As earlier reported (SHOOT, 2/23, p. 1), the Association of Imaging Technology and Sound (ITS) has reached a crossroads, with developments over the next several months figuring to prove pivotal in the future of the longstanding organization. Though ITS leadership remains optimistic, the financial squeeze being felt by the Association is cause for concern—particularly if it prevents ITS from continuing to lobby for a research-and-development tax credit in order to help U.S. post facilities transition to DTV, including HDTV.
As chronicled in SHOOT, last year the ITS laid a strong foundation in Washington, D.C., for the possible passage of a tax credit bill. The ITS drummed up bipartisan support in the House of Representatives, where 16 co-sponsors committed to the proposed tax relief. Last summer, ITS president Terry Rainey testified before a House of Representatives Telecommunications Subcommittee, stating the post industry’s case for a tax credit. And in October, Rep. Jerry Weller (R-Ill.) introduced the tax credit bill in the House of Representatives. Although it wasn’t passed during that Congressional session, the bill benefited from Weller’s introduction. Thanks to ITS, the prospects improved immeasurably for a tax credit being green-lighted during the current session of Congress.
Changes in D.C.—both Congressionally and in the Oval Office—stemming from the national election also bode well for the ITS initiative in terms of receptiveness to tax reform. But due to limited funding, the ITS had to end its relationship with Washington, D.C.-based political lobbying firm The Advocacy Group, which was helpful in initially connecting ITS leadership and key legislators. At last report, the ITS planned to poll its membership to gauge support for continued lobbying—funded by contributions from member houses—in order to help realize the tax credit. Other forms of relief are also possible, such as a favorable change in equipment depreciation schedules, and a loan program that could involve the Small Business Administration.
The proposed tax credit would be computed at 20 percent of a domestic post company’s current capital expenses incurred for digital post machinery and equipment, less a dollar amount equal to the facility’s average annual gross receipts from DTV post services during the prior four years. The intent is to encourage the construction of an advanced digital post infrastructure in the U.S. when the current demand for such services may not justify the required expense.
The infrastructure aspect was picked up on by Illinois Film Office director Ron Ver Kuilen, who also serves as a board member of Film US, a group of state and local film commissions looking to help the U.S. keep and attract more production. During last month’s annual Locations Global Expo, organized by the Association of Film Commissioners International (SHOOT, 3/2, p. 7), Ver Kuilen told SHOOT that he thought the chances still looked good for the proposed R&D tax credit. As a film commissioner, he affirmed the tax bill’s importance because it will improve the country’s infrastructure to facilitate filmmaking. He observed that competing nations offer incentives and tax breaks to lure lensing, not just for the positive economic impact of given projects, but also to help build infrastructure—talent, tools and resources—that will make it easier for them to continue to draw production business.
Now, more than ever, said ITS board chair David Case, CEO/president of Pittsburgh-based post facility PMI, "we’re counting on the strong commitment of ITS member companies to succeed as a group." Underscoring that urgency is the golden opportunity of a tax credit bill—or at least some form of legislative relief.
