Issue link: https://digital.copcomm.com/i/16674
Tax Credits on the Edge economic benefits to a state’s economy through job creation, tax revenue, on- location production spending and movie/ television-related tourism. But what most don’t understand is the extent of these benefits and the real impact they have on the budgets of the states in which production takes place. Nor do they understand that most states will get money flowing in from tax revenues and recoup most of their budgeted credits months or years before a penny actually leaves the state’s coffers. When a film or TV production comes I to town, many local workers are hired, and large amounts of money are spent on food, lodging, dry cleaning, lumber and equipment. Tat money is dropped into the local economy right now. Taxes will be paid to the state on those wages t is obvious that the film and television industry contributes significant and purchases in the current year. But the credits will not be taken by the filmmakers for at least a year or two. Screen Actors Guild members and staff have been vigorously lobbying to explain this to legislators in states across the country. Some are hearing our message and some are not. Florida, Massachusetts, Louisiana, New Mexico and many other states have supported ongoing production. In New York, the production tax credit program was so successful that it ran out of money long before the credit was up for renewal. It was then re-funded and we expect will be extended for some time to come. California also instituted its first production tax incentive, which we are working to preserve and expand. Unfortunately, some states have gone in the wrong direction. In New Jersey, for example, the governor decided to eliminate the state’s production tax credit as one of dozens of programs he has recommended be cut. By lumping the production tax credit in with these other state “expenses,” we believe New Jersey is failing to acknowledge the fact that our credits are revenue-positive, supplying the government with a net gain while creating good-paying, union jobs with benefits. Eliminating incentives will hurt New Jersey’s bottom line, not help it. At a New Jersey hearing on June 8, on the Secaucus set of Mercy, SAG member and Law & Order: SVU star Tamara Tunie, testifying before a crowd of 150 entertainment industry workers, said, “During a time of severe economic crisis, the industry has essentially created thousands of solid, middle-class union jobs with benefits. Tis job growth would not have been possible without the Film Tax credit program.” Te simple fact is that production tax credits keep the work home. In the U.S. In your state. In your town. SAG will continue to lobby for these tax credits on the local and national level. SAG.org Summer 2010 - SCREEN ACTOR 13