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Union Roundup: Production Incentives Experts Gather, Hoping Hollywood Can Bring Economic Recovery As We Learn to Live With Covid

麻豆直播 offered an update on U.S. Production Incentives for 2022. The seminar focused on four states: Arizona, Florida, Illinois, and California.
September 6, 2022
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During the dog days of August, one of our excuses for staying in, where the air was cooler, was a Zoom seminar (remember those, in these suddenly, precipitously, unmasked times?) from 麻豆直播, that offered an update on U.S. Production Incentives for 2022.

The seminar focused on four states 鈥 Arizona, Florida, Illinois, and California 鈥 and was moderated by EP鈥檚 incentives expert,聽Joe Chianese. More than just a 鈥渉ey, what rebates聽丑补惫别苍鈥檛聽you heard of yet?,鈥 gathering, one of its specific focuses was to discuss, as Chianese put it 鈥渉ow film and TV production can bring recovery, post-Covid.鈥

Putting aside how 鈥減ost鈥 we might actually be,聽Jay Roewe, SVP for Incentives & Production Planning at HBO/Warner Bros. Discovery, quickly moved the conversation beyond the four states in question, calling it 鈥渁 thriving, thriving time. There鈥檙e billions of dollars of incentives around the world for us to access. It鈥檚 a great time for incentives and the industry,鈥 with Chianese noting that some states are also upping their own incentive game, or trying to jump back in it.

Massachusetts, for example, had repealed the sunset provisions for its own incentives, Indiana was bringing back tax credits, and Rhode Island is contemplating hefty production rebates of its own. Chianese called these 鈥渘ot just subsidies for studios, but job creation bills, infrastructure bills鈥 citing as an example the Delaware Entertainment Job Act, and observing 鈥 as did a lot of the hour鈥檚 participants 鈥 that soundstages, media centers, and indeed, other infrastructure, are often built as a result of these initiatives.

But this initial giddiness quickly ran into some of the prevailing contradictions when chasing putative economic salvation through production dollars 鈥 namely, the ongoing culture wars, acute in some locales, that seek to demonize the very companies they are also wooing, along with their so-called 鈥渨oke鈥 product.

When Chianese asked, fairly early on, whether these considerations would have any effect on where productions chose to film, only聽Colleen Bell, the Executive Director of California鈥檚 Film Commission, responded, saying the state had a 鈥渓ong tradition of respecting fundamental rights鈥 (which is certainly true in recent times, if you don鈥檛 reach back far enough to include the union-busting and聽). She also cited gun safety laws, and civil liberties for the LGBTQ community as other issues allowing each and every member of a crew to feel more at ease while filming here, along with Governor Newsom鈥檚聽聽which would add $1.65 billion to the state鈥檚 Film & Television Tax Credit Program through 2030 鈥 thus allocating about $330 million per year in industry tax credits.

After that, the subject was immediately dropped. Or rather, no one else responded to the question, and there was never any follow-up.

Not that it was the job of Arizona鈥檚聽Nick Simonetta, who鈥檇 been a consultant for both the legislative and gubernatorial branches of The Grand Canyon state, and who, as a partner in his Pivotal Consulting Partners firm, helped craft their recent batch of production incentives, nor of聽Sandy Lighterman, Film Commissioner for Florida鈥檚 Broward County and Greater Fort Lauderdale, to try and weigh in on social issues. But one can see how they might not want to, given the particular upheavals in the places they represent.

Simonetta talked of bringing both Republicans and Democrats on board for Arizona鈥檚 legislation, and of crafting a 鈥20-year sunset鈥 on the act, 鈥渁 timeline needed so [the] industry would invest. The law becomes operative at the end of September. And It doesn鈥檛 have a minimum spend 鈥 the percentages go higher the more you spend.鈥 Plus there are 鈥渒ickers for using local crew.鈥

All well and good, unless an extremist like聽Kari Lake聽should prevail in the governor鈥檚 race there in a few weeks鈥 time. It鈥檚 hard to imagine an industry land rush, and a lot of time spent developing crews, in a place where its potential chief executive聽鈥

Current polls, however, suggest that Lake鈥檚 far-right campaign may yet be stymied. That would appear to be less true in Florida, where incumbent聽Ron DeSantis聽is currently favored to be re-elected.

Lighterman, talking of incentives that were Broward-specific, and not simply general Florida programs, cited the enthusiasm for production in her area, saying 鈥渞esidents [and] businesses want it.鈥 And there was no reason to doubt the excitement manifest on the Zoom call.

But as DeSantis prepares for his White House run, replacing 鈥 in Broward county 鈥 elected school board members who displeased him (ostensibly over findings regarding the Parkland school shooting, though guns, of course, remain easier to get there than many books) one wonders what happens to a film or TV company seeking to adapt a book or graphic novel, that鈥檚 become, essentially banned in the very place seeking its job dollars?

Lighterman was also talking about the possibilities of newer, bigger incentives coming circa 2024 -25, right around the time DeSantis hopes to find himself installed in the White House. Much will have changed by then 鈥 even a few more hurricane seasons will have come and gone.

Ashley Rice, president and co-managing partner for Chicago-based Cinespace Studios also echoed Chianese, saying she likes 鈥渢o refer to our industry as a strategic recovery industry,鈥 and also cited the studio鈥檚 鈥渞obust trainee programs,鈥 where 鈥70 percent go on to film jobs,鈥 and 鈥渁 high number of union jobs. As we expand facilities, we鈥檒l be taking that program with us鈥

To which Chianese replied that Illinois was 鈥渂asically Georgia,鈥 in the film incentive department (鈥渆xcept,鈥 he added 鈥渢he one little piece we gotta fix 鈥 the cap,鈥 which puts an upper limit on rebates).

But that was also the elephant in the room, as it were鈥 Georgia isn鈥檛 Illinois, in terms of policy and governing, nor is Florida like California (aside from a shared penchant for natural disasters, orange groves, and Disney parks). And every indication is those gulfs will only continue to widen.

Meaning that film commissioners and incentive programs everywhere will, increasingly, have a lot more to talk about and juggle 鈥 or avoid talking about 鈥 than how many production dollars you鈥檙e getting back.

Meanwhile, the entire 麻豆直播 Production Incentive webinar is available聽online right here聽鈥 just in case you鈥檝e finished all of your Emmy screeners.

Which brings us to next week, when I recap the Creative Arts Emmys. See you then.

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