Sunday, June 26, 2011

Our Film Future In Iowa

Acting gigs are pretty much non existent now in Iowa. The ads and infomercials are around, the non-paying movie projects for film festivals. And how about a Tea Party rally where Jay Villwock and I, plus forty-some others were hired to wear costume shop military uniforms and plant flags on a stage at a rally put together by Tea Party officials?

Although Jay and I are veterans, the organizers had a former army drill sergeant teach us how to march. Because most of those hired for this event were not actors and also were not vets, the marching scenario was a classic comedy scene. Instead of turning in unison, marchers would turn towards each other. Fellow actor and miltary veteran Rick Septer was there, as well as Jeremy Ray Smolik, who worked on movies shot in Iowa before the program was killed.

Pathetic fare, yet there is hope for a better movie future in Iowa: Wendol Jarvis. Wendol was our first Iowa film office director and brought many, many movies to this state. He has solid Hollywood connections as well as political skills and contacts. He's driven thousands of miles and compiled hundreds of pages of graphs and charts and data related to how to improve the Iowa film office, all on his own time and dollar.

Wendol seems a likely candidate to lead the Iowa film office again. I am fully confident that he will rekindle interest in the minds of film producers and smooth the path for those people to bring their projects back to us.

Saturday, June 25, 2011

StatesmanJoural.Com Article:Can it apply to IOWA????

Legislators tweak tax breaks
Some are capped, but new ones are created


Written by
Peter Wong


While Oregon lawmakers were scaling back existing tax breaks on Friday, they also were creating another tax break whose effect on state tax coffers — or private investment — will not fully unfold in the next two years.

By a 26-1 vote, the Senate approved House Bill 3672, which reduces tax breaks from the $40 million they were projected to cost the state in the next two years to the $10 million made available by legislative leaders.

The bill, which goes to Gov. John Kitzhaber, eliminates several little-used tax breaks, extends or reduces others, and revamps the much-debated business energy tax credit into three new credits — all of them capped. In addition to the state's budget situation, lawmakers were compelled under a 2009 law to review specified tax credits on a six-year cycle.

"For many years, many of us were concerned we were scrutinizing one part of our budget and not scrutinizing another part of it," said Sen. Jackie Dingfelder, D-Portland.

The bill also reduces a fund for film and video production — contributing investors get the tax credit — and changes a credit for collection and production of woody material used for biomass energy.

The only dissenter was Sen. Larry George, R-Sherwood, who said, "There are some of us who would have voted for even more cuts in giveaways by government."

By a 22-5 vote, the Senate also approved Senate Bill 817, which creates a tax credit for investors in businesses that go into low-income areas based on the U.S. Census and defined by the U.S. Treasury. That bill goes to the House, which is likely to vote on it Monday.

Although the credit would allow investors to recoup 39 percent spread over seven years, they would have to wait two years before claiming their first credits — and they would have to pay all the money back if the business leaves the area or they are repaid any portion of the principal.

It is tied to the federal "new markets" tax credit, created by Congress in 2000 and renewed last year as part of a two-year extension of 2001 tax cuts under President George W. Bush. Investors can qualify only if they are turned down for a traditional bank loan.

"Oregonians need the hope of new jobs and a turnaround in the economy," said Kevin Campbell, a lobbyist who advocated for the credit during a committee hearing May 19.

But Jody Wiser, executive director of Tax Fairness Oregon, said the tax break would result in a seven-year loss of $79 million to state coffers. (SB 817 caps the annual amount at $16 million through mid-2016, and at $4 million for a single project.)

"The state could do this far, far more cheaply — and likely would not choose to add to the public subsidy of typical projects getting federal new-market tax credits," she said.

Just 10 projects qualified for federal credits in the Mid-Valley, she said, adding up to $21.9 million of the $375 million in credits statewide.

"I've been leaning 'no' most of the week," said Sen. Alan Bates, D-Medford. "But having heard the floor debate — and knowing the economic needs of this state in producing new jobs and bringing in more capital — if we watch it carefully over the new few years and cut that program off if it's not doing what we expect it to do, I feel comfortable going forward."

Sen. Ginny Burdick, D-Portland, said the concept has been examined over the past couple of years.

"I am quite convinced that this bill will have a significant effect in low-income communities in our state," said Sen. Frank Morse, R-Albany, the bill's floor manager. "It's worthy of a shot."

Thursday, June 23, 2011

from Below The Line News by Leslie Lindeman

Credit the 30% Tax Credit: Shooting ‘Em Up in Chicago
June 22, 2011 | By Leslie Lindeman

Hollywood’s been braving the cold, shooting on the ‘L’ and eating plenty of the world’s best pizza – 2010 was a banner year for filming in Chicago. Michael Bay’s Transformers 3, Ron Howard’s The Dilemma, Steven Soderbergh’s The Contagion, and Jake Kasdan’s, Bad Teacher, each contributed to the record $161 million spent filming in the Windy City last year. That number represented a 54 percent increase over a dismal 2009.

The city also benefited from five pilots shot there in 2010, including The Boss, starring Kelsey Grammer. Produced by Lionsgate and set to air on Starz, director Gus Van Sant began shooting episodes in Chicago in April. The show is said to be only loosely based on the mayoral careers of Richard J. Daley and his son, Richard M. Daley, each of whom served for more than 20 years. Legendary columnist Mike Royko’s book about Richard J. Daley is called, Boss.

Also, Fox TV’s, Playboy Club – think, Mad Men with bunnies – is a series about the first playboy club which opened in Chicago in 1960. The show has been picked up and will air on NBC in the fall. It’s currently shooting in Chicago.

While some governmental bodies dither over whether to pass incentives packages, the Illinois legislature has been squarely behind the concept since 2003 when the state passed its first wage credit. In fact, the state is so gung-ho about its incentive plan that the law has no sunset.

Following three tough years from 2007 through 2009, when the film business in Chicago and the state was hit by the same trio of negative factors that affected the rest of the industry (the writer’s strike, the threatened SAG strike, and the national economic meltdown), Illinois enjoyed a strong comeback last year. The $161 million in spending and 8,000 job hires were both record marks. The state’s incentive plan was a big part of the success, with a 30 percent tax credit as its cornerstone, Betsy Steinberg, director of the Illinois Film Office, says.

Steinberg says the tax credit has been responsible for pulling half a billion dollars worth of film business into the state since its inception, and creating 10,000 jobs.

“Our tax credit is like having a gift card with the Illinois Department of Revenue,” Steinberg explains. “You can use it to reduce or eliminate your taxes, and if you don’t have a tax liability with the state, you can sell it to someone who does,” she says.

But what if an out-of-state production company has no Illinois tax liability, or owes taxes that are less than the tax credit it’s earned?

“That’s often the case,” Steinberg says. “The third-party market for these credits is very, very strong.” Banks, utilities, a large department store and many others are all eager buyers because there is usually about a 10 percent discount on the credits. The selling price “has consistently been 88 – 91 cents on the dollar,” Steinberg says. “No production company has ever been left with a tax credit it couldn’t sell,” she says. Production companies don’t have to use the tax credit immediately; they can be carried forward five years.

When it was first passed, the tax credit was 25 percent and only covered the wages of Illinois workers, but eventually the lawmakers worked it up to 30 percent and expanded the umbrella to cover all “qualified Illinois production spending,” Steinberg says. “The law focuses on Illinois vendors and residents, but it’s incredibly broad,” Steinberg says. “It covers anything you would purchase or rent for use in your production, and any and all wages and salaries” paid to workers who were valid Illinois residents prior to the commencement of the production. The limit on salaries is $100,000.

Chicago, Illinois.
In order to qualify for the tax credit, productions are required to submit a diversity plan demonstrating efforts to include minority workers on the crew. The state gives productions an additional 15 percent tax credit (for a total of 45 percent) on the wages and salaries of workers who earn at least $1,000 and live in economically disadvantaged neighborhoods with at least 10 percent unemployment.

Chicago’s film and television infrastructure got a huge shot in the arm last month when a long-planned $85 million deal was finalized for Toronto-based Cinespace Studios to buy an enormous, shuttered steel mill on the city’s near southwest side and refurbish it into the largest U.S. studio outside of Hollywood. Toronto’s famed Mirkopoulos family has run Cinespace Studios there for 23 years. The facility is a critical piece of Canada’s film and television infrastructure and has hosted more than 1,000 films.

“We’ve always had great respect for our crews here,” Steinberg says. “That’s perhaps the number one reason such a huge percentage of our business is repeat customers,” she says. Pointing to the recent run of films, she notes Ron Howard’s positive experience burning up the city with Backdraft (1991) and Steven Soderbergh’s favorable reaction to his previous time in Chicago making The Informant (2009). Meanwhile, Michael Bay was effusive in his praise for the city after officials and citizens alike patiently accommodated the production’s closing of the city’s premier commercial district on Michigan Avenue for most of an entire weekend. The “Magnificent Mile” serves as the location for the film’s concluding battle scenes.

“Yes, we’ve had highly skilled and hard-working crews, and we’ve been respected for that,” Steinberg says, “and our iconic locations speak for themselves. Now, however, opening Cinespace, and especially after it’s fully built out, this absolutely takes us to another level,” she says.

Governor Pat Quinn said the new stage space was a game changer. “Now we are the complete package – truly a world class film destination,” he said.

Cinespace Chicago Film Studios is located on nearly 50 acres of the former Ryerson Steel property just three miles southwest of Chicago’s downtown Loop area. When it’s fully built out the facility will include 1.2 million square feet of space. The studio has already served as the location for filming Boss, as well as portions of Transformers 3, A Nightmare on Elm Street, and the already-canceled TV show The Chicago Code.

The purchase by the Mirkopoulos family also has national implications. When the family opened Cinespace Studios in Toronto in 1988, it heralded the continuing flight of shooting from Los Angeles and the U.S. to Toronto and Canada. “We hope this is part of accelerating the turnaround,” Steinberg says.

Steinberg is one of a number of film office directors with a strong production background, having made documentaries for A&E and the History Channel, as well working as a line producer filming commercials. She relocated to Chicago from the East Coast in 1998 and took the film office position in January 2007.

Asked whether Chicago can turn the corner from its traditional position as a location productions travel to when they need a large, older city, to becoming a destination for any kind of shooting, Steinberg points to The Express, the 2008 Gary Fleder bio-pic about Ernie Davis (Rob Brown), the first African-American to win college football’s Heisman Trophy. The film was released in 2008. Dennis Quaid plays Davis’s Syracuse University coach.

“There were 103 locations in the film, none of them in Illinois,” Steinberg says. “But every frame of the film was shot here and I can tell you the tax credit was a big part of Universal’s decision to come here.

“And that was before the opening of the new studio. Just watch what we can do now,” she says.

from Kansas Watchdog.Org

Kansas Reloads Film Production Tax Credit After Two-Year Suspension
By Paul Soutar on June 22, 2011


The film production credit, passed by the 2007 Legislature and signed into law by Gov. Kathleen Sebelius, lets film production companies write off 30 percent of direct production expenditures made in Kansas that are directly attributable to the production of a film in Kansas.”

States have provided nearly $6 billion in film incentives in the last decade and a record 40 states offered $1.4 billion in 2010 according to the report, Movie Production Incentives: Blockbuster Support for Lackluster Policy. “All told, states have provided nearly $6 billion for such programs over the past decade. 2010 will likely stand as the peak year, since many governors and legislators are ending their programs, preferring to use the money for other priorities or leave it with taxpayers.

The Tax Foundation recommends that, “At a minimum, film incentive programs should be required to report how many dollars in incentives were provided per each Full-Time Equivalent job created by qualified productions.”

The film incentive was one of 42 tax incentives that were cut, capped or suspended in 2009 in an effort to balance the state’s budget. The full plate of incentives is back on the table as of Jan. 1, 2011.

Wednesday, June 22, 2011

From the Missouri News Horizon

Missouri eliminates film office, not film tax credits
June 22, 2011
By Brian R. Hook

Missouri Watchdog

The Missouri Film Office is in the process of shutting down after Missouri Gov. Jay Nixon cut its funding, however the film industry will continue to receive support through the Missouri Department of Economic Development.

The governor, who has the authority to restrict expenditures at anytime during the fiscal year to ensure a balanced budget, cut the $175,000 the Missouri General Assembly budgeted for the office for fiscal 2012, starting July 1, earlier this month.

The film office, designed to promote the growth of the video and film industry within Missouri, is expected to spend around $200,000 this fiscal year, ending June 30.

“Continued funding for the administrative costs for staffing a dedicated film office was simply not feasible,” said Missouri Budget Director Linda Luebbering, noting the need to make spending reductions to ensure the budget stays in balance.

While the office will close June 30, the state’s economic development department will continue to work with the film industry, Luebbering said.

Closing the film office is a good first step, said Audrey Spalding, a policy analyst with the Show-Me Institute, a free-market think tank in St. Louis. “But it is by no means substantial reform,” she said. “The state should stop awarding film tax credits.”

Film tax credits have increased in recent years in Missouri, hitting more than $4 million issued in 2009 and more than $3 million issued in 2010, Spalding said.

“Film tax credits are some of the worst tax credits that the state awards,” Spalding said.

“The credits, at best, result in a few temporary jobs in the state.”

The Missouri Tax Credit Review Commission, formed by Nixon last year to present recommendations for reform, said that the state should eliminate film tax credits in its final report issued in late November.

“This tax credit serves too narrow of an industry and fails to provide a positive return on investment to the state,” according to the report, which advised lawmakers on ways to eliminate more than $220 million in tax credits.

The Missouri General Assembly, however, did not pass any tax credit reforms before its session ended in May.

“When film companies desire to shoot a film in the state of Missouri, we will be able to accommodate them as we always have,” said John Fougere, spokesperson for the Missouri Department of Economic Development.

The economic development department has not issued any film tax credits for fiscal 2011. The annual cap on film tax credits in Missouri, if any are issued, will remain at $4.5 million for fiscal 2012, according to Fougere.

The $175,000 in savings may be small relative to the $23.29 billion spending plan for Missouri, but eliminating the film office is a step in the right direction and a way to cut unnecessary bureaucracy, said Christine Harbin, research manager at the American Legislative Exchange Council in Washington D.C.

“If they were serious about solving Missouri’s budget woes, lawmakers in Missouri will eventually cut the film tax credit program entirely and rein in targeted tax credits,” Harbin said. ”Missouri simply can’t afford to subsidize film production. The state government has other bills to pay that are more important than making movies.”

Friday, June 10, 2011

From The Hawaii Reporter

BY TAX FOUNDATION STAFF - We released a new report late yesterday on the recent decline in the number of states offering film tax incentives and the amounts offered:
In 2010, a record 40 states offered $1.4 billion in film and television tax incentives. All told, states have provided nearly $6 billion for such programs over the past decade. 2010 will likely stand as the peak year, since many governors and legislators are ending their programs, preferring to use the money for other priorities or leave it with taxpayers

While film incentive programs were once universally applauded as great economic development tools and tourism boosters, their merits are now being rigorously debated. At a minimum, film incentive programs should be required to report how many dollars in incentives were provided per each Full-Time Equivalent (FTE) job created by qualified productions. Programs should be reviewed periodically for their effectiveness by legislative oversight or a third party.

The report details recent suspensions or eliminations in Arizona, Arkansas, Idaho, Iowa, Kansas, Maine, New Jersey, and Washington. Additionally, programs are facing additional restrictions or scrutiny in Alaska, Connecticut, Georgia, Hawaii, Michigan, Missouri, New Mexico, Rhode Island, and Wisconsin.

On the other hand, officials have extended, protected, or expanded film incentive programs in California, Minnesota, Nevada, Ohio, Pennsylvania, Utah, Virginia, and Wyoming.

Governors Rick Snyder (R-MI), Susanna Martinez (R-NM), and Lincoln Chafee (I-RI) have been particuarly critical. Advocates of their film incentive programs have included Governors Mark Dayton (DFL-MN), John Kasich (R-OH), Tom Corbett (R-PA), and Bob McDonnell (R-VA).

From The New York Post

The camera loves us!
New film & TV production$ a boon for NY

By LEONARD GREENE

New York is ready for its closeup.

The state's expanded film-tax credit lured a record eight new television series to New York's sound stages this year, an entertainment bonanza that will create more than 4,700 industry-related jobs, officials said yesterday.

Anjelica Huston, Christina Ricci, and Debra Messing are just a few of the stars featured on the new shows enticed by the state's 30 percent tax credit, which gives New York a leg up in the competitive battle among states to lure film and TV productions.

The $420 million tax credit, enacted last summer, shores up New York's role as a major player in the film and TV industry, officials said.
Christina Ricci
ap
Christina Ricci

Since January, 70 new movie and TV projects have come to the state, where they will pump more than $1 billion into the economy this year from spending on productions and salaries.

"We are bringing in more productions, creating more jobs, and showcasing our state as a premier destination for filming," said Pat Swinney Kaufman, executive director of the Governor's Office for Motion-Picture and Television Development.

Among the new shows hitting the streets of New York are "Person of Interest," a crime thriller starring Jim Caviezel and Taraji P. Henson, "Unforgettable," about a former police detective with an uncanny memory, and "A Gifted Man," a medical drama featuring a talented surgeon whose ex-wife speaks to him from the dead.

Messing and Huston will star in "Smash," an NBC show similar to "Glee," with a cross-section of characters who come together to stage a Broadway musical about Marilyn Monroe. Ricci will star in ABC's "Pan Am," a 1960s-era drama about pilots and flight attendants of the former airline.

Most of the city's film and TV projects are produced at Steiner Studios in the Brooklyn Navy Yard, and two major facilities in Queens, Silvercup Studios and Kaufman Astoria Studios.

But the good film fortune extends beyond the five boroughs. Schenectady will welcome Bradley Cooper and Ryan Gosling as they film the movie "The Place Beyond the Pines."

Western New York, meanwhile will host seven films, while a growing number of independent producers choose the backdrops of Buffalo, Niagara Falls, and the Finger Lakes.

"When deciding where to bring their projects, producers have to look for the biggest return for their money," said Dana Kuznetzkoff, vice chair of the Producers Guild of America East. "New York is now a first choice when deciding where to film."

Friday, June 3, 2011

From TheTaxFoundation.Org ... The Truth Hurts

June 2, 2011
More States Abandon Film Tax Incentives as Programs’ Ineffectiveness Becomes More Apparent

by Joseph Henchman

Tax Foundation Fiscal Fact No. 272

Film tax credits fail to live up to their promises to encourage economic growth overall and to raise tax revenue. States claim these incentives create jobs, but the jobs created are mostly temporary positions, often transplanted from other states. Furthermore, the competition among states transfers a large portion of potential gains to the movie industry, not to local businesses or state coffers.

In 2010, a record 40 states offered $1.4 billion in film and television tax incentives. All told, states have provided nearly $6 billion for such programs over the past decade. 2010 will likely stand as the peak year, since many governors and legislators are ending their programs, preferring to use the money for other priorities or leave it with taxpayers. Recent eliminations or suspensions:

* Arizona ended its program after 2010 and efforts to renew it have not advanced.[1]
* Arkansas appropriated no funds for its program for 2011.
* Idaho appropriated no funds for its program for 2011.
* Iowa suspended its program in 2009 after widespread fraud and abuse was discovered.[2] Another film producer was sentenced to 10 years in prison this week related to that scandal.[3]
* Kansas has suspended its program.[4]
* Maine appropriated no funds for its program for 2011.
* New Jersey suspended its program,[5] although some legislators are pushing for its reinstatement.[6]
* Washington legislators just dropped their program as part of a budget deal.[7]

That will bring the number of states with programs down to 35 as of next year. Additionally, existing programs are being pared back or challenged:

* Alaska legislators may not renew their program.[8]
* Connecticut reduced the generosity of its credit.[9]
* Georgia's tax review commission recommended eliminating the program.[10]
* Hawaii legislators rejected an effort to expand their program.[11]
* Michigan will greatly reduce its film tax credit as part of a business tax overhaul. Michigan's program was among the most generous, providing a 42% subsidy for qualified film and television productions. Proponents are pushing for its reinstatement but at a less generous level.[12] Gov. Rick Snyder (R) had called for ending the program altogether.[13]
* Missouri's tax credit review commission recommended ending the program.[14]
* New Mexico capped its program,[15] compromising with Gov. Susanna Martinez (R) who had sought to scale back or end it.[16]
* Rhode Island Gov. Lincoln Chaffee (I) is seeking to end that state's program.[17]
* Wisconsin appropriated just $500,000 for its program after concluding that providing tax credits to even a blockbuster production would likely have a negative fiscal impact.[18]

On the other hand, some states are betting more on these programs:

* California's new film tax credit faces some debate over its renewal, but it will likely continue.[19]
* Minnesota Gov. Mark Dayton (DFL) put money for their "Snowbate" program back in the budget,[20] after his predecessor Gov. Tim Pawlenty (R) sought to end the program.[21]
* Some Nevada legislators are pushing to create a film incentive program, which will be tough since the state has no corporate income tax to give a credit from.[22]
* After early indications that he might challenge the program, Ohio Gov. John Kasich (R) sought no changes.[23]
* Pennsylvania Gov. Tom Corbett (R) worked to save the film tax credit from budget cuts.[24]
* Utah made its film tax credit more generous.[25]
* Virginia Gov. Bob McDonnell (R) worked with legislators to add a new film tax credit.[26]
* Wyoming Gov. Matt Mead (R) signed a five-year extension of that state's program.[27]

In short, while film incentive programs were once universally applauded as great economic development tools and tourism boosters, their merits are now being rigorously debated. (Check out this debate that the Midwest is talking about this week.)[28] At a minimum, film incentive programs should be required to report how many dollars in incentives were provided per each Full-Time Equivalent (FTE) job created by qualified productions. Programs should be reviewed periodically for their effectiveness by legislative oversight or a third party.

For more information, see our full report on this topic, "Movie Production Incentives & Film Tax Credits: Blockbuster Support for Lackluster Policy."[29]



Year


States with Film Incentive Program


Incentive Amounts Offered

1999 and earlier


4


$2 million

2000


4


$3 million

2001


4


$1 million

2002


5


$1 million

2003


5


$2 million

2004


9


$68 million

2005


15


$129 million

2006


24


$369 million

2007


33


$489 million

2008


35


$807 million

2009


40


$1.247 billion

2010


40


$1.396 billion

2011


37


$1.299 billion

Source: Tax Foundation calculations.


[1] David Madrid, "Arizona Film Projects in Danger if Tax Incentive Expires," The Arizona Republic, May 26, 2010, http://www.azcentral.com/arizonarepublic/local/articles/2010/05/26/20100526arizona-film-tax-credit.html.

[2] Richard Verrier, "Iowa Film Tax Credit Program Racked by Scandal," Los Angeles Times, January 19, 2011, http://articles.latimes.com/2011/jan/19/business/la-fi-ct-onlocation-20110119.

[3] Joe Barrett, "Tax-Credit Fraud Puts Filmmaker in Prison," Wall Street Journal, May 18, 2011, http://online.wsj.com/article/SB10001424052748704281504576329721447700398.html?mod=googlenews_wsj.

[4] "Film Production Credit," Kansas Department of Revenue, last update October 28, 2010, http://www.ksrevenue.org/taxcredits-film.htm.

[5] Paul Tyahla, "Roll Closing Credits On New Jersey's Film Subsidy," Common Sense Institute of New Jersey, March 3, 2011, http://www.csinj.org/2011/03/roll-final-credits-on-film-subsidy/.

[6] Associated Press, "N.J. Assembly to Vote on Bill Reinstating Tax Credit for Film Industry," NJ.com, January 9, 2011, http://www.nj.com/news/index.ssf/2011/01/nj_assembly_to_vote_on_bill_re_1.html.

[7] Jordan Schrader, "Lawmakers Kill Film, Newspaper Tax Breaks in Waning Hours," Tacoma News Tribune, May 27, 2011, http://www.thenewstribune.com/2011/05/27/1682224/lawmakers-kill-3-industries-tax.html.

[8] Becky Bohrer, "Alaska Film Tax Credit Program Faces Doubts in House," Anchorage Daily News, April 14, 2011, http://www.adn.com/2011/04/14/1809849/film-tax-credit-program-faces.html.

[9] Brian Lockhart, "Budget Tightens Film Credits," Danbury News Times, May 9, 2011, http://www.newstimes.com/news/article/Budget-tightens-film-credits-1371324.php.

[10] Chris Joyner, "Film Industry Pushes to Keep Georgia Tax Credit," Atlanta Journal-Constitution, March 1, 2011, http://www.ajc.com/news/georgia-politics-elections/film-industry-pushes-to-857482.html.

[11] Brian Perry, "Lawmakers Sorry Film Tax Credit on Cutting Room Floor," Maui News, May 14, 2011, http://www.mauinews.com/page/content.detail/id/549416/Lawmakers-sorry-film-tax-credit-on-cutting-room-floor.html?nav=10.

[12] Christopher Brennan, "Effort to Keep Movie Subsidy is Heating Up," Livingston Daily, May 25, 2011, http://www.livingstondaily.com/article/20110525/NEWS01/105250324/Effort-keep-movie-subsidy-heating-up.

[13] Josh Brown, "Two GOP Governors Plan to Spare Film Tax Credits," Washington Times, March 20, 2011, http://www.washingtontimes.com/news/2011/mar/20/two-gop-governors-plan-to-spare-film-tax-credits/.

[14] Kelsey Volkmann, "Tax Credit Cuts Would Save Missouri $220M," St. Louis Business Journal, November 30, 2010, http://www.bizjournals.com/stlouis/news/2010/11/30/missouri-tax-credit-commission-to-make.html.

[15] "$45 Million Cap on New Mexico Film Credit May Help Industry, Not Kill It," Runaway Production Research, March 7, 2011, http://www.stop-runaway-production.com/2011/03/07/satistics-show-45-million-new-mexico-film-incentive-cap-may-help-not-kill-industry/.

[16] "Susana Martinez's Proposal to Scale Back Film Tax Incentives," KRQE News, New Mexico Film, Photography and Music Network, January 12, 2011, http://www.nmseen.us/index.php?do=/Viber/blog/susana-martinez-s-proposal-to-scale-back-film-tax-incentives/.

[17] David Klepper, "Filmmakers Urge RI Not to End Film Tax Credit," Bloomberg Businessweek, March 25, 2011, http://www.businessweek.com/ap/financialnews/D9M6B5O00.htm.

[18] Jack Craver, "Is the Wisconsin Film Tax Credit Worth It?" Isthmus Daily Page, May 5, 2011, http://www.thedailypage.com/daily/article.php?article=33419.

[19] Joseph Henchman, "FilmWorks Blog Criticizes Tax Foundation on Industry's Dependence on Film Tax Credits," Tax Foundation Tax Policy Blog, April 26, 2011, http://www.taxfoundation.org/blog/show/27240.html.

[20] Minnesota Management and Budget, "Governor's Recommendations: Economic Development," http://www.mmb.state.mn.us/doc/budget/narratives/gov11/explore.pdf.

[21] Frank Jossi, "That's a Wrap: Final 'Snowbate' Film Ends Shooting," All Business Finance & Commerce, Mar. 23, 2010, http://www.allbusiness.com/government/government-bodies-offices-legislative/14205508-1.html.

[22] Joe Schoenmann, "Assembly Movie Bill in Danger of Hitting Cutting Room Floor," Las Vegas Sun, May 12, 2011, http://www.lasvegassun.com/news/2011/may/12/movie-bill-danger-hitting-legislatures-cutting-roo/.

[23] Dave Larsen, "Arts Keep 80% of Funding; Film Tax Credits for Movies Stay," Dayton Daily News, March 16, 2011, http://www.daytondailynews.com/news/ohio-news/arts-keep-80-of-funding-film-tax-credits-for-movies-stay--1109011.html.

[24] "Film Tax Credit Saved in Deep Budget Cuts," KDKA Pittsburgh, March 9, 2011, http://pittsburgh.cbslocal.com/2011/03/09/pennsylvania-film-tax-credit-saved/.

[25] Sean P. Means, "Utah Raises Its Motion-Picture Tax Incentive," The Salt Lake Tribune Movie Cricket Blog, March 29, 2011, http://www.sltrib.com/sltrib/blogsmoviecricket/51522539-66/utah-incentive-film-motion.html.csp.

[26] "McDonnell touts film incentives," HamptonRoads.com, June 2010, http://hamptonroads.com/2010/06/mcdonnell-touts-film-incentives.

[27] "Wyoming Film Incentives Extended," Wyoming Film Office Blog, February 17, 2011, http://filmwyoming.blogspot.com/2011/02/wyoming-film-incentives-extended.html.

[28] "Beckmann vs. Albom Slugfest," The Michigan View, May 18, 2011, http://www.detnews.com/article/20110518/MIVIEW/105180360/1467/opinion01/Beckmann-vs.-Albom-slugfest.

[29] Will Luther, "Movie Production Incentives & Film Tax Credits: Blockbuster Support for Lackluster Policy," Tax Foundation Special Report No. 173, January 14, 2010, http://www.taxfoundation.org/publications/show/25706.html.

From MyMotherLode.Com ..... Good News for California

June 02, 2011 06:47 pm
Tina Falco, MML News Reporter

Sacramento, CA-- This week the state Assembly voted to extend incentives for California's entertainment industry for five more years.

$500 million has been approved in additional tax credits to help keep movie making jobs in the state.

"I think it is a great opportunity for Californians because it will provide jobs," said Calaveras County Film Commissioner Lisa Mayo. "But it will also keep a really key industry in California, whereas there have been a lot of out of state filming and even out of country because other people have been offering tax breaks."

According to Assemblyman Felipe Fuentes who argued for the extension, the California Film and Television Tax Credit Program enacted in 2009 has already helped keep $2.2 billion in film and television production and 25,000 crew jobs in California.

The Assembly voted 72-1 to extend the program from 2014 to July 2019. AB 1069 now goes to the state Senate.

Reality 101 from the Alaska Dispatch

Film tax credit extension tabled until 2012

A new report from nonpartisan think tank the Tax Foundation says that states are moving away from film tax credit programs, even as Alaska lawmakers continue to entertain the idea of extending the state's own film tax incentive program.

"Film tax credits fail to live up to their promises to encourage economic growth overall and to raise tax revenue," said the report, released Thursday. The report said that 40 states had active film tax incentive programs in both 2009 and 2010 -- an all-time high -- but 2011 had only 37 states represented, the first decline in participating states since before 1999. That number will fall to 35 by next year, the report said.

“Film incentive programs were once considered great economic development tools and tourism boosters, but their merits have come under considerable doubt,” said Tax Foundation Vice President for Legal & State Projects Joseph Henchman in a press release. “At a minimum, film incentive programs should be audited by a third party to determine effectiveness. We are now seeing that many of the states that have looked into the performance of their own programs have determined them not to be worthwhile.”

During the most recent legislative session, and in the wake of two major Hollywood productions based in Alaska and a spate of Alaska-themed reality television shows, lawmaker Johnny Ellis drafted legislation that would have extended the Alaska film tax incentive program for 10 years and committed $200 million in tax credits to qualifying productions. That legislation passed the Alaska Senate with a unanimous vote. The bill was then tabled by the House until the 2012 following concerns about possible abuse of the program.

As the future of the legislation remains in limbo, the current program has been very appealing to the state of late, with several productions already wrapped and others already showing interest in the state as a possible shooting location. But the new Tax Foundation report could reflect poorly on the program when it is re-examined next year.

Additionally, the report may be painting a bleaker picture than is actually the case: the report mentions that the Alaska Legislature postponed renewal of the program, but doesn't mention that the program had unanimously passed the Senate before being tabled.

Included as bad signs for other state's programs are setting caps on the amount of credits, gubernatorial administrations' opposition to the programs, and a vote in Hawaii not to expand the program in that state.

Meanwhile, eight other states are expanding their programs, demonstrating a wide array of policies regarding film tax incentive programs, varying from state to state. Should Alaska adopt its own extended program during the next legislative session, it will swap Alaska from the "pared back or challenged" category to the "betting more" category.