Michigan’s Film Incentives Are Leaving. So Are Its Filmmakers
by Anthony Kaufman
Michigan’s Film Incentives Are Leaving. So Are Its Filmmakers
Films that utilized the Michigan credit included "Youth in Revolt," "Stone," "Transformers 3" and "Scream 4."
Michigan’s generous film production tax credits appear to have been too good to be true. Now, the state’s burgeoning film industry is losing its momentum and filmmakers are fleeing the state.
In 2008, Michigan created one of the nation’s most aggressive rebate programs with a 42% tax credit that provided unlimited rebates. Studios and independents rushed to the mitten-shaped state; among the studio projects that took advantage of the offer were “Transformers 3,” “Gran Torino” and “Scream 4;” indies included “Vanishing on 7th Street,” “Salvation Boulevard,” “Youth in Revolt” and “Stone.”
That changed in February, when newly elected governor Rick Snyder proposed reducing the credit from unlimited rebates to an annual $25 million cap.
“I got a call three hours later after the governor’s proposal that I was out of a job,” says production coordinator Jax Baker, calling from the road on her way to New Orleans.
The job was a cop drama starring 50 Cent, “Freelancers,” on which she was slated to be an assistant production coordinator. Rather than lose the job when it left Michigan for New Orleans, she moved with it. Baker has now decided that Louisiana will be her new home.
“I looked at my future in Michigan,” says Baker, who was born and bred in Grand Rapids, “so much so that I had to pack my bags and leave the state.”
The cap isn’t official yet, since legislature won’t take up the incentive issue until summer. However, the Michigan Film Office is operating according to the governor’s proposal.
On Monday, the state announced its first film to receive a credit since Snyder took office—Universal Pictures’ “Five Year Engagement.” The production has committed to $12.5 million in Michigan spending and is positioned to receive $5.26 million in subsidies, a sum that would account for more than 20% of the governor’s proposed $25 million cap. By comparison, Michigan approved nine productions for $9.7 million in credits in January-March 2010.
“Just the fact that the Governor opened his mouth has put the fear of God into producers,” says producer Matthew Tailford, who runs 10 West Studios, a three-year-old production facility in tiny Manistee, Mich. (pop. 6,856). “Because of his stance [and] the continual uncertainty, we have, with much reluctance, advised two films not to come to Michigan.” Tailford says he may shutter his Michigan shop and move back to Los Angeles.
Thursday, March 31, 2011
Wednesday, March 30, 2011
Jay & I @ the Iowa Capitol: Some Progress
March 29, 2011
Jay and I once again made our way through the Iowa Capitol maze of people crowding the rotunda at the Iowa Statehouse, this time the crowd consisted of people with disabilities who were seeking support from legislators.
Senate Majority Leader Michael Gronstal spoke with us briefly, with Jay asking if he would support the Iowa Film Office, without consideration of the tax incentives. Mr. Gronstal said YES, he WOULD support the IFO!
We delivered a letter to the governor, meeting with Leo Hough, the governor's assistant. The letter contained a list of legislators and their remarks concerning their support of reviving the IFO. Support is on both sides of the aisle and in both houses. My survey of all 150 legislators is not yet complete, but so far it looks like the vast majority is on our side!
We met with State Representative Dan Kelley of Newton, who voiced his very strong support for film production in Iowa and said he wanted us to keep him in the loop.
(pictured: Jay and I in the Iowa Capitol phone booth, symbolically calling for support)
Tuesday, March 29, 2011
By Alex Ben Block, Backstage/The Hollywood Reporter
Threat to Film Subsidies
By Alex Ben Block
March 28, 2011
As the point person for state governments for the Motion Picture Association of America, Vans Stevenson keeps a close eye on tax incentives as states compete for movie and television productions that bring with them tax revenue, jobs and local expenditures.
Since 2002, the number of states Stevenson tracks that seek to seduce Hollywood has rocketed. Today more than 80 percent of the states have programs offering tax breaks. At least 40 U.S. states offer direct cash rebates.
Now, however, that may all be in jeopardy.
Heralding a new austerity, in February Michigan's new Republican Gov. Rick Snyder declared his desire to eliminate tax credits and replace them with a $25 million grant to promote the state to productions — which means no more free (or reduced) lunch for Hollywood.
Existing state incentives have provided plenty of choices for movie and TV financiers. And thanks to digital technology and clever art direction, audiences can't tell the difference. So when "Secretariat" was born in Virginia in last year's Disney film, the scene was actually shot in Louisiana, which provides not just a generous 42 percent tax incentive but also additional breaks from individual cities and parishes.
"Louisiana also stood in for Kentucky and Belmont [racetrack] in New York," says the movie's executive producer Bill Johnson. "It stood in for all the different tracks. That sweetened the deal."
Michigan, New Mexico and Georgia also have been aggressive in their pursuit and paybacks. But Louisiana has been tops. Last year it ranked third in productions behind California and New York, both of which have instituted tax incentive programs. Since 2006, more than 300 movies, from indies like "I Love You Phillip Morris" to blockbusters such as "The Curious Case of Benjamin Button" shot in Louisiana.
Michigan has also come on strong. It is where ABC shoots the TV series "Detroit 1-8-7," which, despite the title, could be shot anywhere. Movie productions have included "Transformers: Dark of the Moon," "Gulliver's Travels" and "Scream 4." A former General Motors plant in Pontiac is being turned into a movie studio.
Snyder's proposal to eliminate credits in Michigan hasn't passed yet, but it is already having an impact. The Marvel/Disney movie "The Avengers," among others, decided not to shoot in the state because of the threat.
"The worst possible situation for any motion picture or TV production is uncertainty," says Stevenson. "These days, cost is a huge factor for our member companies and motion picture and television entities. Budgets are determined and figured out based on these credits. If it is uncertain whether they're going to be there, they are going to look elsewhere."
Stevenson is concerned but not surprised that many states are rethinking the incentives. "Because of the fiscal challenges facing states, everything is on the table," he says.
That is why producers have to constantly check for the best incentives. "It changes from year to year," says Larry Thompson, whose two dozen TV movies include "Lucy & Desi: Before The Laughter" for CBS.
If the deal is right, "then you look at your script to see if it can be shot in the state that has the best tax incentives," adds Thompson. "If it doesn't match geographically, then you go to the next state."
That is the kind of analysis Thompson did to get his $3 million production "Amish Grace" made for Lifetime. The story is set in Pennsylvania, but he first considered Canada and Michigan. But Thompson was on a tight timetable and it was winter. "I didn't want a dark and gloomy movie," he says, "and it gets dark early in Canada, Michigan and Pennsylvania."
At first California wasn't even on his list, because of its lack of incentives. That changed last November. "All of a sudden they had this new tax law that just had passed," says Thompson. "That became the difference. I said, 'Why not make it here? I'll get a little tax incentive and I'll sleep in my own bed at night.' "
Thompson's movie became the first under the program. Soon the rolling green grounds around the Sherwood Country Club in Thousand Oaks were passing for Amish country.
California's incentive program "definitely had an impact," says Amy Lemisch of the California Film Commission. "The issue is we exhaust the credit so quickly in the fiscal year that we're still losing many, many productions."
Still in less than two years the program has resulted in 116 features, TV movies or cable TV series that stayed or returned to California. They spent $2.2 billion, which generated $6 billion in economic activity.
With Gov. Jerry Brown looking for budget cuts, it's unlikely that the ceiling will be raised. But there is a push to extend the incentives five more years. California Democratic Assemblyman Anthony Portantino, one of the sponsors, held a hearing in Pasadena March 18 to "let taxpayers know that $100 million spent every year is money well spent. It's creating a significant economic benefit at a time we need that shot in the arm."
This is about jobs, says Portantino: "This is about the restaurant, the caterer, the grip, the electrician — the kind of middle class jobs we want in this state."
Portantino knows, because he did many of those jobs, along with being a producer, line producer and art director on everything from the 1987 indie film "Time of Tears" to NBC's "Unsolved Mysteries" to commercials.
"The key here is accountability," says Portantino. "This program should be a model for others to emulate because you actually have to make the movie to get the credit."
Those details can be an issue. Iowa's incentive program was suspended last fall after five filmmakers and a broker were caught inflating invoices to get excess tax rebates. One pleaded guilty to first degree theft, and the former head of the film office faces criminal charges.
None of that surprises Robert Tannenwald, a fellow at the Center on Budget and Policy Priorities in Washington, D.C. Last year he authored a controversial study that said movie incentives did not deliver what was promised. He claimed that Massachusetts only got back 16 cents for each dollar spent.
Stevenson calls Tannenwald's "research flawed" and says "he didn't even have the right average salaries" or know about related revenue sources like payroll services.
Other critics claim the incentives don't really create many jobs. "Economic benefits are greatly exaggerated and they often ignore a lot of the costs," says Mark Robyn, staff economist for the Tax Foundation in Washington, D.C.
Stevenson says what is true is that states are looking at everything. "Unlike the federal government, they have to balance their budgets," he adds, "so it's natural in these economic conditions where sales and use taxes are down, corporate income taxes are down, income tax is down, federal funding is significantly down, that they are looking at everything."
So far few have actually pulled the plug. "The majority of states that have competitive credits are being sustained," says Stevenson. "That's not to say they're not looking at them and in isolated cases trying to change them."
By Alex Ben Block
March 28, 2011
As the point person for state governments for the Motion Picture Association of America, Vans Stevenson keeps a close eye on tax incentives as states compete for movie and television productions that bring with them tax revenue, jobs and local expenditures.
Since 2002, the number of states Stevenson tracks that seek to seduce Hollywood has rocketed. Today more than 80 percent of the states have programs offering tax breaks. At least 40 U.S. states offer direct cash rebates.
Now, however, that may all be in jeopardy.
Heralding a new austerity, in February Michigan's new Republican Gov. Rick Snyder declared his desire to eliminate tax credits and replace them with a $25 million grant to promote the state to productions — which means no more free (or reduced) lunch for Hollywood.
Existing state incentives have provided plenty of choices for movie and TV financiers. And thanks to digital technology and clever art direction, audiences can't tell the difference. So when "Secretariat" was born in Virginia in last year's Disney film, the scene was actually shot in Louisiana, which provides not just a generous 42 percent tax incentive but also additional breaks from individual cities and parishes.
"Louisiana also stood in for Kentucky and Belmont [racetrack] in New York," says the movie's executive producer Bill Johnson. "It stood in for all the different tracks. That sweetened the deal."
Michigan, New Mexico and Georgia also have been aggressive in their pursuit and paybacks. But Louisiana has been tops. Last year it ranked third in productions behind California and New York, both of which have instituted tax incentive programs. Since 2006, more than 300 movies, from indies like "I Love You Phillip Morris" to blockbusters such as "The Curious Case of Benjamin Button" shot in Louisiana.
Michigan has also come on strong. It is where ABC shoots the TV series "Detroit 1-8-7," which, despite the title, could be shot anywhere. Movie productions have included "Transformers: Dark of the Moon," "Gulliver's Travels" and "Scream 4." A former General Motors plant in Pontiac is being turned into a movie studio.
Snyder's proposal to eliminate credits in Michigan hasn't passed yet, but it is already having an impact. The Marvel/Disney movie "The Avengers," among others, decided not to shoot in the state because of the threat.
"The worst possible situation for any motion picture or TV production is uncertainty," says Stevenson. "These days, cost is a huge factor for our member companies and motion picture and television entities. Budgets are determined and figured out based on these credits. If it is uncertain whether they're going to be there, they are going to look elsewhere."
Stevenson is concerned but not surprised that many states are rethinking the incentives. "Because of the fiscal challenges facing states, everything is on the table," he says.
That is why producers have to constantly check for the best incentives. "It changes from year to year," says Larry Thompson, whose two dozen TV movies include "Lucy & Desi: Before The Laughter" for CBS.
If the deal is right, "then you look at your script to see if it can be shot in the state that has the best tax incentives," adds Thompson. "If it doesn't match geographically, then you go to the next state."
That is the kind of analysis Thompson did to get his $3 million production "Amish Grace" made for Lifetime. The story is set in Pennsylvania, but he first considered Canada and Michigan. But Thompson was on a tight timetable and it was winter. "I didn't want a dark and gloomy movie," he says, "and it gets dark early in Canada, Michigan and Pennsylvania."
At first California wasn't even on his list, because of its lack of incentives. That changed last November. "All of a sudden they had this new tax law that just had passed," says Thompson. "That became the difference. I said, 'Why not make it here? I'll get a little tax incentive and I'll sleep in my own bed at night.' "
Thompson's movie became the first under the program. Soon the rolling green grounds around the Sherwood Country Club in Thousand Oaks were passing for Amish country.
California's incentive program "definitely had an impact," says Amy Lemisch of the California Film Commission. "The issue is we exhaust the credit so quickly in the fiscal year that we're still losing many, many productions."
Still in less than two years the program has resulted in 116 features, TV movies or cable TV series that stayed or returned to California. They spent $2.2 billion, which generated $6 billion in economic activity.
With Gov. Jerry Brown looking for budget cuts, it's unlikely that the ceiling will be raised. But there is a push to extend the incentives five more years. California Democratic Assemblyman Anthony Portantino, one of the sponsors, held a hearing in Pasadena March 18 to "let taxpayers know that $100 million spent every year is money well spent. It's creating a significant economic benefit at a time we need that shot in the arm."
This is about jobs, says Portantino: "This is about the restaurant, the caterer, the grip, the electrician — the kind of middle class jobs we want in this state."
Portantino knows, because he did many of those jobs, along with being a producer, line producer and art director on everything from the 1987 indie film "Time of Tears" to NBC's "Unsolved Mysteries" to commercials.
"The key here is accountability," says Portantino. "This program should be a model for others to emulate because you actually have to make the movie to get the credit."
Those details can be an issue. Iowa's incentive program was suspended last fall after five filmmakers and a broker were caught inflating invoices to get excess tax rebates. One pleaded guilty to first degree theft, and the former head of the film office faces criminal charges.
None of that surprises Robert Tannenwald, a fellow at the Center on Budget and Policy Priorities in Washington, D.C. Last year he authored a controversial study that said movie incentives did not deliver what was promised. He claimed that Massachusetts only got back 16 cents for each dollar spent.
Stevenson calls Tannenwald's "research flawed" and says "he didn't even have the right average salaries" or know about related revenue sources like payroll services.
Other critics claim the incentives don't really create many jobs. "Economic benefits are greatly exaggerated and they often ignore a lot of the costs," says Mark Robyn, staff economist for the Tax Foundation in Washington, D.C.
Stevenson says what is true is that states are looking at everything. "Unlike the federal government, they have to balance their budgets," he adds, "so it's natural in these economic conditions where sales and use taxes are down, corporate income taxes are down, income tax is down, federal funding is significantly down, that they are looking at everything."
So far few have actually pulled the plug. "The majority of states that have competitive credits are being sustained," says Stevenson. "That's not to say they're not looking at them and in isolated cases trying to change them."
Saturday, March 26, 2011
from Deadline Hollywood
Georgia's Film Tax Credit Stays Intact, Arizona's Bill To Restore Its Incentive Dead
By NELLIE ANDREEVA | Friday March 25, 2011
UPDATE: While Georgia filmmakers are celebrating, their Arizona counterparts are mourning the demise of their efforts to restore their state's production tax incentive. "Our film incentives program expired in 2010," a local source said. "And the current bill for film tax incentives is dead as of Tuesday. We were working to get Senate Bill 1159, Arizona's Film incentive bill, assigned to the Commerce Committee. It was supposed to be heard by the House Ways & Means committee, but on Tuesday, March 22, the head of the committee, Republican Representative Jack Harper, refused to introduce it (effectively kiling it), saying he fears "possible attempted bribes" of legislators. So the bill is dead. That means more business for New Mexico, Louisiana and Georgia, and even less for Arizona."
PREVIOUS: Good news for the producers of two pilots filming in Atlanta, ABC's Partners and CBS' Hail Mary, as well as all other film and TV projects looking to shoot in the Peach State. Georgia's generous 30% production tax credit, which had been in jeopardy after the state's Special Council on Tax Reform and Fairness in January recommended its elimination, will stay put. The decision, which will be made official with a committee vote Monday, comes after lobbying from Hollywood, including industry executives making the case for keeping the incentives in place at a hearing with lawmakers earlier this month.
Strapped for cash, several states including Georgia, Michigan, New Mexico and Rhode Island have been considering capping or eliminating their Hollywood tax credits. Yesterday, Rhode Island filmmakers met with state lawmakers to try to convince them not to follow the governor's recommendation to eliminates the tax credit for films and television shows. New Jersey and Kentucky already placed caps on film incentives last year; Connecticut, Iowa, Kansas and Wisconsin all slashed spending on their programs in 2009. Here is the formal release on the pending decision in Georgia, which has seen a 500% increase in film and TV production since 2007, to keep the state's tax credit:
ATLANTA, GA - The Georgia Production Partnership (GPP) Government Relations Committee and Executive Board are pleased to report that the Georgia Entertainment Industry Investment Act and Entertainment Production Sales & Use Tax Exemption will stay intact, and that each will be withdrawn from the Georgia Joint Special Committee on Revenue Structure's substitute HB385 bill, plus any subsequent or related bills during this session. HB385 is scheduled for a full Joint Special Committee vote on Monday, March 28, 2011 before it can move to the two legislative chambers for further ratification.
By NELLIE ANDREEVA | Friday March 25, 2011
UPDATE: While Georgia filmmakers are celebrating, their Arizona counterparts are mourning the demise of their efforts to restore their state's production tax incentive. "Our film incentives program expired in 2010," a local source said. "And the current bill for film tax incentives is dead as of Tuesday. We were working to get Senate Bill 1159, Arizona's Film incentive bill, assigned to the Commerce Committee. It was supposed to be heard by the House Ways & Means committee, but on Tuesday, March 22, the head of the committee, Republican Representative Jack Harper, refused to introduce it (effectively kiling it), saying he fears "possible attempted bribes" of legislators. So the bill is dead. That means more business for New Mexico, Louisiana and Georgia, and even less for Arizona."
PREVIOUS: Good news for the producers of two pilots filming in Atlanta, ABC's Partners and CBS' Hail Mary, as well as all other film and TV projects looking to shoot in the Peach State. Georgia's generous 30% production tax credit, which had been in jeopardy after the state's Special Council on Tax Reform and Fairness in January recommended its elimination, will stay put. The decision, which will be made official with a committee vote Monday, comes after lobbying from Hollywood, including industry executives making the case for keeping the incentives in place at a hearing with lawmakers earlier this month.
Strapped for cash, several states including Georgia, Michigan, New Mexico and Rhode Island have been considering capping or eliminating their Hollywood tax credits. Yesterday, Rhode Island filmmakers met with state lawmakers to try to convince them not to follow the governor's recommendation to eliminates the tax credit for films and television shows. New Jersey and Kentucky already placed caps on film incentives last year; Connecticut, Iowa, Kansas and Wisconsin all slashed spending on their programs in 2009. Here is the formal release on the pending decision in Georgia, which has seen a 500% increase in film and TV production since 2007, to keep the state's tax credit:
ATLANTA, GA - The Georgia Production Partnership (GPP) Government Relations Committee and Executive Board are pleased to report that the Georgia Entertainment Industry Investment Act and Entertainment Production Sales & Use Tax Exemption will stay intact, and that each will be withdrawn from the Georgia Joint Special Committee on Revenue Structure's substitute HB385 bill, plus any subsequent or related bills during this session. HB385 is scheduled for a full Joint Special Committee vote on Monday, March 28, 2011 before it can move to the two legislative chambers for further ratification.
Wednesday, March 23, 2011
Jay Villwock on The Hill Without ME!!!
I had a couple of art commissions with deadlines, so my fellow actor Jay Villwock went to the Iowa Capitol Building without me today. He assisted IMPA President Kent Newman with a video presentation on the rotunda level of the Iowa statehouse.
While there, Jay met with several Iowa legislators, as well as with others not in the legislature. He reported that he met with Iowa Representative Dan Kelly of Newton, who supports the Iowa Film Office being revived and renewed.
He also met with Representative Tom Shaw from Laurens, where "A Straight Story" was filmed a few years back. Rep. Shaw said the production of that movie had a strong economic impact on his community.
Governor Branstad's spokesman, Tim Albrecht, told Jay the Iowa Film Office would be a great way to serve as a clearinghouse for Iowa talent, including the many specific categories of a film crew and also Iowa acting talent.
Jay had a conversation with Senator Brad Zaun, who once again voiced his approval of the rebirth of the IFO. In addition, Jay met with Senator Joe Seng, who said there may likely be resistance from Majority Leader Gronstal and Senator Bolkcum. Mr. Zaun was in our corner last year, too.
In addition to speaking with several legislators, Jay said he spoke with Scott Van Dewoestyne, of the Quad Cities Chamber of Commerce, who also said having a film office is important for Iowa jobs and culture.
One person who thought that the Iowa Film Office revival would be a tough sell was Senator Lance Horbach, according to Jay.
Iowa Film's staunchest ally, Senator Bill Dotzler, Jr., said there may be a variety of options to allow transfer of funds to the IFO. Mr. Dotzler went to bat for Iowa filmmakers last year and he's back with us yet again this year.
pictured: IMPA board members Andrew Erickson and Jay Villwock, Iowa Rep. Dan Kelly
Sunday, March 20, 2011
from The Shreveport Times.Com
Written by
Bobbie J. Clark
bobbieclark@gannett.com
The projects
2005/2006: 12 movie/TV productions (end of 2005 to end of 2006) with budgets totaling $300 million.
2007: 23 movie/TV productions with budgets totaling $182 million, 2,000 crew positions created and 557 production days.
2008: 23 movie/TV productions with total budgets of $258 million, 31,758 hotel/motel room nights, 539 production days and 2,448 crew positions created.
2009: 18 movie/TV productions with total budgets of $98.3 million, 14,763 hotel/motel room nights, 277 production days and 1107 crew positions created
2010: 15 movie/TV productions with total budgets of $182.1 million, 30,677 hotel/motel room nights, 473 production days, 1,280 crew positions created and 733 round-trip air tickets LAX to SHV or DFW.
2011: 4 movie/TV productions so far and more to be announced soon.
Source: Shreveport Office of Film, Media and Entertainment
Related Links
# Shreveport-Bossier Film Office
# Robinson Film Center
Shreveport-Bossier City's reputation as Hollywood South got a big boost last weekend, when "Battle: Los Angeles" topped the box office, raking in $36 million.
Though the movie was widely panned by critics, its success has given even more credibility to northwest Louisiana as a premier movie-making destination.
Over the last five years, the infrastructure to support film and television projects has grown by leaps and bounds. The area now boasts film studios, recording studios, an animation studio, special effects and sound stages.
While the total number of projects has decreased over the last few years, going from 23 in 2007 to only 15 last year, local stakeholders believe activity will soon pick up.
So far this year, there are four confirmed projects, including the feature film "Playing the Field," starring Gerard Butler and Jessica Biel. A&E television show Billy the Exterminator will soon begin filming its fourth season, and the show "Ghostbreakers" has started filming in Bossier City.
Arleena Acree, the director of film, media and entertainment for the city of Shreveport, said more projects are on the way.
"It has slowed down some, but it's getting ready to really get busy," she said. "One reason we didn't go to South by Southwest (in Austin, Texas) is because of all the phone calls we've been getting. In fact, we have a project preparing to come up and scout locations. We had two projects in at the same time last week."
Despite its success, "Battle" was not a hit with critics. Roger Ebert went even went as far as calling the movie stupid.
Regardless, Alexander Kent, the interim director of the Robinson Film Center, said reviews don't determine where a movie gets made.
"I don't think critical reception plays a role in the decisions about choosing locations," he said. "Louisiana is a very affordable place to make a movie, and Shreveport is even more affordable with the additional incentives."
Aside from state incentives, the city of Shreveport and Caddo Parish both give sales tax rebates to media companies that spend money in the city and parish.
Bobbie J. Clark
bobbieclark@gannett.com
The projects
2005/2006: 12 movie/TV productions (end of 2005 to end of 2006) with budgets totaling $300 million.
2007: 23 movie/TV productions with budgets totaling $182 million, 2,000 crew positions created and 557 production days.
2008: 23 movie/TV productions with total budgets of $258 million, 31,758 hotel/motel room nights, 539 production days and 2,448 crew positions created.
2009: 18 movie/TV productions with total budgets of $98.3 million, 14,763 hotel/motel room nights, 277 production days and 1107 crew positions created
2010: 15 movie/TV productions with total budgets of $182.1 million, 30,677 hotel/motel room nights, 473 production days, 1,280 crew positions created and 733 round-trip air tickets LAX to SHV or DFW.
2011: 4 movie/TV productions so far and more to be announced soon.
Source: Shreveport Office of Film, Media and Entertainment
Related Links
# Shreveport-Bossier Film Office
# Robinson Film Center
Shreveport-Bossier City's reputation as Hollywood South got a big boost last weekend, when "Battle: Los Angeles" topped the box office, raking in $36 million.
Though the movie was widely panned by critics, its success has given even more credibility to northwest Louisiana as a premier movie-making destination.
Over the last five years, the infrastructure to support film and television projects has grown by leaps and bounds. The area now boasts film studios, recording studios, an animation studio, special effects and sound stages.
While the total number of projects has decreased over the last few years, going from 23 in 2007 to only 15 last year, local stakeholders believe activity will soon pick up.
So far this year, there are four confirmed projects, including the feature film "Playing the Field," starring Gerard Butler and Jessica Biel. A&E television show Billy the Exterminator will soon begin filming its fourth season, and the show "Ghostbreakers" has started filming in Bossier City.
Arleena Acree, the director of film, media and entertainment for the city of Shreveport, said more projects are on the way.
"It has slowed down some, but it's getting ready to really get busy," she said. "One reason we didn't go to South by Southwest (in Austin, Texas) is because of all the phone calls we've been getting. In fact, we have a project preparing to come up and scout locations. We had two projects in at the same time last week."
Despite its success, "Battle" was not a hit with critics. Roger Ebert went even went as far as calling the movie stupid.
Regardless, Alexander Kent, the interim director of the Robinson Film Center, said reviews don't determine where a movie gets made.
"I don't think critical reception plays a role in the decisions about choosing locations," he said. "Louisiana is a very affordable place to make a movie, and Shreveport is even more affordable with the additional incentives."
Aside from state incentives, the city of Shreveport and Caddo Parish both give sales tax rebates to media companies that spend money in the city and parish.
Saturday, March 19, 2011
From The Hollywood Reporter
Members of the state’s House of Representatives have accepted a version of the tax breaks that passed the state Senate earlier this week.
Legislation that would keep current 25% movie tax incentives in New Mexico but cap the cost at $50 million per year has taken another step forward.
our editor recommends
New Mexico State Senate Votes to Preserve Film Tax Credit Program
Conferees from the state House of Representatives have accepted a version of the tax breaks that passed the state Senate earlier this week as part of a budget bill. It must now be signed by the governor, who had been asking for much larger cuts in the popular program to bring movie and TV production to New Mexico.
Republican Governor Susana Martinez, who has called the tax incentives “a giveaway the state can no longer afford” had proposed cutting the incentives to 15% of the spend from a movie’s budget in the state, and capping the total cost of the program at $45 million a year.
Her version passed the House initially but was not the one that made it through after the Senate approved a more generous version. In either case, this would be the first time that New Mexico has any cap on the amount of tax incentives that can be spent.
In 2009, the state spent $76.7 million on tax credits for 24 productions. That dropped to $65.9 million for 16 productions last year.
Even if the cap were $50 million, it would be a rolling credit, meaning the state could approve more than that in one year, with the additional cost rolling over into the net fiscal year.
If the governor were to veto the budget bill that includes this compromise, it would not eliminate the film tax incentives. Instead, it would eliminate any cap, because the old rules would remain intact.
For that, and other political reasons, it seems highly likely the governor will approve the new law. She has until April 8 to make her decision. The new rules would take effect as of July 1.
Legislation that would keep current 25% movie tax incentives in New Mexico but cap the cost at $50 million per year has taken another step forward.
our editor recommends
New Mexico State Senate Votes to Preserve Film Tax Credit Program
Conferees from the state House of Representatives have accepted a version of the tax breaks that passed the state Senate earlier this week as part of a budget bill. It must now be signed by the governor, who had been asking for much larger cuts in the popular program to bring movie and TV production to New Mexico.
Republican Governor Susana Martinez, who has called the tax incentives “a giveaway the state can no longer afford” had proposed cutting the incentives to 15% of the spend from a movie’s budget in the state, and capping the total cost of the program at $45 million a year.
Her version passed the House initially but was not the one that made it through after the Senate approved a more generous version. In either case, this would be the first time that New Mexico has any cap on the amount of tax incentives that can be spent.
In 2009, the state spent $76.7 million on tax credits for 24 productions. That dropped to $65.9 million for 16 productions last year.
Even if the cap were $50 million, it would be a rolling credit, meaning the state could approve more than that in one year, with the additional cost rolling over into the net fiscal year.
If the governor were to veto the budget bill that includes this compromise, it would not eliminate the film tax incentives. Instead, it would eliminate any cap, because the old rules would remain intact.
For that, and other political reasons, it seems highly likely the governor will approve the new law. She has until April 8 to make her decision. The new rules would take effect as of July 1.
by Richard Verrier, Los Angeles Times
On location: California film tax credit program has generated $2.2 billion in
California's film tax breaks haven't put the brakes on runaway production, but they've slowed the race to out-of-state filming locations.
That was the message California Film Commission Executive Director Amy Lemisch and others delivered Friday at an Assembly hearing held to evaluate the effectiveness of the state's film tax credit program, which took effect in July 2009.
The program, which offers a 20% to 25% tax credit on film and TV productions, has so far allocated $300 million in tax credits to 113 film and TV projects, generating 41,000 jobs and $2.2 billion in spending, including $728 million paid in wages to below-the-line film crews, according to the California Film Commission, which administers the tax credit program.
Lemisch was joined by various union leaders, business owners and film producers who praised the film incentive, which is funded through fiscal 2014. Supporters have been eager to demonstrate that the program is working, even though there doesn't appear to be a move afoot by California politicians to scrap it.
"This expenditure of limited tax dollars has brought back billions to the California economy and the public needs to know it," said Assembly member Anthony Portantino (D-La Canada-Flintridge), who held the hearing at Pasadena City Hall and has co-authored a bill to extend the film tax credits.
More on this in Tuesday's On Location feature.
-- Richard Verrier
California's film tax breaks haven't put the brakes on runaway production, but they've slowed the race to out-of-state filming locations.
That was the message California Film Commission Executive Director Amy Lemisch and others delivered Friday at an Assembly hearing held to evaluate the effectiveness of the state's film tax credit program, which took effect in July 2009.
The program, which offers a 20% to 25% tax credit on film and TV productions, has so far allocated $300 million in tax credits to 113 film and TV projects, generating 41,000 jobs and $2.2 billion in spending, including $728 million paid in wages to below-the-line film crews, according to the California Film Commission, which administers the tax credit program.
Lemisch was joined by various union leaders, business owners and film producers who praised the film incentive, which is funded through fiscal 2014. Supporters have been eager to demonstrate that the program is working, even though there doesn't appear to be a move afoot by California politicians to scrap it.
"This expenditure of limited tax dollars has brought back billions to the California economy and the public needs to know it," said Assembly member Anthony Portantino (D-La Canada-Flintridge), who held the hearing at Pasadena City Hall and has co-authored a bill to extend the film tax credits.
More on this in Tuesday's On Location feature.
-- Richard Verrier
Thursday, March 17, 2011
from Star News On Line
State incentives help recharge film industry
By Amy Hotz
Amy.Hotz@StarNewsOnline.com
North Carolina’s film industry is booming because of the recently increased film incentives, and the state and regional film commissions are working hard to keep that boom alive.
But officials said the public needs to understand that film incentive money positively affects the community and isn’t being handed out just to film companies and actors.
That was the general message at In Focus: Film Industry in the Carolinas, a joint-economic growth summit held at the University of North Carolina Wilmington in collaboration with Coastal Carolina University, a South Carolina school.
“This is looking to be a banner year in North Carolina,” said Wilmington Regional Film Commission director Johnny Griffin. “In Wilmington, we think this could be the best year in 10 years, if not longer.”
He and N.C. Film Office director Aaron Syrett as well as Heath Franklin, a Wilmington filmmaker who owns Galvanized Films, and Tom Clark, grants/project manager for the S. C. Film Commission, all spoke at the summit about the health of the film industry in the state and in the Southeast.
Syrett backed up Griffin’s comment about the banner year with numbers.
In 2007, when the state offered a 15 percent incentive, film companies’ direct spending in the state totaled $160 million. Of that, $117 million was qualified expenses – items purchased in-state that production companies were allowed get a rebate on. And the state paid out $17.5 million in incentive money.
In 2008, films spent $92 million in the state. In 2009, they spent $79 million, and in 2010 $80 million was spent.
By Amy Hotz
Amy.Hotz@StarNewsOnline.com
North Carolina’s film industry is booming because of the recently increased film incentives, and the state and regional film commissions are working hard to keep that boom alive.
But officials said the public needs to understand that film incentive money positively affects the community and isn’t being handed out just to film companies and actors.
That was the general message at In Focus: Film Industry in the Carolinas, a joint-economic growth summit held at the University of North Carolina Wilmington in collaboration with Coastal Carolina University, a South Carolina school.
“This is looking to be a banner year in North Carolina,” said Wilmington Regional Film Commission director Johnny Griffin. “In Wilmington, we think this could be the best year in 10 years, if not longer.”
He and N.C. Film Office director Aaron Syrett as well as Heath Franklin, a Wilmington filmmaker who owns Galvanized Films, and Tom Clark, grants/project manager for the S. C. Film Commission, all spoke at the summit about the health of the film industry in the state and in the Southeast.
Syrett backed up Griffin’s comment about the banner year with numbers.
In 2007, when the state offered a 15 percent incentive, film companies’ direct spending in the state totaled $160 million. Of that, $117 million was qualified expenses – items purchased in-state that production companies were allowed get a rebate on. And the state paid out $17.5 million in incentive money.
In 2008, films spent $92 million in the state. In 2009, they spent $79 million, and in 2010 $80 million was spent.
from The Hollywood Reporter
New Mexico State Senate Votes to Preserve Film Tax Credit Program
Lawmakers move to cap funding at $50 million a year.
The seesaw battle to save the successful New Mexico film tax incentive program took a turn in favor of those who want to remain filmmaker friendly on Wednesday when the state Senate voted to preserve the 25% annual subsidy program but cap the funding at $50 million a year.
That would be higher than the 15% subsidy that Republican Gov. Susana Martinez had sought, but less than the $65.9 million the state paid out last year when 16 productions spent an estimated $202.5 million in the state, according to statistics kept by the state film commission.
Under the proposed subsidy plan, which is part of a larger budget bill being debated, the film commission could still spend $65 million in one year, but then it would have to take the additional $15 million out of the budget for the following year.
The subsidy plan must now go to a conference committee with the state House which approved a plan with a $45 million annual cap. That is the amount the governor has said she would approve, so even if the $50 million makes it through both chambers, she could still veto it because it exceeds what she said they should spend.
New Mexico has been among a handful of states, along with Michigan and Louisiana, that have used tax incentives in recent years to woo filmmakers to their state. The New Mexico program has been in place since it was backed by then Gov. Bill Richardson in 2003.
Among the productions in the state was Terminator Salvation. In the past year productions shot there have included The Avengers, Thor and the fourth season of the TV series In Plain Sight.
According to the film commission, the program produced a direct spend in the sate in 2005 of $62 million, in 2006 of $153.4 million, in 2008 of $274.5 million, in 2009 of $260.1 million. The way they figure it, the 2010 spend had a financial impact in the state of $607.5 million.
So far in 2011, they list an actual spend of $84.2 million, which had a financial impact of $252.6 million, from 14 qualified productions. So far in 2011, the state has approved $4.1 million in tax credits.
Lawmakers move to cap funding at $50 million a year.
The seesaw battle to save the successful New Mexico film tax incentive program took a turn in favor of those who want to remain filmmaker friendly on Wednesday when the state Senate voted to preserve the 25% annual subsidy program but cap the funding at $50 million a year.
That would be higher than the 15% subsidy that Republican Gov. Susana Martinez had sought, but less than the $65.9 million the state paid out last year when 16 productions spent an estimated $202.5 million in the state, according to statistics kept by the state film commission.
Under the proposed subsidy plan, which is part of a larger budget bill being debated, the film commission could still spend $65 million in one year, but then it would have to take the additional $15 million out of the budget for the following year.
The subsidy plan must now go to a conference committee with the state House which approved a plan with a $45 million annual cap. That is the amount the governor has said she would approve, so even if the $50 million makes it through both chambers, she could still veto it because it exceeds what she said they should spend.
New Mexico has been among a handful of states, along with Michigan and Louisiana, that have used tax incentives in recent years to woo filmmakers to their state. The New Mexico program has been in place since it was backed by then Gov. Bill Richardson in 2003.
Among the productions in the state was Terminator Salvation. In the past year productions shot there have included The Avengers, Thor and the fourth season of the TV series In Plain Sight.
According to the film commission, the program produced a direct spend in the sate in 2005 of $62 million, in 2006 of $153.4 million, in 2008 of $274.5 million, in 2009 of $260.1 million. The way they figure it, the 2010 spend had a financial impact in the state of $607.5 million.
So far in 2011, they list an actual spend of $84.2 million, which had a financial impact of $252.6 million, from 14 qualified productions. So far in 2011, the state has approved $4.1 million in tax credits.
Wednesday, March 16, 2011
Possible Support From MPAA
On Jay Villwock's and my trip to the Iowa Capitol today we did speak with a few folks, including Richard Thornton, lobbyist for the Motion Picture Association of America, which is now headed by former U. S. Senator Christopher Dodd.
Mr. Thornton said he believed the former senator would possibly come to Iowa to show support for our film industry.
Mr. Thornton said he believed the former senator would possibly come to Iowa to show support for our film industry.
Thursday, March 10, 2011
Dave Thrasher's Letter to Des Moines Register
* Letters to the Editor
In Mike Kilen's Feb. 26 essay, "Hey! Watch What You Say About Iowa," he complains about Iowa being mocked in the popular media. Perhaps Iowa deserves it.
In boosterism pieces about the state, writers are always quick to brag about all those famous actors and others in the entertainment world (stage, film and television) to have come out of Iowa, but neglect one fact. In order to have succeeded, they had to leave.
With the way the film incentives problems were handled by our former governor, our reputation is even further down at the bottom. Let them mock us. We deserve it.
- David Thrasher, Des Moines
Wednesday, March 9, 2011
by Katherine Yung, Detroit Free Press
Mississippi an example of trouble with cutting film credits
11:20 PM, Mar. 8, 2011 |
BY KATHERINE YUNG
DETROIT FREE PRESS BUSINESS WRITER
To see what effect a $25-million annual cap on film incentives would have on Michigan's movie production industry, look at Mississippi.
The southern state limits spending on film incentives to $20 million, a little less than Gov. Rick Snyder's proposal for Michigan. Mississippi offers filmmakers 20% to 25% cash rebates, depending on whether they employ state residents.
With a $20-million cap, seven productions shot scenes in Mississippi last year, compared with 58 in Michigan. That includes one night of filming for the HBO series "True Blood" and about a week of production for PBS' "Antiques Roadshow."
The state is such a small player in the movie industry that its total annual incentive spending has never come close to hitting the cap, said Ward Emling, manager of Mississippi's Office of Film, Music & Heritage. "The types of films we get are generally smaller," he said.
Mississippi's experience illustrates the dilemma that lawmakers in Lansing face as they consider Snyder's plan to put a $25-million annual cap on new incentives for production companies. At that level, Michigan would rank seventh among 23 states with spending limits, slightly ahead of Mississippi but behind Florida, which has a $53.5-million cap.
But Michigan faces a huge deficit for the fiscal year that begins Oct. 1, and Snyder wants to dramatically reduce spending on the incentives as part of a move to eliminate tax credits.
"When dealing with a budget deficit of $1.4 billion, you have to take into consideration all of the various state programs that compete for funds and make reasoned decisions of what the state can afford," Snyder spokeswoman Geralyn Lasher said.
Slashing Michigan film credits would make it tough to compete
If Gov. Rick Snyder's plan to limit new film incentives to $25 million a year gets the nod from legislators, Michigan would fall to the middle ranks of states in movie production.
Michigan and 16 other states currently have no limits on the amount of incentives they give to filmmakers, according to data from Entertainment Partners, a California-based production management services company.
11:20 PM, Mar. 8, 2011 |
BY KATHERINE YUNG
DETROIT FREE PRESS BUSINESS WRITER
To see what effect a $25-million annual cap on film incentives would have on Michigan's movie production industry, look at Mississippi.
The southern state limits spending on film incentives to $20 million, a little less than Gov. Rick Snyder's proposal for Michigan. Mississippi offers filmmakers 20% to 25% cash rebates, depending on whether they employ state residents.
With a $20-million cap, seven productions shot scenes in Mississippi last year, compared with 58 in Michigan. That includes one night of filming for the HBO series "True Blood" and about a week of production for PBS' "Antiques Roadshow."
The state is such a small player in the movie industry that its total annual incentive spending has never come close to hitting the cap, said Ward Emling, manager of Mississippi's Office of Film, Music & Heritage. "The types of films we get are generally smaller," he said.
Mississippi's experience illustrates the dilemma that lawmakers in Lansing face as they consider Snyder's plan to put a $25-million annual cap on new incentives for production companies. At that level, Michigan would rank seventh among 23 states with spending limits, slightly ahead of Mississippi but behind Florida, which has a $53.5-million cap.
But Michigan faces a huge deficit for the fiscal year that begins Oct. 1, and Snyder wants to dramatically reduce spending on the incentives as part of a move to eliminate tax credits.
"When dealing with a budget deficit of $1.4 billion, you have to take into consideration all of the various state programs that compete for funds and make reasoned decisions of what the state can afford," Snyder spokeswoman Geralyn Lasher said.
Slashing Michigan film credits would make it tough to compete
If Gov. Rick Snyder's plan to limit new film incentives to $25 million a year gets the nod from legislators, Michigan would fall to the middle ranks of states in movie production.
Michigan and 16 other states currently have no limits on the amount of incentives they give to filmmakers, according to data from Entertainment Partners, a California-based production management services company.
by Tim Schooley, Pittsburgh Business Times
Gov. Corbett's proposed budget calls for film tax credit to continue
Pittsburgh Business Times - by Tim Schooley
Advocates of Pennsylvania's film tax program were relieved to hear that new Pennsylvania Gov. Tom Corbett has called for it to be continued in his proposed budget for 2011-12.
Corbett's budget noted that the credit "has helped to foster a growing film industry presence in Pennsylvania" and just under 4,000 jobs were associated with the industry.
Dawn Keezer, executive director of the Pittsburgh Film Office, was eager to see the new governor broadcast his broad approval for the program based on its economic benefits and is hopeful the program will make its way through approval in the legislature.
"It's vitally important for the governor to send out his pro tax credit message today," Keezer said. "Pennsylvania is still open for business. We still want and value the industry."
The governor's budget proposes $60 million for the film tax credit, less than the $75 million peak it had a few years ago, but a level of credit that's still competitive.
Pennsylvania isn't the only state to consider budget cuts to its film tax credit program. Former Gov. Bill Richardson wrote an op-ed in the New York Times last weekend decrying potential cuts in the program in New Mexico.
Keezer said to expect major reductions in Michigan¹s program, which had offered a 42 percent refundable tax credit.
"I've been getting phone calls from people saying, 'I'm moving out of Michigan. What does your program look like?" Keezer said.
Still pressing is for the tax credit program to have its funding freeze lifted so as many as four new film projects can move forward, she added.
Michael Dolan, a principal of Island Studios, a sound stage facility in McKees Rocks, which has hosted a number of Hollywood productions in recent years, expects the announcement will help to green-light a host of new films to be produced here this year after a few years of strong film production activity.
"There are a couple of films waiting on the doorsteps to come in. I think this will be a great catalyst," he said. "It's a shingle saying we're open for business."
Read more: Gov. Corbett's proposed budget calls for film tax credit to continue | Pittsburgh Business Times
Pittsburgh Business Times - by Tim Schooley
Advocates of Pennsylvania's film tax program were relieved to hear that new Pennsylvania Gov. Tom Corbett has called for it to be continued in his proposed budget for 2011-12.
Corbett's budget noted that the credit "has helped to foster a growing film industry presence in Pennsylvania" and just under 4,000 jobs were associated with the industry.
Dawn Keezer, executive director of the Pittsburgh Film Office, was eager to see the new governor broadcast his broad approval for the program based on its economic benefits and is hopeful the program will make its way through approval in the legislature.
"It's vitally important for the governor to send out his pro tax credit message today," Keezer said. "Pennsylvania is still open for business. We still want and value the industry."
The governor's budget proposes $60 million for the film tax credit, less than the $75 million peak it had a few years ago, but a level of credit that's still competitive.
Pennsylvania isn't the only state to consider budget cuts to its film tax credit program. Former Gov. Bill Richardson wrote an op-ed in the New York Times last weekend decrying potential cuts in the program in New Mexico.
Keezer said to expect major reductions in Michigan¹s program, which had offered a 42 percent refundable tax credit.
"I've been getting phone calls from people saying, 'I'm moving out of Michigan. What does your program look like?" Keezer said.
Still pressing is for the tax credit program to have its funding freeze lifted so as many as four new film projects can move forward, she added.
Michael Dolan, a principal of Island Studios, a sound stage facility in McKees Rocks, which has hosted a number of Hollywood productions in recent years, expects the announcement will help to green-light a host of new films to be produced here this year after a few years of strong film production activity.
"There are a couple of films waiting on the doorsteps to come in. I think this will be a great catalyst," he said. "It's a shingle saying we're open for business."
Read more: Gov. Corbett's proposed budget calls for film tax credit to continue | Pittsburgh Business Times
Tuesday, March 8, 2011
WHO Radio Talk With Iowa Governor
WHO Radio will have a call in show, "Ask The Governor", on Tuesdays from six to seven p.m. ... tonight I called the show and got in (after first being accidentally disconnected) and spoke with Iowa's Governor Branstad regarding the film industry here. He said his choice to run the Iowa Film Office would be Wendol Jarvis, the first film office director who now lives in the Kansas City area. Next week, please call that show (Des Moines number is 284-1040) and kindly represent our film industry and tell the governor how much we need his support.
Saturday, March 5, 2011
Georgia: From the Newton Citizen.Com
COVINGTON — Local Chamber of Commerce leaders joined representatives from production companies in urging state lawmakers to keep in place tax incentives for the film industry this week at the State Capitol.
Covington-Newton County Chamber of Commerce President Hunter Hall and Tourism Director Clara Deemer testified before the House Economic Development and Tourism Committee Tuesday afternoon on the benefits of the film industry to local communities.
Tax incentives initiated in 2005 by the Georgia Entertainment Industry Investment Act are in danger of being stripped, per the recommendation of the Special Council on Tax Reform and Fairness as it attempts to overhaul the state’s tax system.
Deemer said Covington was the only Georgia community represented at Tuesday’s hearing, which included testimony from representatives from Turner Broadcasting, NBCUniversal Studios and Tyler Perry Studios, among others.
Deemer and Hall talked about the impact of movie and TV productions, including “The Vampire Diaries,” to the local economy. Deemer said they discussed the boost to tourism and sales tax revenues brought in by visitors, along with job opportunities for locals, such as police officers who get extra work as security on productions.
“This not only benefits us in the present, but we’re still reaping the rewards of ‘Dukes of Hazzard’ and ‘In the Heat of the Night’ 30-plus years later,” Deemer said in a follow-up interview.
If the tax incentives are cut, “This is going to hurt us in the long run. Talking about it has already hurt. Industry people are looking elsewhere,” she said.
A 20 percent transferable tax credit is available for production companies that spend a minimum of $500,000 in the state on qualified productions and post-production expenses. An additional 10 percent credit is applied if a production company includes a Georgia promotional logo in the finished feature film, TV series, music video or video game.
The total value of production spending in Georgia increased more than 400 percent from 2007 through 2010, with annual production spending exceeding $600 million in 2010, according to a report.
About 350 productions were shot in Georgia in fiscal year 2010, with combined production budgets increasing from $647.6 million in fiscal year 2009 to $744.3 million in fiscal year 2010, according to a press release issued by the Governor’s Office late last year.
Altogether, the industry’s economic impact in the state in fiscal year 2010 came in at $1.33 billion, up from $1.1 billion the previous year. Georgia is now ranked No. 1 in the Southeast, and among the top five states in the nation for film and TV productions.
Covington-Newton County Chamber of Commerce President Hunter Hall and Tourism Director Clara Deemer testified before the House Economic Development and Tourism Committee Tuesday afternoon on the benefits of the film industry to local communities.
Tax incentives initiated in 2005 by the Georgia Entertainment Industry Investment Act are in danger of being stripped, per the recommendation of the Special Council on Tax Reform and Fairness as it attempts to overhaul the state’s tax system.
Deemer said Covington was the only Georgia community represented at Tuesday’s hearing, which included testimony from representatives from Turner Broadcasting, NBCUniversal Studios and Tyler Perry Studios, among others.
Deemer and Hall talked about the impact of movie and TV productions, including “The Vampire Diaries,” to the local economy. Deemer said they discussed the boost to tourism and sales tax revenues brought in by visitors, along with job opportunities for locals, such as police officers who get extra work as security on productions.
“This not only benefits us in the present, but we’re still reaping the rewards of ‘Dukes of Hazzard’ and ‘In the Heat of the Night’ 30-plus years later,” Deemer said in a follow-up interview.
If the tax incentives are cut, “This is going to hurt us in the long run. Talking about it has already hurt. Industry people are looking elsewhere,” she said.
A 20 percent transferable tax credit is available for production companies that spend a minimum of $500,000 in the state on qualified productions and post-production expenses. An additional 10 percent credit is applied if a production company includes a Georgia promotional logo in the finished feature film, TV series, music video or video game.
The total value of production spending in Georgia increased more than 400 percent from 2007 through 2010, with annual production spending exceeding $600 million in 2010, according to a report.
About 350 productions were shot in Georgia in fiscal year 2010, with combined production budgets increasing from $647.6 million in fiscal year 2009 to $744.3 million in fiscal year 2010, according to a press release issued by the Governor’s Office late last year.
Altogether, the industry’s economic impact in the state in fiscal year 2010 came in at $1.33 billion, up from $1.1 billion the previous year. Georgia is now ranked No. 1 in the Southeast, and among the top five states in the nation for film and TV productions.
Thursday, March 3, 2011
From Katherine Yung, Detroit Free Press
BY KATHERINE YUNG
DETROIT FREE PRESS BUSINESS WRITER
Michigan's biggest productions in 2010
Here are the top five films and TV shows that shot in the state last year, in terms of tax credits awarded and total spending.
Production Tax credit awarded Total spending in Michigan
"Real Steel" $18.4 million $48.9 million
"Detroit 1-8-7" $13.6 million $32.7 million
"Scream 4" $11.3 million $28 million
"Harold and Kumar 3" $8.4 million $21.8 million
"30 Minutes or Less" $6.8 million $17.9 million
Source: Michigan Film Office 2010 Annual Report.
The number of movies shot in Michigan and production-related spending in the state reached record levels last year, according to a report released Tuesday by the Michigan Film Office.
The report shows that incentives have successfully lured Hollywood productions to the state. Last year, 58 movies and TV shows filmed in Michigan, up from 52 in 2009. The state awarded $115 million in tax breaks to these projects. But these production companies spent $293 million, up 31% from $224 million in 2009. They also created 5,310 temporary production jobs and 8,179 positions for extras.
Since April 2008, Michigan has offered filmmakers the most generous tax breaks in the country, paying up to 42% of their production costs.
The report details the benefits and costs of the nearly three-year-old incentives:
• So far, 136 movies and TV shows have completed filming in the state.
• The Film Office and Michigan Treasury Department have approved film tax credits for 207 projects.
• The cost of the tax breaks total $361 million, though $98 million has been paid out so far.
• Production companies are expected to spend $922 million in the state from 2008 through 2011.
• The state now has five film studios, including the new $80-million Raleigh Michigan Studios in Pontiac.
• Eleven projects, including the $105-million "Oz," are scheduled to film this year in the state.
The report comes as the movie industry is fighting for its survival. Gov. Rick Snyder wants to eliminate the movie tax credits and allocate $25 million in new incentives each of the next two fiscal years.
Filmmakers say the proposed $25-million cap would cripple the industry's growth in Michigan. But Snyder and his team have said the incentives are too costly for a state facing a$1.8-billion budget deficit.
Movie industry supporters plan a massive lobbying campaign to save the tax breaks. The industry is planning to hold another meeting on Thursday evening at the Troy Marriott. And a rally at the state Capitol is planned for March 22.
The situation has left many production companies in limbo. This year, the Film Office has approved only $74,000 in tax credits for two small-budget films. It has 31 applications pending.
"The applications that have been received since Jan. 1 will continue to be reviewed, and we hope to have responses issued very quickly," said Geralyn Lasher, a spokeswoman for Snyder.
DETROIT FREE PRESS BUSINESS WRITER
Michigan's biggest productions in 2010
Here are the top five films and TV shows that shot in the state last year, in terms of tax credits awarded and total spending.
Production Tax credit awarded Total spending in Michigan
"Real Steel" $18.4 million $48.9 million
"Detroit 1-8-7" $13.6 million $32.7 million
"Scream 4" $11.3 million $28 million
"Harold and Kumar 3" $8.4 million $21.8 million
"30 Minutes or Less" $6.8 million $17.9 million
Source: Michigan Film Office 2010 Annual Report.
The number of movies shot in Michigan and production-related spending in the state reached record levels last year, according to a report released Tuesday by the Michigan Film Office.
The report shows that incentives have successfully lured Hollywood productions to the state. Last year, 58 movies and TV shows filmed in Michigan, up from 52 in 2009. The state awarded $115 million in tax breaks to these projects. But these production companies spent $293 million, up 31% from $224 million in 2009. They also created 5,310 temporary production jobs and 8,179 positions for extras.
Since April 2008, Michigan has offered filmmakers the most generous tax breaks in the country, paying up to 42% of their production costs.
The report details the benefits and costs of the nearly three-year-old incentives:
• So far, 136 movies and TV shows have completed filming in the state.
• The Film Office and Michigan Treasury Department have approved film tax credits for 207 projects.
• The cost of the tax breaks total $361 million, though $98 million has been paid out so far.
• Production companies are expected to spend $922 million in the state from 2008 through 2011.
• The state now has five film studios, including the new $80-million Raleigh Michigan Studios in Pontiac.
• Eleven projects, including the $105-million "Oz," are scheduled to film this year in the state.
The report comes as the movie industry is fighting for its survival. Gov. Rick Snyder wants to eliminate the movie tax credits and allocate $25 million in new incentives each of the next two fiscal years.
Filmmakers say the proposed $25-million cap would cripple the industry's growth in Michigan. But Snyder and his team have said the incentives are too costly for a state facing a$1.8-billion budget deficit.
Movie industry supporters plan a massive lobbying campaign to save the tax breaks. The industry is planning to hold another meeting on Thursday evening at the Troy Marriott. And a rally at the state Capitol is planned for March 22.
The situation has left many production companies in limbo. This year, the Film Office has approved only $74,000 in tax credits for two small-budget films. It has 31 applications pending.
"The applications that have been received since Jan. 1 will continue to be reviewed, and we hope to have responses issued very quickly," said Geralyn Lasher, a spokeswoman for Snyder.
Tuesday, March 1, 2011
Jay Villwock and I Return to the Iowa Capitol Building
Jay and I returned to the Iowa Capitol today and met with several people, including our Iowa Film Family's close friend and supporter, Senator Bill Dotzler, Jr., and someone else who is very much with us, David Roederer, who is one of Governor Branstad's top advisors and is a former Branstad chief of staff during the governor's earlier terms in office.
We spoke with Eric Tabor, an attorney in the Iowa Attorney General's office, who said there is no Iowa Film Office and that there is a single state employee who fields questions in his office relating to any film issues. He suggested that we work on getting amendments going to re-establish the Iowa Film Office and redesign what used to be the IDED.
Nobody we've met with has said they do not want the Iowa Film Office back and running. In fact, most say it's a shame our film program was totally axed, all because of the greed and stupidity of a relative few.
On our way out, I put in a good word for former IFO director, Wendol Jarvis, to Rep. Pete Cownie, whose wife Mary is the new head of the Iowa Cultural Affairs Office.
Things are happening behind the scenes, but nothing will happen suddenly.
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