Lawmakers try to resolve incentive bills
Friday, July 9, 2010
By Mark Binker
Staff Writer
RALEIGH — Expanding the tax credits offered to computer data centers and film productions are among the provisions in a pair of economic incentive bills that lawmakers hope to pass before adjourning for the year.
Leaders at the General Assembly say they hope to leave town on Saturday.
They have been pressing to finish a handful of critical bills before them.
Under the film credit bill, the maximum amount a production could receive would rise from $7.5 million to $20 million, depending on how much the production spent.
Gov. Bev Perdue has called for lawmakers to pass this measure after visiting Hollywood earlier this year.
North Carolina’s film credit is “refundable,” meaning that if filmmakers are due more credits than they would have to pay in taxes, the state will write them a check.
Since 2006, N.C. Department of Revenue officials said, the state has issued roughly $44 million in credits. Of that amount, $25 million in cash refunds have gone to filmmakers who paid no income taxes to the state.
Expanding the credit likely would mean even more money would be refunded directly to film companies.
“They are a cash deal. But just last year alone, $148 million was spent by the film industry in North Carolina,” said Rep. Bill Owens, an Elizabeth City Democrat helping to negotiate a House-Senate compromise on the bill that contains the film incentives.
Owens said North Carolina either needs to expand its credits to keep up with other states or “we should just give up on the business.”
Rep. John Blust, a Greensboro Republican, said North Carolina should not be taking money from middle-class people and giving it to filmmakers and their highly compensated stars.
He pointed to the Renee Zellweger and George Clooney movie “Leatherheads,” which was filmed in the Triad.
“Did that movie do anything permanent for Greensboro?” Blust asked.
He added that the film credit “has reached the point where the research shows it doesn’t pay. You’ve got to go so high, the state loses money by doing it.”
As of late Thursday, lawmakers were trying to settle differences between the House and Senate on the bill.
Also late Thursday, the House voted 79-30 to pass a separate incentives bill that contains tax breaks for data centers such as the one Alamance County is trying to attract. The facility is widely reported to be connected to the software giant Microsoft.
The bill expands sales-tax breaks on equipment and electricity for companies in exchange for them making a certain amount of investment.
“This is corporate welfare,” Rep. Paul “Skip” Stam said, urging his colleagues to vote against the measure.
However, other lawmakers said it was needed to lure jobs to the state.
The Senate still must approve the bill, but it is likely to pass. Senators passed it on a 43-4 vote when they first looked at the measure.
Friday, July 9, 2010
Monday, July 5, 2010
Article from Film Industry Network
Virginia takes on Hollywood and Detroit with new film grants
By: Filmindustrynetwork
RICHMOND, USA – The state of Virginia has just announced a new $2 million film fund for qualified productions including tax incentives.
The battle for film productions is heating up, with different states offering an array of incentives for filmmakers shooting documentaries, commercials and feature films. This will be the state of Virginia’s first tax credit incentive, which took a reported 30 years to come to fruition. The news comes as a relief to the Virginia production Alliance, that for years lobbied the state to boost the local film industry.
Gov. Bob McDonnell signed the bills into effect just this week, which will provide a combined total of $4.5 million for qualifying productions. The Virginia film Office earlier stated that film productions in 2008 had created 4000 new jobs and a revenue stream of more than $350 million for the state.
The incentives will vary depending on the nature of productions and where they are shot within the state. Tax breaks for films could be as much as 20%. Despite the news, many other states have already put in place schemes such Michigan, which offers a 42% tax rebate, and several movie studios are to be built over the next few years.
Hollywood on the other hand is in the grips of a ‘financial melt down’, and will have to find a new way to lure productions back home with either increased tax rebates, a film fund, or development program that will strengthen local filmmaking and boost revenues through international distribution.
In June it was reported that the British film industry benefited hugely from government financing which contributed £4.5 billion to GDP and strengthened British culture at home and abroad.
By: Filmindustrynetwork
RICHMOND, USA – The state of Virginia has just announced a new $2 million film fund for qualified productions including tax incentives.
The battle for film productions is heating up, with different states offering an array of incentives for filmmakers shooting documentaries, commercials and feature films. This will be the state of Virginia’s first tax credit incentive, which took a reported 30 years to come to fruition. The news comes as a relief to the Virginia production Alliance, that for years lobbied the state to boost the local film industry.
Gov. Bob McDonnell signed the bills into effect just this week, which will provide a combined total of $4.5 million for qualifying productions. The Virginia film Office earlier stated that film productions in 2008 had created 4000 new jobs and a revenue stream of more than $350 million for the state.
The incentives will vary depending on the nature of productions and where they are shot within the state. Tax breaks for films could be as much as 20%. Despite the news, many other states have already put in place schemes such Michigan, which offers a 42% tax rebate, and several movie studios are to be built over the next few years.
Hollywood on the other hand is in the grips of a ‘financial melt down’, and will have to find a new way to lure productions back home with either increased tax rebates, a film fund, or development program that will strengthen local filmmaking and boost revenues through international distribution.
In June it was reported that the British film industry benefited hugely from government financing which contributed £4.5 billion to GDP and strengthened British culture at home and abroad.
Sunday, July 4, 2010
Article by Brad Newman at Amarillo.com
Web-posted Sunday, July 4, 2010
Luring film production to the Panhandle: Camera-shy, we're not
Despite few credits, interest rising
By Brad Newman
brad.newman@amarillo.com
For years, filmmakers have brought their cameras and crews, scripts and stars to the Texas Panhandle.
Movies filmed in the Amarillo area
A handful of feature films, or at least select scenes from feature films, have been shot in the Panhandle. A sampling:
"Hud" (1963)
Paul Newman starred in this cowboy film shot primarily in Claude, 30 miles southeast of Amarillo.
"Indiana Jones and the Last Crusade" (1989)
The final sunset scene of the third installment of the blockbuster franchise was filmed on a ranch southeast of Amarillo.
"Leap of Faith" (1992)
Plainview, about 75 miles south of Amarillo, was the site for this film with Steve Martin, Liam Neeson and Debra Winger about a fraudulent Christian faith healer.
"Cast Away" (2000)
The last scene in this Tom Hanks film was shot in Canadian, about 100 miles northeast of Amarillo.
"What Matters Most" (2001)
This Lifetime original movie is a portrayal of love between a rich boy and a poor girl in West Texas. It was shot in Vega over a period of 22 days.
"Waking Up in Reno" (2002)
The Big Texan Steak Ranch is featured in this comedy-drama with Billy Bob Thornton, Charlize Theron, Patrick Swayze and Natasha Richardson.
"Paper Heart" (2009)
An Amarillo couple, Don and Sally Emerson, are interviewed in this documentary-style feature film, with Charlyne Yi and Michael Cera, about the meaning of love.Movie money
Direct spending as a result of tax-incentive programs for filmmakers:
New Mexico
2006: $153 million
2007: $151 million
2008: $274 million
2009: $265 million
2010: $178 million
Texas*
April 2009-present: $342 million
*No incentives offered until Texas Legislature adopted package last year
Sources: New Mexico State Film Office; Texas Film CommissionAttracting interest
Movies like "Hud," "Indiana Jones and the Last Crusade" and "Waking Up in Reno" all have featured scenes shot in the region.
But filmmaking has maintained a sporadic presence in the region. Producers with little financial motivation often are hesitant to anchor their projects in remote West Texas.
"Some really cool things have been done in this area, but we don't necessarily have a rich history of film here," said Leigh Browning, director of broadcast media at West Texas A&M University.
Local experts in the industry say interest in producing projects in and around Amarillo is escalating, but the region has yet to experience the influx of industry that other areas, specifically, nearby New Mexico, have attracted.
Film in the neighboring state, with vistas and plains similar to those found in Texas, has boomed in the last five years, when a tax-incentive program went into effect.
New Mexico has claimed more than 140 feature film and television productions since the program inception, said Lisa Strout, director of the New Mexico Film Office.
Just last week, the state announced that a television movie, "Let Them Shine," will be filmed in the Albuquerque area through the end of July and eventually air as a CBS Hallmark Hall of Fame production.
The productions have resulted in direct spending of about $1 billion since 2003.
A similar tax-incentive program adopted by the Texas Legislature that took effect in April 2009 has resulted in about $342 million in production spending, mostly in larger Texas cities, said Bob Hudgins, director of the Texas Film Commission.
But efforts remain under way, stirred by the incentive program, to entice motion picture projects to the Panhandle that will have lasting cultural and economic impact.
Amarillo has a scattering of broadcast media technicians working in the industry on a small-scale level.
Local production companies like Ragtown Media, ThreeLeaf Creative and 41 Productions are pursuing the craft full time, making TV advertisements and informational videos for nonprofit groups.
Roger Lindley, director of Ragtown Media, has worked in the production industry for 26 years.
Lindley's primary work includes shooting advertisements and corporate videos, but he has traveled elsewhere to work on feature films and documentaries, including "Bollywood Beats" in Dallas in 2008.
"I'm able to do a broad range of things, which keeps me busy with work I find rewarding," he said.
But local production companies generally aren't making feature films that will land in cinemas. Projects of that scope usually are imported from out-of-state film companies, and the Panhandle isn't yet a target location.
"Dallas and Austin are the hub of production in Texas," Lindley said. "They have the largest crew base and equipment and infrastructure. The farther you get away from those places, the more difficult it is to get those desired resources."
In New Mexico, the productions are more frequent in rural areas, largely because of the state's desirable terrain, Strout said. The tax-incentive program and positive recommendations among filmmakers also have led to the activity, she said.
"We have had really good fortune," Strout said. "It's something the entire populace is really proud of."
Enticing studio production companies to choose the Panhandle is an ongoing endeavor.
Amarillo does have its own film commission, a division of the Amarillo Convention and Visitor Council.
Director Jutta Matalka works to pair production companies with Amarillo's skilled labor. Besides technical crew, the city also has a talent pool from which producers can draw for smaller roles or extras.
But the resources are limited, and the monetary incentives are nonexistent, Matalka said.
"This area has its benefits, but they're not always enough to bring a production here," she said. "I just always try to stay optimistic."
The film industry in Texas received a boost last year with the Texas Moving Image Industry Incentive Program.
Last year, lawmakers approved the two-year, $60 million program designed to provide tax incentives for films, TV programs, commercials and video games produced in the state. The package expires in 2011, unless legislators extend or enhance it.
"Texas had fallen really behind in this area. In fact, the lack of incentives was pretty embarrassing," said WT's Browning, noting New Mexico's vibrant incentive program.
Texas' program provides financial reimbursements to companies that spend the bulk of their production costs and time in the state.
Productions that spend more than $5 million in the state are eligible to receive a 15 percent reimbursement after the work is completed. Projects that spend $1 million to $5 million can receive a 10 percent reimbursement, and projects that spend from $250,000 to $1 million can receive a 5 percent reimbursement.
The reimbursements could increase from 3 percent to 10 percent if productions are shot in an "underutilized" or "economically distressed" area of the state.
The program eclipses a previous incentive package, which paid reimbursements up to 5 percent regardless of the spending.
"You can see the difference," Hudgins said. "These incentives have been so incredibly effective in luring work. Texas can now compete with surrounding states."
Amarillo has yet to be significantly affected by the statewide initiative, but the program's effect still could reach the Panhandle, Hudgins said.
Projects like commercials and small-budget documentaries are the most likely projects to be created in the region, he said.
The package also could serve as a catalyst for a local incentive package to be developed, Lindley said.
"We're starting to get smarter about the best way to attract projects here," he said. "They're not going to come our way unless we give them a reason. We need unique incentives that might draw them out."
The Texas Motion Picture Alliance, formed in 2006, also is working to promote film in the state, said Browning, a member of the TMPA.
The nonprofit advocacy organization offers a resource for filmmakers and producers.
In Amarillo, Browning and others are planning to present information to the City Commission - "The sooner the better," Browning said - about the city's responsibility in attracting projects.
"We want to make them aware of what's happening in the industry," Browning said. "We want them to understand it's important that we all roll out the red carpet when these projects do come to town."
Other upcoming events point to activity on the filmmaking front in the Panhandle.
Hudgins is scheduled to speak Sept. 30 at WT about the Texas Film Commission's incentive program and the state of the industry in Texas.
Also, two film festivals, one featuring Palo Duro High School students and one featuring WT students, are planned later this year.
Amarillo benefits on multiple levels when films are shot in the area, Browning said. Films can serve to boost the economy, increase tourism and foster pride.
And though financial incentives might be lacking now, the Panhandle isn't without other important perks for filmmakers, Browning said.
She listed several factors - variation in terrain, unique attractions like Palo Duro Canyon State Park and Wonderland Park, a variety of indoor and outdoor venues, unused business properties and more - that could be marketed to production companies.
"The work that's being done now is just the beginning," she said. "This area really has an opportunity now to position itself to be a choice location for filmmaking."
Luring film production to the Panhandle: Camera-shy, we're not
Despite few credits, interest rising
By Brad Newman
brad.newman@amarillo.com
For years, filmmakers have brought their cameras and crews, scripts and stars to the Texas Panhandle.
Movies filmed in the Amarillo area
A handful of feature films, or at least select scenes from feature films, have been shot in the Panhandle. A sampling:
"Hud" (1963)
Paul Newman starred in this cowboy film shot primarily in Claude, 30 miles southeast of Amarillo.
"Indiana Jones and the Last Crusade" (1989)
The final sunset scene of the third installment of the blockbuster franchise was filmed on a ranch southeast of Amarillo.
"Leap of Faith" (1992)
Plainview, about 75 miles south of Amarillo, was the site for this film with Steve Martin, Liam Neeson and Debra Winger about a fraudulent Christian faith healer.
"Cast Away" (2000)
The last scene in this Tom Hanks film was shot in Canadian, about 100 miles northeast of Amarillo.
"What Matters Most" (2001)
This Lifetime original movie is a portrayal of love between a rich boy and a poor girl in West Texas. It was shot in Vega over a period of 22 days.
"Waking Up in Reno" (2002)
The Big Texan Steak Ranch is featured in this comedy-drama with Billy Bob Thornton, Charlize Theron, Patrick Swayze and Natasha Richardson.
"Paper Heart" (2009)
An Amarillo couple, Don and Sally Emerson, are interviewed in this documentary-style feature film, with Charlyne Yi and Michael Cera, about the meaning of love.Movie money
Direct spending as a result of tax-incentive programs for filmmakers:
New Mexico
2006: $153 million
2007: $151 million
2008: $274 million
2009: $265 million
2010: $178 million
Texas*
April 2009-present: $342 million
*No incentives offered until Texas Legislature adopted package last year
Sources: New Mexico State Film Office; Texas Film CommissionAttracting interest
Movies like "Hud," "Indiana Jones and the Last Crusade" and "Waking Up in Reno" all have featured scenes shot in the region.
But filmmaking has maintained a sporadic presence in the region. Producers with little financial motivation often are hesitant to anchor their projects in remote West Texas.
"Some really cool things have been done in this area, but we don't necessarily have a rich history of film here," said Leigh Browning, director of broadcast media at West Texas A&M University.
Local experts in the industry say interest in producing projects in and around Amarillo is escalating, but the region has yet to experience the influx of industry that other areas, specifically, nearby New Mexico, have attracted.
Film in the neighboring state, with vistas and plains similar to those found in Texas, has boomed in the last five years, when a tax-incentive program went into effect.
New Mexico has claimed more than 140 feature film and television productions since the program inception, said Lisa Strout, director of the New Mexico Film Office.
Just last week, the state announced that a television movie, "Let Them Shine," will be filmed in the Albuquerque area through the end of July and eventually air as a CBS Hallmark Hall of Fame production.
The productions have resulted in direct spending of about $1 billion since 2003.
A similar tax-incentive program adopted by the Texas Legislature that took effect in April 2009 has resulted in about $342 million in production spending, mostly in larger Texas cities, said Bob Hudgins, director of the Texas Film Commission.
But efforts remain under way, stirred by the incentive program, to entice motion picture projects to the Panhandle that will have lasting cultural and economic impact.
Amarillo has a scattering of broadcast media technicians working in the industry on a small-scale level.
Local production companies like Ragtown Media, ThreeLeaf Creative and 41 Productions are pursuing the craft full time, making TV advertisements and informational videos for nonprofit groups.
Roger Lindley, director of Ragtown Media, has worked in the production industry for 26 years.
Lindley's primary work includes shooting advertisements and corporate videos, but he has traveled elsewhere to work on feature films and documentaries, including "Bollywood Beats" in Dallas in 2008.
"I'm able to do a broad range of things, which keeps me busy with work I find rewarding," he said.
But local production companies generally aren't making feature films that will land in cinemas. Projects of that scope usually are imported from out-of-state film companies, and the Panhandle isn't yet a target location.
"Dallas and Austin are the hub of production in Texas," Lindley said. "They have the largest crew base and equipment and infrastructure. The farther you get away from those places, the more difficult it is to get those desired resources."
In New Mexico, the productions are more frequent in rural areas, largely because of the state's desirable terrain, Strout said. The tax-incentive program and positive recommendations among filmmakers also have led to the activity, she said.
"We have had really good fortune," Strout said. "It's something the entire populace is really proud of."
Enticing studio production companies to choose the Panhandle is an ongoing endeavor.
Amarillo does have its own film commission, a division of the Amarillo Convention and Visitor Council.
Director Jutta Matalka works to pair production companies with Amarillo's skilled labor. Besides technical crew, the city also has a talent pool from which producers can draw for smaller roles or extras.
But the resources are limited, and the monetary incentives are nonexistent, Matalka said.
"This area has its benefits, but they're not always enough to bring a production here," she said. "I just always try to stay optimistic."
The film industry in Texas received a boost last year with the Texas Moving Image Industry Incentive Program.
Last year, lawmakers approved the two-year, $60 million program designed to provide tax incentives for films, TV programs, commercials and video games produced in the state. The package expires in 2011, unless legislators extend or enhance it.
"Texas had fallen really behind in this area. In fact, the lack of incentives was pretty embarrassing," said WT's Browning, noting New Mexico's vibrant incentive program.
Texas' program provides financial reimbursements to companies that spend the bulk of their production costs and time in the state.
Productions that spend more than $5 million in the state are eligible to receive a 15 percent reimbursement after the work is completed. Projects that spend $1 million to $5 million can receive a 10 percent reimbursement, and projects that spend from $250,000 to $1 million can receive a 5 percent reimbursement.
The reimbursements could increase from 3 percent to 10 percent if productions are shot in an "underutilized" or "economically distressed" area of the state.
The program eclipses a previous incentive package, which paid reimbursements up to 5 percent regardless of the spending.
"You can see the difference," Hudgins said. "These incentives have been so incredibly effective in luring work. Texas can now compete with surrounding states."
Amarillo has yet to be significantly affected by the statewide initiative, but the program's effect still could reach the Panhandle, Hudgins said.
Projects like commercials and small-budget documentaries are the most likely projects to be created in the region, he said.
The package also could serve as a catalyst for a local incentive package to be developed, Lindley said.
"We're starting to get smarter about the best way to attract projects here," he said. "They're not going to come our way unless we give them a reason. We need unique incentives that might draw them out."
The Texas Motion Picture Alliance, formed in 2006, also is working to promote film in the state, said Browning, a member of the TMPA.
The nonprofit advocacy organization offers a resource for filmmakers and producers.
In Amarillo, Browning and others are planning to present information to the City Commission - "The sooner the better," Browning said - about the city's responsibility in attracting projects.
"We want to make them aware of what's happening in the industry," Browning said. "We want them to understand it's important that we all roll out the red carpet when these projects do come to town."
Other upcoming events point to activity on the filmmaking front in the Panhandle.
Hudgins is scheduled to speak Sept. 30 at WT about the Texas Film Commission's incentive program and the state of the industry in Texas.
Also, two film festivals, one featuring Palo Duro High School students and one featuring WT students, are planned later this year.
Amarillo benefits on multiple levels when films are shot in the area, Browning said. Films can serve to boost the economy, increase tourism and foster pride.
And though financial incentives might be lacking now, the Panhandle isn't without other important perks for filmmakers, Browning said.
She listed several factors - variation in terrain, unique attractions like Palo Duro Canyon State Park and Wonderland Park, a variety of indoor and outdoor venues, unused business properties and more - that could be marketed to production companies.
"The work that's being done now is just the beginning," she said. "This area really has an opportunity now to position itself to be a choice location for filmmaking."
Saturday, July 3, 2010
Article by Mal Vincent at The Virginian-Pilot
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
Do you support Virginia's new incentives, totaling about $4.5 million, to encourage production of motion pictures in the state?
Yes
No
Undecided
Background: Virginia aims to bring home Hollywood bacon
Disclaimer: This is an unscientific sampling of users.
View results | Vote in more polls
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."
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
Do you support Virginia's new incentives, totaling about $4.5 million, to encourage production of motion pictures in the state?
Yes
No
Undecided
Background: Virginia aims to bring home Hollywood bacon
Disclaimer: This is an unscientific sampling of users.
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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."
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.
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