Issue link: https://digital.copcomm.com/i/100015
STRENGTHS: ���The reason North Carolina is able to do more with less ��� our incentive is 25 percent where our competition, Georgia and Louisiana, are at 30 and 35 percent, respectively ��� is the way our incentive is structured. Our incentive is a fully refundable 25 percent, so 25 percent equals 25 percent. When looking at incentives you have to look at the effective rate. Our effective rate is 25 percent. You don���t have to sell it, so there is no reduction for what a tax credit is going for on the open market, nor are there deductions for broker fees. Add to that, the robust filmmaking infrastructure that was already here before incentives were even offered. When you couple our infrastructure with our incentive, we become a really strong force for production. I am talking crews, equipment, stages, talent. ���Our locations are another strength ��� from the mountains to the large cities to rural America and the waterfront.��� WEAKNESSES: ���Studios and producers want certainty, and anytime a production relies solely on an incentive, they could be vulnerable because governments could go in and slash them at any time. I don���t think they will, but you never know what���s going to happen when new legislatures come into office. ���Also, if you only have an incentive and no infrastructure, that���s a problem. We saw that happen with Michigan. They didn���t have an existing infrastructure, but came in with a 42 percent incentive and quickly built up that infrastructure. But they couldn���t sustain themselves and you saw it start to dissipate. Both Louisiana and Georgia have been able to build up really strong infrastructures over the years, and it���s worked really well for them. ���If we ourselves have a weakness with our competitors, Louisiana and Georgia, it���s our cap. We cap talent and labor at the first million dollars, whereas Georgia and Louisiana don���t cap talent or above-the- a million dollars, studio tentpoles see we have the qualified labor who can handle these pictures, certainly with our stages like Screen Gems, they know they can build whatever they need to build in those huge studios.��� THREATS: ���You are always conscious about what your tax incentive can and can���t do, and you do see cer tain states trying to get rid of them. We have seen how certainty ��� having it in law ��� is a huge thing. Our law is set to sunset in 2015, however since 2006 we have been successful going in a few years prior and extending the sunset. This gives productions the certainty they need. Any time you have uncertainty is when you have a huge threat. Other states, like Louisiana and Georgia, are our threat as well. We are competing for the same jobs.��� OUTLOOK FOR 2013: ���We are expecting to have another solid year. 2013 is looking up, and we���ll sustain the level of work we did in 2011 and 2012. I see the industry remaining strong. During economic hard times, the industry always seems to do well, and it���s been doing well in here North Carolina. We remain competitive and aggressive, and we are in Los Angeles a lot, meeting a lot of people. So we expect to continue to do well.��� Just one of the locations that can be had in Louisiana. This one is in St. Francisville. CHRISTOPHER STELLY Executive Director Louisiana Entertainment Louisiana Economic Development www.louisianaentertainment.gov Baton Rouge The NBC series Revolution shoots in North Carolina, which doubles for the Midwest. line salaries at all. They will qualify the entire salary to a highly compensated individual.��� OPPORTUNITIES: ���For us, it���s our new television series. Right now we have Homeland, Revolution and Cinemax���s new series, Banshee. Our incentive is really geared to those types of television productions, and it���s a strong opportunity for us. ���This year we got into the superhero movies with Iron Man 3 and built up a strong relationship with Marvel in the process. Though we have a cap on highly compensated individuals who make more than Louisiana Entertainment offers incentive programs for film, music, interactive media and live performance.The office was established within the Department of Economic Development. STRENGTHS: ���We approached this industry early on from a business standpoint; it was long-term vision for the state of Louisiana. We said what areas of interest can capitalize on our strengths, and at the same time diversify our economy. We created a plan for the entertainment industry, which included a plan for the film industry. One of our biggest strengths was the fact that we already had a film industry ��� Street Car Named Desire, Cincinnati Kid, Interview with the Vampire, Deadman Walking ��� those films were shot in Louisiana. So we had historical ties, a small crew base, and a very creative culture. ���We have created a very stable incentive program but at the same time we created and built a great crew base. So motion pictures that come to our state can see we have all the goods and services they need to make their production successful. We also have a tempered climate. You can do things year round in Louisiana, where it���s relatively sunny and mild. Our communities are also very film friendly and diverse��� from Shreveport to Lafayette to Alexandria to Baton Rouge www.postmagazine.com Post���������December���2012��� 27