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FAQ - Film Incentives 2010

Why do we need film incentives? Read on for the answers to the most frequently asked questions regarding what film incentives mean to Virginia filmmakers. . .


Why should Virginia give money to Hollywood?
We’re actually taking money from Hollywood. Studies show that for every $1 provided in a film incentive, $14 are brought into a local economy.* This is not money for Hollywood, it’s money for Holly Smith. It’s jobs for Virginians – now!Source: * VCU – Center for Public Policy Study entitled Economic Analysis of Virginia’s Video Production Industry –December 2005

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Why $5,000,000 per year? That seems like a lot.
In fact, that amount will put Virginia on the low end of the 42 states now aggressively offering incentives to this industry. PA has $42,000,000 per year, NC has NO ANNUAL LIMIT. Return to top Where are we going to find the money? We are already facing a huge budget shortfall. This is a tax credit policy that does not cost us anything. We don’t give them a dime until they have already spent a dollar.

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Who benefits from a program like this?
All Virginians. When this industry comes in with a project, it is like a supertourist with a payroll. Millions of dollars are spent in a very short amount of time, and that revenue impacts all parts of our economy: hotels, restaurants, office supplies, building supplies, rental cars, and on and on. When HBO’s Emmy Award winning series John Adams filmed here, it left $80,000,000 in Virginia* – over 75 days of filming. Also, filmmaking has a positive effect on tourism. After 25 years, people still come to Mountain Lake Resort to visit the Dirty Dancing locations. It’s a gift that keeps on giving.

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Why do so many other states and countries compete so aggressively to attract this industry?
They come, they spend, and then they leave. This industry requires no new roads, schools or other infrastructure. With other economic development initiatives you would have to build roads or a factory and wait a few years for jobs to hopefully materialize after the incentive money has been spent. With this industry, as soon as a program is enacted, the work begins to come immediately. Jobs NOW! This is what we need.And once again, they don’t get a dime until they have spent an AUDITED dollar in Virginia. This is a growth industry that is expanding at a time when other industries are shrinking.

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What happens if we don’t implement a program like this in Virginia?
Because we have not had a competitive program, we have lost over $367 million of business to other states over the past 4 years.* In 2007 the economic impact of the industry in Virginia was $601 million, dropping 37% in 2008 to $378 million.** A movie about the legendary Virginia icon Secretariat, the most famous horse in the world, with a Virginia Director, was filmed in Lousiana and Kentucky. Another movie set in Virginia Beach was filmed on Lake Michigan. Yet another major film set in Richmond, with a Director from Richmond, was mostly filmed in Boston – even duplicating a Ukrop’s grocery store there. Many in our skilled workforce of film production professionals are now actually forced to move out of Virginia – to states that support this industry. Also, numerous Virginia colleges have film programs that are preparing students for careers that they will be unable to pursue in Virginia. This is unacceptable. * source: Virginia Film Office** Mangum Economic Consulting, LLC and VA Employment Commission

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I’ve never seen a movie being made in my area of Virginia: how does this help me?
Film production occurs all over the state; documentaries, commercials, music videos, etc. The more work we bring to grow the industry, more areas of the state will participate and benefit. What’s good for the state as a whole is good for all of us.

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Is Virginia attractive to filmmakers for other reasons?
Yes indeed. Our mountains, waterfront, cities, small towns, historic sites, diverse architecture and topography, all within a small geographical area, combined with an experienced and highly respected Film Office, make Virginia the perfect destination for filmmakers. With a competitive incentive program, Virginia can dominate the industry as “the destination of choice” for projects requiring any of these location elements and more. Unfortunately, without an incentive program, filmmakers are forced to consider and choose other states because of the economic reality – even though they would prefer to be in Virginia. Numerous repeat customers who we have enjoyed hosting in the past, no longer consider Virginia a viable option. This is bad business.

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This sounds like something all Virginians should support. How can I help?
Contact your lawmakers at http://legis.virginia.gov Click on “who’s my legislator” and please ask them to support HB861 and SB257 and the Governor’s budget amendment supporting the Virginia film industry. Then, visit the Virginia Production Alliance website at www.filmva.com and learn how you can join the effort.

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Virginia needs jobs now!