Michigan: Hollywood of the Midwest?
A few weeks ago, I was visiting with some friends in Ann Arbor and we decided to go to The Black Pearl on Main Street. Once seated, one of my friends (co-writer of this article, actually) asked me if the woman seated two bar stools down from us looked like Courteney Cox Arquette. I turned to look and was stunned – if it wasn’t Cox Arquette, it was definitely a really close look-alike. I thought that there was a good chance that it would be her since I knew that the movie she was starring in, “Scream 4,” had recently been filming in Ann Arbor. Our other friend thought that it wasn’t her; however, when fans started inching closer to her with cameras in tow, we knew that it was. Courtney graciously took pictures with us, and we left The Black Pearl a little bit starstruck.
The question, then, is this – is Michigan becoming the “new Hollywood”? Fellow blogger Jackie at freeismylife.com posed this question in a blog post of hers, and I have to slightly agree with it.
The movie “Flipped,” scheduled for release on August 6th, was partially filmed in Ann Arbor, and ever since last year, a slew of movies have been filming there, including “Betty Ann Waters” (newly re-titled “Conviction”), with Hilary Swank; “Trust,” filmed on the University of Michigan’s North Campus, with David Schwimmer; and, most recently, “Scream 4.” “Conviction” actually put out a call for extras in the area during my spring break in 2009, but alas, I already had a trip with friends scheduled and was unable to participate. Last year, the movie “Whip It” was filmed partially in Ypsilanti, and co-stars Drew Barrymore and Ellen Page were spotted hanging out at a bar in downtown Ypsi. In addition, the movie “The Double” has been filming in Detroit and surrounding areas, which is part of the reason that Martin Sheen was in town and able to do a Q&A session with us after the recent screening of “The Way” in Bloomfield Hills. Richard Gere, the lead actor in “The Double,” was spotted at the Starbucks on Main St. in Ann Arbor as well (I wouldn’t have minded running in to him!), and Cox Arquette’s husband, David Arquette, has been tweeting about Michigan’s glorious sunsets (twitter.com/davidarquette), as apparently him and his wife are renting a condo in Ann Arbor for the duration of the filming of “Scream 4.”
Film companies such as the Weinstein Company (“Scream 4”) have chosen a variety of locations throughout Michigan to yell, “Action!”. “Ann Arbor has been the surprise discovery,” remarks Ken Droz, Michigan Film Office spokesman. Tree Town’s art galleries, scenic banks of the Huron River, night life, and cultural diversity are amongst merely a few of its appetizing aspects.
What propagates this sudden local film boom? Nothing other than the Michigan Film Incentive (MFI,) which provides a large tax credit (up to 42% of the money a film company spends on a production) to film making companies that choose to set up and run shop in “the mitten state.”
A film company’s expenditure must somehow benefit Michigan’s economy in order to qualify for the financial credit. Buildings and land used for on-location filming, in addition to equipment and services, must all be rented, purchased, and provided in-state. Additionally, the MFI mandates a film corporation build a permanent office or studio that hires at least one permanent employee in Michigan. Even if a film company from Hollywood, for instance, opens headquarters in Michigan, it would give local tradespeople revenue under the MFI’s conditions.
Youth in Revolt, scene filmed in Ann Arbor
“When you get 380 million dollars injected into the economy, you’ll see results,” proclaims Droz. On top of movie makers’ local economic stimulation in regards to actual filming and production, actors and crew members alike make expendable purchases ranging from hotel rooms and clothing to fine restaurant dining. Ann Arbor area hotels sold 19,000 room nights to film company related clients in 2009 according to AnnArbor.com. Amongst these spenders are undoubtedly some wealthy and handsomely-tipping production personnel.
Who’d have thought that a movement for increased film production could also boost workers in other fields such as cosmetology and culinary arts? After all, movie actors don’t magically become mythically beautiful. Someone has to employ expertise in concealing their dark circles and crows feet from late nights of filming and after-partying, and they also need to eat, no matter how skinny some of them may appear. Chow Catering of Detroit, which provides all the meals for the film crew of “A Very Harold and Kumar Christmas” is one such benefiting company, as read in The Detroit Free Press.
The think tanks of video game creation ––also a promotional facet of the MFI–- are just barely fired up in state and will likely also spark an influx of “jobs, spawning jobs, spawning jobs,” Droz exclaims. “Once we get new media in place – digital and games – it could be an explosion!”
Upgraded film and computer programs at colleges and other educational institutions naturally tag along with the MFI. “[There is] a large galvanization and effort of university communities amping up their programs for current and future students,” proclaims Droz. Local educational circles have already begun to refurbish departments of film production along with video game design.
The Michigan Creative Film Alliance between Wayne State University, the University of Michigan, and Michigan State University is just one new collaboration with a mission of sustainable local film production.
A recent result of the MFI is the increasing amount of students and workers seeking jobs in and remaining within Michigan. “People that were going to leave aren’t,” says Droz, regarding the MFI’s allure for in-state college students to seek in-state jobs. I know that as a relatively recent University of Michigan grad with a BA, I feel ever-so-slightly more secure about having remained in Michigan.
Michigan being the new “Hollywood,” I’ll believe it when I see – oh, wait, is that Drew Barrymore? Walking up the street with an ice cream cone?
Sunday, August 8, 2010
Saturday, August 7, 2010
Susan Meeker Article for Sun Herald.Com
Colusa Film Commission attracts 1st production
Arts university students use rice field as movie backdrop
Friday, Aug 6 2010, 6:39 pm
By Susan Meeker/Tri-County Newspapers
When it comes to getting a movie filmed in Colusa County, incentives are everything.
It also doesn't hurt to have friends in high places.
That is what Colusa County Film Commission chairwoman Marilyn Kennedy said about bringing the group's first film crew to town since the independent group was formed in June.
Students from the Academy of Art University in San Francisco used a Colusa rice field this week as the backdrop for a short movie called, "I Am Not Vietnamese," based on the poem by Jennifer Vo Le.
It didn't hurt that Kennedy's longtime friend is television and film star Diane Baker ("Diary of Anne Frank," "Journey to the Center of the Earth," "Marnie," "The Net," "The Cable Guy"), who, since 2004, has been the director of acting at the university's School of Motion Pictures and Television.
Baker is also teaching the film class for the summer.
"It was meant to be," Baker said Thursday, at the site of the film, just west of Hunter Road in Colusa. "Marilyn's call came out of the blue."
On Kennedy's invitation, Baker and her summer class jumped at the opportunity to film at a location that evokes a strong image of southeast Asia. Colusa County rice fields were common backdrops for such films as "Dragon Seed," in 1944, staring Katherine Hepburn, a war drama set in China and based on the popular book by Pearl S. Buck.
"It's perfect," said Vo Le, on which her struggle with understanding her Vietnamese heritage is the basis of the film.
Waving her hand to motion the area — a flooded, dark green paddy field, surrounded by rabbit brush and tules and a well-rutted dirt road — Vo Le is instantly reminded of the rural area in Vietnam she visited a year ago.
"It looks very much the same," she said.
What doesn't fit will be wiped away by the magic of movie technology.
"There will be a lot of visual effects," said Kevin Hahn, first assistant camera man, who also plays Vo Le's grandfather in the film. "What doesn't look like Vietnam, will look like Vietnam when we are done. It will be amazing."
When it comes to art, Kennedy and Baker are of the same mind.
"Creativity gives strength and comfort to the human sole," said Kennedy, a former actress, nun and a working psychologist for more than 50 years.
When it comes to the economy, Kennedy and Baker understand that cold, hard cash is what drives business and prosperity.
"When I see a town that can't afford to pave its streets, it breaks my heart," Baker said.
It was enough to set the wheels of Baker's head in motion, envisioning the Sacramento River and Colusa's old Chinatown as potential locations for future work.
In that, the old friends are in agreement.
"My vision is to bring more people to town," Kennedy said. "While they are here, they will eat our food, buy gas, water and ice, and stay in our hotels."
Not since "Huckleberry Finn" and "Trouble Comes to Town," both filmed in Colusa more than 30 years ago, has Hollywood had such an interest in Colusa County.
For the most part, California's film industry has gone to "right to work" states like New York and Arkansas or north to Canada, which offered big tax incentives as enticement, Baker said.
"Incentives have been the name of the game for some time," she added, quoting Oakland Film Commissioner Amy Zims, another of her friends.
Now California is trying to play catch up and filmmakers are once again looking for ideal locations — from San Diego to the Oregon border — for movies, television and documentaries.
On July 30, Gov. Arnold Schwarzenegger announced that the film and television incentives, which were part of last year's budget agreements, achieved its desired goal of keeping scores of film and television productions in California — creating and retaining tens of thousands of jobs and generating about $2 billion in direct spending.
Since 2009, the California Film Commission, now a regional partner with the Colusa County Film Commission, allocated $200 million in tax credits to 77 projects, and another 30 projects are set to receive an additional $100 million in tax credit allocations in 2010, the governor said in a statement.
Together, they are estimated to bring another $2 billion in direct spending to California communities, which includes $736 million in wages paid to "below-the-line" crew members (electricians, grips, drivers, costumers), according to data compiled by the California Film Commission.
"It is the private sector that will bring California's economy back, and our tax incentives are clearly helping employers along the way," Schwarzenegger said. "That's why it's important that we continue to be a partner to employers and not a roadblock."
California Film Commission Executive Director Amy Lemisch believes the program will keep California filmmakers working throughout the state for some time to come.
"The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California," Lemisch said, in a statement. "I am thrilled with how effective this program has been."
Arts university students use rice field as movie backdrop
Friday, Aug 6 2010, 6:39 pm
By Susan Meeker/Tri-County Newspapers
When it comes to getting a movie filmed in Colusa County, incentives are everything.
It also doesn't hurt to have friends in high places.
That is what Colusa County Film Commission chairwoman Marilyn Kennedy said about bringing the group's first film crew to town since the independent group was formed in June.
Students from the Academy of Art University in San Francisco used a Colusa rice field this week as the backdrop for a short movie called, "I Am Not Vietnamese," based on the poem by Jennifer Vo Le.
It didn't hurt that Kennedy's longtime friend is television and film star Diane Baker ("Diary of Anne Frank," "Journey to the Center of the Earth," "Marnie," "The Net," "The Cable Guy"), who, since 2004, has been the director of acting at the university's School of Motion Pictures and Television.
Baker is also teaching the film class for the summer.
"It was meant to be," Baker said Thursday, at the site of the film, just west of Hunter Road in Colusa. "Marilyn's call came out of the blue."
On Kennedy's invitation, Baker and her summer class jumped at the opportunity to film at a location that evokes a strong image of southeast Asia. Colusa County rice fields were common backdrops for such films as "Dragon Seed," in 1944, staring Katherine Hepburn, a war drama set in China and based on the popular book by Pearl S. Buck.
"It's perfect," said Vo Le, on which her struggle with understanding her Vietnamese heritage is the basis of the film.
Waving her hand to motion the area — a flooded, dark green paddy field, surrounded by rabbit brush and tules and a well-rutted dirt road — Vo Le is instantly reminded of the rural area in Vietnam she visited a year ago.
"It looks very much the same," she said.
What doesn't fit will be wiped away by the magic of movie technology.
"There will be a lot of visual effects," said Kevin Hahn, first assistant camera man, who also plays Vo Le's grandfather in the film. "What doesn't look like Vietnam, will look like Vietnam when we are done. It will be amazing."
When it comes to art, Kennedy and Baker are of the same mind.
"Creativity gives strength and comfort to the human sole," said Kennedy, a former actress, nun and a working psychologist for more than 50 years.
When it comes to the economy, Kennedy and Baker understand that cold, hard cash is what drives business and prosperity.
"When I see a town that can't afford to pave its streets, it breaks my heart," Baker said.
It was enough to set the wheels of Baker's head in motion, envisioning the Sacramento River and Colusa's old Chinatown as potential locations for future work.
In that, the old friends are in agreement.
"My vision is to bring more people to town," Kennedy said. "While they are here, they will eat our food, buy gas, water and ice, and stay in our hotels."
Not since "Huckleberry Finn" and "Trouble Comes to Town," both filmed in Colusa more than 30 years ago, has Hollywood had such an interest in Colusa County.
For the most part, California's film industry has gone to "right to work" states like New York and Arkansas or north to Canada, which offered big tax incentives as enticement, Baker said.
"Incentives have been the name of the game for some time," she added, quoting Oakland Film Commissioner Amy Zims, another of her friends.
Now California is trying to play catch up and filmmakers are once again looking for ideal locations — from San Diego to the Oregon border — for movies, television and documentaries.
On July 30, Gov. Arnold Schwarzenegger announced that the film and television incentives, which were part of last year's budget agreements, achieved its desired goal of keeping scores of film and television productions in California — creating and retaining tens of thousands of jobs and generating about $2 billion in direct spending.
Since 2009, the California Film Commission, now a regional partner with the Colusa County Film Commission, allocated $200 million in tax credits to 77 projects, and another 30 projects are set to receive an additional $100 million in tax credit allocations in 2010, the governor said in a statement.
Together, they are estimated to bring another $2 billion in direct spending to California communities, which includes $736 million in wages paid to "below-the-line" crew members (electricians, grips, drivers, costumers), according to data compiled by the California Film Commission.
"It is the private sector that will bring California's economy back, and our tax incentives are clearly helping employers along the way," Schwarzenegger said. "That's why it's important that we continue to be a partner to employers and not a roadblock."
California Film Commission Executive Director Amy Lemisch believes the program will keep California filmmakers working throughout the state for some time to come.
"The enormous interest in our tax credit program shows that a targeted incentive can keep tens of thousands of high-paying jobs in California," Lemisch said, in a statement. "I am thrilled with how effective this program has been."
Thursday, August 5, 2010
From BuzzVee.com, Bicoastal Applause For Incentives
The entertainment community in Hollywood and the big Apple is expressing relief today that New York state has renewed the 30% tax credit on film and television production for another 5 years through 2015. the NYS budget passed last night and newly signed allocates $2.1 billion to the program, with $420 million given out each annum. There’s also $7 million a year set aside for New York-based the post-production and editing industry. Passage of the program came down to the wire: about 18 months ago, Fox’s Fringe packed up and moved to Vancouver because the existing program of NY tax credits was too successful and ran out of funds. More money was sprung for it, but uncertainty lingered over whether the program would be funded long-term so reportedly TV producers sought out other locales with tax incentives. SAG’s National Director of Government Relations and Policy Nancy Fox said, “Lawmakers recognized that these tax credits have been a great boon for the local economy, providing incentives that created thousands of jobs for New York actors, crew members, and other workers affiliated with the entertainment industry. we are extremely grateful to Governor Paterson, Senate Leader Senator Sampson, Speaker Silver and the other legislators who have maintained their support for this program throughout the extended budget approval process.”
Wednesday, August 4, 2010
USA Today Article by LMCullen
USA Today Explores Why Louisiana Was Chosen For Filming Breaking Dawn!
by LMCullen on August 3, 2010
USA Today has a new article explaining the incentives, and the reasoning why Louisiana has been the go to place lately to have movies/TV shows filmed. The Expendables, The Green Latern, The Last Exorcism, The Curious Case of Benjamin Button are among some of the movies that have been recently filmed in Louisiana. The extremely popular HBO show True Blood is also filmed in Louisiana.
Here is what they had to say about Breaking Dawn, and the tax incentives Louisiana is offering to gain such huge films -
Breaking Dawn, the fourth installment in the hugely successful Twilight series, films this year in Baton Rouge.
We’re way ahead of the curve in the New Orleans region,” says Katie Gunnell, interim director of the city’s Office of Film and Television. “The city has seen an incredible bump in applications for 2011 as well.”
Across the state, work is consistent and year-round, despite hurricane season and blazing summer temperatures. “We’ve maintained 20 to 25 productions at any given time during the year,” Stelly says. “We’ve doubled for New York City, Los Angeles, the Northwest, basically Anytown, USA.”
Read more after the break!
“You can get an 1800s look, you can get a Parisian look,” says Todd Lewis, producer of The Chaperone. “You can get suburbs, you can get the country. It’s got a little bit of everything.” His movie, out next year, is one of several Louisiana-based films funded by World Wrestling Entertainment and featuring wrestling stars, in this case Paul “Triple H” Levesque.
The state offers the most competitive economic and tax incentives of any in the country. A system of financial perks was enacted after Hurricane Katrina destroyed $81 billion in property and killed 1,836 people in 2005.
“We approached it like a business, and it keeps (filmmakers) coming back, based on our reliability and stability,” Stelly says. “For every dollar you spend in the state, we’ll give you 30% back (in rebates). And we give you an additional 5% for hiring Louisiana residents on productions.”
Tax incentives can be sold as credits or used to offset personal or corporate income tax, he says.
“As things get more expensive, you have to go wherever you get the budget relief,” Lussier notes. “You can no longer use Mulholland Drive for your backwoods road movie.”
There is also the sense among filmmakers that they are helping an area that sorely needs a hand in bouncing back from one of the worst natural disasters in history.
“Louisiana has been through so much, and I’m glad to be able to make a film there,” says Nicole Kidman, who is shooting the 2011 film Trespass in Shreveport this summer with Nicolas Cage.
“The economy desperately needs the film business,” Lurie says. “And it’s fantastic watching people get employed. We hired a thousand people to be extras and put a couple of hundred bucks in their pockets, and that’s helpful to the economy. The film commission is among the most proactive I’ve ever seen.”
It is great to see Louisiana doing well, and attracting huge films! Especially after the devastation they have gone through over the past few years.
by LMCullen on August 3, 2010
USA Today has a new article explaining the incentives, and the reasoning why Louisiana has been the go to place lately to have movies/TV shows filmed. The Expendables, The Green Latern, The Last Exorcism, The Curious Case of Benjamin Button are among some of the movies that have been recently filmed in Louisiana. The extremely popular HBO show True Blood is also filmed in Louisiana.
Here is what they had to say about Breaking Dawn, and the tax incentives Louisiana is offering to gain such huge films -
Breaking Dawn, the fourth installment in the hugely successful Twilight series, films this year in Baton Rouge.
We’re way ahead of the curve in the New Orleans region,” says Katie Gunnell, interim director of the city’s Office of Film and Television. “The city has seen an incredible bump in applications for 2011 as well.”
Across the state, work is consistent and year-round, despite hurricane season and blazing summer temperatures. “We’ve maintained 20 to 25 productions at any given time during the year,” Stelly says. “We’ve doubled for New York City, Los Angeles, the Northwest, basically Anytown, USA.”
Read more after the break!
“You can get an 1800s look, you can get a Parisian look,” says Todd Lewis, producer of The Chaperone. “You can get suburbs, you can get the country. It’s got a little bit of everything.” His movie, out next year, is one of several Louisiana-based films funded by World Wrestling Entertainment and featuring wrestling stars, in this case Paul “Triple H” Levesque.
The state offers the most competitive economic and tax incentives of any in the country. A system of financial perks was enacted after Hurricane Katrina destroyed $81 billion in property and killed 1,836 people in 2005.
“We approached it like a business, and it keeps (filmmakers) coming back, based on our reliability and stability,” Stelly says. “For every dollar you spend in the state, we’ll give you 30% back (in rebates). And we give you an additional 5% for hiring Louisiana residents on productions.”
Tax incentives can be sold as credits or used to offset personal or corporate income tax, he says.
“As things get more expensive, you have to go wherever you get the budget relief,” Lussier notes. “You can no longer use Mulholland Drive for your backwoods road movie.”
There is also the sense among filmmakers that they are helping an area that sorely needs a hand in bouncing back from one of the worst natural disasters in history.
“Louisiana has been through so much, and I’m glad to be able to make a film there,” says Nicole Kidman, who is shooting the 2011 film Trespass in Shreveport this summer with Nicolas Cage.
“The economy desperately needs the film business,” Lurie says. “And it’s fantastic watching people get employed. We hired a thousand people to be extras and put a couple of hundred bucks in their pockets, and that’s helpful to the economy. The film commission is among the most proactive I’ve ever seen.”
It is great to see Louisiana doing well, and attracting huge films! Especially after the devastation they have gone through over the past few years.
Tuesday, August 3, 2010
Lee Rood's Article in The Des Moines Register Today
Liability for film credits drops
By LEE ROOD
The state's potential revenue loss from tax credits owed moviemakers is shrinking, as investigators winnow a list of productions likely to survive enhanced scrutiny after scandal engulfed Iowa's filmmaking incentive program.
The maximum amount of state-backed tax credits that could still be issued for film projects is around $200 million, new estimates from the Iowa's attorney general's office show. The state's maximum theoretical liability was estimated to be about $330.5 million when the fledgling program crashed last year.
"It's taken a long time, and it's tedious," said Jeffrey Thompson, an assistant state attorney general who is one of the leaders in a multi-agency probe of Iowa's film program. "There is certainly a lot of frustration among moviemakers still, and I can't say it's unjustified. We just want to make sure we don't issue tax credits that are undeserved. We're seeing the full range of possibilities, from straightforward films to others where we're finding problems - which leads us to conclude we're making the right decisions."
In addition, the state still could face lawsuits from moviemakers who say they lost money because of delays resulting from the state's suspension of the film program or claim the state should make good on promises they perceive were made by fired Iowa Department of Economic Development workers, Thompson said.
Five state employees lost their jobs amid allegations of mismanagement, abuse and fraud discovered in one the state's largest economic development programs. Those ousted: the director and deputy director of Iowa Department of Economic Development; former film office chief Tom Wheeler, his direct boss; and the agency's most experienced tax credit specialist.
Three filmmakers have been charged criminally, and Wheeler faces an Oct. 11 trial for nonfelonious misconduct in office.
The scandal erupted last fall after state officials learned two filmmakers had purchased and kept luxury vehicles using the tax-credit program. Lawmakers in 2007 overhauled the program to become the most lucrative of any state nationwide, offering "half-off filmmaking." Projects inundated Wheeler, who was hired originally to market the state to those interested in filming in Iowa.
Reporting since the program's problems first came to light showed it lacked oversight typical in other large, state-run economic development programs and that several state officials besides Wheeler were aware of, and responsible for, serious problems.
Other examples of possible abuses were uncovered, including filmmakers claiming subsidies for expenses in which no cash changed hands and abnormally high prices for other expenses, such as a $1.09 million location fee for the movie "Peacock" in tiny Odebolt.
When Gov. Chet Culver suspended Iowa's film incentives in September, 22 projects were in the process of completing filming and 158 projects worth $504.8 million in spending were registered to move forward.
Here's the rough status of projects as of the end of last week:
- After an auditing process, the state recently approved two small, completed productions for tax credits, bringing to 24 the number completed. The total state tax-credit incentives issued since the program was overhauled is about $32 million.
- Fifty-nine projects once OK'd by the economic development office are no longer in the running for state tax credits, Thompson said. The state revoked registrations for the projects after filmmakers failed to respond to correspondence asking whether they still planned to move ahead.
- About 30 projects that were registered to move forward still don't have contracts. Thompson said the state has notified those filmmakers that the state is ready to proceed with contracts. The maximum liability for tax credits for those is $55 million to $60 million, he said.
- About 45 projects have contracts to make films - and that's where the brunt of the state's liability still lies, to honor promises for extending tax credits. Eleven projects have been completed and have submitted forms seeking tax credits. The maximum estimated tax credits that could be issued is about $20 million, Thompson said. Another 20 to 25 of those could result in $120 million to $125 million maximum in tax credits issued.
Thompson said he had hoped the state would be through the brunt of its investigation by now, but it will take about another six months before the probe is completed. The investigation should be complete by the time the program's suspension is scheduled to be lifted next year, he said.
By LEE ROOD
The state's potential revenue loss from tax credits owed moviemakers is shrinking, as investigators winnow a list of productions likely to survive enhanced scrutiny after scandal engulfed Iowa's filmmaking incentive program.
The maximum amount of state-backed tax credits that could still be issued for film projects is around $200 million, new estimates from the Iowa's attorney general's office show. The state's maximum theoretical liability was estimated to be about $330.5 million when the fledgling program crashed last year.
"It's taken a long time, and it's tedious," said Jeffrey Thompson, an assistant state attorney general who is one of the leaders in a multi-agency probe of Iowa's film program. "There is certainly a lot of frustration among moviemakers still, and I can't say it's unjustified. We just want to make sure we don't issue tax credits that are undeserved. We're seeing the full range of possibilities, from straightforward films to others where we're finding problems - which leads us to conclude we're making the right decisions."
In addition, the state still could face lawsuits from moviemakers who say they lost money because of delays resulting from the state's suspension of the film program or claim the state should make good on promises they perceive were made by fired Iowa Department of Economic Development workers, Thompson said.
Five state employees lost their jobs amid allegations of mismanagement, abuse and fraud discovered in one the state's largest economic development programs. Those ousted: the director and deputy director of Iowa Department of Economic Development; former film office chief Tom Wheeler, his direct boss; and the agency's most experienced tax credit specialist.
Three filmmakers have been charged criminally, and Wheeler faces an Oct. 11 trial for nonfelonious misconduct in office.
The scandal erupted last fall after state officials learned two filmmakers had purchased and kept luxury vehicles using the tax-credit program. Lawmakers in 2007 overhauled the program to become the most lucrative of any state nationwide, offering "half-off filmmaking." Projects inundated Wheeler, who was hired originally to market the state to those interested in filming in Iowa.
Reporting since the program's problems first came to light showed it lacked oversight typical in other large, state-run economic development programs and that several state officials besides Wheeler were aware of, and responsible for, serious problems.
Other examples of possible abuses were uncovered, including filmmakers claiming subsidies for expenses in which no cash changed hands and abnormally high prices for other expenses, such as a $1.09 million location fee for the movie "Peacock" in tiny Odebolt.
When Gov. Chet Culver suspended Iowa's film incentives in September, 22 projects were in the process of completing filming and 158 projects worth $504.8 million in spending were registered to move forward.
Here's the rough status of projects as of the end of last week:
- After an auditing process, the state recently approved two small, completed productions for tax credits, bringing to 24 the number completed. The total state tax-credit incentives issued since the program was overhauled is about $32 million.
- Fifty-nine projects once OK'd by the economic development office are no longer in the running for state tax credits, Thompson said. The state revoked registrations for the projects after filmmakers failed to respond to correspondence asking whether they still planned to move ahead.
- About 30 projects that were registered to move forward still don't have contracts. Thompson said the state has notified those filmmakers that the state is ready to proceed with contracts. The maximum liability for tax credits for those is $55 million to $60 million, he said.
- About 45 projects have contracts to make films - and that's where the brunt of the state's liability still lies, to honor promises for extending tax credits. Eleven projects have been completed and have submitted forms seeking tax credits. The maximum estimated tax credits that could be issued is about $20 million, Thompson said. Another 20 to 25 of those could result in $120 million to $125 million maximum in tax credits issued.
Thompson said he had hoped the state would be through the brunt of its investigation by now, but it will take about another six months before the probe is completed. The investigation should be complete by the time the program's suspension is scheduled to be lifted next year, he said.
Monday, August 2, 2010
A Flickering Light Comes Into Sight
I received word from a dear colleague today that Senator Bill Dotzler, Jr. is still planning to form a working group to redesign the present Iowa film bill which has a terrible three year suspension as a feature. My source said the senator wishes to start work by the end of this month and has spoken with some of his fellow Iowa legislators regarding this.
gino
Sunday, August 1, 2010
From Digital Cinema Report
North Carolina Broadens Film Tax Incentives
by Nick Dager
North Carolina Gov. Beverly Perdue has signed a new 25 percent film incentive into law that took effect last month. The new legislation broadens qualifying expenses including, but not limited to, labor fringe benefits (including health, pension and welfare contributions); per diems, stipends and living expenses; most importantly, it raises the overall project eligibility cap from $7.5 million to $20 million per project.
The new legislation also repeals the corporate income tax on incentives taken by production companies.
Productions can begin taking advantage of this incentive immediately and file on their 2011 taxable year return. Gov. Perdue visited Los Angeles film executives in March to promote the legislation. The motion picture industry brought more than $326 million in direct spending to North Carolina over the past three years.
“North Carolina is a top destination for film and television. It turns the economic engines in our state. Our incentive is strong and competitive because we’re serious about bringing business to North Carolina. We have excellent crew here. They’re considered among the best in the business,” says Aaron Syrett, director of the North Carolina Film Office.
During the past 27 years, North Carolina has been home to more than 800 films and 15 television series. Most recently North Carolina served as the backdrop for Talladega Nights: The Ballad of Ricky Bobby, Leatherheads, and Nights in Rodanthe.
For six seasons, North Carolina was home to the WB's Dawson's Creek. Last month, the CW's One Tree Hill started filming its eighth season in the state.
by Nick Dager
North Carolina Gov. Beverly Perdue has signed a new 25 percent film incentive into law that took effect last month. The new legislation broadens qualifying expenses including, but not limited to, labor fringe benefits (including health, pension and welfare contributions); per diems, stipends and living expenses; most importantly, it raises the overall project eligibility cap from $7.5 million to $20 million per project.
The new legislation also repeals the corporate income tax on incentives taken by production companies.
Productions can begin taking advantage of this incentive immediately and file on their 2011 taxable year return. Gov. Perdue visited Los Angeles film executives in March to promote the legislation. The motion picture industry brought more than $326 million in direct spending to North Carolina over the past three years.
“North Carolina is a top destination for film and television. It turns the economic engines in our state. Our incentive is strong and competitive because we’re serious about bringing business to North Carolina. We have excellent crew here. They’re considered among the best in the business,” says Aaron Syrett, director of the North Carolina Film Office.
During the past 27 years, North Carolina has been home to more than 800 films and 15 television series. Most recently North Carolina served as the backdrop for Talladega Nights: The Ballad of Ricky Bobby, Leatherheads, and Nights in Rodanthe.
For six seasons, North Carolina was home to the WB's Dawson's Creek. Last month, the CW's One Tree Hill started filming its eighth season in the state.
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