Indie Incentives

Behind the scenes to pass two new bills to entice filmmakers.

by Mary F. Patel

While the state budget crisis drags on, with the expectation that it won't pass before the June 30 deadline, the Greater Philadelphia Film Office continues to lobby House members to pass two bills that would aid local filmmakers and entice bigger movie houses to film in this state [See "Director's Cut," p. 16].

While tax incentives and grants for filmmakers already exist, these new bills would increase the amount of grants and provide more money for independent filmmakers. Indie filmmakers with low budgets often have not gotten these benefits because the big movie houses eat them all up.

So last Monday, Lancaster Democratic state Rep. Mike Sturla introduced House Bill 1528, which passed the House Commerce and Economic Development Committee and was sent out for a full vote that's not yet been scheduled. Pittsburgh Democratic Sen. Jim Ferlo introduced Senate Bill 1008. These bills would benefit big box-office movies and TV shows filmed here allowing a 25 percent tax credit to productions with budgets of more than $2 million.

House Bill 1529 and Senate Bill 1007, also introduced by Sturla and Ferlo, would benefit independent films with budgets of less than $2 million. They would increase grants to those folks from $10 million to $15 million. Last year, the grant money was gone within three weeks.

In the grand scheme of statewide problems, would lawmakers consider film tax incentives to be unimportant compared to an affordable health-care plan? Greater Philadelphia Film Office executive director Sharon Pinkenson, who began the film office here in 1992, said that legislators should understand how important the tax incentives are for bringing in revenue.

"It would be a mistake for [House members] to not vote for this," said Pinkenson, who credited Gov.Ed Rendell for creating the idea of the new tax incentives.

Calling Rendell one of the state's biggest advocates for the film industry, Pinkenson said he was prompted to act after M. Night Shyamalan called her about a series of films he's planning based on Avatar, the popular Nickelodeon martial arts fantasy TV series.

"Night said that he really wanted to film here again," said Pinkenson of Shyamalan, who has filmed all of his movies in the region, "but he said he needed major incentives and a facility for this project."

Shyamalan met with Rendell at the governor's residence to outline his needs; the lunch included Pinkenson and legislators from both sides of the aisle, as well as executives from Lions Gate, a large film studio with an interest here.

If the bills pass, the construction of large production studios can begin; some of the financing will come from union pensions. The studios will be built in Philadelphia, Scranton and Pittsburgh, although specific locations have not been determined. Pinkenson said that building the new studios should not be compared to building a new stadium because it is all new money. Lions Gate has hired lobbyist Kurt Knaus to help sway House members.

"Lions Gate has made significant investments in Pennsylvania, and has noted that they want to invest even more, if the commonwealth can remain competitive with other states," said Knaus. "This is no different than when other filmmakers talk about all the state has to offer: from its workforce to its four distinctly different seasons to the varying landscapes. That, and it's fresh ground. New York and L.A. have been shot and shot and shot. Places like Pittsburgh and Philadelphia are new visually."

There has been enormous enthusiasm from filmmakers who are applying for the credits and grants. J. Mickey Rowley , deputy secretary for tourism in the state's Department of Community and Economic Development, said in order to apply, filmmakers must spend 60 percent of their total production budget in Pennsylvania.

He added that the film must be completed in order to receive the grant or tax incentive but does not necessarily have to be released.

(rcpatel@aol.com)