This week’s lead story centers on a proposed wage tax credit incentive designed to stimulate filming in Illinois. Helping to bring this initiative about was the Illinois Production Alliance (IPA), which several months ago forged a strong connection with the transition team of then governor-elect Rod R. Blagojevich (D-Ill.).
Formed last year, the IPA has drummed up membership from production and post companies, talent and craft unions, support and service companies, and industry-related governmental, educational and professional institutions. A prime IPA goal has been to gain a balanced package of tax and wage incentives that would reduce production costs in Illinois.
Now that the tax incentive is on the brink of being introduced in the Illinois legislature, I hearken back to what was stressed by IPA’s co-founder Mark Egmon when SHOOT talked to him at the beginning of the year. Egmon, who is also president of the Association of Independent Commercial Producers’ Midwest chapter, affirmed that the IPA’s thrust is not cut from the same cloth as past anti-runaway efforts. Instead of asking for help to save a floundering industry, the IPA is adopting a positive approach.
"We want to educate the financial world—banking, venture capitalists and investors—and the government about our industry and what an important growth industry it is," related Egmon back in January. "Chicago has the second largest advertising agency base in the country. We have gaming companies like Jellyvision—there are so many aspects. We want them to look at it as an opportunity, so that they feel that they have something to grow, versus tossing money as a life preserver to an industry that sounds like it’s dying. That makes no sense."
Egmon is currently in the process of forming Outer Radius, a Chicago-based branded entertainment development and production company. The new venture will tap into top-drawer writing and creative talent that has its roots in Illinois. The company, said Egmon, represents an emerging sector that he believes will help grow the state’s economy over the long haul, particularly given the strength of the Chicago agency community. If different factions of the industry come together and progressive pro-filming incentives finally take hold in the state, Egmon is optimistic that Illinois will be able to retain and attract not only new-media business, but also more traditional spot and filmmaking projects.
Beyond tax breaks, he noted that other incentives could help to make Illinois more competitive in the global marketplace. For example, the IPA is working with the city of Chicago "to look into redistricting so as to encourage businesses to relocate here—including businesses that are focusing on new forms of content creation.
"It’s all about infrastructure," he continued. "Chicago has Columbia College, the largest film school in the world right now. We’re a spawning ground for talent, but we need to keep more of that talent here by creating opportunities here."
While staggering budget deficits in most states make tax incentives difficult to attain, the Illinois effort—even if it ultimately falls short in its bid for certain financial concessions—still figures to generate positive results, bringing different segments of the production community together. Pooling brainpower, resources and connections will strengthen the state on many fronts down the road, including perhaps in ways not initially envisioned by IPA organizers.
