From Oregon Capitol News, by Sarah Ross

Film incentives to get another look in the legislature

January 24, 2011

BY SARAH ROSS

PORTLAND- With Oregon’s $7.5 million film incentive program set to expire, the question for legislators remains, how important is keeping the film industry alive in the state?

It’s been present in Oregon since the “Silent Era.” It’s brought in celebrities of high caliber and helped transform little-known stars into household names.

From the most recent success of Portlandia to the location for TNT drama Leverage, the film industry in Oregon has been active for decades and has claimed major successes in just the last few years with the blockbuster Twilight.

But few Oregonians are aware of the work it takes to bring these names to film in the state. With competition from states like Louisiana and Michigan which give away millions more in incentives to bring the industry to their states, even films like Twilight have moved to those locations for continuous production.

“Of the forty-plus states that offer tax incentives, or film incentives, Oregon ranks among the lower third in terms of money that producers can access,” said Vince Porter, Executive Director of the Governor’s Office of Film and Television.

In the recent election, many new fiscal conservative governors have taken these film incentive programs to task as part of their budgetary downsizing. New Jersey Governor Chris Christie even went so far as to eliminate the program in New Jersey all together.

While fiscal conservatives may see the elimination of this program as an easy decision, it does have consequences.

As an example, Porter mentioned that at hearing news of the elimination of New Jersey’s film incentive program, Law and Order SVU immediately uprooted their production to New York state.

“For better or worse, the current environment for film production is that your state needs to have an incentive program in order to get that kind of work,” said Porter.

In the 2009 legislative session, the state legislature passed an increase in funding for the Office to attract production teams to the state. Since that time, the Office has given away $7.5 million in tax rebates each year to projects which spend over $750,000 in the area. The projects are eligible for up to a 20 percent rebate on goods and services purchased in Oregon.

Not only can projects get these rebates on goods and services, but projects which spend at least $1 million locally are given a 16.2 percent cash rebate on wages paid within the state.

To spur growth in the local film industry, the Indigenous Oregon Production Investment Fund was created in 2009 to provide the same 20 percent rebates to Oregon-based projects spending at least $75,000.

The extension of the $7.5 million cap on film incentives is set to expire in the coming year, meaning that a new piece of legislation to adjust that sunset date and extend the cap will be coming down the pipe in the 2011 legislative session.

“I anticipate a debate,” said Porter. “Anybody that has a key program that involves tax credits this year should be ready for a debate.”

“We do have a lot of people…within the legislature who conceptually very much think that this has been a good performing effort and one worth continuing,” he said.