On Location: Mississippi bill aims to raise incentive caps

With an assist from "The Help," the Magnolia State is vying to become more attractive to filmmakers by expanding its movie incentives program.  

A bill that would raise incentive caps was passed by Mississippi’s House Ways and Means Committee this week and is expected to go before the full House next week.

Launched in 2004, the program reimburses filmmakers for 25% of production expenditures and offers an additional 5% rebate for hiring state residents. The proposed legislation would double the annual cap on incentives to $40 million and would increase the limit for a single production to $10 million from $8 million. It would also broaden the rebate available for individual hires — including actors and directors — to $5 million per person, up from $1 million.

The sought-after increase was spurred by the success of DreamWorks' production of "The Help,” last year’s civil rights era movie about black maids in Mississippi, said Ward Emling, manager of the Mississippi Bureau of Film and Cultural Heritage.

The film, for which Octavia Spencer won this year's Oscar for supporting actress, cost $25 million to make and received $3.5 million in incentive rebates.

"The Help" was shot almost entirely in the small town of Greenwood, 100 miles north of Jackson, and resulted in an estimated $13 to $15 million in direct spending for the state, while generating $207 million in global ticket sales.

“It was the first time in a long time that we had a film focused in one community,” said Emling. “It was a really great test sample for everyone to see the impact.”

Other recent productions in Mississippi include the History channel’s new series “Full Metal Jousting,” which was filmed on a horse farm in Jackson; and Relativity’s “Act of Valor,” the Navy SEALs movie now in theaters, which was partially shot at the John C. Stennis Space Center in the southern part of the state.

Mississippi attracts mostly small-budget and independent movies, and the proposed bill does not significantly threaten Southern production strongholds like Louisiana and Georgia, which have uncapped programs and higher incentives. Nonetheless, Emling expects the higher caps to make Mississippi a more enticing film destination.

"Our locations are now in play," Emling said. "We may not have deserts, mountains, or a big city but we have plains, the Gulf Coast, the Delta, the Mississippi River — a lot of really great water locations." 

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— Dima Alzayat

Photo: A scene from DreamWork's "The Help," filmed in Greenwood, Miss. Credit: Dale Robinette / DreamWorks.

 

On Location: MTV's 'Buck Wild' denied W. Va. tax credit

First it was artificially tanned, party-crazed Italian Americans. Now it's mud-racing, squirrel-hunting Appalachians.

MTV once again finds itself at odds with state film officials who refuse to subsidize the network’s latest reality TV show with tax credits, citing its unflattering depiction of West Virginia culture.

“Buck Wild" is scheduled to start filming next spring in Charleston and Sissonville and follows a group of recent high school graduates living in rural West Virginia as they participate in homegrown activities like mud-racing.

"We'll give our viewers a singular and fun glimpse at this generation's experience as we go into Appalachia to capture the lives of a lovable group of dynamic young people," MTV programming head David Janollari said in a recent statement.

But the West Virginia Film Office was not impressed and twice turned down the show’s application for incentives over concerns the series will negatively portray the state. West Virginia offers tax credits of up to 31%. But in order to qualify, a production has to meet specific content criteria set forth by the state legislature. The denial came to light last month when MTV announced the new series.

“It [the production] can’t portray West Virginia in a significantly derogatory manner,” said West Virginia Film Office Director Pam Haynes, acknowledging that what is deemed “significantly derogatory” is subjective and decided by a six-member panel.

The show's executive producer, J.P. Williams of Parallel Entertainment, is a native West Virginian best known for creating “Blue Collar Comedy,” a stand-up troupe led by Jeff Foxworthy that pokes fun at rural American life. Representatives of Parallel could not be reached and MTV spokeswoman  Candice Ashton declined to comment. 

The denial follows New Jersey Gov. Chris Christie’s decision last month to revoke a $420,000 tax credit that his state’s Economic Development Authority had awarded to MTV for its hit reality TV series "Jersey Shore," which spent $2.1 million in the state.

The show, which has drawn criticism for its portrayal of Italian Americans, perpetuated misconceptions about New Jersey, Christie said in his veto letter.  The fifth and most recent season of “Jersey Shore” was the third to be filmed in New Jersey -- seasons two and four were filmed in Miami Beach and Italy, respectively. 

Many states that offer filming incentives stipulate content requirements. In Michigan, a legal provision requires films approved for tax credits to help promote the state as a tourist destination. In Texas, a production may not qualify for tax credits if it “portrays Texas or Texans in a negative fashion.” That law was cited last year when the Texas Film Commission denied tax credits for Robert Rodriguez’s “Machete,” a film that starred Danny Trejo as a former federal agent wreaking much-deserved havoc on corrupt government agents and overzealous border vigilantes.

Cries of censorship have being aimed at attempts of more heavy-handed state control over content.  In Florida, a legislative proposal to bar a special tax credit for family entertainment from productions that exhibit “nontraditional family values” was dropped last year after it was criticized for targeting gay characters.

In an environment in which state filming incentive programs are being scrutinized and reevaluated, states like West Virginia must walk the fine line between drawing productions they hope will stimulate the local economy while keeping the constituents that foot the bill happy.

“We are doing our responsibility to our taxpayers,'' Haynes said, "to run the program as the legislature mandates."

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-- Dima Alzayat

Photo: The cast of MTV series "Jersey Shore" films in Florence, Italy. Paul "Pauly D" DelVecchio, left, Vinny Guadagnino, Mike "The Situation" Sorrentino and Ronnie Ortiz-Magro. Photo by Jeff Daly / MTV / PictureGroup.

On Location: New York City's TV production surges to record level

Arch-rival New York City is stealing the show from Los Angeles.

New York is experiencing a historic surge in television production thanks to its expanded film tax credit program, cutbacks in other states’ incentives and the weak U.S. dollar, which has made it more expensive to shoot in the Canadian cities of Vancouver and Toronto.

In the most recent TV season, New York City drew a record number of cable and network pilots: 22, up from only three the previous season. And in the coming year, the city is expected to also host that many TV series, including “Person of Interest,” a CBS drama from producer J.J. Abrams about an ex-CIA agent, the MTV comedy “I Just Want My Pants Back” and the HBO series “Girls” from producer Judd Apatow.

“We’ve never seen numbers like this,” said Katherine Oliver, New York City’s film commissioner since 2002.

New York’s gain comes as Los Angeles is struggling to hold onto its share of TV production. A recent survey by FilmL.A. Inc., the nonprofit permitting group, found that although 87 pilots were produced in L.A. last season, up from 76 the previous season, the region’s share of pilot production has fallen to 51%, down from 58% the prior season and 82% six years ago.

At the same time, New York more than doubled its share to approximately 10% of all pilots, according to FilmL.A.

The two cities have had a long rivalry in TV production. Los Angeles often stands in for New York for such shows as “CSI: New York” and is home to studios such as Universal that have entire back lots dedicated to New York streetscapes and landmarks. New York lured the ABC sitcom “Ugly Betty” away from L.A. in 2008, which prompted the California Legislature to enact the state’s first film tax incentive program.

Although California’s tax credit program, which took effect in 2009, has slowed runaway production, it’s still less competitive than that of New York and other states. California provides a 20% tax credit for TV production, compared with New York’s 30%, and allocates only $100 million annually, a quarter of what New York doles out.

After a period of uncertainty about whether the program would be funded, New York lawmakers last summer beefed it up, allocating $420 million annually through 2014.

“I think there’s no doubt that the fact that we were able to expand the tax credit and extend it for five years had a great impact,” said Pat Swinney Kaufman, executive director for the Governor’s Office for Motion Picture & Television Development.

New York also has picked up more business as some states grappling with budget deficits have cut back or suspended their programs, as in the case of New Jersey. While HBO’s “Boardwalk Empire” is set in New Jersey, the series is being filmed in New York, including the Brooklyn neighborhood of Greenpoint, where a full replica of the Atlantic City boardwalk was constructed. HBO’s recent miniseries “Mildred Pierce,” set in the 1930s in Los Angeles, also was filmed in New York.

“Boardwalk” is among 14 primetime series that are returning to New York in the coming months, including NBC’s “30 Rock,” Showtime’s “Nurse Jackie” and “The Good Wife,” the CBS drama starring Julianna Margulies that is set in Chicago.

Oliver, the New York film commissioner, also credits other services for helping make New York attractive, such as free police assistance provided to crews, a 10% discount to filmmakers for using local vendors and a program run by a Brooklyn organization that supplies well-trained production assistants from low -income, minority backgrounds.

“I’ve always said we can’t control what other territories are going to offer in terms of tax incentives,” Oliver said, “but what we can control is the services we provide.”

Photo: The HBO series "Boardwalk Empire" is set in Atlantic City but is filmed in New York, including at Greenpoint, Brooklyn. Credit: HBO

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-- Richard Verrier

On Location: Plenty of entries but few winners in California film tax credit lottery

Filmmakers apparently can't get enough of California's film tax credits.

The state's annual lottery to determine who gets a piece of $100 million in tax breaks drew 176 applicants -- more than double the number who applied for the money last year. The state began accepting applications June 1 for the program, which allows filmmakers to receive a tax credit equivalent to 20% to 25% of qualified production expenses.

Because of limited funds, however, the vast majority already have walked away empty-handed. The 
California Film Commission, which administers the program, said 27 projects qualified for the funding, down from 32 last year. The money is doled out by lottery, except for TV series that received credits last year and automatically get priority for funding.

The approved projects for the fiscal year that begins July 1 were mostly independent features and recurring TV series such as "Rizzoli & Isles," which was approved for a $6.8-million credit; and "Justified," which got a $4.7-million credit, according to the California Film Commission.

Also in line to receive film tax credits are two series that relocated to California from elsewhere: the ABC crime drama "Body of Proof," which filmed its first season in Rhode Island earlier this year and received a $6.9-million tax credit for the coming fiscal year; and "Torchwood," the BBC America sci-fi series that moved to L.A. from Wales this year. The show  received an $8-million credit.

Why the surge in applications?  Perhaps more filmmakers are giving California a second look as states such as New Mexico and Michigan plan big cuts in their programs. Amy Lemisch, executive director of the California Film Commission, thinks not. She posits another theory:

"More people are familiar with the program and understand how it works and felt it was an efficient program," Lemisch said. "They said 'let's go for it.'"

-- Richard Verrier

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Photo credit: Timothy Olyphant stars in "Justified" on FX. Credit: Prashant Gupta / FX

 

 

Liberal think tank and Hollywood's lobbying arm trade barbs over state film subsidies

Hollywood may be known for its liberal politics, but that doesn't mean it will get a pass from one prominent liberal think tank.

The Center on Budget and Policy Priorities, a Washington public policy organization that focuses on federal and state fiscal issues, is no fan of industry tax breaks, least of all those handed to Hollywood. On Wednesday the organization released a stinging, 13-page report titled "State Film Subsidies: Not Much Bang for Too Many Bucks," that concludes state film tax subsidies are not worth the cost.

"While subsidies may attract film production to a state, they create few good local jobs and they don't come close to paying for themselves,'' said Senior Fellow Robert Tannenwald, author of the report. "They also use up money that states could otherwise spend on proven long-term investments, like education and infrastructure."

Needless to say, the Motion Picture Assn. of America, Hollywood's lobbying arm, didn't take kindly to the think tank's take on film incentive programs that play a pivotal role in determining where films and TV shows are shot.

"This politically motivated, slipshod report by a think tank in Washington, D.C., demonstrates no understanding of the film and television industry, nor the importance of jobs and economic development produced by these tax credits in states all across our nation,'' said Vans Stevenson, the MPAA's senior vice president of state government affairs. "The film and television incentive programs can do wonders and are an economic stimulus. New investment in film and digital media production is, on balance, revenue positive."

-- Richard Verrier

 

 

The Morning Fix: Box-office trading gets closer to reality. Michigan says no to cannibalism. Rupert Murdoch goes after BSkyB

After the coffee. Before buying a vuvuzela to annoy my neighbors.

Box-office betting. The Commodity Futures Trading Commission voted to approve a vehicle that will clear the way for professional traders to bet on movie ticket sales. The movie industry's D.C. lobbying arm, the Motion Picture Assn. of America, has fought hard to stop this in its tracks, fearing that trading on box office could be manipulated and hurt the industry. Veriana, the company that got the approval, now has to stop legislation that would ban box-office futures trading. Veriana Chief Executive Rob Swagger blasted the MPAA and the legislation and promised to start lobbying Capitol Hill this week. The first movie traders could bet on is Sony's "Takers." That one stars Matt Dillon, and as much as I like him, it's been a while since he had the lead in a hit. His co-star, Zoe Saldana, is the flavor of the month right now, so maybe that will give the movie a little lift, but it still sounds risky to me. More on the decision and reaction from the Los Angeles Times and Variety.

Rupert wants control of BSkyB. Rupert Murdoch's News Corp. has made a bid to buy a controlling stake in British Sky Broadcasting, a satellite pay TV service. News Corp. already owns 39% of BSkyB and has offered $11.5 billion for the rest. BSkyB officials are willing to talk to Murdoch about a deal, but they want a higher price. More from Bloomberg and the Telegraph.

State-sanctioned piracy? North Korea's Central Broadcasting service showed the South Africa-Mexico World Cup match, but it didn't have the rights to do so. The Wall Street Journal says South Korea is looking into whether its coverage of the match was ripped off by the North Korean station. If it was, will North Korea be fined or will South Korea just arm every citizen with a vuvuzela and have them blow north?

Fresh ideas needed. With many of the summer's big-ticket movies flaming out, Vulture reports that Hollywood wants (gasp) original ideas for scripts instead of more remakes and sequels. Not to be too cynical, but I'm willing to bet that for every example of a recent script deal for an original concept that this story mentions, I can go find one based on an old TV show or movie.

Well, you have to draw a line somewhere. Michigan denied a tax break to filmmaker Andrew van den Houten, who wanted to shoot "The Women," a horror movie with a cannibalism theme in the state. It would have been his second movie featuring cannibalism to be shot in Michigan. Now though, some states are starting to take a closer look at the movies applying for tax breaks instead of just rubber-stamping a yes to every application. The New York Times sinks its teeth into this one.

Read the fine print. The Daily Beast looks at a bunch of reality shows and shockingly discovers that sometimes the cash and prizes promised winners don't always materialize quite the way participants might have hoped.

Inside the Los Angeles Times: Lots of E3 News, including ESPN doing a deal with Microsoft's Xbox and Richard Branson getting back in the game. Also, the romance between Hollywood and video game makers is starting to cool. 

-- Joe Flint

Betting on box office is risky. Following me on Twitter is safe. Twitter.com/JBFlint

State film tax credit keeps Disney film local

California's first new film tax credit program has been panned by some filmmakers as too little too late, but it's already helping to spur at least some local production.

A low-budget Walt Disney Pictures comedy, "You Again," is the first studio feature to shoot locally after qualifying for the film credit.

The comedy, starring Sigourney Weaver, Kristen Bell and Jamie Lee Curtis, began seven weeks of filming last week in West Los Angeles. The production also will film on location in Pacific Palisades, Malibu, Monrovia, Chatsworth and Pasadena.

"You Again" is among 25 productions that have so far received credit qualification certificates from the California Film Commission. (Another project on the list, a made-for-TV movie called "Elevator Girl," began filming in Los Angeles in late July.)

Scheduled for release in 2010, "You Again" received a commitment for a tax credit totaling about $3 million. That's a significant savings for a movie with budget of less than $20 million.

"When you get a tax credit that equals $3 million, that's huge for a lower-budget movie,'' said Mario Iscovich, the movie's executive producer. "If it wasn't for this tax credit, this movie had a great chance to made somewhere else. This was the sort of movie that could have easily shot in New York or Boston.''

Although the tax credits can't be used until 2011, the film commission recently began issuing tax credit certificates and so far has issued commitments totaling $67 million. The state has authorized a total of $500 million in film tax credits through 2014.

The state program offers a 20% to 25% tax credit on qualified production expenses and excludes movies that cost more than $75 million.

It's too early to say whether they will do much to reverse the outflow of production that has pounded Southern California's entertainment economy.

But Amy Lemisch, director of the California Film Commission, says movies like "You Again," which employ more than 100 crew members (excluding extras), are a welcome boost to the local economy. "These are shows that were absolutely set to shoot elsewhere and now they are filming here. It's really having an effect," Lemisch said. 

Iscovich added: "I'm just so happy we're staying here. The people get to earn a living here in California and they can pay their taxes in the state. Lord knows California needs that."

-- Richard Verrier

25 film, TV productions among first to get California tax credits

California's effort to woo film and TV productions that have been fleeing to other states has netted its first results.

The California Film Commission on Monday announced that 25 productions had been awarded tax credits, which refund 20% or 25% of all spending in the state on so-called below-the-line employees, Hollywood parlance for behind-the-scenes crew.

Fifty-nine movies and TV shows applied for the credits once they became available on July 1. Almost all of them filed on that day, since the credits are awarded on a first-come, first-served basis. Applications that arrive on the same day are ranked randomly.

The state is awarding $67.5 million in tax credits for the 25 productions. Amy Lemisch, director of the CFC, said those movies and TV shows will spend $347 million on below-the-line employees. Lemisch said she was confident the vast majority of that money would otherwise not have been spent in California.

"Based on my talking to these producers for some quite some time before they even applied, I'm confident most of these would not have shot here without the incentives," she said.

The CFC has $32.5 million left to award in tax credits for the current fiscal year that ends June 30, 2010. But Lemisch is allowed to award credits from future fiscal years for current productions at her discretion.

Though they're being awarded now, the first tax credits won't be issued until January of 2011.

California's tax credits, where were approved in February, are relatively small compared to some other states, but many in the industry have said they are critical as productions such as "Ugly Betty," "Deal or No Deal" and "Terminator: Salvation" have shot in other states with tax credits. California's share of feature-film production has dropped from 66% in 2003 to 31% last year, according to the CFC. The effect on California  entertainment employment has been severe.

Productions using the credits include CBS Films' action flick "Faster"; DreamWorks' comedy "Dinner With Schmucks," starring Sacha Baron Cohen; and Sony's upcoming movie about the founding of Facebook, "The Social Network."

Comedy Central's "Important Things With Demetri Martin" is using a credit to help it move production from New York.

There's even a direct-to-DVD sequel from Disney that looks sure to increase employment among California dog trainers: "Beverly Hills Chihuahua 2."

-- Ben Fritz

Photo: "Beverly Hills Chihuahua." Credit: Disney Enterprises

New Mexico's Gov. Richardson comes to Hollywood, seeks Gov. Schwarzenegger's milkshake

 

Some states are so hungry to keep their slice of Hollywood, they'll even send their governors here to drum up business.

New Mexico Gov. Bill Richardson, arguably the most unabashed salesman for his state's film and TV business, was at it again Wednesday night, talking up New Mexico's generous film-production incentives to more than 30 TV studio executives who gathered for an industry dinner Wednesday night at the Little Door, a Miracle Mile eatery.

In a 10-minute speech, Richardson touted the state's generous 25% production rebate, loan program and crew base that now comprises 3,000 workers. The event was sponsored by the New Mexico local of the International Alliance of Theatrical Stage Employees union.

"I'm on a recruiting trip,'' Richardson, who last year sought the Democratic party's nomination for President, said in an interview before the dinner.

Since adopting its own film incentive program in 2002, New Mexico has emerged as a major rival to California, attracting scores of TV shows and movies such as the AMC TV series "Breaking Bad" and the action movie "Terminator Salvation."

The growth of the film business in New Mexico and other states recently prompted the California Legislature to adopt its first-ever film tax credits. The California Film Commission is reviewing its first crop of applications, but the credits won't take effect until 2011.

"If we want to compete, we have to hustle, we have to stay competitive," Richardson said. "We've got the incentives, free state land. We've got the landscape and excellent weather."

Spoken like a true pitchman.

-- Richard Verrier

Photo: A film crew prepares for a shoot near Taos, N.M., last year. Credit: Theodore Y. Bott / Associated Press

Producers line up for California film tax credits

California may be teetering on financial collapse and about to pay its bills with IOUs, but that doesn't appear to be discouraging filmmakers and producers from seeking film tax credits from the state.

The California Film Commission said it received 56 applications for the tax credits on Monday, the first day companies could apply. The tax credits were adopted earlier this year by the state Legislature in an effort to keep movie and television production from migrating to other states.

"We got a great response,'' said Amy Lemisch, director of the California Film Commission, the state agency that is administering the program. Applicants included movies of the week to low-budget features, cable series and studio films, she said. "We got a little of everything."

The commission will review the applications over the next 20 days and send out "credit allocation letters" to those who qualify. Because of the interest, the commission has devised a lottery system to determine which applications will be reviewed first. The tax credits won't take effect until 2011.

To compete with cheaper locales, the Legislature this year agreed to allocate $500 million in film tax credits over a five-year period. Producers can obtain a tax credit totaling 20% to 25% of "qualified production expenses." There are a number of restrictions: Only feature films that cost $75 million or less are eligible. The program also is limited to new basic cable TV series, movies of the week or miniseries and existing TV series that move back to California.

-- Richard Verrier