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I have a friend who works for the International Herald Tribune in Hong Kong who saw this on the AP Wire and sent it along to me.
This just goes to show how our governor is just following a national conservative agenda to gut the film industry while clearly leaving other industries that receive much higher incentives intact.
Keep the faith. Remain vigilant.
SAVANNAH, Ga. (AP) — Thanks to a tax break used to lure
Disney filmmakers away from North Carolina to coastal Georgia, Harry
Spirides figures his beachfront hotel raked in an extra $85,000 because
Miley Cyrus spent a summer filming here.
The producers of Cyrus’ film, ‘‘The Last Song,’’ were brought in with an
across-the-board tax credit of 20 percent when they rolled into Tybee
Island in June 2009. Lawmakers in Georgia and other states, though, are
worried that they can’t afford to offer Hollywood those incentives any
longer as they struggle to find enough money to pay for programs like
Medicaid.
For Spirides, though, the economic benefit from the tax credit was
clear: The crew rented a parking lot at Spirides’ Ocean Plaza Beach
Resort for $30,000 to set up makeup trailers and dining tents. Then
there were hundreds of families working as extras on the film who would
crash at the hotel after shooting until 2 a.m.
‘‘The shooting of the movie definitely made it a lot better of a summer
financially than it would have been,’’ Spirides said. ‘‘It really,
really helped when we were in the depths of the recession.’’
In January, though, a Georgia state council said those benefits are
fleeting. It said even though the crews bring jobs — and lots of people
who spend money locally on food and lodging — those benefits are lost
when they pack up and leave after filming.
The council recommended ditching the film tax break, which meant $140.6
million in lost tax revenues last year. Film producers spent $617
million in Georgia last year.
An Associated Press survey found that from 2006 to 2008, states shelled
out $1.8 billion in tax breaks and other advantages to the entertainment
industry. The recession has officials in several states wondering if
the incentives are worth the lost revenue.
Michigan’s governor has proposed capping Hollywood tax credits at $25
million a year — a fraction of what the state spent in the past. New
Mexico lawmakers are pushing to limit film subsidies to $45 million a
year and spread out refunds to large film projects over two or three
years.
Budget woes prompted New Jersey and Kentucky to place similar caps on
film incentives last year. Connecticut, Iowa, Kansas and Wisconsin all
slashed spending on their programs in 2009.
But not everybody is cutting back. A few states eager for jobs and
spending are offering more money to lure Hollywood productions.
‘‘It’s a mixed conversation as to are we giving away money or are we
trying to create jobs?’’ said Todd Haggerty, a tax policy analyst for
the National Conference of State Legislatures.
Virginia adopted its first tax credits for the movie industry last year.
North Carolina, which lost ‘‘The Last Song’’ in 2009 because Georgia
offered a sweeter deal, bolstered its film incentives last year by $14
million.
The film industry is pushing to hold onto its tax credits. At the state
capitol in Atlanta last week, several studio officials turned out at a
hearing to tell Georgia lawmakers the tax breaks are vital to getting
films produced in the state and have helped create jobs outside the
movie business.
Brian O’Leary, a tax attorney for NBC Universal, hinted that other
states would be happy to snatch film projects away from Georgia if its
cash incentives get scrapped.
‘‘The debate that’s currently under way is going to create a chill on this industry,’’ he said.
Alan Essig, executive director of the Georgia Budget and Policy
Institute, said lawmakers shouldn’t accept that testimony as fact.
‘‘If the film industry is correct, for sure we should do it. But I think
we need an impartial look at it to see if it’s actually creating jobs
and growing the economy,’’ Essig said.
Savannah, for instance, had long been a Hollywood favorite, with
‘‘Forrest Gump’’ and ‘‘Midnight in the Garden of Good and Evil’’ both
filming there in the 1990s. After ‘‘The Gift’’ was shot there in 2000,
it was nine years before another Hollywood hit filmed there because
other states offered better incentives, said Jay Self, Savannah’s film
commissioner whose job is to woo Hollywood to Georgia’s oldest city.
Georgia adopted its current tax break package in 2008, and studios
quickly returned to the Georgia coast. The following year, Cyrus and
‘‘The Last Song’’ set up shop in the area. Robert Redford also picked
Savannah to direct his Civil Car historical thriller ‘‘The
Conspirator,’’ set for release next month.
Self said both projects combined brought more than $9 million in
spending to Savannah and nearby Tybee Island. And those aren’t the only
two. The upcoming ‘‘X-Men: First Class’’ shot scenes on location at
Jekyll Island last fall. A film titled simply ‘‘Savannah,’’ starring Jim
Caviezel, is now shooting in the city.
‘‘This business doesn’t just benefit farmers, it doesn’t just benefit
people in one certain area,’’ Self said. ‘‘There are people in every
trade from animal handlers to electricians, carpenters and makeup
artists. They hire all kinds of people.’’