A quarter of the tax breaks given to movie companies under Massachusetts’ film tax credit program have gone to help filmmakers cover the paychecks of millionaire Hollywood stars.
An Associated Press review of a Department of Revenue report on the tax credit program found that $82 million of the $330 million in film spending eligible for credits in 2009 went to pay the salaries of nonresident actors earning more than $1 million.
Under the program a filmmaker can apply for a tax credit equal to 25 percent of a film’s production and payroll costs.
In 2009, film companies applied for a total of $82.4 million in credits in Massachusetts.
Critics have complained the state shouldn’t be giving what amounts to tax subsidies for Hollywood stars, but supporters say that without the program, there would be virtually no feature films shot in Massachusetts.
The Department of Revenue considers every feature film shot in Massachusetts in 2009 as new spending directly related to the tax credit program. Forty-four states and the District of Columbia also have film tax credit programs, some more generous than Massachusetts.
While movie star wages make up sizable chunk of the tax credits, the salaries of Massachusetts workers also factored into the equation.
The report said film companies paid more than $42 million in salaries and wages to local workers in 2009. Supporters of the film credit program said those jobs wouldn’t exist without the tax breaks.
“What we consider most important about the film tax credit is its long-term results, including the jobs created not only within the film industry but in local businesses,” said Joe Maiella, president of Massachusetts Production Coalition, which represents the film industry.
Supporters of the tax break point out that movie stars do not directly receive a tax break. Instead the film companies that hire them are able to use their salaries, and other production costs, to request tax credits.
Backers also note that actors must continue to pay state taxes on all residual income they earn in future years for the films they make here.
Big money movies shot in Massachusetts in 2009 included the “The Fighter,” chronicling the career of Lowell boxer Micky Ward and starring Boston native Mark Wahlberg; “The Social Network,” depicting the origin of Facebook, co-founded by Mark Zuckerberg in his Harvard dorm room in 2004; and the Ben Affleck movie “The Town,” focusing on a Boston bank heist crew.
All told, there were about 18 major movies and television productions in Massachusetts in 2009.
While there was no information in the Department of Revenue report about how much each individual film requested in tax credits, that is about to change.
A state law enacted last year requires revenue officials to begin collecting and reporting how much each film production is awarded in tax credits each year. The first report is expected in the spring of 2012 to reflect films shot in Massachusetts during 2011.
The new information won’t reveal how much each actor is paid.
The film tax credit sparked a fierce debate last year on Beacon Hill after Gov. Deval Patrick proposed capping the tax credit program at $50 million, pointing to the state’s tight fiscal times.
Industry representatives and labor unions protested and the proposed cap was defeated.
The number of films shot in Massachusetts dipped in 2010, but industry officials are hoping for a rebound in 2011.
Oversight of the film tax credit program has been transferred to the state Office of Travel and Tourism. The office has created an advisory group to help sell the state as a location for film production companies.
A “Wicked” Welcome From The National Board of Review
Days after "Wicked" went home from the Golden Globes with a single award for box office achievement, the National Board of Review Awards held space for the smash hit musical, celebrating its cast and director in the New York group's annual gala Tuesday. The untelevised but starry NBR Awards were a chance for many of the nominees who didn't win Sunday to trot out their would-be acceptance speeches, including Daniel Craig and Nicole Kidman. Accepting the award for best actress for her performance in the erotic thriller "Babygirl," Kidman celebrated by chugging a glass of milk, a nod to some of the film's kinky sex games. After finishing, Kidman triumphantly announced "Good girl!" and left the stage. It also was an opportunity for some jabs at the Globes. "Isn't this room just a little bit classier than the Beverly Hilton?" quipped presenter Christine Baranski, looking around the elegant marble-columned midtown venue, Cipriani's. Others were less impressed by the old-school New York vibe. "The bathroom attendant, that shouldn't exist anymore," Kieran Culkin said during a typically free-form acceptance speech for best supporting actor for his role in "A Real Pain." The night belonged to Jon M. Chu's "Wicked." The musical was the board's pick for best film, best director for Chu and a special award for the creative collaboration of Cynthia Erivo and Ariana Grande. The two, in back-and-forth remarks, continued their mutual praise of each other. "Also you're welcome," added Grande. "I truly think you would have murdered anyone else." "Probably true," responded Erivo. Chu, who was introduced by Lin-Manuel Miranda, used the moment to reflect on his yearslong journey with "Wicked," which will be followed by an already-shot part two due out this... Read More