Chasing the Film Industry

As with other industries, the film industry has its share of states, regions, and cities courting it.

And ... according to a recent op-ed piece in the Los Angeles Times this has some economic officials in Southern California quite concerned. They believe California needs to start following the examples set by states such as New Mexico and Connecticut (both of which offer attractive incentives to the film industry and both of which have seen a dramatic increase in economic activity in this industry over the past few years) if the state wants to keep its financial foothold in the industry, and these officials want to see action taken.
With the backing of by Gov. Arnold Schwarzenegger, the Assembly included more than $145 million in tax breaks over three years in its proposed budget for this fiscal year. It also passed a bill to aid filmmakers with cash grants.
According this op-ed piece:

"One problem with such proposals is that they can't distinguish between productions at risk of leaving California and those sure to be shot here. A state such as New Mexico that's starting virtually from scratch doesn't have to worry about that; almost every dollar it sacrifices in tax revenue is going to a film that would have been shot elsewhere. But in California, the tax breaks would subsidize thousands of productions that have both feet firmly planted in the state."

The article went on to say:

"Granted, California needs the high-paying jobs that the film industry provides. A disturbing number have left the state as producers have sought cheaper locations around the globe. But backers of targeted tax breaks and grants need to make a better case that filmmakers are uniquely deserving of the taxpayers' help, and that a large percentage of the subsidies won't flow to those who don't need the help. They should also explain why financial handouts are the best way to welcome filmmakers to the entertainment capital of the world."

And, New Mexico and Connecticut aren't the only states leveraging these incentives and touting cost savings to lure the film industry, North Carolina, Arizona, and Louisiana are among several states that are waving their assets in front of businesses in this industry. (Incidentally, a former state official filed a whistle-blower lawsuit this past spring alleging that his former boss at the Department of Economic Development took bribes from a New Orleans film production firm in exchange for giving more tax credits to the company.) It will be interesting to see how and where the film industry evolves over the next few years, and if Southern California can keep it's hold on the industry that it is famous for.

Here is a list of what each state has to offer businesses in the film industry as of January 2007.