Production bill reborn
State reps revive plan for U.S. prod'n credit
Reps. David Dreier (R-Calif.) and Howard Berman (D-Calif.) announced Wednesday that they had signed 44 co-sponsors for the U.S. Independent Film and Television Act of 2003.
Companion legislation is expected to be introduced in the Senate in the next few weeks. High-profile members of the Screen Actors Guild will lobby legislators face to face in early April prior to SAG's national meeting in Washington.
'Level playing field'
"When productions head to countries like Canada, they take American jobs with them," said Dreier, chair of the House Rules Committee. "It's the caterers, florists, retailers and truck drivers that suffer as a result of runaway production. I'm a free trader, but I believe in a level playing field."
The legislation will provide a 25% tax credit to the first $25,000 paid to each employee and 35% in low-income areas. Qualified projects would have to be shot in the United States, including features, TV, cable, miniseries, telepics and pilots.
Dreier told Daily Variety that the economic impact of runaway production justifies going ahead with legislation at a time when war with Iraq is looming. "I just want to make sure that production is not inappropriately lured overseas," he added. "I can walk and chew gum at the same time, so I'm comfortable doing this now."
The original bill was introduced in mid-2001 amid strong support from entertainment guilds and other Hollywood orgs. The House version eventually attracted 74 sponsors, while the Senate bill had 27. But neither was able to find further traction as backers were unable to attach the provisions to tax legislation.
Backers admit they face daunting obstacles in convincing Congress that the entertainment business needs government support in spite of the widespread incentive programs throughout the world. A Senate report on the bill found that costs would range from $200 million to $400 million over three years.
"We've managed to build a visibility on this issue but we've always told our members that achieving anything in Washington, D.C., is never easy," said Directors Guild of America lobbyist Kathy Garmezy. "We're in this for the long haul."
The legislation is viewed by proponents as the most effective way for Hollywood to compete with cheaper foreign locales. A 1999 Monitor Co. study, funded by SAG and the DGA, found runaway production was creating more than $10 billion annually in negative economic impact as foreign locales employed the twin inducements of lower costs and government-funded incentives.
Financial spark
Proponents contend that production spending creates seven times that level of economic activity. "The U.S. film industry is being undermined by an array of tax incentives, employee credits and loan programs offered by Canada and other countries," said Berman. "These nations understand quite well that film productions stimulate local, regional and national economic activity like few other industries."
The move also comes a day after Chi Mayor Richard Daley noted that "Chicago" -- which had just received 13 Oscar noms -- was shot in Toronto and tweaked the feds over the lack of any incentive program. "We have to get our priorities straight in Washington, D.C.," he added.
Pamm Fair, SAG's deputy exec director for external affairs, said the guild is hoping to push for a similar state incentive program in New York, where the issue gained prominence last fall when a Rudolph Giuliani biopic headed to Montreal. She said there are no plans to revive California incentive legislation due to the state's massive $26 billion deficit.
