The film crews have left Hollywood, and Bob Hudgins would love to lure the ghosts of Hollywood to Texas. In 2007, the 80th Texas Legislature passed a bill providing incentives for film production in Texas.[i] As Director of the Texas Film Commission, Hudgins has received film production grant applications exceeding $11 million[ii]. Yet, only nine big-screen films, out of two-hundred total applicants, have sniffed out the Governor’s new hay stack.
Hudgins indicates the number of film crews in Texas has decreased in recent years. The Land of Enchantment and the swamps of Louisiana are attracting the ghosts of Hollywood, so Rep. Dukes and Senator Deuell’s doled out the proposed solution in identical bills HB-873 & SB-605. The 81st Legislature piled on bi-partisan support for immediate changes in the Texas Moving Image Incentive Program, granting easier access to your money, which Governor Rick Perry signed within three days[iii]. Film Fleet trucks began rolling shortly thereafter.
Hudgins indicates the number of film crews in Texas has decreased in recent years. The Land of Enchantment and the swamps of Louisiana are attracting the ghosts of Hollywood, so Rep. Dukes and Senator Deuell’s doled out the proposed solution in identical bills HB-873 & SB-605. The 81st Legislature piled on bi-partisan support for immediate changes in the Texas Moving Image Incentive Program, granting easier access to your money, which Governor Rick Perry signed within three days[iii]. Film Fleet trucks began rolling shortly thereafter.
Did the new incentives conjure up ghost drivers for
special film industry trucks headed to small Texas towns?
special film industry trucks headed to small Texas towns?
Adena Lewis of the Smithville Chamber of Commerce vouches for the economic impact of movie production, and asserts from first hand knowledge that local film jobs hinge on improved incentives. Fiscal conservatives claim this bill is a compromise on principles. Likening the measure to chasing ghosts puts it kindly. “Bi-Partisan pork” and “Socialism” are found among the criticisms. Conservative moms speak even greater disdain for the notion of luring Hollywood to Texas.
The revised bill is comparatively simple. Most other states, including the current two film production leaders, have state income taxes. The uniqueness of the Texas’ tax system limits the options for luring film production to the Lone Star State. Hudgins believes “cash back” is best approach to compete with big tax breaks offered other states.
The Fiscal Note on HB-873 predicted “No significant fiscal implication to the State is anticipated”. The new qualifications for cash back require $250,000 in Texas spending on big films, compared to $1,000,000 in the 2007 bill. The new version requires 60% of the filming to be done on Lone Star soil, while the 2007 version required 80%.
Hudgins’ office pursues more than big film jobs. Incentives for gaming, TV commercials, and TV series have been utilized frequently. All of the $550,000 incentive delivered as of March ’09 went to aid creation of seventy full-time equivalent jobs in these “other” categories.[iv] Additional big screen film projects were said to hang in the balance during House Culture, Recreation & Tourism Committee testimony.
Smithville landed its biggest project, “Hope Floats” with Sandra Bullock, before the incentives were enacted by the 80th Legislature. The incentive program did help draw a smaller production, “Tree of Life”, to Smithville, and another is under consideration. Lewis is excited about job strengthening and community morale benefits that come with these projects, and believes the new incentives will help.
Smithville has a population of less than five thousand. The film crews integrated well into the community, and were missed upon departure. Local police and service industry workers benefited from the extra activity in town. The “Tree of Life”, released in January 2009, brought film production staff to town for nearly two years, along with over $750,000 in spending. Since “Hope Floats” was released in 1998, Smithville has benefited from film related tourism.
The 2009 legislation is aimed at drawing more big film production to Texas with a special emphasis on under-utilized and economically distressed areas. The big cities in Texas have numerous film related jobs. Dallas and Austin get a majority of the big picture deals. The Governor’s office wants to see some of these projects out in the smaller pastures of Texas.
While Hudgins is after film production jobs, local film industry folks say the real jobs and money are on the film distribution side. This side of the business remains predominately in Hollywood, California.
Those that travel the back roads of eastern Travis County may notice unusual trucks parked off Cameron Road near the new Texas-130 Toll Road. These film trucks, owned by Film Fleet LLC, were parked for several months. The underutilized trucks sat begging for a Hollywood ghost driver, then came April 23, 2009. On that day HB-873 became the second new law of the 81st Legislature to find its way under Governor Perry’s pen.
The 2007 incentive criteria were structured around the type of project: Games, TV Commercials, TV Series, and production films. The new incentive package gives grant ruling making to the Office of the Governor, save any salaries exceeding $1,000,000.
The incentives are in addition to existing sales tax exemptions for certain film related expenses. Upon passage of HB-873 the Film Commission published their new incentive program, which gives production companies a new matrix of options, still based on project type, with the highest cash back going to film and television projects over $5,000,000 in underutilized areas (See Figure 1[v]).
Before the 2007 incentives came into play, the Film Commission had established gasoline tax rebates for off-road usage. The Film Commission also provides free services for casting and crew calls, a directory of film crews, production companies and support organizations, film events, industry news and workforce training workshops provided at taxpayer expense.
Michael Quinn Sullivan of Empower Texans sarcastically cries, “Hurray for Hollywood!”, blasting the bill as bi-partisan pork while businesses suffer heavy tax burdens and a difficult economic climate. Pat Dixon, Chairman of the Texas Libertarian Party, calls it socialism; the re-distribution of wealth from one industry to another. The incentive program offends those who believe it is not state government’s role to give benefit to one industry over another.
Dixon calls for abolishment of the Film Commission and alarm among free market supporters[vi]. Local incentive deals are viewed as adequate and appropriate. Apparently most Republicans and Democrats do not share the ideology of Sullivan and Dixon. Sullivan was the Lone Ranger testifying against a horde of Hollywood ghost chasers, during the public hearing for HB-873.[vii]
The incentive program excludes pornographic films as defined by Texas Law. That does not go far enough for conservative moms. “Why do we want to draw Hollywood to Texas?” a home school mom asked. A State Representative voting against the bill echoed the same sentiment. The glamorization of sexual promiscuity, the constant barrage of soft porn and bad values drives conservative moms to reject the ideal of luring Hollywood to Texas. Some believe it would be perfectly fine for Hollywood smut to not be produced in Texas. Louisiana and New Mexico can underwrite all they want. Reality and talk shows are also excluded from incentives.
Hudgins says the industry is not as glamorous as the critics claim. It’s about job creation, and the majority of film work does not make it to the big screen. Projects drawn by the incentive program don’t even make the Film Commission’s web-site. Glamorous film scenes displayed at www.governor.state.tx.us/film did not get shot in Texas due to the Governor’s “cash back” offer.
The new bill reduces incentive qualifications and increases payouts. While it clearly offends conservative values in a conservative state, it sailed through the 81st Texas Legislature ahead of the masses. Offered up by Democrat Donna Dukes and supported by our Republican Governor, plus numerous Republican Senators and Representatives, the justification is job creation, temporary or not; Hollywood or not.
Oh, and those parked trucks were moved around due to the recent rains. Film industry folks are still optimistically looking for that next big Lone Star movie deal.
While Hudgins is after film production jobs, local film industry folks say the real jobs and money are on the film distribution side. This side of the business remains predominately in Hollywood, California.
Those that travel the back roads of eastern Travis County may notice unusual trucks parked off Cameron Road near the new Texas-130 Toll Road. These film trucks, owned by Film Fleet LLC, were parked for several months. The underutilized trucks sat begging for a Hollywood ghost driver, then came April 23, 2009. On that day HB-873 became the second new law of the 81st Legislature to find its way under Governor Perry’s pen.
The 2007 incentive criteria were structured around the type of project: Games, TV Commercials, TV Series, and production films. The new incentive package gives grant ruling making to the Office of the Governor, save any salaries exceeding $1,000,000.
The incentives are in addition to existing sales tax exemptions for certain film related expenses. Upon passage of HB-873 the Film Commission published their new incentive program, which gives production companies a new matrix of options, still based on project type, with the highest cash back going to film and television projects over $5,000,000 in underutilized areas (See Figure 1[v]).
Before the 2007 incentives came into play, the Film Commission had established gasoline tax rebates for off-road usage. The Film Commission also provides free services for casting and crew calls, a directory of film crews, production companies and support organizations, film events, industry news and workforce training workshops provided at taxpayer expense.
Michael Quinn Sullivan of Empower Texans sarcastically cries, “Hurray for Hollywood!”, blasting the bill as bi-partisan pork while businesses suffer heavy tax burdens and a difficult economic climate. Pat Dixon, Chairman of the Texas Libertarian Party, calls it socialism; the re-distribution of wealth from one industry to another. The incentive program offends those who believe it is not state government’s role to give benefit to one industry over another.
Dixon calls for abolishment of the Film Commission and alarm among free market supporters[vi]. Local incentive deals are viewed as adequate and appropriate. Apparently most Republicans and Democrats do not share the ideology of Sullivan and Dixon. Sullivan was the Lone Ranger testifying against a horde of Hollywood ghost chasers, during the public hearing for HB-873.[vii]
The incentive program excludes pornographic films as defined by Texas Law. That does not go far enough for conservative moms. “Why do we want to draw Hollywood to Texas?” a home school mom asked. A State Representative voting against the bill echoed the same sentiment. The glamorization of sexual promiscuity, the constant barrage of soft porn and bad values drives conservative moms to reject the ideal of luring Hollywood to Texas. Some believe it would be perfectly fine for Hollywood smut to not be produced in Texas. Louisiana and New Mexico can underwrite all they want. Reality and talk shows are also excluded from incentives.
Hudgins says the industry is not as glamorous as the critics claim. It’s about job creation, and the majority of film work does not make it to the big screen. Projects drawn by the incentive program don’t even make the Film Commission’s web-site. Glamorous film scenes displayed at www.governor.state.tx.us/film did not get shot in Texas due to the Governor’s “cash back” offer.
The new bill reduces incentive qualifications and increases payouts. While it clearly offends conservative values in a conservative state, it sailed through the 81st Texas Legislature ahead of the masses. Offered up by Democrat Donna Dukes and supported by our Republican Governor, plus numerous Republican Senators and Representatives, the justification is job creation, temporary or not; Hollywood or not.
Oh, and those parked trucks were moved around due to the recent rains. Film industry folks are still optimistically looking for that next big Lone Star movie deal.
End Notes___________________________
[i] Bill 1634 – 80th Texas Legislature (2007)
[ii] Texas Moving Image Industry Incentive Program, Status Report: February 17, 2009
[iii] http://www.legis.state.tx.us/BillLookup/Actions.aspx?LegSess=81R&Bill=HB873
[iv] Texas Moving Image Industry Incentive Program Summary - Paid Projects: March 9, 2009
[v] http://governor.state.tx.us/film/incentives/miiip - as of May 28, 2009
[vi] http://www.lptexas.org/032409NewsRelease.html
[vii] http://www.legis.state.tx.us/tlodocs/81R/%0bwitlistbill/html/HB00873H.htm
[i] Bill 1634 – 80th Texas Legislature (2007)
[ii] Texas Moving Image Industry Incentive Program, Status Report: February 17, 2009
[iii] http://www.legis.state.tx.us/BillLookup/Actions.aspx?LegSess=81R&Bill=HB873
[iv] Texas Moving Image Industry Incentive Program Summary - Paid Projects: March 9, 2009
[v] http://governor.state.tx.us/film/incentives/miiip - as of May 28, 2009
[vi] http://www.lptexas.org/032409NewsRelease.html
[vii] http://www.legis.state.tx.us/tlodocs/81R/%0bwitlistbill/html/HB00873H.htm
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