Posted 18 May, 2008 in FilmUSA
The top five film incentive packages in the U.S.
By MATTHEW ROSS, Daily Variety
For the past six years, Louisiana and New Mexico have reigned atop the
ever-expanding list of states that have opened their coffers to the movie
business. But they’re certainly not the only draws out there. Producers and
studios have more choices than ever before, and the trend shows absolutely
no sign of slowing down.
Over the past year, we’ve seen how a single new piece of legislation can
change the entire U.S. landscape in an instant, whether it’s coming from
states with established production services (New York) or a new upstart
whose financial package is simply too good to resist (Michigan).
Picking the best incentive packages in the U.S. is far from an exact
science, but we’ve given it a shot. Herewith, we present our top five. (Of
course, things could always change next week.)
LOUISIANA
The granddaddy of the incentive boom continues to impress and endure. When
Hurricane Katrina and its aftermath made shooting difficult in New Orleans,
production houses and crew members set up shop in other cities such as
Shreveport and Baton Rouge without missing a beat. And 2008 is shaping up to
be a record year — 28 productions have come through the state through
April, a pace that should easily eclipse 2007’s record of 53 productions for
the entire year. The reason: Along with its 25% transferable credit for all
in-state expenditures and an additional 10% on labor for state residents,
Louisiana continues to develop its production resources, which now include
the Cinelease soundstages in Shreveport and the Celtic Media Center in Baton
Rouge. Upcoming and recent pics include David Fincher’s “The Curious Case of
Benjamin Button,” with Brad Pitt, and Oliver Stone’s “W.” Louisiana
continues to be a favorite location for both the Weinstein Co. bring in
regular business.
NEW MEXICO
Like Louisiana, New Mexico boasts one of the most established, effective
incentive programs in the U.S. Rather than offer tax credits, the state
provides a flat-out cash rebate covering 25% of all in-state expenses. In
addition, it offers 0% loans (in exchange for backend participation) of up
to $15 million on shows spending at least $2 million within the state. In
previous years, the one knock on New Mexico was that it had scant facilities
and hardly any qualified local crew. That situation is being remedied. Last
June, Albuquerque Studios, a $75 million soundstage and production hub,
opened its doors. Recent and upcoming productions to take advantage of the
new facility include Taylor Hackford’s “Love Ranch,” Jim Sheridan’s
“Brothers” and McG’s “Terminator Salvation: The Future Begins,” currently in
prep.
CONNECTICUT
In only two years, Connecticut has gone from nonentity to major player in
the incentive game, and has offered further proof that film-related
legislation has the ability to give local economies an immediate boost.
Thanks to its generous 30% tax credit and its close proximity to the
resources and crew of neighboring New York, Connecticut has managed to lure
a slew of high-profile productions recently. Seven features are shooting
there, including Andrew Jarecki’s “All Good Things” with Ryan Gosling and
Kirsten Dunst, P.J. Hogan’s “Confessions of a Shopaholic” and Sam Mendes’
“Farlanders.”
NEW YORK
Until a few weeks ago, New York had one of the weaker incentive programs in
the nation. That still didn’t stop more than 250 features from shooting in
the state last year. Those stats are about to be shattered. In April, Gov.
David Paterson and the Legislature teamed up to pass a bill that tripled the
state tax credit on production expenses to 30%, with an additional 5% thrown
in for shows shot within New York City. For productions big and small, the
cringe-inducing costs of shooting in Gotham have suddenly become easier to
manage.
MICHIGAN
The new kid on the block, Michigan rounds out the list purely based on its
unmatched investment, which was announced last month. It includes a
phenomenal 40%-42% cash or tax-credit rebate (whichever the
producers/financiers prefer) on all in-state expenditures, plus a 30%
reimbursement for nonresident below-the-line crew members. Simply put, this
is the best package ever to be introduced in the United States. But that
doesn’t mean there won’t be significant hurdles to overcome, the most
glaring of which is Michigan’s utter lack of any significant production
resources or local crew. Expect that situation to change, and fast. Just
look at Louisiana and New Mexico.
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