Extra Credits
By B.J. Reyes
Proposals to expand film credits for movie and television production in the islands are expected to be back before the Legislature next year.
The expanded tax credits were among the measures that died toward the end of the 2011 session.
But the success of recent productions such as “Hawaii Five-0” and the state’s ability to attract significant projects such as the most recent “Pirates of the Caribbean” movie and the forthcoming George Clooney film “The Descendants,” has lawmakers and industry leaders clamoring for more help to grow the local industry.
Said Chris Lee, founder of the University of Hawaii’s Academy for Creative Media:
“I think you have to look at the fact that we’ve had great success in this industry and now how do we build on that. … I think there’s enough data points from other places that have had success in managing the business, instead of just servicing the business, that we can get there.”
Lee was among the panelists who discussed the state of Hawaii’s film and television industry with House lawmakers today.
Other panelists included: Georja Skinner, administrator of the state Department of Business, Economic Development and Tourism’s Creative Industries Division; Karen Meyer, director of the Castle High School Performing Arts Center; Carol Kaapu of Pure Rain Productions, Brenda Ching of the Screen Actors Guild of Hawaii; and Don Sand of ProSuccess Films.
The informational briefing was held by the House committees on Culture & the Arts and Economic Revitalization & Business.
All agreed that more must be done in the area of workforce development, to grow, attract and retain film and television industry professionals in the islands. Current tax credits for film and TV production could be expanded to provide added incentive for such development.
Proposals that died in the Legislature last year would have increased existing film production tax credit to 35 percent from 15 percent on Oahu and to 40 percent from 20 percent on the neighbor islands, with 5 percent bonuses for productions involving computer-aided special effects and animation.
Changes also would have provided tax credits for new production facilities, rebates to help with a local crew training program, and exemptions from hotel room taxes for productions longer than 30 days.
Relativity Media LLC and Shangri-La Industries were among two major Hollywood entertainment companies seeking the additional tax breaks in Hawaii. The bill gained the support of actors such as Cuba Gooding Jr., who tesitfied before a Senate committee during session, and former President Bill Clinton, who wrote a letter in support.
Rep. Angus McKelvey, chairman of the House Economic Revitalization & Business committee, said he would reintroduce measures to expand the tax breaks.
Said McKelvey:
The fact is, that this is a major industry, it’s a recession-proof industry, it’s the only industry that’s grown and Hawaii has — under its existing credit program — managed to successfully attract film production. But we have the potential, if we do it right, to turn this from four to five film projects a year into a major industry.
Political Radar
October 26th, 2011 at 9:20 pm
The next legislative session starts in January 2012 and the election isn’t until November 2012 so, McKelvey doesn’t have to wait for reelection to introduce new legislation.
Similar tax credits that benefited programs like “Jersey Shore” (featuring Snookie and her crude posse) were canceled by pro-business New Jersey Gov. Chris Christie. Admittedly, any Hawaii-based production is better than that dreck, but if it tax credits are so good for business, why would that state cancel theirs?
Did McKelvey receive/report a gift of a multi-disc DVD set from Relativity Media and/or any other bennies from their $200,000 plus in lobbying expenditures this past year? Or did he follow Speaker’s lead and, uh, “forget”?
October 26th, 2011 at 11:20 pm
I don’t understand the comment about McKelvey first needing to be re-elected. The next regular session starts in January 2012 and ends by the first week in May- the elections are in August and November of 2012 so McKelvey will certainly introduce and work on the film industry incentive bills months before facing another election.
October 27th, 2011 at 9:52 am
o long as the State continues to ask working and middle class workers to take pay cuts while asking them to contribute more to their health plans, so long as the State continues to cut vital social services, and so long as the State refuses to take serious steps to increase revenue, the Legislature shouldn’t be discussing tax credits for an industry that is already raking in the dough. That such a discussion continues clearly shows me just where their priorities lie.
October 27th, 2011 at 12:09 pm
Our legislators are being played. Once governments started giving companies tax breaks and other incentives, the “private sector” has developed expertise in extracting more and more. The film and television industries are particularly adept at this. There are costs and there are benefits of any industry operating in your community. Jobs are created directly, as local folk are hired in the making of the film. Food is catered, sets are built. FIlm and television are relatively clean industries, with high-paying jobs.
But because they have so much money, they have developed highly skilled professionals, attorneys, PR people, accountants, who specialize in wringing concessions from the local communities to minimize the costs of production and increase their already massive profits and lavish lifestyle. As states, cities and even countries compete against each other, offering even greater tax credits, the benefits of having the industry in your community shrinks.
This is yet another “race to the bottom” and should be resisted by our political leaders. They are prone to give away far too much in the hope they can convince voters they are “pro-business” and encouraging job creation.
Compared to many other locations, Hawaii has a pretty strong bargaining position. We offer a tropical setting, but with clean water, secure streets. There are other locations which, on the surface, might be our direct competition. But the additional costs of shooting in the Caribbean, Central America, Indonesia, the Philippines, etc., will usually outweigh what we have to offer. When your crew is spewing body fluids from unsanitary food, the point is driven home.
This is a case where there may be wisdom in allowing “the free market” and not government intervention, determine the outcome. The proposed tax credits would be an unnecessary and excessive giveaway. We don’t want to “kill the goose that lays the golden eggs.” But neither do we want to give back all the eggs.
I say this as someone with family and friends who benefit directly from the business, but we needn’t be suckers.
There are sensible ways by which state and local governments can encourage economic activity. But too often, they give away too much in their eagernes
October 27th, 2011 at 1:28 pm
The new Hawaii 5-0 is like the drama that everyone sees on the Mainland and not local kine.
October 27th, 2011 at 1:33 pm
Thanks, all, for pointing out the error re: reelection. The post has been corrected.
October 27th, 2011 at 7:33 pm
“There are sensible ways by which state and local governments can encourage economic activity. But too often, they give away too much in their eagerness.”
Boy, ain’t that the truth! Just ask the suckers otherwise known as the taxpayers of Miami. They got swindled by the owners of the Florida Marlins into footing the bill for a new stadium to the tune of something like $400 million that will balloon to north of a billion by the time it’s paid off.
October 29th, 2011 at 12:56 am
The bad eggs according to the egg meter gets trashed.