Domestic locations are keeping busy with a spate of commercial, feature and television projects. In this week’s series, SHOOT takes a look at five stateside areas that offer varied locations, and in some cases, enticing incentives.
GEORGIA
The State of Georgia unveiled its own incentive package meant to attract production to the region. Passed in the legislative session that ended in March, and signed into law by Gov. Sonny Perdue in May, the incentive, called the Entertainment Industry Investment Act, offers a base tax credit of nine percent, with additional credits available if a production creates jobs in the state, utilizes underdeveloped counties, and if a production company is engaged in multiple TV projects. The nine percent investment tax credit is available to production companies that spend a minimum of $500,000 in the state on qualified production and postproduction expenditures in a single year. All credits apply to commercials, feature films, music videos, and television work.
In addition to the nine percent credit, another three percent credit is awarded for all Georgia residents employed by a production. Another three percent could be awarded to a company that shoots in a tier one or tier two county in the state; those are areas that are underdeveloped, and outside of the Atlanta Metro area. For companies with multiple television projects that spend in excess of $20 million on qualified expenditures in the states, a credit of two percent, in addition to the nine percent, will be awarded.
Georgia also offers sales and use tax exemptions on most below-the-line purchases, including leases and rentals for qualified productions, which can offer a project shooting in the state up to another eight percent in savings.
“We’ve seen an increase in the number of projects we’ve had this year over last year,” relates Greg Torre, director of the Georgia Film, Television and Music Video Office, attributing that increase to the new incentive, which is retroactive to Jan. 1, 2005. Torre reports that commercial work has been steady (182 spots shot in the state in 2004; as of yet, 2005 numbers are unavailable), and several feature projects have come through the area, including Madea’s Family Reunion, a follow-up to this year’s sleeper hit Diary of a Mad Black Woman; Randy and the Mob; Angel; The Gospel, and an untitled Warner Bros. feature. “I think all four of those projects would have really thought twice about where they were going to go in the absence of any incentives in Georgia,” states Torre.
Making sure that spots and music videos were covered by the incentives was important from the outset. “The goal was to get companies to go in and do multiple projects in the state, “says Torre, “and we wanted to make sure that we targeted commercial companies.” He notes that in 2003 and 2004, when feature and television work dried up, “it really was commercials and music videos that kept us in business.
“We wanted to make sure that we not only kept the commercial [work],” continues Torre, “but grow it as well. In the absence of features and television projects, our commercial business has been strong, and it’s kept people working.”
MONTANA
In May, Montana unveiled a new incentive program, The Big Sky on the Big Screen Act, which encourages film production in the state. Per the initiative, the first part of the incentive, which is aimed at creating jobs for Montana crew, enables productions shooting in the state to receive a 12 percent refundable tax credit based upon Montana resident labor expenditures. The credit is earned on the first $50,000 worth of wages paid per Montana resident. The second part of the incentive is an eight percent refundable tax credit on total qualified production company expenditures. Covered by the credit are such items as production equipment rental, fuel costs, hotel and lodging, food, and construction materials.
The tax credits are available to all productions–commercial, television and feature film–that shoot in Montana. Production companies that want to take advantage of the credits must be certified by the Montana Film Office prior to the start of shooting. “A production does not need a minimum budget,” says Sten Iversen, director of the Montana Film Office. “Any project can apply, so even if you have a low-budget project, you certainly qualify.”
The incentives cover all phases of a project. “Pre-and-postproduction costs are incentive-ized,” relates Iversen. “All labor and rentals, cars, gas, food, etc.–anything that’s connected to the production.”
Iversen reports that seven productions have taken advantage of the incentive since it launched. “We think it’s pretty competitive,” states Iversen of the credits. “It’s direct cash back to the company, and there are no exclusions or limitations. And it’s coupled with the fact that Montana has no sales tax.”
One hope is that the credits will bring more commercial production to the region. “As far as 2005 productions go, it’s a little light this year on commercial work,” he reports, “and one of the things that we’re hoping for is to end with a nice strong December, because [of the] snow, and a lot of the car commercials should be looking at Montana.” Iversen reports that about one-third to one-half of the commercial jobs that come to the state are cars spots. In 2004, production in Montana accounted for $6.4 million in revenue; Iversen estimates that about a third of that was from commercial work. While numbers are not yet available for this year, Iversen says its projected that revenue from production will rise next year, based on the new incentive program.
The state also hosts features, movies of the week, and television shows–particularly reality/adventure series. On the feature front, second unit work on The Chronicles of Narnia: The Lion, The Witch and The Wardrobe, was shot there, and the film Hoot, based on the Carl Hiassen novel of the same name, was lensed in the state.
A film and television advisory council is working with the film office and Governor Brian Schweitzer’s office to promote the incentive, as well as perhaps add to it. Iversen notes that in the coming months, “there are definitely plans to sweeten the incentive, going back to the legislature, and tweaking a few things.”
LOS ANGELES
The Entertainment Industry Council (EIDC), the private, non-profit film office that facilitates on-location production in the Los Angeles region, is changing its name to FilmL.A. The new name reflects the need to take a stronger lead in response to increasing competition from other regions for filming, says Steve MacDonald, president of the organization. “FilmL.A. is not just a name, it’s a statement that we are committed to keeping L.A.’s signature industry right here at home where it belongs,” he relates.
MacDonald notes that FilmL.A. is working closely with Mayor Antonio Villaraigosa’s office on initiatives to attract and keep filmmaking in the region. The Mayor’s office recently announced a proposal to eliminate the location fee on city-owned property. The measure is awaiting legislative approval, and MacDonald estimates that it will be in place sometime during the first quarter of 2006. “It’s a great first step,” says MacDonald, “and something that will make a strong statement to the industry.”
Through October of this year, Commercial production in the city is up three percent over the same time period as last year. (Spot production increased 18 percent in ’04.) The entertainment industry as a whole is responsible for the creation of 250,000 jobs in the L.A. area, and injects $30 billion a year into the local economy.
NEW YORK CITY
The Big Apple has long been a popular destination for all types of production–commercials, feature films, and television. Some spots recently shot in the city include ads for American Express, Maybelline, Cingular, and Pepsi, featuring Jimmy Fallon. And, while spot production may be down over recent years–the third annual survey of member companies of the Association of Independent Commercial Producers (AICP) showed that the number of spot days in New York declined to 18 percent from 21 percent since 2003–a proposed tax credit, if passed, would likely bring more commercial work to the city.
New York State already has an incentive in place for feature film and television work. Per that legislation, called The Empire State Production Tax Credit, a tax credit of 10 percent is applied to below-the-line production costs; if a project is lensed in New York City, another five percent tax credit is applied under the Made in New York incentive. The AICP, along with its lobbying firm, Wilson, Elser, Moscowitz, Edelman & Dicker, has been instrumental in spearheading legislation that would create a tax credit for spots shot in New York State. The backers of the new bill hope to have it voted on during the legislative session commencing in January.
In the meantime, production in general is going strong in New York City, and that includes spots. Katherine Oliver, commissioner of the New York City Mayor’s Office of Film, Theatre and Broadcasting, reports several major spot productions taking place this fall. Advertisers lensing in the area include Campbell’s, Clairol, Coca-Cola, Dunkin’ Donuts, Ford, MasterCard, and McDonald’s. “New York continues to see commercial production companies taking advantage of our city’s unparalleled locations across five boroughs,” says Oliver, who notes that overall, production generates $5 billion annually and employs 100,000 New Yorkers. “Well over one-thousand commercial productions have shot exterior locations in the City so far this year.”
To further encourage production in the city, the Made In New York discount card was unveiled in June. The card, which is available via the Mayor’s Office of Film, Theatre & Broadcasting, offers discounts to all productions, including commercials, shooting in any of the five boroughs. More than 400 vendors participate in the program, offering discounts on everything from props and postproduction to hotels, car rentals, airfare, restaurants, and gyms.
Numerous feature films and television projects have shot in the city as well. Those include soon-to-be released The Producers, as well as the upcoming Devil Wears Prada and The Good Shepard. On the series front, Law & Order; Law & Order: Special Victims Unit; and Law & Order: Criminal Intent, all shoot in the area, as does the upcoming Book of Daniel.
WASHINGTON
In the next couple of weeks, the Washington State Film Office will unveil phase one of its online location library, relates Cathy Sander, a project manager at the office who oversees efforts aimed at the commercial community. Prominent in the library will be images previously available on the office’s “Roads CD,” which highlighted highways and byways throughout Washington that would appeal to car advertisers.
Indeed, the region has a variety of locations. “Pretty much the entire state of Washington [is a popular location],” explains Sander, noting that commercial production shops like bicoastal Anonymous Content and Plum Productions, Santa Monica, have recently shot in the area. “You can get all across America’s look–we’ve got sand dunes, wheat fields, rugged coast lines, and cities, [like Seattle and Spokane]. The diversity is what attracts new people and repeat business.
Currently, the state and local sales tax is exempted for production rental equipment, purchase of production services, and rental cars. In an effort to make the state more competitive, a major financial incentive will be introduced to the Washington State legislature when it reconvenes in January. An advisory council, as well as a group called the Washington Entertainment Industry Players Association (WEIPA), which is comprised of people in the film and entertainment business, backs the incentive. Don Jensen, president of film lab Alpha Cine, Seattle, and a member of WEIPA, relates that the incentive will apply to commercials of a certain budget level. At press time, the details of the incentive were still being ironed out.