movies make a loss at the box office.
Much of what Epstein describes will not be new to anyone who has followed the business of Hollywood in recent years. Indeed, much of The Hollywood Economist won’t be new to anyone who has followed Epstein’s recent writings; many of the chapters are based on this prolific author’s articles in publications such as Slate.com, the Financial Times and the Wall Street Journal. This explains the book’s leaps across time, from the opening chapter, which draws on Epstein’s experience over a decade ago at ShoWest, the annual meeting in Las Vegas at which distributors and exhibitors plan campaigns for forthcoming films, to the closing chapters discussing the recent demise of Miramax and the prospect of the studios’ moving into online movie distribution.
Epstein offers a great deal of insightful commentary about matters like the techniques cinema owners use to encourage patrons to spend on the things that really make money – snacks and drinks (selling movie tickets at the candy bar rather than in a dedicated ticket box, putting extra salt on the popcorn to make people thirsty, and installing drinks holders in seats for mid-movie libation) – and his extraordinary insider access means that we hear about such strategies directly from the main protagonists, but throughout the book the commentary risks being overtaken by the speed with which things change in the movie business. The most significant recent development in cinema exhibition – the rise of 3D – doesn’t rate a mention, while in the few months since the final chapters were written, negotiations for the sale (and probable resurrection) of Miramax have proceeded apace. Meanwhile, a deal between DVD-by-mail and online streaming service Netflix and film producer Relativity Media threatens to explode the well-established system of release “windows” in which movies are progressively made available first in theatres, then on DVD, and then on pay and broadcast television. And perhaps the biggest unresolved story in Hollywood – the financial woes of MGM, nearly US$4 billion in debt and recently forced to kill its major cash cow by cancelling the forthcoming (and twenty-third) James Bond film – is nowhere to be seen.
Despite these absences, and despite the fact that much of the material in the book has been published before, The Hollywood Economist will be required reading for anyone with dreams of making it in Tinseltown, or indeed for anyone who wants to know how Hollywood really works. There are clear and instructive explanations of such key Hollywood terms as “fixed or guaranteed compensation” (up-front salary) and “contingent compensation” (profit participation, which for most people involved in making a film amounts to very little); “cash breakeven” (the arbitrary and uneven point at which contingent compensation becomes payable); “adjusted gross receipts” (the studio’s total revenues from a film, minus “off the top” expenses such as union dues and taxes); “gross/net points” (a proportion of the gross/net profits that forms part of contingent compensation – although well-honed creative accounting methods mean that, as David Mamet puts it, in Hollywood “there is no net”); and “official budget” and “cost budget” (how much a film supposedly costs to make, and the closely held actual cost of a film after subsidies, tax incentives, and product placement fees are accounted for).
Epstein also breaks down the returns to the studios from US and international box office, from DVD sales, and from output deals with television networks. In the process, he shows just how much weight the American discount chain Walmart carries in determining the content of films in production. Around 25 per cent of all DVDs sold in the United States, or around US$4 billion-worth in 2007, are sold by the corporation currently ranked number one on the Fortune 500. Walmart’s “decency policy” marginalises films containing scenes – principally graphic sex and nudity – deemed likely to offend the company’s major customers: American moms. As a result, sexual content in mainstream films, and new R-rated features, are becoming rarer and rarer. While Walmart’s policy principally affects the US market, it has flow-ons for the rest of the world because most films are first released in America, with their marketing campaigns and content shaped there.
The absence of suggestive nudity and sexual activity in many contemporary films is not only due to the market power of Walmart. It is one of the nine elements of what Epstein calls the “Midas Formula,” the recipe for Hollywood’s holy grail, the franchise, or “films with licensable properties that [can] generate profits in other media over long periods of time.” The nine elements are:
1. An adaptation of a “pre-sold” property, meaning a pre-existing, familiar, popular source such as a children’s story, a comic book, or a cartoon.
2. A child protagonist, in the first instalment of the franchise at least.
3. A fairytale plot involving the transformation of a weak protagonist into a hero with a mission.
4. The absence of nudity and sexual activity, which is critical to ensuring a PG-13 rating and which enables merchandising aimed at children and advertising in media aimed at children and teenagers.
5. Characters that can readily be licensed for toys and games.
6. Stylised, unrealistic and bloodless violence, again in order to ensure a PG-13 rating.
7. A happy ending that allows for future sequels.
8. Traditional or digital animation or enhancement of fantasy scenes.
9. A cast comprising non-A-list stars, in order to limit their capacity to negotiate contingent compensation deals that will reduce a studio’s returns.
As the Midas Formula demonstrates, Epstein is an insightful if not entirely original analyst of cinema; much of this is well known, but that does not detract from its utility for both (aspiring) practitioners and students of Hollywood.
Epstein is a terrific writer, and he makes the most of the privileged access he was granted to tell some wonderful stories about the inner workings of the entertainment capital of the world. There are detailed accounts and analyses of the remarkable deal for Arnold Schwarzenegger to reprise his role for a third time in Terminator 3, and of the scramble by Disney to save face and share in the unexpected success of Michael Moore’s Palme d’Or–winning documentary Fahrenheit 9/11 after CEO Michael Eisner had repeatedly declared that the company would have nothing to do with the controversial film. Reading these stories it is hard to argue with Epstein’s conclusion – at the end of a chapter describing how a studio can minimise its investment and risk in a film through the example of Paramount’s Lara Croft: Tomb Raider – that “things in Hollywood – and especially numbers – are not what they appear to be… [I]n Hollywood, the real art of movies is the art of the deal.”
Despite the challenges they face, and in keeping with the best traditions of Hollywood movies, there is likely to be a happy ending for some if not all of the major studios. As Epstein shows, they are extraordinarily resilient and chameleon-like in their rapid ability to change deal structures, investment partnerships, production venues and platforms to profit from the latest trends and developments. While the digital future remains uncertain as the majors remain reluctant to embrace the promise of IPTV (internet protocol television) or to dismantle the system of release windows that has served them so well and move towards simultaneous releases, one thing seems certain: if there is money to be made from filmed entertainment, sooner or later the majors will know how to make it. •
Ben Goldsmith is a Research Fellow at the Centre for Critical and Cultural Studies, University of Queensland.
Sunday, July 11, 2010
A New Scandal in State Government
Gene wrote a very good Letter to the Editor in regards to how things have been handled in state government. The link to it is here:
http://www.desmoinesregister.com/article/20100711/OPINION04/7110310/1038/Yet-another-scandal-in-state-government
It is indeed strange how scandals like this within state agencies seldom result in the majority of those people losing their jobs. Film is somehow different in the Governor's tiny little mind.
http://www.desmoinesregister.com/article/20100711/OPINION04/7110310/1038/Yet-another-scandal-in-state-government
It is indeed strange how scandals like this within state agencies seldom result in the majority of those people losing their jobs. Film is somehow different in the Governor's tiny little mind.
From The Hudson Reporter.Com
‘Law & Order: SVU’ leaves NB
Loss of NJ film tax credit has impact on state and local economy
by Tricia Tirella
Reporter staff writer
Jul 11, 2010
A television show that has filmed in North Bergen for 11 years and pumped millions of dollars into the state and local economy has moved to New York City because New Jersey has ended its tax incentive program for film production.
Since its inception in 1999, “Law & Order: Special Victims Unit” has maintained sound stages and support facilities in NBC’s Central Archives building on West Side Avenue in North Bergen. The location was chosen by the network when the spin-off was created from the original “Law & Order” and includes the show’s courtroom and police station sets.
_____________
Several people from the show asked if there was anything North Bergen could do to keep production here.
________
New Jersey Gov. Christopher Christie, faced with a $10.7 billion budget gap, chose to cut New Jersey’s film and television tax-credit program from the state budget this year. Since 2006, the program offered 20 percent tax credits for certain production costs for companies filming in New Jersey. It was created to attract more filming to the state, and to boost the economy.
According to published reports, “Law & Order: SVU,” just in wages alone, brought about $540 million into the state over the last 11 years. North Bergen film liaison to the New Jersey Film Commission, Maurena Luzzi, said that cities and local businesses also stand to lose money.
“[Filming] helped the merchants in town,” said Luzzi. “There was a [local] company that made the signs when they would change street signs…it’s like a ripple effect.”
The production has moved to the original “Law & Order’s” former studio at Chelsea Piers on the west side of Manhattan, which was vacated after the original show was cancelled after its 20th season. It was a business decision that they were forced to make, said a NBC Universal official last week.
Meanwhile, as New Jersey ended its program, the New York state legislature agreed to a $2.1 billion incentive designed to bring more television and movie production into New York. The funds will be spread out over five years, with $420 million being allocated every year, equaling a 30 percent tax credit.
Effect in North Bergen
Luzzi said that in the past, when one show ended production, another show would move into its space. Now SVU’s former location on West Side Avenue is likely to remain dormant, at least when it comes to television production, she said.
Luzzi said that several people from the show called and asked if there was anything North Bergen could do, and she is sad and upset that there was nothing that could be done.
She said that one producer told her that he would prefer to keep filming in the state, being a resident himself, but that it was ultimately a “business decision.”
Luzzi said that the show was “very good” to them, giving the town anywhere from $200 to $500 whenever they filmed at exterior locations in town. The funds were put toward the North Bergen Players, a non-profit theater group, and helped pay for other community theatre productions and workshops.
Mayor Nicholas Sacco noted that even the restaurants that “Law & Order: SVU” employees ordered lunch from will lose business.
Sacco: long term effects
Sacco, who is also a state Senator, said that he did not vote for the elimination of the tax credits in the budget and was opposed to it. He said he knew it would drive the film industry out of New Jersey.
“We’re losing businesses in the long run, and you lose taxes in the long run,” said Sacco.
He said that cutting the program may have worked to balance the budget, but in the long run, the state will not bring in the same revenue that it did with the film tax incentives.
“I just hope it doesn’t chase all of the filming out of New Jersey,” said Luzzi.
Read more: Hudson Reporter - ‘Law Order SVU’ leaves NB Loss of NJ film tax credit has impact on state and local economy
Loss of NJ film tax credit has impact on state and local economy
by Tricia Tirella
Reporter staff writer
Jul 11, 2010
A television show that has filmed in North Bergen for 11 years and pumped millions of dollars into the state and local economy has moved to New York City because New Jersey has ended its tax incentive program for film production.
Since its inception in 1999, “Law & Order: Special Victims Unit” has maintained sound stages and support facilities in NBC’s Central Archives building on West Side Avenue in North Bergen. The location was chosen by the network when the spin-off was created from the original “Law & Order” and includes the show’s courtroom and police station sets.
_____________
Several people from the show asked if there was anything North Bergen could do to keep production here.
________
New Jersey Gov. Christopher Christie, faced with a $10.7 billion budget gap, chose to cut New Jersey’s film and television tax-credit program from the state budget this year. Since 2006, the program offered 20 percent tax credits for certain production costs for companies filming in New Jersey. It was created to attract more filming to the state, and to boost the economy.
According to published reports, “Law & Order: SVU,” just in wages alone, brought about $540 million into the state over the last 11 years. North Bergen film liaison to the New Jersey Film Commission, Maurena Luzzi, said that cities and local businesses also stand to lose money.
“[Filming] helped the merchants in town,” said Luzzi. “There was a [local] company that made the signs when they would change street signs…it’s like a ripple effect.”
The production has moved to the original “Law & Order’s” former studio at Chelsea Piers on the west side of Manhattan, which was vacated after the original show was cancelled after its 20th season. It was a business decision that they were forced to make, said a NBC Universal official last week.
Meanwhile, as New Jersey ended its program, the New York state legislature agreed to a $2.1 billion incentive designed to bring more television and movie production into New York. The funds will be spread out over five years, with $420 million being allocated every year, equaling a 30 percent tax credit.
Effect in North Bergen
Luzzi said that in the past, when one show ended production, another show would move into its space. Now SVU’s former location on West Side Avenue is likely to remain dormant, at least when it comes to television production, she said.
Luzzi said that several people from the show called and asked if there was anything North Bergen could do, and she is sad and upset that there was nothing that could be done.
She said that one producer told her that he would prefer to keep filming in the state, being a resident himself, but that it was ultimately a “business decision.”
Luzzi said that the show was “very good” to them, giving the town anywhere from $200 to $500 whenever they filmed at exterior locations in town. The funds were put toward the North Bergen Players, a non-profit theater group, and helped pay for other community theatre productions and workshops.
Mayor Nicholas Sacco noted that even the restaurants that “Law & Order: SVU” employees ordered lunch from will lose business.
Sacco: long term effects
Sacco, who is also a state Senator, said that he did not vote for the elimination of the tax credits in the budget and was opposed to it. He said he knew it would drive the film industry out of New Jersey.
“We’re losing businesses in the long run, and you lose taxes in the long run,” said Sacco.
He said that cutting the program may have worked to balance the budget, but in the long run, the state will not bring in the same revenue that it did with the film tax incentives.
“I just hope it doesn’t chase all of the filming out of New Jersey,” said Luzzi.
Read more: Hudson Reporter - ‘Law Order SVU’ leaves NB Loss of NJ film tax credit has impact on state and local economy
Saturday, July 10, 2010
Good TV Report From Wisconsin
http://www.fox6now.com/news/witi-100709-transformers-tax-credit,0,3688691.story
Article from WECT-TV News, Raleigh, NC (NBC)
RALEIGH, NC (WECT) - Lawmakers are working on ways to help the state's film industry.
They've passed a bill that would raise the cap on film and production incentives.
Instead of $7.5 million in tax credits, companies can get $20 million in tax credits.
Lawmakers could give companies another break. The house will vote to eliminate the state tax companies pay on incentives.
Right now, North Carolina is the only state in the country charging that tax.
They've passed a bill that would raise the cap on film and production incentives.
Instead of $7.5 million in tax credits, companies can get $20 million in tax credits.
Lawmakers could give companies another break. The house will vote to eliminate the state tax companies pay on incentives.
Right now, North Carolina is the only state in the country charging that tax.
Friday, July 9, 2010
From Greensboro, N C News-Record
Lawmakers try to resolve incentive bills
Friday, July 9, 2010
By Mark Binker
Staff Writer
RALEIGH — Expanding the tax credits offered to computer data centers and film productions are among the provisions in a pair of economic incentive bills that lawmakers hope to pass before adjourning for the year.
Leaders at the General Assembly say they hope to leave town on Saturday.
They have been pressing to finish a handful of critical bills before them.
Under the film credit bill, the maximum amount a production could receive would rise from $7.5 million to $20 million, depending on how much the production spent.
Gov. Bev Perdue has called for lawmakers to pass this measure after visiting Hollywood earlier this year.
North Carolina’s film credit is “refundable,” meaning that if filmmakers are due more credits than they would have to pay in taxes, the state will write them a check.
Since 2006, N.C. Department of Revenue officials said, the state has issued roughly $44 million in credits. Of that amount, $25 million in cash refunds have gone to filmmakers who paid no income taxes to the state.
Expanding the credit likely would mean even more money would be refunded directly to film companies.
“They are a cash deal. But just last year alone, $148 million was spent by the film industry in North Carolina,” said Rep. Bill Owens, an Elizabeth City Democrat helping to negotiate a House-Senate compromise on the bill that contains the film incentives.
Owens said North Carolina either needs to expand its credits to keep up with other states or “we should just give up on the business.”
Rep. John Blust, a Greensboro Republican, said North Carolina should not be taking money from middle-class people and giving it to filmmakers and their highly compensated stars.
He pointed to the Renee Zellweger and George Clooney movie “Leatherheads,” which was filmed in the Triad.
“Did that movie do anything permanent for Greensboro?” Blust asked.
He added that the film credit “has reached the point where the research shows it doesn’t pay. You’ve got to go so high, the state loses money by doing it.”
As of late Thursday, lawmakers were trying to settle differences between the House and Senate on the bill.
Also late Thursday, the House voted 79-30 to pass a separate incentives bill that contains tax breaks for data centers such as the one Alamance County is trying to attract. The facility is widely reported to be connected to the software giant Microsoft.
The bill expands sales-tax breaks on equipment and electricity for companies in exchange for them making a certain amount of investment.
“This is corporate welfare,” Rep. Paul “Skip” Stam said, urging his colleagues to vote against the measure.
However, other lawmakers said it was needed to lure jobs to the state.
The Senate still must approve the bill, but it is likely to pass. Senators passed it on a 43-4 vote when they first looked at the measure.
Friday, July 9, 2010
By Mark Binker
Staff Writer
RALEIGH — Expanding the tax credits offered to computer data centers and film productions are among the provisions in a pair of economic incentive bills that lawmakers hope to pass before adjourning for the year.
Leaders at the General Assembly say they hope to leave town on Saturday.
They have been pressing to finish a handful of critical bills before them.
Under the film credit bill, the maximum amount a production could receive would rise from $7.5 million to $20 million, depending on how much the production spent.
Gov. Bev Perdue has called for lawmakers to pass this measure after visiting Hollywood earlier this year.
North Carolina’s film credit is “refundable,” meaning that if filmmakers are due more credits than they would have to pay in taxes, the state will write them a check.
Since 2006, N.C. Department of Revenue officials said, the state has issued roughly $44 million in credits. Of that amount, $25 million in cash refunds have gone to filmmakers who paid no income taxes to the state.
Expanding the credit likely would mean even more money would be refunded directly to film companies.
“They are a cash deal. But just last year alone, $148 million was spent by the film industry in North Carolina,” said Rep. Bill Owens, an Elizabeth City Democrat helping to negotiate a House-Senate compromise on the bill that contains the film incentives.
Owens said North Carolina either needs to expand its credits to keep up with other states or “we should just give up on the business.”
Rep. John Blust, a Greensboro Republican, said North Carolina should not be taking money from middle-class people and giving it to filmmakers and their highly compensated stars.
He pointed to the Renee Zellweger and George Clooney movie “Leatherheads,” which was filmed in the Triad.
“Did that movie do anything permanent for Greensboro?” Blust asked.
He added that the film credit “has reached the point where the research shows it doesn’t pay. You’ve got to go so high, the state loses money by doing it.”
As of late Thursday, lawmakers were trying to settle differences between the House and Senate on the bill.
Also late Thursday, the House voted 79-30 to pass a separate incentives bill that contains tax breaks for data centers such as the one Alamance County is trying to attract. The facility is widely reported to be connected to the software giant Microsoft.
The bill expands sales-tax breaks on equipment and electricity for companies in exchange for them making a certain amount of investment.
“This is corporate welfare,” Rep. Paul “Skip” Stam said, urging his colleagues to vote against the measure.
However, other lawmakers said it was needed to lure jobs to the state.
The Senate still must approve the bill, but it is likely to pass. Senators passed it on a 43-4 vote when they first looked at the measure.
Monday, July 5, 2010
Article from Film Industry Network
Virginia takes on Hollywood and Detroit with new film grants
By: Filmindustrynetwork
RICHMOND, USA – The state of Virginia has just announced a new $2 million film fund for qualified productions including tax incentives.
The battle for film productions is heating up, with different states offering an array of incentives for filmmakers shooting documentaries, commercials and feature films. This will be the state of Virginia’s first tax credit incentive, which took a reported 30 years to come to fruition. The news comes as a relief to the Virginia production Alliance, that for years lobbied the state to boost the local film industry.
Gov. Bob McDonnell signed the bills into effect just this week, which will provide a combined total of $4.5 million for qualifying productions. The Virginia film Office earlier stated that film productions in 2008 had created 4000 new jobs and a revenue stream of more than $350 million for the state.
The incentives will vary depending on the nature of productions and where they are shot within the state. Tax breaks for films could be as much as 20%. Despite the news, many other states have already put in place schemes such Michigan, which offers a 42% tax rebate, and several movie studios are to be built over the next few years.
Hollywood on the other hand is in the grips of a ‘financial melt down’, and will have to find a new way to lure productions back home with either increased tax rebates, a film fund, or development program that will strengthen local filmmaking and boost revenues through international distribution.
In June it was reported that the British film industry benefited hugely from government financing which contributed £4.5 billion to GDP and strengthened British culture at home and abroad.
By: Filmindustrynetwork
RICHMOND, USA – The state of Virginia has just announced a new $2 million film fund for qualified productions including tax incentives.
The battle for film productions is heating up, with different states offering an array of incentives for filmmakers shooting documentaries, commercials and feature films. This will be the state of Virginia’s first tax credit incentive, which took a reported 30 years to come to fruition. The news comes as a relief to the Virginia production Alliance, that for years lobbied the state to boost the local film industry.
Gov. Bob McDonnell signed the bills into effect just this week, which will provide a combined total of $4.5 million for qualifying productions. The Virginia film Office earlier stated that film productions in 2008 had created 4000 new jobs and a revenue stream of more than $350 million for the state.
The incentives will vary depending on the nature of productions and where they are shot within the state. Tax breaks for films could be as much as 20%. Despite the news, many other states have already put in place schemes such Michigan, which offers a 42% tax rebate, and several movie studios are to be built over the next few years.
Hollywood on the other hand is in the grips of a ‘financial melt down’, and will have to find a new way to lure productions back home with either increased tax rebates, a film fund, or development program that will strengthen local filmmaking and boost revenues through international distribution.
In June it was reported that the British film industry benefited hugely from government financing which contributed £4.5 billion to GDP and strengthened British culture at home and abroad.
Sunday, July 4, 2010
Article by Brad Newman at Amarillo.com
Web-posted Sunday, July 4, 2010
Luring film production to the Panhandle: Camera-shy, we're not
Despite few credits, interest rising
By Brad Newman
brad.newman@amarillo.com
For years, filmmakers have brought their cameras and crews, scripts and stars to the Texas Panhandle.
Movies filmed in the Amarillo area
A handful of feature films, or at least select scenes from feature films, have been shot in the Panhandle. A sampling:
"Hud" (1963)
Paul Newman starred in this cowboy film shot primarily in Claude, 30 miles southeast of Amarillo.
"Indiana Jones and the Last Crusade" (1989)
The final sunset scene of the third installment of the blockbuster franchise was filmed on a ranch southeast of Amarillo.
"Leap of Faith" (1992)
Plainview, about 75 miles south of Amarillo, was the site for this film with Steve Martin, Liam Neeson and Debra Winger about a fraudulent Christian faith healer.
"Cast Away" (2000)
The last scene in this Tom Hanks film was shot in Canadian, about 100 miles northeast of Amarillo.
"What Matters Most" (2001)
This Lifetime original movie is a portrayal of love between a rich boy and a poor girl in West Texas. It was shot in Vega over a period of 22 days.
"Waking Up in Reno" (2002)
The Big Texan Steak Ranch is featured in this comedy-drama with Billy Bob Thornton, Charlize Theron, Patrick Swayze and Natasha Richardson.
"Paper Heart" (2009)
An Amarillo couple, Don and Sally Emerson, are interviewed in this documentary-style feature film, with Charlyne Yi and Michael Cera, about the meaning of love.Movie money
Direct spending as a result of tax-incentive programs for filmmakers:
New Mexico
2006: $153 million
2007: $151 million
2008: $274 million
2009: $265 million
2010: $178 million
Texas*
April 2009-present: $342 million
*No incentives offered until Texas Legislature adopted package last year
Sources: New Mexico State Film Office; Texas Film CommissionAttracting interest
Movies like "Hud," "Indiana Jones and the Last Crusade" and "Waking Up in Reno" all have featured scenes shot in the region.
But filmmaking has maintained a sporadic presence in the region. Producers with little financial motivation often are hesitant to anchor their projects in remote West Texas.
"Some really cool things have been done in this area, but we don't necessarily have a rich history of film here," said Leigh Browning, director of broadcast media at West Texas A&M University.
Local experts in the industry say interest in producing projects in and around Amarillo is escalating, but the region has yet to experience the influx of industry that other areas, specifically, nearby New Mexico, have attracted.
Film in the neighboring state, with vistas and plains similar to those found in Texas, has boomed in the last five years, when a tax-incentive program went into effect.
New Mexico has claimed more than 140 feature film and television productions since the program inception, said Lisa Strout, director of the New Mexico Film Office.
Just last week, the state announced that a television movie, "Let Them Shine," will be filmed in the Albuquerque area through the end of July and eventually air as a CBS Hallmark Hall of Fame production.
The productions have resulted in direct spending of about $1 billion since 2003.
A similar tax-incentive program adopted by the Texas Legislature that took effect in April 2009 has resulted in about $342 million in production spending, mostly in larger Texas cities, said Bob Hudgins, director of the Texas Film Commission.
But efforts remain under way, stirred by the incentive program, to entice motion picture projects to the Panhandle that will have lasting cultural and economic impact.
Amarillo has a scattering of broadcast media technicians working in the industry on a small-scale level.
Local production companies like Ragtown Media, ThreeLeaf Creative and 41 Productions are pursuing the craft full time, making TV advertisements and informational videos for nonprofit groups.
Roger Lindley, director of Ragtown Media, has worked in the production industry for 26 years.
Lindley's primary work includes shooting advertisements and corporate videos, but he has traveled elsewhere to work on feature films and documentaries, including "Bollywood Beats" in Dallas in 2008.
"I'm able to do a broad range of things, which keeps me busy with work I find rewarding," he said.
But local production companies generally aren't making feature films that will land in cinemas. Projects of that scope usually are imported from out-of-state film companies, and the Panhandle isn't yet a target location.
"Dallas and Austin are the hub of production in Texas," Lindley said. "They have the largest crew base and equipment and infrastructure. The farther you get away from those places, the more difficult it is to get those desired resources."
In New Mexico, the productions are more frequent in rural areas, largely because of the state's desirable terrain, Strout said. The tax-incentive program and positive recommendations among filmmakers also have led to the activity, she said.
"We have had really good fortune," Strout said. "It's something the entire populace is really proud of."
Enticing studio production companies to choose the Panhandle is an ongoing endeavor.
Amarillo does have its own film commission, a division of the Amarillo Convention and Visitor Council.
Director Jutta Matalka works to pair production companies with Amarillo's skilled labor. Besides technical crew, the city also has a talent pool from which producers can draw for smaller roles or extras.
But the resources are limited, and the monetary incentives are nonexistent, Matalka said.
"This area has its benefits, but they're not always enough to bring a production here," she said. "I just always try to stay optimistic."
The film industry in Texas received a boost last year with the Texas Moving Image Industry Incentive Program.
Last year, lawmakers approved the two-year, $60 million program designed to provide tax incentives for films, TV programs, commercials and video games produced in the state. The package expires in 2011, unless legislators extend or enhance it.
"Texas had fallen really behind in this area. In fact, the lack of incentives was pretty embarrassing," said WT's Browning, noting New Mexico's vibrant incentive program.
Texas' program provides financial reimbursements to companies that spend the bulk of their production costs and time in the state.
Productions that spend more than $5 million in the state are eligible to receive a 15 percent reimbursement after the work is completed. Projects that spend $1 million to $5 million can receive a 10 percent reimbursement, and projects that spend from $250,000 to $1 million can receive a 5 percent reimbursement.
The reimbursements could increase from 3 percent to 10 percent if productions are shot in an "underutilized" or "economically distressed" area of the state.
The program eclipses a previous incentive package, which paid reimbursements up to 5 percent regardless of the spending.
"You can see the difference," Hudgins said. "These incentives have been so incredibly effective in luring work. Texas can now compete with surrounding states."
Amarillo has yet to be significantly affected by the statewide initiative, but the program's effect still could reach the Panhandle, Hudgins said.
Projects like commercials and small-budget documentaries are the most likely projects to be created in the region, he said.
The package also could serve as a catalyst for a local incentive package to be developed, Lindley said.
"We're starting to get smarter about the best way to attract projects here," he said. "They're not going to come our way unless we give them a reason. We need unique incentives that might draw them out."
The Texas Motion Picture Alliance, formed in 2006, also is working to promote film in the state, said Browning, a member of the TMPA.
The nonprofit advocacy organization offers a resource for filmmakers and producers.
In Amarillo, Browning and others are planning to present information to the City Commission - "The sooner the better," Browning said - about the city's responsibility in attracting projects.
"We want to make them aware of what's happening in the industry," Browning said. "We want them to understand it's important that we all roll out the red carpet when these projects do come to town."
Other upcoming events point to activity on the filmmaking front in the Panhandle.
Hudgins is scheduled to speak Sept. 30 at WT about the Texas Film Commission's incentive program and the state of the industry in Texas.
Also, two film festivals, one featuring Palo Duro High School students and one featuring WT students, are planned later this year.
Amarillo benefits on multiple levels when films are shot in the area, Browning said. Films can serve to boost the economy, increase tourism and foster pride.
And though financial incentives might be lacking now, the Panhandle isn't without other important perks for filmmakers, Browning said.
She listed several factors - variation in terrain, unique attractions like Palo Duro Canyon State Park and Wonderland Park, a variety of indoor and outdoor venues, unused business properties and more - that could be marketed to production companies.
"The work that's being done now is just the beginning," she said. "This area really has an opportunity now to position itself to be a choice location for filmmaking."
Luring film production to the Panhandle: Camera-shy, we're not
Despite few credits, interest rising
By Brad Newman
brad.newman@amarillo.com
For years, filmmakers have brought their cameras and crews, scripts and stars to the Texas Panhandle.
Movies filmed in the Amarillo area
A handful of feature films, or at least select scenes from feature films, have been shot in the Panhandle. A sampling:
"Hud" (1963)
Paul Newman starred in this cowboy film shot primarily in Claude, 30 miles southeast of Amarillo.
"Indiana Jones and the Last Crusade" (1989)
The final sunset scene of the third installment of the blockbuster franchise was filmed on a ranch southeast of Amarillo.
"Leap of Faith" (1992)
Plainview, about 75 miles south of Amarillo, was the site for this film with Steve Martin, Liam Neeson and Debra Winger about a fraudulent Christian faith healer.
"Cast Away" (2000)
The last scene in this Tom Hanks film was shot in Canadian, about 100 miles northeast of Amarillo.
"What Matters Most" (2001)
This Lifetime original movie is a portrayal of love between a rich boy and a poor girl in West Texas. It was shot in Vega over a period of 22 days.
"Waking Up in Reno" (2002)
The Big Texan Steak Ranch is featured in this comedy-drama with Billy Bob Thornton, Charlize Theron, Patrick Swayze and Natasha Richardson.
"Paper Heart" (2009)
An Amarillo couple, Don and Sally Emerson, are interviewed in this documentary-style feature film, with Charlyne Yi and Michael Cera, about the meaning of love.Movie money
Direct spending as a result of tax-incentive programs for filmmakers:
New Mexico
2006: $153 million
2007: $151 million
2008: $274 million
2009: $265 million
2010: $178 million
Texas*
April 2009-present: $342 million
*No incentives offered until Texas Legislature adopted package last year
Sources: New Mexico State Film Office; Texas Film CommissionAttracting interest
Movies like "Hud," "Indiana Jones and the Last Crusade" and "Waking Up in Reno" all have featured scenes shot in the region.
But filmmaking has maintained a sporadic presence in the region. Producers with little financial motivation often are hesitant to anchor their projects in remote West Texas.
"Some really cool things have been done in this area, but we don't necessarily have a rich history of film here," said Leigh Browning, director of broadcast media at West Texas A&M University.
Local experts in the industry say interest in producing projects in and around Amarillo is escalating, but the region has yet to experience the influx of industry that other areas, specifically, nearby New Mexico, have attracted.
Film in the neighboring state, with vistas and plains similar to those found in Texas, has boomed in the last five years, when a tax-incentive program went into effect.
New Mexico has claimed more than 140 feature film and television productions since the program inception, said Lisa Strout, director of the New Mexico Film Office.
Just last week, the state announced that a television movie, "Let Them Shine," will be filmed in the Albuquerque area through the end of July and eventually air as a CBS Hallmark Hall of Fame production.
The productions have resulted in direct spending of about $1 billion since 2003.
A similar tax-incentive program adopted by the Texas Legislature that took effect in April 2009 has resulted in about $342 million in production spending, mostly in larger Texas cities, said Bob Hudgins, director of the Texas Film Commission.
But efforts remain under way, stirred by the incentive program, to entice motion picture projects to the Panhandle that will have lasting cultural and economic impact.
Amarillo has a scattering of broadcast media technicians working in the industry on a small-scale level.
Local production companies like Ragtown Media, ThreeLeaf Creative and 41 Productions are pursuing the craft full time, making TV advertisements and informational videos for nonprofit groups.
Roger Lindley, director of Ragtown Media, has worked in the production industry for 26 years.
Lindley's primary work includes shooting advertisements and corporate videos, but he has traveled elsewhere to work on feature films and documentaries, including "Bollywood Beats" in Dallas in 2008.
"I'm able to do a broad range of things, which keeps me busy with work I find rewarding," he said.
But local production companies generally aren't making feature films that will land in cinemas. Projects of that scope usually are imported from out-of-state film companies, and the Panhandle isn't yet a target location.
"Dallas and Austin are the hub of production in Texas," Lindley said. "They have the largest crew base and equipment and infrastructure. The farther you get away from those places, the more difficult it is to get those desired resources."
In New Mexico, the productions are more frequent in rural areas, largely because of the state's desirable terrain, Strout said. The tax-incentive program and positive recommendations among filmmakers also have led to the activity, she said.
"We have had really good fortune," Strout said. "It's something the entire populace is really proud of."
Enticing studio production companies to choose the Panhandle is an ongoing endeavor.
Amarillo does have its own film commission, a division of the Amarillo Convention and Visitor Council.
Director Jutta Matalka works to pair production companies with Amarillo's skilled labor. Besides technical crew, the city also has a talent pool from which producers can draw for smaller roles or extras.
But the resources are limited, and the monetary incentives are nonexistent, Matalka said.
"This area has its benefits, but they're not always enough to bring a production here," she said. "I just always try to stay optimistic."
The film industry in Texas received a boost last year with the Texas Moving Image Industry Incentive Program.
Last year, lawmakers approved the two-year, $60 million program designed to provide tax incentives for films, TV programs, commercials and video games produced in the state. The package expires in 2011, unless legislators extend or enhance it.
"Texas had fallen really behind in this area. In fact, the lack of incentives was pretty embarrassing," said WT's Browning, noting New Mexico's vibrant incentive program.
Texas' program provides financial reimbursements to companies that spend the bulk of their production costs and time in the state.
Productions that spend more than $5 million in the state are eligible to receive a 15 percent reimbursement after the work is completed. Projects that spend $1 million to $5 million can receive a 10 percent reimbursement, and projects that spend from $250,000 to $1 million can receive a 5 percent reimbursement.
The reimbursements could increase from 3 percent to 10 percent if productions are shot in an "underutilized" or "economically distressed" area of the state.
The program eclipses a previous incentive package, which paid reimbursements up to 5 percent regardless of the spending.
"You can see the difference," Hudgins said. "These incentives have been so incredibly effective in luring work. Texas can now compete with surrounding states."
Amarillo has yet to be significantly affected by the statewide initiative, but the program's effect still could reach the Panhandle, Hudgins said.
Projects like commercials and small-budget documentaries are the most likely projects to be created in the region, he said.
The package also could serve as a catalyst for a local incentive package to be developed, Lindley said.
"We're starting to get smarter about the best way to attract projects here," he said. "They're not going to come our way unless we give them a reason. We need unique incentives that might draw them out."
The Texas Motion Picture Alliance, formed in 2006, also is working to promote film in the state, said Browning, a member of the TMPA.
The nonprofit advocacy organization offers a resource for filmmakers and producers.
In Amarillo, Browning and others are planning to present information to the City Commission - "The sooner the better," Browning said - about the city's responsibility in attracting projects.
"We want to make them aware of what's happening in the industry," Browning said. "We want them to understand it's important that we all roll out the red carpet when these projects do come to town."
Other upcoming events point to activity on the filmmaking front in the Panhandle.
Hudgins is scheduled to speak Sept. 30 at WT about the Texas Film Commission's incentive program and the state of the industry in Texas.
Also, two film festivals, one featuring Palo Duro High School students and one featuring WT students, are planned later this year.
Amarillo benefits on multiple levels when films are shot in the area, Browning said. Films can serve to boost the economy, increase tourism and foster pride.
And though financial incentives might be lacking now, the Panhandle isn't without other important perks for filmmakers, Browning said.
She listed several factors - variation in terrain, unique attractions like Palo Duro Canyon State Park and Wonderland Park, a variety of indoor and outdoor venues, unused business properties and more - that could be marketed to production companies.
"The work that's being done now is just the beginning," she said. "This area really has an opportunity now to position itself to be a choice location for filmmaking."
Subscribe to:
Posts (Atom)