After signing legislation to give tax incentives to film productions , Gov. Bob McDonnell hands the pen to Sen. Louise Lucas of Portsmouth. Lucas sponsored two bills. (Amanda Lucier | The Virginian-Pilot)
At the beginning
In 1898, the American Mutoscope and Biograph Co. shot scenes of the shipyards and the launch of several Navy ships in Norfolk and Newport News for one of the first moving pictures ever recorded.
That did not please Thomas Alva Edison, whose rival company was shooting the 6th Cavalry up at Fort Myer in Arlington at the same time.
In 1915, a movie called "The Colored American Winning His Suit" was shot by the Frederick Douglass Film Co. in the state. It was the first feature-length film produced and acted by African Americans.
Over the years, Virginia managed an occasional starring role, in films like "Brother Rat" at a military school, starring future president Ronald Reagan (1938), D.W. Griffith's "America," with, among others, Lionel Barrymore (1924), and "Rollercoaster," set in Ocean View (1977).
Ones that got away
"Cold Mountain" actually set (in the novel) in Virginia, ran off to, of all places, Romania. (2003)
"Secretariat," based on the true story of the Virginia-born racehorse, filmed instead in Kentucky and Louisiana. (2010)
"Transformers 2" almost brought its $200 million budget to Hampton Roads. Rita McClenny, head of the state's film office, said the moviemakers were taken with the coal piers in Newport News. But its 24-hour schedule left no off-hours for filming, and the movie went to Philadelphia. (2009)
Coming this way?
Here is a sampling of projects showing an interest in Virginia:
"The Wettest County in the World," feature film based on a true story set in Franklin County.
"Lincoln," feature film based on the life of Abraham Lincoln, produced by Steven Spielberg.
"Undaunted Courage," a seven-part HBO miniseries to chronicle the Lewis and Clark expedition.
"Big Stone Gap," feature film based on the novel by Wise County native Adriana Trigiani. The author insists that the movie will be shot in Virginia or not at all. She plans to direct it herself.
"1776," television movie based on the David McCullough book, produced by HBO and Tom Hanks.
"American Princess," set in the 1700s, a young English peasant dreams of being a princess but is sent to America as an indentured servant.
"Billionaire's Vinegar." Will Smith is producing this fact-based story of the scandal surrounding an auctioned cache of wine bottles purported to have been owned by Thomas Jefferson.
- Mal Vincent, The Pilot
Poll
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Background: Virginia aims to bring home Hollywood bacon
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By Mal Vincent
The Virginian-Pilot
© July 3, 2010
Bring on the stars! Bring on the glamour! But, most of all, bring on the jobs.
That's Virginia's message to Hollywood.
Virginia's first tax credit incentives to encourage production of motion pictures in the state went into effect this week. They come after some 30 years of lobbying by supporters.
Gov. Bob McDonnell signed two bills. One provides a tax break for filmmakers who spend money here, plus credit for hiring state workers. The other increased tenfold the amount of grant money available to qualifying filmmakers, from $200,000 to $2 million. The state will spend a total of $4.5 million on the measures.
The incentives come as Virginia faces cuts in services to plug budget shortfalls, but legislators say the state is not giving away money.
The Virginia Film Office estimates that for every $1 spent in Virginia on movie production, the state receives $14 in revenue. The office, located in Richmond, says film productions employed 4,000 Virginians and spent about $378 million on hotels, labor and other goods in the state in 2008, which the film office regards as an "off" year.
Sen. Louise Lucas, D- Portsmouth, who sponsored the bills, said Virginia can't afford to lose the industry to other states. "We get a better return for this investment than any other I can think of," she said. "It's, simply put, more bang for the buck."
The Virginia Production Alliance, an organization of potential movie workers, for years has pushed for tax credits as a way to build the state's film industry.
"No one used to even talk to us, or to the state," said Terry Stroud, chairman of the alliance. "Two past bills ended in failure. The Senate was particularly opposed because of two words: tax credits."
Stroud said the alliance and others finally convinced legislators that credits could be structured in a way that ensured Virginia got a return on its investment.
Lucas introduced the successful bills in December. Both she and Stroud pointed to the governor's support and the bills' rallying cry of "Jobs!" as reasons for their passage.
To qualify for incentives, a production must film in state, hire Virginians and meet other requirements. Shooting in an "economically distressed" area can increase incentives, as can hiring Virginians as first-time movie employees. Tax breaks can go as high as 20 percent.
The state previously waived taxes on purchase of film-related products, like scripts or supplies for sets, and extended hotel stays. In most cases, state-owned locations can be photographed free of charge. Most incentives are paid after production wraps.
It is likely the new incentives will help the state attract documentaries or projects with budgets of less than $10 million, said Jeff Frizzell, commissioner of the Hampton Roads Film office.
Virginia can offer benefits beyond the tax incentives, such as cheaper labor, he said. "In Virginia, a producer does not have to hire union. Taxes are a little cheaper. Gas and hotels are a bargain, compared to some states. We encourage them to compare and then our incentives might actually be more than is on paper."
The incentives have come at a time when the industry is doing well, said Rita McClenny, head of Virginia's Film Office. She noted that PricewaterhouseCoopers has estimated that the business will grow by at least 6 percent in the next five years.
"It's difficult to find a business that is that secure in these times," she said.
Economist Mark Robyn of the Tax Foundation, a nonpartisan research group, is a doubter. He said states are engaged in an escalating bidding war "to win over a marginal amount of business.... Filmmakers bid states against one another and reap the benefit."
More than 40 states offer film incentives, and many have better deals than Virginia. The same goes for countries like Canada, where Toronto can double for New York City, and eastern European nations like the Czech Republic and Lithuania.
To remain competitive, North Carolina approved tax credits in 2006. The change helped the state land feature films like George Clooney's "Leatherheads" and "Nights in Rodanthe," with Richard Gere and Diane Lane.
The state already had been the setting for "The Color Purple," "Days of Thunder" and the network TV series "Dawson's Creek," located in Wilmington.
In Georgia, state officials in 2008 increased the tax credit to 30 percent for businesses filming in the state. Movie production has doubled since, according to the state's film commissioner. Two movies filmed there, "Zombieland" and "The Blind Side," both topped the box office.
"Given the economic times, this is one of the few positives for the state - an industry that is actually growing," said Bill Thompson, the Georgia film commission director.
Michigan looked to the tax credits as a way to lure business and boost employment. It offers one of the most generous incentives in the country - a tax rebate up to 42 percent. Its film office says moviemakers spent about $223.6 million there last year, up from $125 million in 2008.
At least one Michigan representative is not convinced that the film industry is a boon to the state. Tom McMillin has grumbled publicly that his state's film production tax breaks cost too much. Michigan will pay filmmakers $165 million this year, he said.
"The average job for a Michigan employee of these people is 28 days. This is a transient business," he said. "They are not building studios here. They are taking the money and leaving."
Michigan's film office said several projects are under way to build studios and other facilities in the state.
Other states, including Iowa and Kansas, are getting out of the movie race.
Virginia has enjoyed cinematic success without incentives, especially when it comes to historical films.
The television miniseries "John Adams" brought some $80 million to the state, Frizzell said. "The New World" was filmed around Jamestown and Yorktown.
But several movies have been lost to states that offered better perks.
Virginia Beach's Derrick Borte had hoped to film in upscale subdivisions of his home city, but he said Georgia offered tax breaks that he couldn't afford to ignore. His movie, "The Joneses," with Demi Moore and David Duchovny released earlier this year, received favorable reviews.
Virginia Beach filmmaker Matthew Fine said he looked at locations in Virginia for "Cherry," a coming-of-age comedy directed and written by his brother, Jeff. But Michigan's tax rebate paid for roughly one-third of his budget.
McClenny has long touted the state's scenery, from beaches to mountains, but when she couldn't offer monetary incentives, she said, filmmakers often ended the conversation.
"The real heartbreaker," McClenny said, was "Cold Mountain," the Civil War saga based on the award-winning novel by Charles Frazier that was set in Virginia.
"We worked on it for two to three years," she said. "We had the scenery - everything. We thought we had a great chance. Then came the telephone call. It was going to be filmed in Romania. When it came down to the final decision, it was a matter of dollars and cents."
The 2003 movie starred Nicole Kidman, Jude Law and Renée Zellweger.
Virginia landed one scene, shot at Carter's Grove Plantation near Williamsburg with phony cotton and the oxen that usually work Duke of Gloucester Street in Williamsburg.
The state lost more than prestige, Frizzell said.
"The return can be amazing," he said. "With a big movie like 'Mission: Impossible 3,' which shot here briefly at the Chesapeake Bay Bridge-
Tunnel, they spend $250,000 a day and think nothing of it.
"Think - $250,000 a day. Landing one of those films for a long run would be the goal of all time."
Saturday, July 3, 2010
Friday, July 2, 2010
Success Story, But NOT In Iowa: NY Post Article
State finds $2.1B for TV tax incentive
POST STAFF WRITER
Last Updated: 5:12 AM, July 2, 2010
Posted: 1:13 AM, July 2, 2010
The New York State Legislature has agreed on a huge $2.1-billion incentive to keep TV and movie production from leaving the state.
Lawmakers in Albany were expected to vote on the allocation late yesterday.
The tax allocation is spread out over five years -- $420 million per year to cover a 30 percent tax credit to film and TV companies.
NBC's "Law & Order: SVU," which previously filmed in North Jersey, is expected to move to Manhattan to take advantage of tax incentives. Jersey, which is in the throes of its own budget crisis, cut off its production subsidy last month.
Connecticut is actively trying to lure TV production there with tax breaks and has already landed such TV shows as "Maury" and "The Jerry Springer Show."
The state gives out the tax breaks with the idea that it ultimately brings jobs and spending here far in excess of the original outlay.
The incentives are popular with producers.
The $350-million production incentives allocated for this year were exhausted months ago, according to The Hollywood Reporter.
State bills must sit for three days before being eligible for a vote, so the actual vote on allocating the funds could be put off until after the July 4 holiday.
The state Assembly and Senate were originally supposed to vote on the new allocations by last April 1, but the state's budget crisis and dithering in Albany resulted in a nearly three-month delay.
Parts of the budget have been passed in recent days.
Gov. Paterson's office has said the new tax incentives should "enhance the state's return on investment," according to The Hollywood Reporter.
Read more: http://www.nypost.com/p/entertainment/tv/state_finds_for_tv_tax_incentive_q8RUnkhDI5Mz7Dc83nFZnL#ixzz0sWUgiTts
POST STAFF WRITER
Last Updated: 5:12 AM, July 2, 2010
Posted: 1:13 AM, July 2, 2010
The New York State Legislature has agreed on a huge $2.1-billion incentive to keep TV and movie production from leaving the state.
Lawmakers in Albany were expected to vote on the allocation late yesterday.
The tax allocation is spread out over five years -- $420 million per year to cover a 30 percent tax credit to film and TV companies.
NBC's "Law & Order: SVU," which previously filmed in North Jersey, is expected to move to Manhattan to take advantage of tax incentives. Jersey, which is in the throes of its own budget crisis, cut off its production subsidy last month.
Connecticut is actively trying to lure TV production there with tax breaks and has already landed such TV shows as "Maury" and "The Jerry Springer Show."
The state gives out the tax breaks with the idea that it ultimately brings jobs and spending here far in excess of the original outlay.
The incentives are popular with producers.
The $350-million production incentives allocated for this year were exhausted months ago, according to The Hollywood Reporter.
State bills must sit for three days before being eligible for a vote, so the actual vote on allocating the funds could be put off until after the July 4 holiday.
The state Assembly and Senate were originally supposed to vote on the new allocations by last April 1, but the state's budget crisis and dithering in Albany resulted in a nearly three-month delay.
Parts of the budget have been passed in recent days.
Gov. Paterson's office has said the new tax incentives should "enhance the state's return on investment," according to The Hollywood Reporter.
Read more: http://www.nypost.com/p/entertainment/tv/state_finds_for_tv_tax_incentive_q8RUnkhDI5Mz7Dc83nFZnL#ixzz0sWUgiTts
Wednesday, June 30, 2010
Poised In The Shade For Battle
Jay Villwock and I are poised in the starting blocks, rarin' to go, anxious to get the film program back, but until Iowa Senator Bill Dotzler, Jr. forms his study group comprised of folks from the movie family in Iowa, there's not much we can do.
Jay and I, as well as our friends, Dave Thrasher, John and Kim Busbee, plus fellow actors Neil Wells and John Bush, know that the present film bill in place with a three year suspension will be replaced by a new bill with no suspension at all, but only if Senator Dotzler comes through for us.
I get a sinking feeling when I drive by Hoyt Sherman Place, where I got to play a butler in "Janie Jones", or when I pass other locations of movies shot here in Iowa.
Today I passed a huge building that nearly became a sound studio for a major film production company. That complex is empty, and several other such buildings that were slated to become sound studios around the state are empty as well.
We in the Iowa movie family need to stay vigilant and we need to become actively involved in the next Iowa legislative session when it reconvenes next January. Prepare now. Write to members of the Iowa legislature. Their email contact info is avaiable on the web.
gene l. hamilton
Tuesday, June 29, 2010
Article by Val Prevish
By: Val Prevish, 6/29/2010
Producer Jim Amatulli can rest a little easier as he starts production in Cincinnati on his new movie, "Life After," knowing that when the film reaches the box office he will break even $1.2 million sooner thanks to Ohio's new film tax credit.
"The reality is filmmaking is a risky business," says Amatulli, who says his roughly $5 million budget allowed him a $1.2 million credit. "Tax incentives can help you get a return on your investment. It can make a big difference."
The film industry is undergoing a radical shift as more production companies move their projects out of traditional strongholds such as California and into up and coming locations that offer aggressive tax incentives to get their business. Tempting moviemakers to leave Hollywood and produce their films in other states and countries has become competitive sport among governments looking to enhance their own economies and increase opportunities for employment.
Ohio jumped into the action last year when the state enacted a refundable tax credit of up to $5 million per movie, 35 percent of wages for Ohio cast and crew and 25 percent for non-resident wage and non-wage expenditures. It is capped at $30 million over 2010 and 2011. The new incentives have already caught the attention of filmmakers, says Jeremy Henthorn, director of the Ohio Film Office. This year, expenditures in the state from film production are projected to be more than $31 million. That's a significant increase over previous years before the tax credit was enacted. Six film projects are under way in Ohio, one each in Cincinnati and Akron, and four in Cleveland.
"Every month the number of inquiries increases about new movies being made here," says Henthorn. "Before, you might see a few movies every couple of years."
David Lombardi, a University of Cincinnati DAAP graduate and Northside resident is a freelance digital effects artist and supervisor. Lombardi says that film producers don't make a business move these days without checking on the financial incentives offered in the location they want to film.
"Not only are they ready to take advantage (of tax credits), they look for it," he says. "It's been happening for years."
Aside from money considerations, however, Cincinnati is also fortunate in other ways that give it additional appeal to movie producers, says Lombardi.
"I think the talent base is here," he says, "and you have a good range of locations from urban to rural. Topographically this area is very diverse."
Aymie Majerski, executive producer at Barking Fish Entertainment based in northern Kentucky, says that due to a thriving corporate film industry here, Cincinnati is home to a diverse talent pool of production crew professionals that can help it to attract filmmakers. Majerski just completed a documentary about the career of Pete Rose titled, "4192: The Crowning of the Hit King," which premiers here July 14. At least 90 percent of the movie was filmed in Cincinnati.
She says Cincinnati has unfortunately lost valuable film professionals in the past to cities such as New York and L.A., but she hopes that will change now.
"Sadly, we've lost a lot of talent to the West and East coasts. The incentives offer more chances of keeping those people here."
Majerski says Cincinnati has seen a lapse in moviemakers' interest in the area and she feels the tax incentives may very well reverse that as well.
"That's the reason we haven't had a major motion picture filmed here since 'Traffic,'" (the 2000 blockbuster about drug trafficking in the U.S. and Mexico that was partially shot in Cincinnati) she says of the lack of a tax incentive before 2009. Now that the financial incentives are in place, she hopes movie producers will come back.
"I would like for the major studios and independent filmmakers to give Cincinnati a serious look," she says. "I want them to know that if they start to negotiate deals to work here that the whole community would welcome them with open arms."
Greater Cincinnati & Northern Kentucky Film Commision Director Kristin Irwin says the bottom line is that moviemaking is big business and Ohio and its communities should be as competitive as possible to attract it.
"Film production is an economic development tool that cities can't ignore," she says. "When jobs are needed this is too important to pass up."
Check out our Soapbox video revisiting locations from the feature film "Traffic" shot in Cincinnati and released in 2000.
Producer Jim Amatulli can rest a little easier as he starts production in Cincinnati on his new movie, "Life After," knowing that when the film reaches the box office he will break even $1.2 million sooner thanks to Ohio's new film tax credit.
"The reality is filmmaking is a risky business," says Amatulli, who says his roughly $5 million budget allowed him a $1.2 million credit. "Tax incentives can help you get a return on your investment. It can make a big difference."
The film industry is undergoing a radical shift as more production companies move their projects out of traditional strongholds such as California and into up and coming locations that offer aggressive tax incentives to get their business. Tempting moviemakers to leave Hollywood and produce their films in other states and countries has become competitive sport among governments looking to enhance their own economies and increase opportunities for employment.
Ohio jumped into the action last year when the state enacted a refundable tax credit of up to $5 million per movie, 35 percent of wages for Ohio cast and crew and 25 percent for non-resident wage and non-wage expenditures. It is capped at $30 million over 2010 and 2011. The new incentives have already caught the attention of filmmakers, says Jeremy Henthorn, director of the Ohio Film Office. This year, expenditures in the state from film production are projected to be more than $31 million. That's a significant increase over previous years before the tax credit was enacted. Six film projects are under way in Ohio, one each in Cincinnati and Akron, and four in Cleveland.
"Every month the number of inquiries increases about new movies being made here," says Henthorn. "Before, you might see a few movies every couple of years."
David Lombardi, a University of Cincinnati DAAP graduate and Northside resident is a freelance digital effects artist and supervisor. Lombardi says that film producers don't make a business move these days without checking on the financial incentives offered in the location they want to film.
"Not only are they ready to take advantage (of tax credits), they look for it," he says. "It's been happening for years."
Aside from money considerations, however, Cincinnati is also fortunate in other ways that give it additional appeal to movie producers, says Lombardi.
"I think the talent base is here," he says, "and you have a good range of locations from urban to rural. Topographically this area is very diverse."
Aymie Majerski, executive producer at Barking Fish Entertainment based in northern Kentucky, says that due to a thriving corporate film industry here, Cincinnati is home to a diverse talent pool of production crew professionals that can help it to attract filmmakers. Majerski just completed a documentary about the career of Pete Rose titled, "4192: The Crowning of the Hit King," which premiers here July 14. At least 90 percent of the movie was filmed in Cincinnati.
She says Cincinnati has unfortunately lost valuable film professionals in the past to cities such as New York and L.A., but she hopes that will change now.
"Sadly, we've lost a lot of talent to the West and East coasts. The incentives offer more chances of keeping those people here."
Majerski says Cincinnati has seen a lapse in moviemakers' interest in the area and she feels the tax incentives may very well reverse that as well.
"That's the reason we haven't had a major motion picture filmed here since 'Traffic,'" (the 2000 blockbuster about drug trafficking in the U.S. and Mexico that was partially shot in Cincinnati) she says of the lack of a tax incentive before 2009. Now that the financial incentives are in place, she hopes movie producers will come back.
"I would like for the major studios and independent filmmakers to give Cincinnati a serious look," she says. "I want them to know that if they start to negotiate deals to work here that the whole community would welcome them with open arms."
Greater Cincinnati & Northern Kentucky Film Commision Director Kristin Irwin says the bottom line is that moviemaking is big business and Ohio and its communities should be as competitive as possible to attract it.
"Film production is an economic development tool that cities can't ignore," she says. "When jobs are needed this is too important to pass up."
Check out our Soapbox video revisiting locations from the feature film "Traffic" shot in Cincinnati and released in 2000.
Sunday, June 27, 2010
From Mlive.com
Nancy Crawley: Proponents of film tax credits in Michigan should welcome scrutiny to validate incentives' value
Published: Sunday, June 27, 2010, 5:50 AM
Nancy Crawley | The Grand Rapids Press Nancy Crawley | The Grand Rapids Press
When West Michigan's film industry gathered last week for the announcement of a new film business, insiders lauded the job-creating engine movies can be.
Randall Emmett said opening his Grand Rapids Film and Services shows Michigan's film tax credits work despite recent headlines about a questionable project.
He was referring to news of an attorney general's investigation into local movie studio, Hangar42's application for $10 million in tax credits.
Others also extolled the virtues of incentives -- which pay film makers up to 42 percent of in-state production costs -- while tsk-ing about "negative" stories.
But those who want to see more Hollywood glamour in town might first consider Iowa where incensed lawmakers have suspended its film tax credits.
To keep Michigan's incentives a good deal for taxpayers -- whose Treasury after all is being tapped -- those people should welcome rigorous scrutiny. Those credits, the most generous in the country, will survive only if they keep taxpayers' confidence.
And frankly, that is getting shakier. Almost weekly there are efforts to dilute or eliminate them.
So, what happened with Iowa's "Half Price Filmmaking"?
Lax oversight of a program that covered 50 percent of production costs led to revelations of absurd spending, state officials fired and movie producers criminally charged.
Specifically, an audit last October found one director bought a $61,000 Mercedes Benz and another a $67,000 Range Rover and a $1,600 feather bed, all with the help of credits.
Auditors also found altered contracts and filmmakers who claimed millions of dollars for product-placement that cost nothing.
The governor suspended the program the next day, saying "Iowans will not be taken for suckers."
The state economic development director resigned. The film office manager was fired and charged with misconduct. This month prosecutors filed a dozen felony charges against moviemakers.
Those who oppose the program called for an end to it.
In Michigan, film office director Janet Lockwood said there are many safeguards built into this state's process. "What happened in Iowa could never happen here."
Her office did initially approve the Hangar42 application for an infrastructure film tax credit, subject to an audit when finished. But a watch-dog group, the Mackinac Center said, hold on, why do the studio owners claim a $45 million investment in an old factory that was for sale a few weeks earlier for $9.8 million?
Since then, the application has been held up, the attorney general is investigating and lawmakers are busy drafting bills to amend the system.
The dust-up gives critics another reason for junking the incentives, particularly as a state budget deficit looms. Kansas did that and New Jersey is considering it.
So those who want to build a field of dreams here should say, first of all, let's ensure taxpayers get everything they should -- legitimate, job-producing projects. That's how you keep the glamour and glitz on the silver screen.
Published: Sunday, June 27, 2010, 5:50 AM
Nancy Crawley | The Grand Rapids Press Nancy Crawley | The Grand Rapids Press
When West Michigan's film industry gathered last week for the announcement of a new film business, insiders lauded the job-creating engine movies can be.
Randall Emmett said opening his Grand Rapids Film and Services shows Michigan's film tax credits work despite recent headlines about a questionable project.
He was referring to news of an attorney general's investigation into local movie studio, Hangar42's application for $10 million in tax credits.
Others also extolled the virtues of incentives -- which pay film makers up to 42 percent of in-state production costs -- while tsk-ing about "negative" stories.
But those who want to see more Hollywood glamour in town might first consider Iowa where incensed lawmakers have suspended its film tax credits.
To keep Michigan's incentives a good deal for taxpayers -- whose Treasury after all is being tapped -- those people should welcome rigorous scrutiny. Those credits, the most generous in the country, will survive only if they keep taxpayers' confidence.
And frankly, that is getting shakier. Almost weekly there are efforts to dilute or eliminate them.
So, what happened with Iowa's "Half Price Filmmaking"?
Lax oversight of a program that covered 50 percent of production costs led to revelations of absurd spending, state officials fired and movie producers criminally charged.
Specifically, an audit last October found one director bought a $61,000 Mercedes Benz and another a $67,000 Range Rover and a $1,600 feather bed, all with the help of credits.
Auditors also found altered contracts and filmmakers who claimed millions of dollars for product-placement that cost nothing.
The governor suspended the program the next day, saying "Iowans will not be taken for suckers."
The state economic development director resigned. The film office manager was fired and charged with misconduct. This month prosecutors filed a dozen felony charges against moviemakers.
Those who oppose the program called for an end to it.
In Michigan, film office director Janet Lockwood said there are many safeguards built into this state's process. "What happened in Iowa could never happen here."
Her office did initially approve the Hangar42 application for an infrastructure film tax credit, subject to an audit when finished. But a watch-dog group, the Mackinac Center said, hold on, why do the studio owners claim a $45 million investment in an old factory that was for sale a few weeks earlier for $9.8 million?
Since then, the application has been held up, the attorney general is investigating and lawmakers are busy drafting bills to amend the system.
The dust-up gives critics another reason for junking the incentives, particularly as a state budget deficit looms. Kansas did that and New Jersey is considering it.
So those who want to build a field of dreams here should say, first of all, let's ensure taxpayers get everything they should -- legitimate, job-producing projects. That's how you keep the glamour and glitz on the silver screen.
Saturday, June 26, 2010
by PA State Rep. Paul Costa
June 15, 2010
Pennsylvania needs Film Tax Credit
By Rep. Paul Costa
The glamour generally associated with the film industry disguises the fact that "making movies" is a business. However, it is a $1.4 billion dollar industry and the film tax credit may be one of the solutions to help Pennsylvania's economy recover and thrive.
The return on investment (ROI) for the film industry is in the top 10 percent of all industries in Pennsylvania. Currently 41 states offer some form of a film tax credit program and ours has become the standard.
According to the Legislative Budget and Finance Committee, in 2007 the motion picture industry revenues in Pennsylvania reached $948 million and generated economic impact of nearly $1.9 billion.
Independent local auditors have confirmed that film productions have spent $378 million in Pennsylvania since 2007, when the program was created. Of that amount, $100 million went directly into southwestern Pennsylvania's economy. If you add the economic benefit of those productions and the three-year economic effect of the film tax credit in southwestern Pennsylvania alone you will see that is a total of nearly $200 million. To put that in perspective, that is more than all cumulative film production in the region from 1993-2006.
Local vendors that supply everything from lumber to catering services have seen business increase. In 2009, hotels in southwestern Pennsylvania reported more than 30,000 room nights because of the film industry. When one actor hosted three parties at a local restaurant, that restaurant claimed that they made more on those three private parties than they usually do in six months of nightly business.
The out-of-town crews who basically live in our region for months at a time spend their own money in our state! They shop, go to movies, rent cars, buy gas, and entertain themselves.
Pennsylvania requires a full audit before issuing the tax credit for each production company. Once the audit is complete, and the production shows the money was actually spent in the Commonwealth, a certificate is issued for the tax credits.
LBFC Report stated it quite succinctly, "a competitive film production incentive for film producers can be considered the 'price of admission' . . . for such activity." Let's continue to roll out the red carpet for this industry in the form of a tax credit.
State Rep. Paul Costa is also a board member of the Pittsburgh Film Office.
Pennsylvania needs Film Tax Credit
By Rep. Paul Costa
The glamour generally associated with the film industry disguises the fact that "making movies" is a business. However, it is a $1.4 billion dollar industry and the film tax credit may be one of the solutions to help Pennsylvania's economy recover and thrive.
The return on investment (ROI) for the film industry is in the top 10 percent of all industries in Pennsylvania. Currently 41 states offer some form of a film tax credit program and ours has become the standard.
According to the Legislative Budget and Finance Committee, in 2007 the motion picture industry revenues in Pennsylvania reached $948 million and generated economic impact of nearly $1.9 billion.
Independent local auditors have confirmed that film productions have spent $378 million in Pennsylvania since 2007, when the program was created. Of that amount, $100 million went directly into southwestern Pennsylvania's economy. If you add the economic benefit of those productions and the three-year economic effect of the film tax credit in southwestern Pennsylvania alone you will see that is a total of nearly $200 million. To put that in perspective, that is more than all cumulative film production in the region from 1993-2006.
Local vendors that supply everything from lumber to catering services have seen business increase. In 2009, hotels in southwestern Pennsylvania reported more than 30,000 room nights because of the film industry. When one actor hosted three parties at a local restaurant, that restaurant claimed that they made more on those three private parties than they usually do in six months of nightly business.
The out-of-town crews who basically live in our region for months at a time spend their own money in our state! They shop, go to movies, rent cars, buy gas, and entertain themselves.
Pennsylvania requires a full audit before issuing the tax credit for each production company. Once the audit is complete, and the production shows the money was actually spent in the Commonwealth, a certificate is issued for the tax credits.
LBFC Report stated it quite succinctly, "a competitive film production incentive for film producers can be considered the 'price of admission' . . . for such activity." Let's continue to roll out the red carpet for this industry in the form of a tax credit.
State Rep. Paul Costa is also a board member of the Pittsburgh Film Office.
Thursday, June 24, 2010
Grand Rapids Press Article by Jeff Engel
Film producer's new project lofty goal: Help film a movie a month in West Michigan
Published: Wednesday, June 23, 2010, 7:57 PM Updated: Wednesday, June 23, 2010, 10:24 PM
Jeff Engel | The Grand Rapids Press Jeff Engel | The Grand Rapids Press
GRAND RAPIDS -- Los Angeles film producer Randall Emmett had no clue where Grand Rapids was a year ago, but he hopes his new production services company puts the city on the industry's map.
"We want everyone in Hollywood to know (where Grand Rapids is)," Emmett said at a press conference Wednesday at the JW Marriott hotel where he announced the launch of Grand Rapids Films and Services.
It will provide a "one-stop shop" for producers who want to work in state, focusing particularly on Grand Rapids and West Michigan, he said.
Services include production-crew hiring and training, recruiting local vendors for lighting, catering, hotels, security and other services and budget consultation.
Emmett has shot three movies with rapper Curtis "50 Cent" Jackson in the past year in Grand Rapids, attracted by the state's generous film tax credits.
Now, Emmett would like to facilitate a locally-filmed movie every month through his company, which he told the crowd of 50 is "aggressive," but "what I say, I do."
"Touchback," to be produced by Emmett and George Furla, is scheduled to begin shooting in Grand Rapids in late July. Emmett told The Press Wednesday they are in negotiations with a "major movie star."
He said several more movies are in the works, including an untitled "50 Cent" movie in September.
It also was announced Wednesday the film "Playback" (unrelated to "Touchback") is slated to start filming here Aug. 23.
Emmett recruited friends John Bennett and Larry Robbins, owners of the New York film company Bennett-Robbins Productions LLC, to make the movie in Grand Rapids.
The producers said Emmett raved about the "great" locals they could work with, and they were sold on the state's tax incentives.
The program, which returns up to 42 percent of production costs incurred in Michigan, has been both praised for creating jobs and criticized as too generous in a state facing a budget crisis.
"We hope the state sticks with (the incentive program)," Robbins said. "We'd be happy to shoot 20 movies here."
Emmett's corporate headquarters are to be at 741 Kenmoor Ave. SE, and a 15,000-square-foot production office at 280 Ann St. NE will serve as the "base camp" for crews during filming, Emmett said.
The company will employ two or three full-time employees, he said. He said he is not seeking an infrastructure film tax credit.
His business will partner with Sakonnett Capital Partners LLC to provide upfront financing for film makers.
Anthony Gudas, owner of the Providence, R.I. company, provides loans to filmmakers waiting for their film rebates or tax credits to be paid. Grand Rapids will be his first satellite office.
Gudas, who attended Wednesday's press conference, said he knew he "wanted to be in Michigan" after the tax credit program was announced in 2008, and he's financed several of Emmett's films.
"It's about jobs," Rick Hert of the West Michigan Film Office said about the company. "It's about economic development."
Local business owners testified to the work Emmett's films have generated for them, including those from a caterer, security service and a lighting and camera support company.
Absolute Security's CEO Brian Brookman said his Grand Haven based company will add 15-20 employees to handle the new film projects.
"Movies bring an awful lot of work and an awful lot of income for lots of people," said Dave Lowing of Lowing Light & Grip, which has helped with two of Emmett's locally-shot films. "Randall has done what he said he'd do, and he's doing more of it."
Published: Wednesday, June 23, 2010, 7:57 PM Updated: Wednesday, June 23, 2010, 10:24 PM
Jeff Engel | The Grand Rapids Press Jeff Engel | The Grand Rapids Press
GRAND RAPIDS -- Los Angeles film producer Randall Emmett had no clue where Grand Rapids was a year ago, but he hopes his new production services company puts the city on the industry's map.
"We want everyone in Hollywood to know (where Grand Rapids is)," Emmett said at a press conference Wednesday at the JW Marriott hotel where he announced the launch of Grand Rapids Films and Services.
It will provide a "one-stop shop" for producers who want to work in state, focusing particularly on Grand Rapids and West Michigan, he said.
Services include production-crew hiring and training, recruiting local vendors for lighting, catering, hotels, security and other services and budget consultation.
Emmett has shot three movies with rapper Curtis "50 Cent" Jackson in the past year in Grand Rapids, attracted by the state's generous film tax credits.
Now, Emmett would like to facilitate a locally-filmed movie every month through his company, which he told the crowd of 50 is "aggressive," but "what I say, I do."
"Touchback," to be produced by Emmett and George Furla, is scheduled to begin shooting in Grand Rapids in late July. Emmett told The Press Wednesday they are in negotiations with a "major movie star."
He said several more movies are in the works, including an untitled "50 Cent" movie in September.
It also was announced Wednesday the film "Playback" (unrelated to "Touchback") is slated to start filming here Aug. 23.
Emmett recruited friends John Bennett and Larry Robbins, owners of the New York film company Bennett-Robbins Productions LLC, to make the movie in Grand Rapids.
The producers said Emmett raved about the "great" locals they could work with, and they were sold on the state's tax incentives.
The program, which returns up to 42 percent of production costs incurred in Michigan, has been both praised for creating jobs and criticized as too generous in a state facing a budget crisis.
"We hope the state sticks with (the incentive program)," Robbins said. "We'd be happy to shoot 20 movies here."
Emmett's corporate headquarters are to be at 741 Kenmoor Ave. SE, and a 15,000-square-foot production office at 280 Ann St. NE will serve as the "base camp" for crews during filming, Emmett said.
The company will employ two or three full-time employees, he said. He said he is not seeking an infrastructure film tax credit.
His business will partner with Sakonnett Capital Partners LLC to provide upfront financing for film makers.
Anthony Gudas, owner of the Providence, R.I. company, provides loans to filmmakers waiting for their film rebates or tax credits to be paid. Grand Rapids will be his first satellite office.
Gudas, who attended Wednesday's press conference, said he knew he "wanted to be in Michigan" after the tax credit program was announced in 2008, and he's financed several of Emmett's films.
"It's about jobs," Rick Hert of the West Michigan Film Office said about the company. "It's about economic development."
Local business owners testified to the work Emmett's films have generated for them, including those from a caterer, security service and a lighting and camera support company.
Absolute Security's CEO Brian Brookman said his Grand Haven based company will add 15-20 employees to handle the new film projects.
"Movies bring an awful lot of work and an awful lot of income for lots of people," said Dave Lowing of Lowing Light & Grip, which has helped with two of Emmett's locally-shot films. "Randall has done what he said he'd do, and he's doing more of it."
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