From The Wrap

Come Back, Woody -- Lots of U.S. States Are Still Good to Hollyw'd!

Woody Allen may have abandoned New York for Europe, griping that the city has become too expensive for filmmaking, but it's not like the state isn't trying.

Just weeks ago, New York passed a new budget with some $450 million in tax credits for film and television production.

And New York isn't alone. Despite the current recession and some political backlash -- not to mention a headline-grabbing scandal involving Iowa's film office -- there's an enormous appetite in this country for the film industry.

In what has been likened to an arms race, more than 40 states currently offer some form of tax incentives for movies and television shows shot within their borders. These range from the 12 percent rebate Maine gives filmmakers who employ state residents to the whopping 40 percent across the board credit Michigan offers movie productions that shoot there.

More? Virginia signed production credits into law in June, North Carolina hiked up its refund from 15 to 20 percent in January, and Oregon has ramped up its courtship of Hollywood in recent years attracting more than $62 million in film production in 2009 alone.

“These programs can be fantastic for local economies,” William French, a lawyer who specializes in film tax credits, told TheWrap. “Productions can come in and drop hundreds of millions of dollars in a given jurisdiction. It’s a non-polluting, clean industry that is a good fix in a bad economy.”

"Given that the majority of states have enacted credits and have overwhelmingly continued to sustain them, it is clear that these incentives are stimulus packages that have created thousands of jobs," Vans Stevenson, senior vice president of government affairs at the Motion Picture Association of America, told TheWrap.

Indeed, other states are finding it easier to compete with the film industry's hometown, Hollywood.

"California no longer has the infrastructural advantage that it once did," Kevin Klowden, director of the Milken Institute's California Center and the author of a report on the effect of runaway production on California, told TheWrap. "Other states and countries have built facilities and shown that it's perfectly reasonable to consider doing a movie in Georgia, Canada or even New Zealand."

In fact, Klowden says California has lost more than 25,000 related jobs, $2.4 billion in wages and $4.2 billion in total economic output since 1997 due to runaway film and TV production to other states and countries. The culprit -- incentives.

Not that film-incentive programs haven't been the subject of some controversy -- and some bad publicity.

Susan Christopherson, professor of city and regional planning at Cornell. Christopherson argues that film production rarely has the positive economic impact that states hope.

“All the studies indicate that even with those multiplier effects, such as a star needing a special hotel room, states are paying out more tax money than they are actually taking in,” Christopherson told TheWrap. “Now states are saying, ‘We’ll build an industry here.’

From The Sioux City Journal

Iowa resumes issuing film tax credits



DES MOINES - State officials have resumed issuing tax credits to qualifying film projects, announcing Friday that two movies have been awarded financial incentives from the Iowa Department of Economic Development utilizing the fully revised process of issuing tax credits.

Projects receiving tax credits under the Iowa film, television and video promotion program, were "Sam Steele & the Junior Detective Agency" and the film, "Ash."

"We are very pleased to be able to assist these companies with their Iowa projects," said DED Director Bret Mills. "IDED, the Department of Revenue, the Auditor of State's Office, and the Office of the Attorney General have designed and implemented a comprehensive process to ensure all parties involved have a clear understanding of the program and also that a full audit of the project is completed prior to the issuance of the tax credits."

The films are part of a pool of projects that received initial DED approval for tax credit awards before the program was suspended in September 2009 by Gov. Chet Culver after an internal review found incomplete and inaccurate recordkeeping, altered contractual terms, questionable expenditures, use of pass-through entities and broker fees in the management of a program.

Culver later partially lift the suspension of state tax credits for projects that had contracts with the state or had registered under the program. The program isn't taking new applications, but those that had been approved before Sept. 18, 2009, are being allowed to negotiate contracts with the Iowa Film Office. The Legislature suspended any new applications until July 1, 2013.

Iowa's tax credit program provides a 25 percent tax credit for production expenditures made in Iowa and a 25 percent tax credit for investors for projects that spent at least $100,000 in Iowa. But the Iowa Attorney General's Office has clarified the program to indicate that producers could qualify for a maximum 25 percent credit for qualified expenditures made in Iowa.

Culver halted the state's film tax credit program last September following revelations that some of the credits were used in the purchase of luxury vehicles and other potential abuses. Five people lost their jobs due to problems associated with the administration of the film tax credits, including the resignations of the state's two top economic development officials and the dismissal of the director of the state's film office.

Criminal charges since have been filed against the office's former director, as well as production company officials for allegedly inflating expenses.

A summary issued at last week's Economic Development Board meeting said 158 projects were in the tax-credit program, with 59 revoked. Twenty-four have been given tax-credit certificates; 30 have had an application approved but don't have a contract; and 45 have a contract. The summary said applicants for the 45 projects anticipate spending $246 million in the state.

Article by Andrea Ciurej Regarding Nebraska Filming

Nebraska Film: Heath Mello advocates for film tax incentives
Omaha August 25, 2010 by Andrea Ciurej

Editor's Note: This article is part of a series titled Nebraska Film: An Exploration of the Growing Community. Learn more about the goals of this series and find links to its articles in our announcement: Nebraska Film series starts Monday, August 9.

As the Silicon Prairie region continues to build a reputation for being an entrepreneur and innovation hotspot, Nebraska is looking to become a Hollywood of sorts for its blossoming actors, directors and other "filmsters" awaiting stardom.

While the California-based district touts its high-profile celebrity culture, Nebraska is focused on building a solid foundation of accomplished actors and actresses, from Omaha-born actor Marlon Brando of the last century to Lincoln native Hilary Swank of today's modern film. Nebraska is also home to award-winning directors, such as Omaha's Alexander Payne and Dana Altman (pictured left alongside actor John Beasley of Omaha, photo from northseafilms.com), the grandson of acclaimed filmmaker Robert Altman.

But there is one thing holding Nebraska's film industry back that has benefited California's well-endowed film production playground: refined film production tax credit programs for film and television expenditures spent locally.

The motion picture and television industry is responsible for the creation of 881 direct jobs and $15.2 million in wages in Nebraska, according to the Motion Picture Association of America. But, the state has no significant tax incentive for production.

Nebraska Sen. Heath Mello, who represents the state legislature's 5th District, looks to overturn the absence of these tax incentives with a piece of legislation allowing "an incentive that will allow the state to compete with other states and increase film and television production in this state" known as LB 1073.

"We have producers, we have actors, we have directors, we have creative talent in Nebraska to really make our film industry blossom," Mello said. "We just don't have the assistance the way that other industries have it."

In this bill, Mello proposed that a 17 percent income tax credit will be given to production companies that produce a film, television show, commercial or web-based or internet-delivered content in Nebraska.

An additional two percent of the funding will be given if the company spends at least $20,000 for the use of music created by a Nebraska resident recorded in the state or for the cost of recording music locally. The tax credit will increase an additional three percent if the company produces film, television or commercialized material in a non-metropolitan area of the state.

As of April, measures to pass the bill, which was introduced in January, were postponed indefinitely, therefore, suspending all further activity against the bill.

"Unfortunately, due to I think some of the concerns that came with the implementation of this new tax incentive," Mello said, "some senators I talked to felt we needed to go back and try to find a way to pair down the costs."

Mello's bill was not the first attempt to pass these incentives in Nebraska. He, however, continues to push this issue before the unicameral, along with another bill, which was also indefinitely postponed, to promote job training in film, television and web-content production in Nebraska - LB 1704.

"I believe that the creative economy of Nebraska is growing [and] it's growing right now it seems like, under the radar," Mello said. "We have opportunities I think to try and keep young people in Nebraska…that's part of that building the creative economy opportunity."

A few weeks ago, Silicon Prairie News sat down with Heath to further discuss the importance of film tax incentives in Nebraska, as well as his thoughts of the growth of Nebraska film and its vitality to local talent and the economy.

From EzineArticles.com

Although it seems like the bad news about the economy is never ending, there is one bright spot for the people of Louisiana: the film and production industry in this state is actually growing. Not only has the entertainment industry as a whole has seen an increase in number of jobs, Louisiana specifically has seen a dramatic increase in the number of films produced locally over the past few years. This trend is due largely to a combination of state initiatives and the unfortunate economic environment of other potential locations.

Tax Credits No Longer Certain In New York

One of the things that made shooting movies and television shows in New York City affordable for production companies were tax credits from both the state and city authorities. This allowed companies to defray the expenses associated with producing their work in such a large and expensive location. However, the credits that were taken for granted for so long are now in question at both a state and city level. The state government in Albany has yet to settle on a budget for the upcoming year, leaving the existence of the credits in question. The credits given by the city authorities were part of a program that used the entirety of its funding last year and has yet to be renewed.

New Mexico Production Company Declares Bankruptcy

Additionally, in one of the states that competes with Louisiana for films, a major studio recently declared bankruptcy. At the end of July, 2010, Albuquerque Studios filed for Chapter 11 bankruptcy. The company has listed debts ranging from only $16 to over $100,000, and the debtors include dozens of New Mexico businesses as well as Hollywood companies such as DreamWorks SKG. Thus far, the studio has been able to maintain their production schedule without interruption. However, as the studio seeks additional sources of financing, their precarious financial position may lead future productions to choose an alternate location.

Louisiana Steps in as a Leader

Given the current situations in other locations, Louisiana is in a great position to step in as a leading location for the production of major Hollywood films, and has done during the first half of 2010. So far, 24 films have been shot in New Orleans alone! With a terrain that can imitate many different locations, architecture that can work for a variety of time periods and locations, and skilled crews available, Louisiana has the elements necessary to make it a viable location for films. Even more, in contrast to the situation in New York, Louisiana offers some of the most competitive film industry tax credits in the country, and those credits continue to attract new productions in this growing industry to the state.

To learn more about the growth of Louisiana's movie industry, or to find out more details about the Louisiana film tax incentive programs contact FBT Film and Entertainment. They are the local experts on film and entertainment movie production credits.

Article Source: http://EzineArticles.com/?expert=Andre_Savoie

From Silicon Valley News Omaha

From animation to mobile apps, Grasshorse reinvents itself
Winfield August 17, 2010 by Geoff Wood

Not every startup is nimble enough to adapt to the constantly changing economic environment of the last few years, but that ability has been key to the success of Winfield, Iowa's Grasshorse. In 2002, Grasshorse was founded by Stephen Jennings as an animation studio in California. Five years later, he and his sister Kathy Buxton, Grasshorse CEO, moved the company to Iowa to take advantage of the state's tax incentives related to economic development in the film industry. Shortly thereafter, the economic recession hit the company in early 2008 and the tax incentives were frozen abruptly in September of last year.

"We've had to reinvent ourselves several times because our clients became different," said Kathy, noting that when their West Coast work dried up with the recession they were able to shift to Iowa-based projects. When the tax incentive program was frozen, they shifted again to advertising work and mobile application development where they concentrate much of their efforts today.

The Grasshorse work product can be found everywhere from feature films and television to commercials and mobile phone applications. Their clients include global media powerhouses like Cartoon Network, Warner Brothers, The Walt Disney Company and MTV and specific productions include the Powerpuff Girls, Star Wars Clone Wars, Liquid Television, and the 2008 Olympic Games. (See samples of their work in their demo reel at grasshorse.com/about.)

They now describe themselves as "an animation, design, and technology" company, a reflection of the core competencies they discovered throughout reinventing process:

"We reassessed our core and said, 'OK, we have animation, design and technology abilities, what kind of deliverables can we provide with that core?'" Stephen said.

The first two iPhone applications they created, Poke My VooDoo and Katooba's Cotton Candy Caper (left), are available in Apple's app store. They're working on expanding these applications to other platforms and promoting them through merchandising and other means. One such promotion will be exhibiting next month at Dragon*Con, which is "the largest multi-media, popular culture convention focusing on science fiction and fantasy, gaming, comics, literature, art, music, and film."

The company has seven employees and they work with another 10 or more freelancers on a regular basis. Their location in rural southeastern Iowa has become an asset to the company allowing them to draw artistic talent from larger regional communities such as Iowa City, Burlington, Mount Pleasant and Fairfield, a known artistic enclave.

"Our big challenge was taking a fine artist who could use a computer, was comfortable with them and confident around them, and making them into an animator because they're not the same thing. So [we do] a lot of extensive training," said Kathy.

They also receive a lot of professional inquiries from out of the area, Kathy said. "What we've run into more than anything is people contacting us from other states saying the want to come back to Iowa. We've had senior executive producers and marketing directors; we've had some very high-level people contact us. It's kind of interesting that we get that level of interest when Winfield is a small town."

Michigan Continues Movie Success:Detroit Free Press

Postproduction key to state film industry

BY JULIE HINDS
FREE PRESS POP CULTURE WRITER


"Piranha 3D" was filmed in Arizona at Lake Havasu. So why did several members of the crew spend about six months in Ann Arbor last year?

Because it was an economical and enjoyable place to do editing on the horror movie about the vicious fish.

As Michigan strives to become Hollywood Midwest, much attention is being focused on the filming that's bringing famous actors and prominent directors to town.

But there also is an emerging market in film and TV postproduction -- work that ranges from editing to sound mixing.

"Piranha 3D," which opens today, is the first movie to come to Michigan specifically to do postproduction work and receive the state's tax incentives for filmmakers, according to the Michigan Film Office.

Postproduction could expand in metro Detroit and the rest of the state.

"I think the biggest challenge is awareness and getting your foot in the door," said Allan Rothfeder, executive vice president and chief operating officer of Grace & Wild Inc., the Farmington Hills parent company of Grace & Wild Studios, which provided editing equipment and technical support for "Piranha 3D."
That's a wrap! Now to Mich. for postproduction

You've heard about the celebrities who are making movies here. But have you heard much about postproduction?

Probably not. It isn't as glamorous as being in front of the camera, but it's crucial to what you see in movie theaters and on television.

Postproduction involves an array of work that's necessary to complete a film or TV show, from processing and transferring the dailies to editing, sound mixing, special effects and music.

And it's one of the keys to building a long-term film industry in Michigan.

"The postproduction work, the film processing work, the audio work has really got to find its way here to make a sustainable business model for Michigan to be a leader in filmmaking," said Kirk Miller, president of Kinetic Post, a postproduction company in Southfield that's doing some work for "Home Run Showdown," a baseball-themed movie filming in the state.

From the Globe Gazette

Checks and balances put in place, film office says

By ED TIBBETTS etibbetts@qctimes.com Globe Gazette

The Iowa Film Office, wracked by scandal last year, has put in place a comprehensive process governing the tax-credit program, the office’s interim director told the board of the Iowa Department of Economic Development at its monthly meeting Thursday.

Jessica Montana, the interim director since March, said the office is working closely with the state department of revenue, as well as the attorney general’s office, to ensure existing projects are audited and proper documentation is received.

“We’ve put in some checks and balances within the program,” Montana said at the meeting in Davenport.

A status report given to the board said about a third of all the projects in the program, 59 in all, have had their registration revoked.

Kay Snyder, an IDED spokeswoman, said participants decided not to take part in the program, their funding fell through or there were timing issues. None were related to improprieties.

After the scandal broke last year, five people lost their jobs at the film office and within the Iowa Department of Economic Development.

Independent auditors said there was minimal record-keeping in the program, as well as instances of questionable expenditures, including luxury vehicles.

Criminal charges also were filed against the office’s former director, as well as production company officials for allegedly inflating expenses.

Montana’s presentation was mostly an update of the previous year’s events. But she also said there is a new “standardized process” for the program, and that projects are being audited prior to tax certificates being granted.

Consistent and accurate guidance also is being given to film companies, she said, and an inventory of all film projects is being developed.

The program isn’t taking new applications, but those that had been approved prior to last Sept. 18 are being allowed to negotiate contracts with the film office.

The summary said 158 projects were in the tax-credit program, with 59 revoked.

Twenty-four have been given tax-credit certificates; 30 have had an application approved but don’t have a contract; and 45 have a contract.

Snyder could not estimate when credits will be issued to projects with contracts, but she said, “we do anticipate projects will begin to move.”

“We are in a very good place right now,” she said.

The summary said applicants for the 45 projects anticipate spending $246 million in the state. The program allows recipients to claim credits for up to 25 percent of qualified expenditures.

Movie Suspension Drives Some Insane

I take him on bike rides each day, yet his anxiety over the film problem in Iowa persists. That is once widely respected newsman Jay Villwock following me. A sad tale but a beautiful summer bike ride.

From The Salt Lake Tribune

Lawmakers very eager to increase state’s film incentive

By Sean P. Means

The Salt Lake Tribune
Updated Aug 19, 2010 03:46PM

The Utah Film Commission wants to lure more movie and TV production into the state. That’s why the group made a sales pitch to a legislative interim committee Wednesday to raise the state’s tax incentive for film production from 20 percent to 25 percent.

The surprise was that some legislators, after hearing how much filmmaking adds to the state’s economy, suggested more.

“Why not 30 percent?” asked Rep. Paul Ray, R-Clearfield, a member of the interim committee that oversees economic development.

“I wouldn’t hold back — let’s spin this to bigger numbers,” said the committee’s Senate chairman, Sen. Mark Madsen, R-Lehi, to officials from the Governor’s Office of Economic Development, the film commission’s parent agency.

The enthusiasm for the motion-picture incentive, which legislators once viewed with suspicion, proves “we’re showing success that translates into jobs,” said Marshall Moore, the film commission’s director.

“If you offer a better incentive, you’ll attract more business,” said John J. Kelly, one of the executive producers of the film “127 Hours,” who took part in a multi- media sales pitch to legislators.

Moore and GOED officials talked up the successes attributed to the 20 percent incentive and tax rebates given to movie productions that spend money in Utah. In the past fiscal year, the state spent almost $11.6 million on incentives, but that expense generated a direct economic impact to the state of nearly $56.3 million — and an estimated overall impact of more than $140 million.

Moore touted two productions that filmed in Utah this summer: Disney’s $200 million science fiction blockbuster “John Carter of Mars,” whose producers spent $21 million shooting around southern Utah, and “127 Hours,” the adventure drama directed by Oscar winner Danny Boyle that spent $14 million of its $25 million budget on filming in Moab, Antelope Island and on a Salt Lake City soundstage.

Are We Doomed? Part 2

Gene just quoted an article from today's Des Moines Register that inferred that Terry Branstad would probably not be supporting film tax credits. Here is a link to the article so you can read it for yourself:

http://www.desmoinesregister.com/article/20100818/NEWS09/8180366/Branstad-would-cut-Iowa-Department-of-Economic-Development

Where does that leave us? Talk about us being between a rock and hard place! If the incumbent is re-elected and a new film bill comes up we know we can probably count on him getting out the old veto pen and Culverizing it. If Tweedledee is the choice, he'll probably be grasping at that same writing instrument. Some choice!

I'm planning to do a symbolic vote myself and do a write-in for Tom Wheeler. At least we know he is for film and it might send a message to both the winner and the loser of the election that we're here and we mean business.

Are Iowa Actors and Crew and Producers DOOMED????

During our weekly Iowa capitol visits last winter, Jay Villwock and I were assured by more than one Iowa republican official that former governor of Iowa Terry Branstad would most certainly support the Iowa film tax credit program. An article in today's Des Moines Register includes the below quote, which suggests to me that one cannot believe any Q$%T$%&^$%&$#%$% politician:

Branstad declined to say what economic incentives such as tax credits would likely be eliminated.

"It's pretty obvious that the film tax credit was not one that really meets the test," Branstad said. "We want to create permanent jobs, and we want jobs that will help us build a stronger and more successful economy in Iowa."

I've posted article after article citing how the film tax credit programs work with great success in many states and I included formulas that made these work, all from articles taken from published reports.

If Iowa doesn't get the movie program going again I will feel angry, sad, and ill.

From Alternatives News Magazine

N.C. Continues to Improve Film Incentive

Arts & Culture

Tags: film industry, north carolina

By: Staff Writers
August 13, 2010 0



According to the N.C. Film Office, the state’s General Assembly has passed two important pieces of legislation making North Carolina film incentives among the best in the country.

The bills include the following changes:

HB 1973:

• Eliminates the 15% and Alternative Film credit.

• Creates a single, easy to use 25% film Incentive.

• Increases per project cap to $20 million (was $7.5 million).

• Defines employee fringe contributions, including health, pension and welfare contributions as qualifying expenses.

• Defines per diems, stipends, and living expenses as qualifying expenses.

• Expenditures made in 2010 that are claimed on a return for a taxable year starting on or after Jan 1. 2011 will qualify.

HB 713:

• Eliminates the 6.9% corporate income tax on the incentive taken by a production company. This allows the production company to realize a full 25% of qualifying expenses.

The North Carolina film incentive has a low minimum spend requirement of $250,000 and allows $1 million of each person wages and compensation to qualify.

The North Carolina Film Office is a state agency in the Division of Tourism, Film and Sports Development in the North Carolina Department of Commerce. It was founded in 1980 by Governor James B. Hunt and is a member of the Association of Film Commissioners International.

The office promotes North Carolina as a location for television, motion picture and advertising productions. Working in cooperation with state agencies and six regional film commissions, the Film Office assists filmmakers by providing services that include custom location packages, scouting assistance and permitting guidance.

Over the past 27 years, more than 800 films and 15 television series and numerous documentaries and commercials have been made possible with the assistance of the North Carolina Film Office.

From Screen Actors Guild

August 2, 2010, 12:05pm
Filed in: Legislative Advocacy

Los Angeles (August 2, 2010) — Governor Arnold Schwarzenegger announced Friday that the California Film & Television Tax Credit Program that was a part of last year’s budget agreement has achieved its desired goal of keeping scores of film and television productions in state. In its first year, 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, which exhausts the fiscal year funding. (Read the complete press release below.)

Screen Actors Guild continues to support the incentives program and we applaud its success at bringing more entertainment industry jobs to California. It benefits entertainment industry workers, including SAG members and their families, here in California while strengthening the state's economy.

“This is a terrific success and further reinforces the importance of tax incentives to the state economy. The positive effects of these tax credits echo throughout California and bring widespread benefit to the entire state," said SAG Manager of Government Relations & Policy Jenn Heater. "This is just the beginning of what we can achieve through the incentive program, and by working together bring entertainment and related industry jobs back to California.”
Gov. Schwarzenegger Announces Film & Television Incentives to Generate $2 Billion in Direct Spending
First Year of California Film & Television Tax Credit Program Succeeds in Creating and Retaining Tens of Thousands of Jobs

July 30, 2010 — Governor Arnold Schwarzenegger today announced that the California Film & Television Tax Credit Program that was a part of last year’s budget agreement has achieved its desired goal of keeping scores of film and television productions in state – creating and retaining tens of thousands of jobs and generating spending in California. In its first year, the California Film Commission, which administers the Program, 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 communities, which includes $736 million in wages paid to “below-the-line” crew members (electricians, grips, drivers, costumers, etc), 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,” said Governor Schwarzenegger. “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.”

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 over 100,000 background or “extra” players. These approved projects include 51 feature films, both studio and independent, seven television series and 14 made-for-television-movies.

“For three years, I've been trying to make RED STATE. It wasn't until my project qualified for the tax credit program that the flick fast-tracked into reality," said feature film Director Kevin Smith. “A film it seemed would never get made is now lensing right here in California.”

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 have been approved for allocations which exhausts the fiscal year funding. The remaining applicants have been added to a waitlist. The 30 productions include 19 feature films, eight television series and three made-for-television-movies.

In order to spur job growth, Governor Schwarzenegger signed legislation enacting the tax credit program in 2009 as part of a targeted economic stimulus package to increase film and television production in California. The program authorizes the California Film Commission to allocate $100 million in tax credits each fiscal year (or up to $200 million in its first year of operation) to eligible productions through fiscal year 2013-14. Productions will not receive their tax credit certificates until they have completed post-production, and the tax credits do not become effective before January 1, 2011.

“The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California,” said California Film Commission Executive Director Amy Lemisch. “I am thrilled with how effective this program has been.”

"Get what you need and then get the hell out"

Just got word that a film production company is going to be shooting "pick-up" shots for the movie "Butter" soon at the Iowa State Fair. Pick-up shots, for those unfamiliar with the term, are quick location shots to insert into the rest of the footage. The rest of the footage for this movie is being shot in Louisiana because of the Iowa film credits evaporating after being Culverized. It was originally planned to shoot it in Iowa.

That now makes two films that logically should have been shot here but weren't: "Butter" which concerns the butter cow at the fair, and "Cedar Rapids" which, although its story location is Cedar Rapids, Iowa, was actually shot in Ann Arbor, Michigan with only "pick-up" shots (quick establishing shots) actually being shot in its namesake city.

Hotels Benefit From Films, by Duane M. Swanson

How film credit is saving local hotels

BY DUANE M. SWANSON


In the first quarter of 2008, local hotels faced an incredible drop in corporate travel activity. The lack of business travel was forcing our hotel to lay off approximately 15 full-time employees.

Fortunately, film tax-credit legislation was passed in April 2008. Immediately, we began receiving calls from film production companies seeking accommodations for their casts and crews. Within a month, we had our first guests from Hollywood.

The Somerset Inn hosted the cast and crew of Clint Eastwood's "Gran Torino" during 2008. As a result, all 15 of our employees who would have been on the state's unemployment rolls were working 40 hours a week.

I also needed to hire 12 more staff members -- who likely would have been unemployed as well -- to help handle the business generated by the film industry. We were able to keep 27 of our co-workers and friends employed at our hotel and off of the state's unemployment program solely due to this modest-sized film project, which spent nearly $13 million with dozens of companies in Michigan.

The film credit legislation is not just about creating movie industry jobs and careers -- which it is doing. It is helping retain and create jobs in non-film related industries as well. Film production companies are investing hundreds of millions of dollars in our communities each year. They are generating sales tax and income tax revenues for Michigan. They are spending money in area restaurants, hotels, retail businesses, transportation companies and more.

The corporations investing those hundreds of millions of dollars in Michigan in 2010 will not receive their applicable portion of the tax credit until after they file their tax returns in 2011. Meantime, those dollars are being turned multiple times in our local economy. The multiplier used is debatable. Depending on who is commissioning the economic study, those dollars are turned two to eight times in our state.

The only problem with the film tax credit incentive is that the language has been interpreted so that commercial film production is not eligible for the incentive. There is a huge opportunity to capture more of the commercial market.

I agree with most of the efforts to diversify our state's business base that have targeted the life science, alternative energy and other cutting edge technologies. But film credits provide immediate job retention and creation while the state awaits the broader benefits those other industries have in store for us.

I hope all our legislators realize that the film industry is a bright spot that the hospitality community depends on while waiting for corporate travel to improve and emerging industries to gain traction.

DUANE M. SWANSON is chairman of the Troy Hospitality Committee and director of operations for Somerset Inn.

Read more: How film credit is saving local hotels | freep.com | Detroit Free Press http://www.freep.com/article/20100812/OPINION05/8120388/1068/OPINION/How-film-credit-is-saving-local-hotels#ixzz0wOtCv66n

Iowa: Hope Glimmers on the Distant Horizon

I learned that Iowa Senator Bill Dotzler, Jr. is still planning to redraw the Iowa film bill, but with only a couple of people from the state's film family. He will begin his work later this month.

I was told that his new bill, once put in place of the existing three year suspension one now in effect, would become effective immediately upon being approved by both houses and signed by the new governor, who will obviously be former governor Terry Branstad.

The next Iowa legislative session will commence in January, so the new film program could be activated then.

Claudia Puig Article in USA Today

In the 1990s, filmmakers often traveled to Canada. But that eventually became less fashionable, and these days the industry is migrating in a different direction — to Louisiana. "L.A. South" has become the go-to spot for shooting movies.

Even before the economic recession hit Hollywood, the state of Louisiana had been quietly gaining stature as the place to make quality movies and stretch dollars.

"We have the largest number of productions outside of Los Angeles and New York City," says Chris Stelly, director of film for Louisiana Entertainment, a division of the state office of economic development.

"Like Vancouver used to be 'Hollywood North,' Louisiana's the hot spot now," says Patrick Lussier, director of Drive Angry 3D, a supernatural road movie starring Nicolas Cage and Amber Heard, opening in February.

The state subbed for Texas, Colorado and New Mexico in Drive Angry, Lussier says.

The consummate versatile character actor, Louisiana has also played Utah, Washington, D.C., and London. "The film industry wants to find places it can reinvent and make look like anything it needs," Lussier says. "There's a lot of opportunity do that in Louisiana."

Movies shooting in Louisiana range from mega-budget blockbusters to quirky indies. Films shot this year include testosterone-fueled action-adventure The Expendables, which opens Aug. 13, and the comic book-inspired The Green Lantern, due in 2011. The low-budget horror film The Last Exorcism opens Aug. 27, and the big-screen version of the 1960s TV show The Big Valley arrives next year.

And the films cross all sectors, from Oscar bait to tween phenomena. The much-nominated The Curious Case of Benjamin Button was shot in New Orleans in 2008, and Breaking Dawn, the fourth installment in the hugely successful Twilight series, films this year in Baton Rouge.

In 2009, 60 films and TV shows shot in Louisiana. By mid-2010, 85 productions have already signed on, Stelly says: "We're well on our way to having a record-breaking year."

New Orleans as Anytown, USA

The boom is most visible around New Orleans. In 2009, 22 movies and TV shows filmed there. Records have already been broken in 2010; by July, 24 projects had shot there.

"We're way ahead of the curve in the New Orleans region," says Katie Gunnell, interim director of the city's Office of Film and Television. "The city has seen an incredible bump in applications for 2011 as well."

Across the state, work is consistent and year-round, despite hurricane season and blazing summer temperatures. "We've maintained 20 to 25 productions at any given time during the year," Stelly says. "We've doubled for New York City, Los Angeles, the Northwest, basically Anytown, USA."

Those who have shot there point to several factors contributing to the region's appeal: diversity of scenery, financial incentives and proficient crews.

"You can get an 1800s look, you can get a Parisian look," says Todd Lewis, producer of The Chaperone. "You can get suburbs, you can get the country. It's got a little bit of everything." His movie, out next year, is one of several Louisiana-based films funded by World Wrestling Entertainment and featuring wrestling stars, in this case Paul "Triple H" Levesque.

Director Rod Lurie was looking to duplicate rural Mississippi in Straw Dogs, a remake of the 1971 classic coming out next year. He did so in and around Shreveport. "They really do have it all there," he says. "You can go anywhere from swamps to beautiful rivers to cities to football stadiums. We were able to shoot the entire film within a 10-mile radius."

Jonah Hex, the supernatural action thriller in theaters earlier this summer, used New Orleans to double for the Old West.

Though producer Andrew Lazar initially had reservations about shooting a Western in Louisiana, his concerns disappeared when he considered the obvious. "The French Quarter hasn't changed much over the years, so you don't need a lot of set dressing," Lazar says. "We just put some dirt on the road and we were back in the 1870s."

Says Lussier: "New Orleans has so many looks. You can get a European look, and it also has an unmistakable feeling of the American frontier. It's such an amazing city unto itself. Why not take advantage of it?"

Filmmakers say it's hard to go wrong with scenery like this.

"Wherever you point the camera, you have a beautiful and picturesque set design," says Daniel Stamm, director of The Last Exorcism. "And the atmosphere does something for the actors. It's so old world. We shot at a plantation, and the smell and the sounds of the floorboards did something to the atmosphere that's tangible, that you wouldn't get in L.A. on a soundstage."

Stamm's horror movie was enhanced by the surprise appearance of a toothy visitor.

"We were shooting in the Ninth Ward (an area in New Orleans hard-hit by Katrina), and you could still see the waterline in this old plantation," Stamm says. "One day, we couldn't shoot for three hours because an alligator had crawled on set. That does something to the team, something you can't fake."

Tax incentives best in USA

The hauntingly creative vibe may be palpable, but the bottom line is equally alluring.

The state offers the most competitive economic and tax incentives of any in the country. A system of financial perks was enacted after Hurricane Katrina destroyed $81 billion in property and killed 1,836 people in 2005.

"We approached it like a business, and it keeps (filmmakers) coming back, based on our reliability and stability," Stelly says. "For every dollar you spend in the state, we'll give you 30% back (in rebates). And we give you an additional 5% for hiring Louisiana residents on productions."

Tax incentives can be sold as credits or used to offset personal or corporate income tax, he says.

"As things get more expensive, you have to go wherever you get the budget relief," Lussier notes. "You can no longer use Mulholland Drive for your backwoods road movie."

There is also the sense among filmmakers that they are helping an area that sorely needs a hand in bouncing back from one of the worst natural disasters in history.

"Louisiana has been through so much, and I'm glad to be able to make a film there," says Nicole Kidman, who is shooting the 2011 film Trespass in Shreveport this summer with Nicolas Cage.

"The economy desperately needs the film business," Lurie says. "And it's fantastic watching people get employed. We hired a thousand people to be extras and put a couple of hundred bucks in their pockets, and that's helpful to the economy. The film commission is among the most proactive I've ever seen."

Between that obliging spirit and the financial incentives, Lurie says, "It doesn't pay to make movies in Los Angeles anymore. You can save too much money by going out of town."

Crews with skill, enthusiasm

Shooting movies outside Hollywood is certainly not new. But the more common scenario is to shoot segments in distant cities and use Hollywood studios as a base. As more films are shot in Louisiana, the ancillary businesses and infrastructure associated with the industry — post-production centers and soundstages — are also increasingly cropping up.

Every Hollywood-based filmmaker interviewed spoke glowingly of the local production personnel and regional actors.

"Because of all that's being shot there, local crews get better and better," says Ken Zunder, cinematographer for The Chaperone. "You get a lot of crews that are very savvy here. It's not like going to, say, Detroit."

The combination of skill and energy is something particularly appreciated by those coming from Hollywood.

"In L.A., everyone is exhausted by the film business, with all the noise and shooting at night," Stamm says. "Down there, everyone is not jaded. There is still an enthusiasm about the whole thing."

So much enthusiasm, in fact, that some Los Angeles residents have moved south with the jobs.

Producer Joshua Throne made several films in the state, the latest being The Expendables. He has homes in both Louisiana and Los Angeles. Throne's next project is The Technician, co-starring Kevin Bacon and Kurt Russell, which will shoot in Louisiana in January.

"There's such a zest for life here," he says. "There's lots of good food, good people, wonderful history, and it still has the Southern charm."

Lewis and his wife also have made the move to New Orleans. "I love L.A., I really do," he says. "And I'm sorry that productions are running away from L.A., but this is a really easy and cost-efficient place to make movies."

Ed Borasch Jr., a property master, moved from Southern California. "I have to go where the work is," he says. "It's just so much nicer and quieter here, and the traffic's not as crazy, and the people are super friendly. You feel like you're welcomed here. I lived in Los Angeles for 15 years, and that was a great run for me, but the work dried up, and now my time is here." Meanwhile, he's gotten married, had a baby and laid down roots.

'A sexy city'

Some stars have bought homes in New Orleans in recent years, including Brad Pitt, Sandra Bullock and Cage, who has shot several movies there.

Actress Annabeth Gish shot two films in New Orleans this summer. The first was The Fields, co-starring Sam Worthington and Jeffrey Dean Morgan, and the second was The Chaperone.

"So much is happening in New Orleans," says Gish, who's married to stunt coordinator Wade Allen. "It's been a long time since I or my husband shot in Los Angeles. You'd think with Arnold (Schwarzenegger) as our governor, we'd be bringing movies back to L.A.

"But one of the great things about coming here on location is you feel like you're paying back the debt the country owes by being here and feeding the economy. And it's a character in its own right, so saturated with culture and flavor. It's a sexy city with so much history — a little hot, though."

Hollywood types are never shy about complaining, but except for occasional remarks about the searing summer heat, no one has a negative thing to say about the southward migration. "The love affair is on," Lussier says. "When filming starts going to a place, there's a real excitement. You can feel that, and it can be very productive for both sides."

Ties between Canada and Hollywood grew frayed as resentment mounted over film crews taking up so much space in cities like Vancouver and Toronto. Will Hollywood and Louisiana maintain a lasting romance?

"It'll be interesting to see if seven or eight years down the road, people get tired of road closures and the novelty of having movies come to their town," says Lussier. "For now, it's great. Hopefully, it will last a while."

The Big Question - Will They Return?

Here is a great Letter to the Editor from the creator of this blog that is in The Des Moines Register:

http://www.desmoinesregister.com/article/20100810/OPINION04/8100333/1038/Will-moviemakers-return-to-Iowa?

By Liz Parker & Elyssa Pearlstein

Michigan: Hollywood of the Midwest?



A few weeks ago, I was visiting with some friends in Ann Arbor and we decided to go to The Black Pearl on Main Street. Once seated, one of my friends (co-writer of this article, actually) asked me if the woman seated two bar stools down from us looked like Courteney Cox Arquette. I turned to look and was stunned – if it wasn’t Cox Arquette, it was definitely a really close look-alike. I thought that there was a good chance that it would be her since I knew that the movie she was starring in, “Scream 4,” had recently been filming in Ann Arbor. Our other friend thought that it wasn’t her; however, when fans started inching closer to her with cameras in tow, we knew that it was. Courtney graciously took pictures with us, and we left The Black Pearl a little bit starstruck.

The question, then, is this – is Michigan becoming the “new Hollywood”? Fellow blogger Jackie at freeismylife.com posed this question in a blog post of hers, and I have to slightly agree with it.

The movie “Flipped,” scheduled for release on August 6th, was partially filmed in Ann Arbor, and ever since last year, a slew of movies have been filming there, including “Betty Ann Waters” (newly re-titled “Conviction”), with Hilary Swank; “Trust,” filmed on the University of Michigan’s North Campus, with David Schwimmer; and, most recently, “Scream 4.” “Conviction” actually put out a call for extras in the area during my spring break in 2009, but alas, I already had a trip with friends scheduled and was unable to participate. Last year, the movie “Whip It” was filmed partially in Ypsilanti, and co-stars Drew Barrymore and Ellen Page were spotted hanging out at a bar in downtown Ypsi. In addition, the movie “The Double” has been filming in Detroit and surrounding areas, which is part of the reason that Martin Sheen was in town and able to do a Q&A session with us after the recent screening of “The Way” in Bloomfield Hills. Richard Gere, the lead actor in “The Double,” was spotted at the Starbucks on Main St. in Ann Arbor as well (I wouldn’t have minded running in to him!), and Cox Arquette’s husband, David Arquette, has been tweeting about Michigan’s glorious sunsets (twitter.com/davidarquette), as apparently him and his wife are renting a condo in Ann Arbor for the duration of the filming of “Scream 4.”

Film companies such as the Weinstein Company (“Scream 4”) have chosen a variety of locations throughout Michigan to yell, “Action!”. “Ann Arbor has been the surprise discovery,” remarks Ken Droz, Michigan Film Office spokesman. Tree Town’s art galleries, scenic banks of the Huron River, night life, and cultural diversity are amongst merely a few of its appetizing aspects.

What propagates this sudden local film boom? Nothing other than the Michigan Film Incentive (MFI,) which provides a large tax credit (up to 42% of the money a film company spends on a production) to film making companies that choose to set up and run shop in “the mitten state.”

A film company’s expenditure must somehow benefit Michigan’s economy in order to qualify for the financial credit. Buildings and land used for on-location filming, in addition to equipment and services, must all be rented, purchased, and provided in-state. Additionally, the MFI mandates a film corporation build a permanent office or studio that hires at least one permanent employee in Michigan. Even if a film company from Hollywood, for instance, opens headquarters in Michigan, it would give local tradespeople revenue under the MFI’s conditions.

Youth in Revolt, scene filmed in Ann Arbor

“When you get 380 million dollars injected into the economy, you’ll see results,” proclaims Droz. On top of movie makers’ local economic stimulation in regards to actual filming and production, actors and crew members alike make expendable purchases ranging from hotel rooms and clothing to fine restaurant dining. Ann Arbor area hotels sold 19,000 room nights to film company related clients in 2009 according to AnnArbor.com. Amongst these spenders are undoubtedly some wealthy and handsomely-tipping production personnel.

Who’d have thought that a movement for increased film production could also boost workers in other fields such as cosmetology and culinary arts? After all, movie actors don’t magically become mythically beautiful. Someone has to employ expertise in concealing their dark circles and crows feet from late nights of filming and after-partying, and they also need to eat, no matter how skinny some of them may appear. Chow Catering of Detroit, which provides all the meals for the film crew of “A Very Harold and Kumar Christmas” is one such benefiting company, as read in The Detroit Free Press.

The think tanks of video game creation ––also a promotional facet of the MFI–- are just barely fired up in state and will likely also spark an influx of “jobs, spawning jobs, spawning jobs,” Droz exclaims. “Once we get new media in place – digital and games – it could be an explosion!”

Upgraded film and computer programs at colleges and other educational institutions naturally tag along with the MFI. “[There is] a large galvanization and effort of university communities amping up their programs for current and future students,” proclaims Droz. Local educational circles have already begun to refurbish departments of film production along with video game design.

The Michigan Creative Film Alliance between Wayne State University, the University of Michigan, and Michigan State University is just one new collaboration with a mission of sustainable local film production.

A recent result of the MFI is the increasing amount of students and workers seeking jobs in and remaining within Michigan. “People that were going to leave aren’t,” says Droz, regarding the MFI’s allure for in-state college students to seek in-state jobs. I know that as a relatively recent University of Michigan grad with a BA, I feel ever-so-slightly more secure about having remained in Michigan.

Michigan being the new “Hollywood,” I’ll believe it when I see – oh, wait, is that Drew Barrymore? Walking up the street with an ice cream cone?

Susan Meeker Article for Sun Herald.Com

Colusa Film Commission attracts 1st production
Arts university students use rice field as movie backdrop
Friday, Aug 6 2010, 6:39 pm
By Susan Meeker/Tri-County Newspapers

When it comes to getting a movie filmed in Colusa County, incentives are everything.

It also doesn't hurt to have friends in high places.

That is what Colusa County Film Commission chairwoman Marilyn Kennedy said about bringing the group's first film crew to town since the independent group was formed in June.

Students from the Academy of Art University in San Francisco used a Colusa rice field this week as the backdrop for a short movie called, "I Am Not Vietnamese," based on the poem by Jennifer Vo Le.

It didn't hurt that Kennedy's longtime friend is television and film star Diane Baker ("Diary of Anne Frank," "Journey to the Center of the Earth," "Marnie," "The Net," "The Cable Guy"), who, since 2004, has been the director of acting at the university's School of Motion Pictures and Television.

Baker is also teaching the film class for the summer.

"It was meant to be," Baker said Thursday, at the site of the film, just west of Hunter Road in Colusa. "Marilyn's call came out of the blue."

On Kennedy's invitation, Baker and her summer class jumped at the opportunity to film at a location that evokes a strong image of southeast Asia. Colusa County rice fields were common backdrops for such films as "Dragon Seed," in 1944, staring Katherine Hepburn, a war drama set in China and based on the popular book by Pearl S. Buck.

"It's perfect," said Vo Le, on which her struggle with understanding her Vietnamese heritage is the basis of the film.

Waving her hand to motion the area — a flooded, dark green paddy field, surrounded by rabbit brush and tules and a well-rutted dirt road — Vo Le is instantly reminded of the rural area in Vietnam she visited a year ago.

"It looks very much the same," she said.

What doesn't fit will be wiped away by the magic of movie technology.

"There will be a lot of visual effects," said Kevin Hahn, first assistant camera man, who also plays Vo Le's grandfather in the film. "What doesn't look like Vietnam, will look like Vietnam when we are done. It will be amazing."

When it comes to art, Kennedy and Baker are of the same mind.

"Creativity gives strength and comfort to the human sole," said Kennedy, a former actress, nun and a working psychologist for more than 50 years.

When it comes to the economy, Kennedy and Baker understand that cold, hard cash is what drives business and prosperity.

"When I see a town that can't afford to pave its streets, it breaks my heart," Baker said.

It was enough to set the wheels of Baker's head in motion, envisioning the Sacramento River and Colusa's old Chinatown as potential locations for future work.

In that, the old friends are in agreement.

"My vision is to bring more people to town," Kennedy said. "While they are here, they will eat our food, buy gas, water and ice, and stay in our hotels."

Not since "Huckleberry Finn" and "Trouble Comes to Town," both filmed in Colusa more than 30 years ago, has Hollywood had such an interest in Colusa County.

For the most part, California's film industry has gone to "right to work" states like New York and Arkansas or north to Canada, which offered big tax incentives as enticement, Baker said.

"Incentives have been the name of the game for some time," she added, quoting Oakland Film Commissioner Amy Zims, another of her friends.

Now California is trying to play catch up and filmmakers are once again looking for ideal locations — from San Diego to the Oregon border — for movies, television and documentaries.

On July 30, Gov. Arnold Schwarzenegger announced that the film and television incentives, which were part of last year's budget agreements, achieved its desired goal of keeping scores of film and television productions in California — creating and retaining tens of thousands of jobs and generating about $2 billion in direct spending.

Since 2009, the California Film Commission, now a regional partner with the Colusa County Film Commission, allocated $200 million in tax credits to 77 projects, and another 30 projects are set to receive an additional $100 million in tax credit allocations in 2010, the governor said in a statement.

Together, they are estimated to bring another $2 billion in direct spending to California communities, which includes $736 million in wages paid to "below-the-line" crew members (electricians, grips, drivers, costumers), according to data compiled by the California Film Commission.

"It is the private sector that will bring California's economy back, and our tax incentives are clearly helping employers along the way," Schwarzenegger said. "That's why it's important that we continue to be a partner to employers and not a roadblock."

California Film Commission Executive Director Amy Lemisch believes the program will keep California filmmakers working throughout the state for some time to come.

"The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California," Lemisch said, in a statement. "I am thrilled with how effective this program has been."

From BuzzVee.com, Bicoastal Applause For Incentives

The entertainment community in Hollywood and the big Apple is expressing relief today that New York state has renewed the 30% tax credit on film and television production for another 5 years through 2015. the NYS budget passed last night and newly signed allocates $2.1 billion to the program, with $420 million given out each annum. There’s also $7 million a year set aside for New York-based the post-production and editing industry. Passage of the program came down to the wire: about 18 months ago, Fox’s Fringe packed up and moved to Vancouver because the existing program of NY tax credits was too successful and ran out of funds. More money was sprung for it, but uncertainty lingered over whether the program would be funded long-term so reportedly TV producers sought out other locales with tax incentives. SAG’s National Director of Government Relations and Policy Nancy Fox said, “Lawmakers recognized that these tax credits have been a great boon for the local economy, providing incentives that created thousands of jobs for New York actors, crew members, and other workers affiliated with the entertainment industry. we are extremely grateful to Governor Paterson, Senate Leader Senator Sampson, Speaker Silver and the other legislators who have maintained their support for this program throughout the extended budget approval process.”

USA Today Article by LMCullen

USA Today Explores Why Louisiana Was Chosen For Filming Breaking Dawn!

by LMCullen on August 3, 2010

USA Today has a new article explaining the incentives, and the reasoning why Louisiana has been the go to place lately to have movies/TV shows filmed. The Expendables, The Green Latern, The Last Exorcism, The Curious Case of Benjamin Button are among some of the movies that have been recently filmed in Louisiana. The extremely popular HBO show True Blood is also filmed in Louisiana.

Here is what they had to say about Breaking Dawn, and the tax incentives Louisiana is offering to gain such huge films -

Breaking Dawn, the fourth installment in the hugely successful Twilight series, films this year in Baton Rouge.

We’re way ahead of the curve in the New Orleans region,” says Katie Gunnell, interim director of the city’s Office of Film and Television. “The city has seen an incredible bump in applications for 2011 as well.”

Across the state, work is consistent and year-round, despite hurricane season and blazing summer temperatures. “We’ve maintained 20 to 25 productions at any given time during the year,” Stelly says. “We’ve doubled for New York City, Los Angeles, the Northwest, basically Anytown, USA.”

Read more after the break!

“You can get an 1800s look, you can get a Parisian look,” says Todd Lewis, producer of The Chaperone. “You can get suburbs, you can get the country. It’s got a little bit of everything.” His movie, out next year, is one of several Louisiana-based films funded by World Wrestling Entertainment and featuring wrestling stars, in this case Paul “Triple H” Levesque.

The state offers the most competitive economic and tax incentives of any in the country. A system of financial perks was enacted after Hurricane Katrina destroyed $81 billion in property and killed 1,836 people in 2005.

“We approached it like a business, and it keeps (filmmakers) coming back, based on our reliability and stability,” Stelly says. “For every dollar you spend in the state, we’ll give you 30% back (in rebates). And we give you an additional 5% for hiring Louisiana residents on productions.”

Tax incentives can be sold as credits or used to offset personal or corporate income tax, he says.

“As things get more expensive, you have to go wherever you get the budget relief,” Lussier notes. “You can no longer use Mulholland Drive for your backwoods road movie.”

There is also the sense among filmmakers that they are helping an area that sorely needs a hand in bouncing back from one of the worst natural disasters in history.

“Louisiana has been through so much, and I’m glad to be able to make a film there,” says Nicole Kidman, who is shooting the 2011 film Trespass in Shreveport this summer with Nicolas Cage.

“The economy desperately needs the film business,” Lurie says. “And it’s fantastic watching people get employed. We hired a thousand people to be extras and put a couple of hundred bucks in their pockets, and that’s helpful to the economy. The film commission is among the most proactive I’ve ever seen.”

It is great to see Louisiana doing well, and attracting huge films! Especially after the devastation they have gone through over the past few years.

Lee Rood's Article in The Des Moines Register Today

Liability for film credits drops

By LEE ROOD

The state's potential revenue loss from tax credits owed moviemakers is shrinking, as investigators winnow a list of productions likely to survive enhanced scrutiny after scandal engulfed Iowa's filmmaking incentive program.

The maximum amount of state-backed tax credits that could still be issued for film projects is around $200 million, new estimates from the Iowa's attorney general's office show. The state's maximum theoretical liability was estimated to be about $330.5 million when the fledgling program crashed last year.

"It's taken a long time, and it's tedious," said Jeffrey Thompson, an assistant state attorney general who is one of the leaders in a multi-agency probe of Iowa's film program. "There is certainly a lot of frustration among moviemakers still, and I can't say it's unjustified. We just want to make sure we don't issue tax credits that are undeserved. We're seeing the full range of possibilities, from straightforward films to others where we're finding problems - which leads us to conclude we're making the right decisions."

In addition, the state still could face lawsuits from moviemakers who say they lost money because of delays resulting from the state's suspension of the film program or claim the state should make good on promises they perceive were made by fired Iowa Department of Economic Development workers, Thompson said.

Five state employees lost their jobs amid allegations of mismanagement, abuse and fraud discovered in one the state's largest economic development programs. Those ousted: the director and deputy director of Iowa Department of Economic Development; former film office chief Tom Wheeler, his direct boss; and the agency's most experienced tax credit specialist.

Three filmmakers have been charged criminally, and Wheeler faces an Oct. 11 trial for nonfelonious misconduct in office.

The scandal erupted last fall after state officials learned two filmmakers had purchased and kept luxury vehicles using the tax-credit program. Lawmakers in 2007 overhauled the program to become the most lucrative of any state nationwide, offering "half-off filmmaking." Projects inundated Wheeler, who was hired originally to market the state to those interested in filming in Iowa.

Reporting since the program's problems first came to light showed it lacked oversight typical in other large, state-run economic development programs and that several state officials besides Wheeler were aware of, and responsible for, serious problems.

Other examples of possible abuses were uncovered, including filmmakers claiming subsidies for expenses in which no cash changed hands and abnormally high prices for other expenses, such as a $1.09 million location fee for the movie "Peacock" in tiny Odebolt.

When Gov. Chet Culver suspended Iowa's film incentives in September, 22 projects were in the process of completing filming and 158 projects worth $504.8 million in spending were registered to move forward.

Here's the rough status of projects as of the end of last week:

- After an auditing process, the state recently approved two small, completed productions for tax credits, bringing to 24 the number completed. The total state tax-credit incentives issued since the program was overhauled is about $32 million.

- Fifty-nine projects once OK'd by the economic development office are no longer in the running for state tax credits, Thompson said. The state revoked registrations for the projects after filmmakers failed to respond to correspondence asking whether they still planned to move ahead.

- About 30 projects that were registered to move forward still don't have contracts. Thompson said the state has notified those filmmakers that the state is ready to proceed with contracts. The maximum liability for tax credits for those is $55 million to $60 million, he said.

- About 45 projects have contracts to make films - and that's where the brunt of the state's liability still lies, to honor promises for extending tax credits. Eleven projects have been completed and have submitted forms seeking tax credits. The maximum estimated tax credits that could be issued is about $20 million, Thompson said. Another 20 to 25 of those could result in $120 million to $125 million maximum in tax credits issued.

Thompson said he had hoped the state would be through the brunt of its investigation by now, but it will take about another six months before the probe is completed. The investigation should be complete by the time the program's suspension is scheduled to be lifted next year, he said.

A Flickering Light Comes Into Sight

I received word from a dear colleague today that Senator Bill Dotzler, Jr. is still planning to form a working group to redesign the present Iowa film bill which has a terrible three year suspension as a feature. My source said the senator wishes to start work by the end of this month and has spoken with some of his fellow Iowa legislators regarding this.

gino

From Digital Cinema Report

North Carolina Broadens Film Tax Incentives
by Nick Dager

North Carolina Gov. Beverly Perdue has signed a new 25 percent film incentive into law that took effect last month. The new legislation broadens qualifying expenses including, but not limited to, labor fringe benefits (including health, pension and welfare contributions); per diems, stipends and living expenses; most importantly, it raises the overall project eligibility cap from $7.5 million to $20 million per project. 



The new legislation also repeals the corporate income tax on incentives taken by production companies.

Productions can begin taking advantage of this incentive immediately and file on their 2011 taxable year return. 

Gov. Perdue visited Los Angeles film executives in March to promote the legislation. The motion picture industry brought more than $326 million in direct spending to North Carolina over the past three years.

“North Carolina is a top destination for film and television. It turns the economic engines in our state. Our incentive is strong and competitive because we’re serious about bringing business to North Carolina. We have excellent crew here. They’re considered among the best in the business,” says Aaron Syrett, director of the North Carolina Film Office. 



During the past 27 years, North Carolina has been home to more than 800 films and 15 television series. Most recently North Carolina served as the backdrop for Talladega Nights: The Ballad of Ricky Bobby, Leatherheads, and Nights in Rodanthe.

For six seasons, North Carolina was home to the WB's Dawson's Creek. Last month, the CW's One Tree Hill started filming its eighth season in the state.