Article by Julie Washington of The Plain Dealer in Ohio

Ohio’s motion-picture tax credit: 1 year later

Julie Washington, The Plain Dealer

The tally in the first year of Ohio’s film tax credit is nine movies and at least one new resident.

Wickliffe native Monique Hahn, a movie makeup artist, has moved back home, leaving Los Angeles this year after learning eight to 10 movies were expected to take advantage of Ohio’s credit. The program aims to help the state’s economy by encouraging film productions to spend money here.

While she’s worked on only two films, she’s happy to be here.

“Cross your fingers it will be more,” Hahn said. “I’ll see how winter is. If work keeps coming in, I’ll be able to make [a career] happen.”

In the motion-picture tax credit’s inaugural year, the state attracted nine films that are expected to spend a combined $33 million in Ohio, according to the Ohio Department of Development.

In the two years prior to the credit, only three films of comparable size were filmed in Ohio, according to the Ohio Film Office, including DreamWorks’ “The Soloist” in 2009.

The slate of films includes an eclectic mix: “Unstoppable,” an action-thriller with Denzel Washington, Chris Pine and a toxic runaway train; “25 Hill,” the Corbin Bernsen Soap Box Derby movie filmed in Akron; and the action-thriller “Freerunner” starring former Elyria resident Sean Faris (”Never Back Down”).

“It’s because we’re aggressive. We work really hard to bring those films here,” said Greater Cleveland Film Commission executive director Ivan Schwarz.

These films are expected to pay $9.46 million in wages to more than 3,700 Ohio workers, and pay $24.3 million to state vendors and locations, according to Department of Development estimates. The state film office falls under that department’s auspices.

Ohio was one of the most recent states to offer incentives for film projects. Similar programs have been instrumental in creating regional film hubs in New Mexico and Louisiana.

In Ohio, film companies receive a tax credit of 25 percent of the amount they spend in the state, up to a maximum of $5 million.

The Ohio Motion Picture Tax Credit legislation earmarks $10 million in credits for the 2010 fiscal year and $20 million for 2011. About $820,000 in unused funds from the first year will be rolled over into fiscal year 2011, which began July 1, said Jeremy Henthorn, director of the Ohio Film Office in Columbus.

But the state is not doling out money to just anyone with a camera and a Mac. Film productions must submit a budget to the state and undergo an audit after production has wrapped, Henthorn said. Eligible projects must have budgets over $300,000.

The state turned down four films seeking credits because financing was not in order, Henthorn said, though they could be reconsidered.

“Freerunner” filmed in Cleveland because the credit helped it secure financing, said co-producer and former Bay Village resident Warren Ostergard.

The movie treated the city as its own backlot this summer, staging a chase scene in Tower City, flipping a van on East Sixth Street, and choreographing fight scenes at the Carter Road Bridge in the Flats.

“We’re happy we came here, and we think there’s a ton of potential for Cleveland,” Ostergard said. “We hope this helps kick it off.”

Filmmakers took a leap of faith in hiring a local payroll company and caterer — even though neither company had any film experience — because the tax-incentive program rewards them for spending locally.

“It really has stimulated spending with Ohio-based companies,” said Stephen R. Campanella, who runs a production company and was hired as the state incentive coordinator for “Freerunner.” He oversaw the paperwork necessary to ensure the film met its tax-credit criteria.

Ohio couldn’t supply all of their needs. Equipment trucks were brought in from North Carolina. Raw film, called dailies, went back to Burbank, Calif., for processing; digital copies were returned for the director to review.

“We really had to scramble,” Ostergard said.

Scrambling is what Schwarz does constantly. As head of the Cleveland Film Commission, he promotes Ohio and Cleveland to Hollywood filmmakers.

Schwarz roamed “Freerunner” scenes, checking his iPhone, a quiet presence in case a problem arose. Concerning the state’s lack of a film infrastructure, he replied simply: “Give us time. Rome wasn’t built in a day.”

The next day he flew to Los Angeles and packed 30 meetings into five days. HBO, BET, Sony, the Russo brothers, James Cameron’s people — he’ll talk to all of them about filming here.

“The feedback has been positive, and we’re getting more interest,” he said. “I have something to point to now.”