Tuesday, November 30, 2010

Huge Disappointments, Many Lies


When Jay and I made weekly trips to the Iowa Capitol last session, we were given assurances by key republicans that Branstad would continue with the film program. For that reason, I voted for Branstad, and now see that politicians say things you long to hear, then do things opposite to their promises. Despite this sickening setback I will continue my fight to get the film program back on track. An important meeting with an Iowa senator is scheduled on the 18th, a senator who promises to rewrite the present film bill.

From AP: Wisc. To Discuss Film Tax Incentives

Associated Press - November 30, 2010 5:05 AM ET

MADISON, Wis. (AP) - The future of Wisconsin's film tax incentives will be discussed before a screening of the Tony Shalhoub film "Feed the Fish."

The screening and panel discussion is Dec. 8 in Madison.

"Feed the Fish" qualified for tax incentives when it was being filmed in northern Door County in 2009. Gov. Jim Doyle dramatically scaled back the incentives last year but Gov.-elect Scott Walker said during the campaign he wants to retool the program.

Actor and producer Mark Metcalf is moderating the panel discussion that will include four Wisconsin filmmakers and three board members of Film Wisconsin. Ideas for improving the incentive program were to be discussed.

"Feed the Fish" premiered in Wisconsin earlier this year. Shalhoub is a Green Bay native.

Monday, November 22, 2010

Article from TheWrap.Com by Brent Lang


(pic is of me, NOT Brent... he's probably cuter!)
MPAA Slaps Back at Film Tax Incentive Study
By Brent Lang
Published: November 17, 2010 @ 6:08 pm


The Motion Picture Association of America is hitting back at a new report from a Washington-based think tank that is harshly critical of states' use of production tax incentives.

In the study released on Wednesday, the Center on Budget and Policy Priorities argues that incentives don't create enough new jobs to justify the loss in tax revenue.

It noted that facing budget shortfalls, several states, such as New Jersey, are suspending their programs.

Where one organization sees the incentives as a boondoggle, the other labels them an invaluable economic stimulus.

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

The MPAA, one of the biggest boosters for film tax credits, questioned the accuracy of the report's findings and suggested that the center was prejuidicial towards tax credits.

"This politically motivated, slipshod report by a think tank in Washington, D.C., demonstrates no understanding of the film and television industry, nor the importance of the jobs and economic development produced by these tax credits in states all across our nation,” said Vans Stevenson, senior vice president of state government affairs at the MPAA.

In addition to wars of words, the two organizations also launched a battle of empirical evidence.

The center said that subsidies have minimal impact on state economies, because film makers usually reerve the best jobs for highly paid talent brought in from other states, while giving part-time work to in-state residents.

Further, the report noted that a recent study by the Massachusetts Department of Revenue -- a state that has bet heavily on subsidies -- found that the state lost $88,000 in tax revenue for every new job created by the program.

The MPPA countered that the film and television industry supports more than 2.4 million jobs and generates about $13 billion in taxes and $40 billion in payments to vendors, suppliers and others nationwide.

Regardless of the merits of their relative arguments, tax credits have become an increasingly contentious issue recently. Some states such as Louisiana and New Mexico have had enormous success in attracting Hollywood productions, but others such as Iowa have shuttered their programs following high-profile scandals about the way funds are administered.

Thursday, November 18, 2010

From ReelChicago.Com..thanks, John Busbee!

Film Wisconsin
Filmmakers tax credit to be restored?
Gov.-elect Walker offers legislature a positive plan


Dave Fantle: Film Wisconsin board chair

Dave Fantle is optimistic about changes for Wisconsin’s chances of having the state’s severely curtailed filmmakers tax credits restored in the legislative session that begins in January.

Republican Governor-elect Scott Walker said during the election that he favored raising the $500,000 cap that Democratic Gov. Jim Doyle had imposed on the tax credit last year.

“Film Wisconsin is obviously encouraged by his response,” says Fantle, board chair of the embattled de facto Film Wisconsin.

“We look forward to working with Walker’s staff and key lawmakers to restore the film, television and video gaming tax credits so we can create jobs and bring greater economic impact to Wisconsin.

“It’s a little too early to say much as the key legislative players have just been named. We have a lot of friends in both parties who want to restore the credits.”

After Wisconsin’s film commission was dissolved in 2005, industry advocates launched the public/private partnership Film Wisconsin to advocate for an incentive. In 2006, the legislature passed a highly competitive 25% production credit and 15% infrastructure credit.

In the credits’ first year in effect, 2008, Wisconsin attracted eight major features, including portions of Michael Mann’s blockbuster Johnny Depp-starring John Dillinger biopic “Public Enemies,” plus 16 TV series and three national commercials.

“Public Enemies” reportedly received $4.6 million in credits against just $5 million in spending, meaning Wisconsin taxpayers effectively covered 92% of the film’s in-state production costs.

In response to outcry over the payout, Wisconsin lawmakers proposed a $1.5 million annual cap on credits. In June 2009, Doyle used his veto authority to reduce the cap to $500,000. Production has dropped off precipitously since then.

During the just-concluded election, VISIT Milwaukee, the city’s convention and tourism bureau where Fantle is VP for PR, issued a questionnaire to gubernatorial candidates, to which Walker responded in part:

Gov. Elect Scott Walker

“Governor Doyle did not give the program a fair chance to take hold. Reasonable and sustainable incentives that give an emphasis in putting Wisconsin people to work and growing this industry for the state should receive serious consideration.”

Walker continued: “As Governor I will encourage members of the legislature to take a close look at the current program, and recommend any revisions to the current law that could do the following:

* Put an emphasis on creating Wisconsin jobs and infrastructure investment.
* Provide an attractive return on investment for the taxpayers.
* Remove the $500,000 program limit and recommend an amount that would make Wisconsin competitive.
* Require a comprehensive program evaluation after each fiscal year.
* Investigate the role the Department of Tourism should again play in marketing the state for film and television and partnering with local convention & visitors bureaus in this effort.”

Now Fantle and Film Wisconsin supporters are waiting to see if their optimism is justified. —Ed M. Koziarski

Ed M. Koziarski is co-director of the feature film “The First Breath of Tengan Rei”. Email: Ed M. Koziarski

Sunday, November 14, 2010

From KCUN-TV in Tucson

Hollywood executives fight to bring film industry back to Tucson
Posted: Nov 13, 2010 5:27 PM Updated: Nov 13, 2010 5:37 PM

Reporter: Ileana Diaz

TUCSON (KGUN9-TV) - Hollywood executives want to bring the mult-million dollar film industry back to Tucson, but they are facing obstacles.

Once upon a time in old Tucson, there were lights, cameras and action. Now, rarely much of that goes on. Production companies are choosing other destinations like New Mexico, so KGUN9 asked film executives why.

"There are two reasons we look at a place. One for the locations for the creative vision of the director and from the business side, what works best for the budget," said John Kilkenney, an executive V.P. at Twentieth Century Fox.

In Arizona, film producers get a 20 percent tax cut. The problem is other states offer tax incentives with 30 and 40 percent cuts. The director of the Tucson Film Office says another challenge is Arizona's restrictions.

"50 percent of the crew hired has to be Arizona residents and they are afraid. What if they can't find 50 percent crew and they only have 49. Then they will be disqualified," said Shelli Hall, the director of Tucson Film Office.

This is why University of Arizona graduates turned movie-makers along with the staff from the Tucson Film Office are urging state leaders to not only renew the incentive but change it. They want the new incentive to have more overall cuts and be less restrictive, hoping to turn Tucson back into the old Tucson it once was.

"It's crazy that we don't come here more because of the new proximity to Los Angeles," said Kilkenney.

"Things change like that. Anything can happen and we're working on it," said Hall.

The current tax incentive expires on December 31st, 2010. State legislators have to choose between cutting the tax incentive, renewing it as it or adopting a new incentive.

Wednesday, November 3, 2010

Article by Dave Dewitte/SourceMedia Group News

by Dave Dewitte/SourceMedia Group News

(photo description)Jeff and Janelle Smith of Cedar Rapids show off the $30,000 truck they purchased for Janelle to provide craft services such as beverages and refreshments to the movie crews that came to Iowa during the peak of Iowa's film tax credit program, in a photo taken on Oct. 11, 2010. Jeff, an experienced grip, saw his income dwindle and most of Janelle's business went away when the program was suspended one year ago. They are considering whether to move to New Mexico, a state with a thriving movie industry built largely on tax incentives.

The rapid rise and fall of film-making in Iowa during the state’s short-lived film tax-credit program has given some Iowans a taste of a better life, one they might pursue elsewhere unless the program is revived.

Jeff and Janelle Smith of Cedar Rapids typify the movie people who watched the film exodus from Iowa after the state suspended the film tax credit in September 2009. They had hoped the state would take firm steps to correct lax oversight of the program and resurrect it. Instead, they found out the state is prosecuting more filmmakers who abused the program.

“I probably made somewhere in the neighborhood of $60,000 last year,” said Jeff Smith, 58, who handles electrical needs on movie sets as a grip. “Now, I’m unemployed.”

The couple had invested about $30,000 last year to buy a used craft-service truck and have it shipped from Oregon for Janelle Smith’s craft-service business. Craft services dispense refreshments and personal necessities to cast and crew members during shooting. The truck, with license plates that read “CRAFTY,” sits idle in the driveway.

“I just hope they figure something out,” said Janelle Smith, 57.

Even her husband’s work in lighting and sound at downtown Cedar Rapids entertainment venues dried up from theater closures caused by the June 2008 flood. The couple have considered moving to New Mexico, where film tax credits fuel a growing industry.

Chris Bevauns, the operator of Monster Design Studio in Cedar Rapids, is a Los Angeles native with extensive costume and set design experience in the film industry. She worked non-stop in Iowa on nine features once the film tax-credit program took effect.

Even though she knows the program was abused, Bevauns raises her voice when she talks about the politics involved in suspending the program, sacking its administrator and cutting the program loose without trying to fix it.

“People only take advantage of you if you let them take advantage of you,” Bevauns said. “There wasn’t the oversight. We should do it right next time.”

Bevauns said she’s gone from making about $60,000 a year in set work to about $20,000 this year, working “as a handyman.” She’s reluctant to move because her husband has a good screenprinting business, their son is in a good school and she finds Iowa a great place to live.

“I need it back. I need it back in a big way,” Bevauns said.

Hair and makeup artist Andrea Politte of Anamosa spent most of the past month in Michigan, working on the independent horror thriller “Playback” with Christian Slater, because there was no work closer to home. About six other Iowans were on the crew.

Politte’s film income this year has dropped roughly in half, but she counts herself lucky. She’s half of a two-income household and can fall back on her massage and healing arts work with entertainers.

Politte wants movie work, though.

“(Iowa) is my home, but that’s not saying I’ll be here for long,” she said.

Some film projects that already had applied for a share of the roughly $50 million in available film tax credits were notified this fall that the projects were approved.

Vaughn Halyard, CEO of Story Lounge in Cedar Rapids, said he was notified in late July that tax credits would be issued for the TV science education-entertainment project “The Science of Thrill” that Story Lounge produced with MPV Studios and Fuel, a local design house. He said the project underwent “some serious vetting” from the state before it was approved.

Story Lounge has enough credits to get through a half-season of the show, Halyard said, and is hoping to make a presentation to the state when the time is right to get more credits for another season.

Halyard said Iowa film tax-credit projects helped Story Lounge get some “good respect in the production world,” but it is looking at ways to continue producing as much as it can in Iowa, where it has found a strong base of medical experts.

Iowa Motion Picture Association President Kent Newman said he keeps hearing of Iowa actors and film professionals moving to New Orleans or other areas with healthy film industries. He estimates that 400 to 500 Iowans were working on movie projects during the tax-credit program in 2009. Of those, he estimates that perhaps 150 remain employed, mainly in commercial-video production businesses like his own Full Spectrum Productions.

The association plans an educational campaign on the economic impact of the film industry and film tax credits at Iowa chambers of commerce and colleges with film programs. It will seek introduction of a bill next year to resurrect a tax-credit program, said Newman, owner of Full Spectrum Productions in Des Moines.

Newman disputes statements by Iowa Attorney General Tom Miller that the state saved taxpayers hundreds of millions of dollars by swiftly freezing the program and investigating film projects. He said the vast majority of film tax-credit applicants left Iowa almost immediately after the investigation began — because they didn’t want to jeopardize project timetables — and eliminated the liability to the state. Only a tiny percentage of the projects are now expected to move forward, Newman said.

Some Iowa companies have shifted focus to steer clear of the tax-credit fallout.

Grasshorse, an animation studio in Winthrop, worked on four films in 2009, Chief Operating Officer Stephen Jennings said. Then its work dried up. Jennings and CEO Kathy Buxton, his sister, decided to refocus on new media, such as mobile and social media applications.

The company has shrunk from 20 full-time staff last year to seven full-time staff and 10 freelancers. It also has downsized from a large leased office in Mount Pleasant to an old theater building they purchased in Winthrop.

“When the credits were frozen, we had an opportunity for a feature film coming in,” Buxton said. “We would have been at 100-plus (employees).”

Ironically, some Iowans still are reaping the benefits of Iowa’s flawed film tax-credit program, even though they’ve left the state.
In 2007, Melinda Burns was wondering about the wisdom of obtaining a film degree from the University of Iowa, knowing how difficult it can be to find work in movies. The film tax-credit program helped bring the baseball movie “Sugar” to Davenport for filming, though, and she was hired on.

“After that, my career really took off,” said Burns, 25, originally from Alburnett. She now works as an assistant production coordinator, scheduling meetings, setting appointments, processing union dues and ordering equipment in Los Angeles.

Burns said staying in Iowa was not in her plans, because she is “not a winter girl.” Even so, she said the film tax-credit program provided enough work in Iowa to give her the experience she needed.

“I have that tax incentive to thank for my career,” Burns said.
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