Special Issues: Film Incentives
Special Issues: One of the realities of media production in the 21st century is incentives. Incentives are investments made by state and national governments to bring film, television and sometimes commercial production to their jurisdictions. These are either by rebates made directly to production companies, or in the form of tax credits. Either way, they represent substantial savings to production companies. Currently 39 states have significant incentive programs, and these states are getting all production. Virginia also has the Motion Picture Opportunity Fund, which has $200,000 funding each year, by far the lowest in the country. By contrast, Pennsylvania has $75 million in tax credits to spend.
The threat is clear. All of our competitors are taking business away from Virginia. Our crew is being forced to work out-of-state, and our film and television production industry is eroding at an alarming rate. The time to act is now!
WHAT CAN WE DO?
We must contact our lawmakers and tell them that we support legislation that will benefit our industry. Lawmakers want to hear from their constituency – those people who live and work in their jurisdictions. You must do this as soon as possible, but before February 10!
1. EMAIL YOUR LAWMAKER. Visit the General Assembly website at legis.state.va.us. Go to “Who’s my legislator” and enter your address. You will be able to send an email directly from the website.
2. COME TO FILM DAY. From 8 am – 3 pm, Thursday, January 29, the Virginia Production Alliance and the Virginia Film Office will host the sixth annual Film Day at the General Assembly Building on Capitol Hill in Richmond. This is your best opportunity to show your support for legislation benefitting Virginia’s media production industry. Go here for more information about FILM DAY.
3. VISIT YOUR LAWMAKER. If you aren’t available to come to Film Day, you can visit lawmakers at any time during the session. If you need assistance with this, email info@filmva.com.
4. SUPPORT THE VIRGINA PRODUCTION ALLAINCE. If you aren’t a member, please join. A strong membership base shows that this industry is a viable one for Virginia. Also, please consider making a donation to the Alliance to help pay for our lobbying group, Advantus Strategies and other costs associated with our lobbying efforts.
JOIN THE VPA | DONATE TO THE VPA
VIRGINIA FILM PRODUCTION INDUSTRY
TALKING POINTS – JANUARY 2009
WHAT IS THE THREAT?
- 39 states including competitor states Maryland, North Carolina, South Carolina, Pennsylvania and West Virginia have incentive programs that are stealing business from the Commonwealth.
- Virginia’s incentive fund, the Motion Picture Opportunity Fund, currently has $200,000 yearly funding. Pennsylvania, for example, has $75 million.
VIRGINIA’S MEDIA INDUSTRY IS ERODING
- Economic impact to Virginia from out-of-state production has dropped 53 percent from 2005 - 2007.
- The number of companies engaged in in-state media production work has dropped 13 percent since 2004.
- The state has lost an estimated $300 million in potential economic impact from feature film production since 2006.
- Several major feature films that want to film in Virginia are in jeopardy, including projects by Tom Hanks, Steven Spielberg and Virginia filmmakers.
WHAT IS THE SOLUTION?
- SB 667 is a bill currently under consideration that would provide Tax Credits for recruiting business to Virginia. This legislation was held over from the 2008 General Assembly Session.
- Digital Media Legislation will provide revenue generated by hotel pay-per-view purchases.
- Statewide Raffle Legislation will provide revenue from a Virginia Lottery raffle game.
- Revenues from Digital Media and the Raffle will go into the Motion Picture Opportunity Fund.
MEDIA PRODUCTION CREATES JOBS AND REVENUE
- The purpose of all the legislation is to bring much-needed jobs and revenue to the state.
- The industry employs more than 6000 Virginians including full time & freelance.
- 254 Virginia companies are engaged in media related activities with an average salary for workers of $47,000.
- In 2007, the economic impact of the industry in Virginia was $732 million, with total state and local tax revenue of $23.3 million.
- The total economic impact of the industry since records were first kept in 1980 exceeds $3 billion.
What Does Virginia Have To Gain?
- Jobs with a highly skilled labor force.
- Tax revenue.
- Increased tourist visitation to filming sites.