Once the most frightening phrase for U.S. film and
television production companies and crew members, “runaway production” is
certainly losing some of its might. Federal tax incentive legislation such as
the Jobs Creation Act has helped muffle the runaway monster’s growl. Across the
country in states such as New York,
Louisiana,
Hawaii,
Illinois,
New Mexico,
Florida and
Mississippi, incentives to keep
production in the
U.S. are
steadily increasing.
But the battle is far from over. Because although Canadian
locals have become stale through overuse, and incentives that were once the
exception are becoming the norm in the
U.S., our
neighbors to the north aren’t ready to lie down just yet. Recognizing that the
once tempting Canadian production mistress has lost somewhat of her allure,
Toronto has upped the ante by
recently increasing its tax credit for productions from 11 percent to 18
percent.
Canada
isn’t the only threat to the livelihood of domestic production. A recent study
released by the Film London group—based upon official filming and parking
facilitation on the streets and in the council-owned and private properties of
London—states that shooting days
have increased dramatically in the last year. Agencies, including the Film
London group, have worked hard to make production in the British capital as
enticing as possible.
Attempts by runaway production leaders like
Canada and
London to poach domestic production
business have made it necessary for states such as New
York to work much harder at keeping film and television
crews in-state. Hit the hardest by runaway production,
New York
State has also worked the hardest to
combat the decline in shooting days through aggressive tax tactics and credit
programs championed by Mayor Michael Bloomberg, Commissioner Katherine Oliver, and
Governor George Pataki.
The “Made in NY” program, initiated by Commissioner Oliver
through the Mayor’s Office of Film, Theatre and Broadcasting, offers Concierge
Services and Marketing Credits to qualifying productions. Productions that
complete at least 75 percent of a project using New
York production facilities, or that are physically shot
on the streets of New York, can
take advantage of co-marketing with the “Made in NY” program through
New York City bus shelters, phone
kiosks, street banners and broadcast opportunities on NYC TV reaching 8 Million
Households in the tri-state area and on 91.5 FM with the potential to reach 130,000 unique
listeners each week. Qualified productions are also given access to a Concierge Service that includes scouting assistance, budget analysis, hotel, car rental and vendor discounts, pre-production office space sourcing and premiere/launch coordination.
In addition to the 10 percent state tax credit for companies
that choose to shoot in New York, an additional 5 percent city credit was
signed into law on Jan. 3, 2005 after the initiative was passed by the City
Council in December. The 5 percent focuses specifically on below-the-line
expenses. Of the 5 percent victory, Commissioner Oliver said "One year ago, Mayor Bloomberg pledged to deliver a package of incentives for
film and television production in New York City, and we are thrilled to present a 5 percent tax credit to accompany
the recently passed 10% credit. With our new marketing incentives and free
media exposure for qualifying productions, now more than ever - film and television projects should be
Made in NY!"
The
additional 5 percent production credit was lauded by many as an imperative move
for the future success of production in
New
York. Before the initiative was passed,
Eastern Executive Director of the Directors Guild of America Russell Hollander
showed his support for the bill at a New York City Council Finance Committee
hearing by saying “Producers would rather shoot films that are set in New York
here in New York, for here we have the talent base, the infrastructure and the
real locations.” In order to do that however, he stressed that producers need
these incentives. “They [producers] regularly advise us that incentives are
essential if they are to succeed in the future. The proposed legislations, if
enacted, will provide our members with a very powerful and persuasive tool, so
that their films which are set in the
New York
City can, once again, be shot in
New York
City.”
One producer who plans to shoot in
New York is Mel Brooks. A
much-regaled commitment from him to shoot the entire production of the film
version of “The Producers” at the recently opened 280,000 sq. ft Steiner Studios
is a commitment the mayor, the governor and the commissioner are all hoping is
the first of many.
Another major coup for qualified productions is The Empire
State Film Production Credit that was signed by Governor Pataki at the end of
August 2004 and is administered by the New York State Governor’s Office for
Motion Picture and Television Development. It gives tax relief—applicable
spending is never taxed in the first place—for below-the-line costs such as film
editing, props, processing, assembling, sets, parts, tools, supplies and fuel.
As outlined in The Empire State Film Production Credit plan: “Generally, the
program provides a tax credit equal to 10 percent of ‘qualified production’
costs incurred by producing ‘qualified films.’ Qualified costs do not extend to
stories and scripts, and wages for writers, directors, producers and
performers.”
All of these incentives, along with the wealth of
production talent in New York,
will surely continue to lure production back to a city that possesses some of
the most iconic backdrops in the world.
For more information log onto www.nyc.gov/html/film/
