From Beverly Lewis at the Sacramento Bee

By Beverly Lewis
Published: Sunday, Dec. 19, 2010 - 12:00 am | Page 3E

Re "You get red ink with that popcorn" (Forum, Dec. 12)

In his column, Dan Morain ignores the point that the Film & TV Tax Credit Program is a jobs program. Productions hire hundreds of workers and spend millions of dollars that support small businesses. In the first two years of the program, participating productions are estimated to bring $2 billion in direct spending to California, including $740 million in wages paid to "below-the-line" crew – electricians, drivers, etc. – generating much needed California tax revenue.

Why a tax credit at all? In 2000 a 14-month study determined $10 billion exited the Hollywood film industry due to incentives elsewhere, when three states were offering credits. Now 42 states have credits. California's new program targets those productions most likely to leave the state.

Ever watch the credits at the end of a film? Those names were mostly Californians; now they're not because incentives elsewhere require filmmakers to hire residents in those states in order to get their tax credits. By 2000 almost every American TV movie was shot in Canada. Since 1997, more than 36,000 California film jobs disappeared as well as dollars to our local communities from location production. New Mexico legislators aped Canada's success and more by integrating their incentives with their university infrastructure. This includes technical post-production and computer jobs which can start at $65,000.

Productions in the California program are selected by lottery not content. While it's easy to disparage provocative titles like "Walter the Farting Dog" – a noted children's book written by a National Magazine Award winner – we all have favorite films, cars or clothes we prefer to buy over others. This does not make a valid argument for ignoring a major industry at risk. Other productions qualifying for tax credits this year include one on Hemingway and one for the Hallmark Channel. Because of the lottery, studios don't influence selection process. Ten percent of the funds go to independent films; this year 39 percent of the selectees are independents.

As for efforts that resulted in this legislation, after nine years of educating Sacramento legislators to the impact of disappearing production, stakeholders like union representatives, employers and film commissioners representing communities all over the state can say this tax credit program was a long time coming, and it is a modest one at that.

Producers, like General Motors, will still make their product somewhere, but if they shoot here the dollars stay here. It's that simple.


Read more: http://www.sacbee.com/2010/12/19/3266408/hollywood-tax-credit-keeps-jobs.html#ixzz18Z0CJhCG