Tax-related and/or other financial incentives have become "necessary," and figure to continue to be as film commissions throughout the world vie for lensing business, observed Ron Ver Kuilen, director of the Illinois Film Office and 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.
Ver Kuilen’s observation came in his role as moderator of a panel discussion regarding the myriad incentives being offered internationally to woo producers. The session was part of last week’s 16th annual Locations Global Expo, a two-day event (2/23-24) organized by the Association of Film Commissioners International (AFCI).
Much of the seminar discussion centered on primarily feature and TV program incentives—including tax rebates and favorable financing of projects—available abroad. Details were provided by such panelists as Robin James, film commissioner, Pacific Film & TV, Queensland, Australia; Dr. Paul Mingard, director of Northern Screen in the U.K.; and Roger Greene, film commissioner, Screen Commission of Ireland.
Ver Kuilen noted that while talk of incentives is starting to emerge on a national level in the U.S., producers should keep abreast of programs in individual states. The Illinois Development Finance Authority (IDFA), for example, adopted a motion picture financing initiative in November. The initiative extends the IDFA’s participation loan program to the capital needs of Illinois companies involved in the production of motion pictures, industrial films and commercials, as well as in the construction of film production facilities. The IDFA has implemented the program in conjunction with the Illinois Film Office and the Illinois Arts Council.
Panelist Mark A. Rosenthal—president and COO of Raleigh Enterprises, parent company to such soundstage complexes as Raleigh Studios, Hollywood, and Raleigh Studios, Manhattan Beach—related that California’s renowned industry infrastructure
and talent pool have received a boost from state government, which now offers lensing incentives in the form of the Film California First program (SHOOT, 1/26, p. 1). Film California First provides reimbursement of certain film-related costs incurred by qualified production companies when shooting on local, state or federal public property in California. Eligible projects include commercials, TV programs and theatrical features.
With an annual budget of $15 million, the Film California First program took effect in January. The California Film Commission oversees and administers the program. Reimbursable costs for shoots on public property in California include:
•State employee costs encompassing such entities as the California Highway Patrol, state parks (for rangers), and the University of California (UC) and California State University (CSU) systems.
•Federal employee costs.
•Federal, state, UC and CSU film permits and public property use fees.
•Local public entity costs for fire and non-police safety.
•Local property use fees.
•And costs for rental equipment mandated and owned by a public agency. Reimbursements in this category are capped at $250 per day.
INFRASTRUCTURE
Ver Kuilen said that via incentives, film commissions gain more than a feature, TV show or spot for their jurisdictions. The projects that come into a city, state or country help to build infrastructure within those geographies, better positioning them to garner filming in the future. Infrastructure that can support production is key to long-term success in attracting long and shortform filmmaking. A growing number of countries has instituted policies to promote incentives and infrastructure.
Panelist Dana Theveneau, film commissioner for the South of France and an AFCI VP, noted that France’s National Film Office is "studying different [incentive] schemes" in the U.K., Ireland and Canada. She said that the National Film Office is considering lobbying the French government to enact programs that could help bring more filming from the U.S. and other countries into France.
Ver Kuilen picked up on that prospect, relating that he would have thought of France as "one of the last places that would try to give breaks to American filmmakers." But the fact that France is now considering such an option, he said, underscores how essential financial incentives have become in the film commission sector. Countries throughout the world have come to fully realize and appreciate the positive impact filming can have on their economies.
As a board member of Film US, Ver Kuilen hopes that same realization will take holdacross the board for U.S. legislators. With the recent changeover in the Oval Office and on key congressional committees, he reasons that the climate has improved in terms of possibly gaining tax-related incentives to encourage filming in America. Ver Kuilen also cited the recently released Department of Commerce report on runaway production (SHOOT, 2/23, p. 4) as a catalyst that could help make members of Congress aware that the loss of filming is a major drain on the U.S. economy.
Ver Kuilen noted that several members of Congress plan to play a proactive role in legislative relief. He cited Congressmen Jerry Weller (R-Ill.), Mark Foley (R-Fla.), Howard Berman (D-Calif.) and Xavier Becerra (D-Calif.). Becerra, who’s thrown his hat into Los Angeles’ mayoral race, recently said of the runaway production issue: "This is an industry we are going to have to fight to defend. We have to compete now so productions stay here. We don’t want entertainment to be like the steel industry."
Last year, the House of Representatives passed a bill that would have provided a tax rebate of up to $4,000 for each worker on lower-budget productions lensed domestically. But that legislative proposal stalled in the Senate and fell by the wayside. According to Becerra, legislators plan to try again this year to devise a tax incentives bill for the filming industry. The law would target independent features, movies for TV, and commercials.
Indeed, on the Locations Global Expo exhibit floor at the Los Angeles Convention Center, there was news of more American spots heading for foreign lensing locales. For example, Hollywood-headquartered production services firm Milk & Honey Films, an Expo exhibitor which has international operations—including in Prague and Mexico City—will be providing production support for two such projects. One is slated to shoot in Prague: a Bugles spot that Marcel Langenegger of bicoastal/ international Propaganda Films will direct for Campbell Mithun, New York. The other will be filmed in Mexico City—a Footlocker job being directed by Thor Freudenthal of Los Angeles-headquartered Slo.Graffiti for The Geppetto Group, New York.
ABSENTEE
Film commissioners from the U.S. and around the world exhibited at the Locations Global Expo. Their presence marked the growing competition from all over the globe for filming business. However, one notable absence also underscored the escalating competition. The Entertainment Industry Development Corp. (EIDC), the private/public sector partnership that oversees the joint Los Angeles City/County Film Office, did not participate in the Expo.
"EIDC is not going to support a trade show designed to poach film production and filming-related jobs from Los Angeles," stated EIDC president Cody G. Cluff. This is the third consecutive year that the EIDC has passed on the Expo.
"Some may criticize L.A. for our decision, but sitting in a booth handing out brochures or pencils is not an effective way for us to reach the industry’s decision-makers," said Cluff. "It may make sense for smaller production centers—however, this is our backyard. We communicate with producers daily, and they prefer that we place our emphasis on service."
Expo exhibitors generally, though, reported good traffic at their booths despite an atypically rainy weekend in Los Angeles. Attendance reached nearly 3,200. The consensus seemed to be that good-quality contacts in the location decision-making process turned out for the Expo—but perhaps not quite as many as in recent years.
AFCI president Ward Emling, director of the Mississippi Film Office, observed that the threat of a strike action against feature/TV studios by actors and/or the Writers Guild of America may have had an effect on Expo traffic. He conjectured that with the rush to push projects through before a possible strike, many location managers, scouts, unit managers and producers may have been working during the weekend.
AFCI treasurer Joe O’Kane, director of the San Jose Film & Video Commission, noted that the possibility of a looming strike also probably reduced the number of scripts being bandied about. "It’s less likely that film commissioners picked up as many scripts as they would normally at the Expo," said O’Kane. "But I still saw a lot of my key contacts at the show."
Emling thought that the decision to make the Expo a two-day (Friday and Saturday) event rather than the previous customary three days worked out well. "Sunday is usually a slower day anyway," he related. "And as it turns out, the heaviest rain was on Sunday."
Instead Sunday was used so that film commissioners could conduct AFCI task force meetings to discuss business and upcoming events, including the Cineposium scheduled for August in Washington, D.C. AFCI members also assessed the just-concluded Expo, offering suggestions as to how to improve the show. Emling added that the AFCI made progress in establishing a standard formula for determining the economic impact of filming on a community. "We developed a rough draft and should soon be in a position to release an AFCI-adopted standard," said Emling. "Accurately measuring economic impact is important to film commissions as we deal with our state governments to gain funding for services and programs that will encourage filming."
Film commission exhibitors said they valued the chance to network with other film commissioners during the Expo and on the follow-up day of AFCI organizational meetings, gaining insights into problem areas, possible solutions and incentive programs offered elsewhere. Education, networking and the chance to meet potential clients face to face have been driving factors behind the Expo’s steady growth in exhibitors over the years, affirmed Emling and O’Kane. Emling said that the panel discussion on filming incentives represented the kind of educational session—one that’s informative for the production industry, as well as for film commissioners—that the AFCI hopes to continue at the Expo. O’Kane served as seminar chair for this year’s Expo.
