In a tough budget year for the Utah Legislature, Rep. Greg, R-Draper, is proposing a measure that would give more tax money back to businesses connected with the film industry.
It’s necessary to stay competitive as a location in the motion picture industry, explained Marshall Moore, director of the Utah Film Commission.
The measure, House Bill 99 titled, Motion Picture Incentives Amendments, would increase the tax rebate from 20 percent of in-state purchases to 25 percent. As of Thursday, the bill was on the House floor. The text of the bill can be found at www.le.utah.gov.
If passed, Utah would likely see more film and television business, Moore said.
As host of the Sundance and Slamdance film festivals, a popular location for filming, and potential home to a new Raleigh studio, the Wasatch Back is a major player in the Utah film industry.
Utah used to be a national leader in cinema production, but when other states around the country began introducing tax incentives to draw filmmakers, the game changed.
Utah has beautiful scenery, charming communities, talented people for hire and is close to Los Angeles, yet film and television business has been waning, Moore said. Other states are offering more attractive incentives, and Utah must compete or pull out of the game.
As part of the Governor’s Office of Economic Development, the film commission is advocating we stay in the fight because visiting crews create jobs, spend money and promote the state, he said.
Compared to 2009, last year was a great year for Utah’s motion picture industry, but it’s been slowing down long term. Not enough studios and independent producers have shown interest in Utah at 20 percent for there to be a consistent flow of filming.
“We’re trying to create a pipeline of work,” he said. “You always have to find that ‘sweet spot’ for the state, and for the filmmakers too. If it’s just where you want it to be, it won’t be where the film industry wants it.”
For example, “John Carter of Mars” is going to be one of the biggest films of 2012 and Disney was on its way to filming in New Mexico when Utah made its incentives sweeter, Marshall said.
Another thing HB 99 would do is eliminate restrictions on how long a company can enjoy the rebate. Sunset provisions have discouraged television series from locating here because they can’t get a long-term guarantee on the rebate, he said.
Hughes is also adding the words, “digital media” to the list of businesses eligible for the incentives. Moore said this is a trend in the industry. At a recent conference for people in his profession, Moore said there was discussion of changing terminology to reflect current era. The word “film” is exclusive of digital production techniques that go beyond digital camera recording and include special effects, editing and animation. Little actual film is now used.
On the other hand, “digital media” is a word also used to describe anything related to the Internet, gaming and audio recording. For the purpose of the Motion Picture Incentive, the word will have to be defined in HB 99.
Moore said he won’t be the one defining the term, but predicts it will be inclusive, within reason, since the purpose of the initiative is to generate more business and promote the state.
“The film industry has been an important part of Utah for 80 years,” he said.