‘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.
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Several people from the show asked if there was anything North Bergen could do to keep production here.
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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
Sunday, July 11, 2010
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