Monday, August 22, 2005

A few million reasons to make movies in Tennessee (or Mississippi or Arkansas)

Excerpted from an Associated Press story:

California receives millions of dollars in tax revenue when movies are filmed in the state, but about 60 percent of all productions last year were shot elsewhere. California loses more than $10 million when a $70 million movie is made outside the state, and $3 million for a 12-episode drama, the Los Angeles County Economic Development Corp. said.

Sponsored by labor and industry groups, the 20-page report showed that 236 features, or about 40 percent of all productions, were shot partially or exclusively in the state last year.

"The real threat is that this major economic engine could gradually leave the state, one project at a time," according to the report.

Gov. Arnold Schwarzenegger, a former actor, is pushing the legislation that would provide a 12 percent tax credit on a feature film's spending, with a cap of $3 million per production. Made-for-TV movies could get an additional 3 percent credit.

The report said states such as New Mexico and Louisiana have successful used tax breaks to lure filmmakers. For instance, director Taylor Hackford said he shot the Oscar- nominated film "Ray" in Louisiana because of a $3.7 million tax credit.

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