THE TERMINATOR TO THE RESCUE

Many states offer tax or financial incentives to the independent producer as a lure for production to be done in their states.  The financial rewards to the coffers of the state are great and the publicity of showing off the geography of the states is an attraction.  Independent productions have been going to Canada for years because of economic reasons and some are going to other countries that are now offering similar financial or tax incentives. Besides the employment of localson such productions, moniesthat the production company and their cast and crew will spend in the local economy can be substantial. 

These advantages have been some of the causes for the term “runaway production!" But no more if Governor Schwarzenegger of California has his way. He has been seeing other states like Illinois and New York pass tax incentives that make shooting in those states cheaper even with the added costs of travel, living and per diems. As part of the Governors revised budget that he will submit to the California Legislature in May 2005 there is a long awaited legislation proposal that is edging up to match tax incentives from these and other states and countries.  Although details are still being worked out, the plan is expected to give tax credits for productions that will spend 75% or more of their budget in California.  This incentive may be a very high maximum credit if the Governor has his way.  Fashioned by the California Film Commission the proposal will hopefully come close to other states like Louisiana and New Mexico and because of lower travel costs and a larger talent pool additional costs can be saved so that productions will remain in California.   

The Governor has assist from bi-partisan support for this plan in Sacramento as Democratic State Senator Kevin Murray will author the plan in the house and Republican Assemblyman Kevin McCarthy will play the same role in the Assembly.  Of course when the plan passes, the California Film Commission which includes the likes of Clint Eastwood and Danny Devito will play a role in promoting and administering the plan.Runaway productions essentially have affected the California based below-the-line people and those California businesses that may be associated with the productions since principle actors, producers and directors for productions are not as impacted beyond the inconvenience of working away from home although more and more above the line talent are insisting that productions they work on stay in California. Of course another issue related to this is the need for producers to know how to produce and recognize the relationship of creativity to their budget while maintaining the integrity of the story.  Not just making the deal and leaving the actual producing (making) of the project to others. The old expression of “too many cooks spoil the broth” comes to mind with the number of names we see as producers on screen of a movie these days.  Perhaps in an effort to not spoil the broth, these producers are determining that they have to go away from California to do their projects.  Hopefully Governor Schwarzenegger’s plan will in some way be one step closer to creative producing and encourage independent productions to stay in California. -MS