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Mar 18, 2009
The Film Incentives Bill
A bill sits on the Governor's desk awaiting his signature. It was approved virtually unanimously by the legislature, which means Riley will probably sign it. But before he does, may I suggest he read this story in today's N.Y. Times? It questions whether much of States' incentives money is really "make work" cash, that many of the movies produced because of the incentives don't get very wide viewing. Maybe that doesn't matter, as long as the incentives attract filmmakers to come to Alabama and spend money while they are here. Lights... Action..Camera...Taxes!
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This issue exemplifies that movie-making has traditionally been BIG BUSINESS.
ReplyDeleteIn my opinion, NM Governor Bill Richardson's comment that “What matters is that you maximize employment for residents in the state," is somewhat less-than fully informed.
Film companies don't come to a state for lengthy periods of time. They come for a few weeks - perhaps six at the most - and then leave. The very nature of their work is transient, and often location specific. The greatest economic benefit they have is akin to the arrival of tourists for a festival, simply because of the injection of revenue into the local economies, which also includes taxes.
For long-term benefit to result, film companies would need to relocate. Given the year-round climes of Southern California (sunny and dry) and the fact that it has historically been, and continues to be the film-making capital of the world, it is highly unlikely that any state would receive any permanent benefit from providing tax subsidy/forgiveness to film makers.
However, there are film companies here in Alabama, the most notable being one which located itself in the building once occupied by Muscle Shoals Sound Studios on the Tennessee River in Sheffield (1000 Alabama Avenue - known to long-time locals as the old Coast Guard building).
Cypress Moon Productions (http://www.cypressmoonproduction.com), owned by Tonya S. Holly, now occupies the building. Her most renown and recent film is "When I Find The Ocean," and was produced for $2M.
Her credits include the Oscar-winning "Blue Sky," "Body Snatchers," "Toy Soldiers," and "Tuskegee Airmen."
As well, the University of North Alabama in Florence initiated and hosts the annual George Lindsay Film Festival. The festival which has grown significantly, has now celebrated its 12th year this month.
(http://www.lindseyfilmfest.com/)
Alabama DOES have burgeoning film industry. But, will tax breaks to film makers "incentivize" them to come by the droves?
Unless they write some most unusual circumstances in which the tax ameliorations/benefits are to be used, unfortunately, and most likely not.