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Should films shot in Utah receive tax benefits?

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cormoranttah wants big budget film producers to know they can start a business and are willing to pay for it.

The governor’s Office of Economic Opportunity approved 13 works for tax incentives earlier this year. $140 million in revenue to the state. Already, the move is making waves and attracting several major projects. Oscar-winning Kevin Costner and many independent films. One of the biggest projects with a budget of over $10 million in Utah alone is an adaptation of a popular video game. fall out.

join state and city choruses that try to attract film crews, Utah Passes Law In March, we will give 20 or 25% tax breaks to crew members who spend $500,000 or $1 million, respectively. Production companies don’t have to be in-state to get a 25% break, but they need to hire 3/4 of their crew locally or shoot 3/4 of their shooting days here .

Overall, the filmmaker once recover $8.3 million From Utah as a cap. The new law allows that number to grow significantly if the production’s budget is large enough.

at least this year 5 other statesIndiana, Illinois, New Jersey, West Virginia, and Washington are increasing profits in an attempt to attract business.

The Utah tax relief applies only to goods and services purchased within the state and cannot be used for out-of-state crew salaries. It could be millions of dollars. This differs from controversial programs in other states, such as Georgia, which have drawn criticism for allowing write-offs of the salaries of the highest-paid actors, producers and writers outside the state. At the same time, major productions such as Netflix’s “Stranger Things” and Marvel’s “Black Panther” were both filmed in that state.

The idea of ​​the Film Incentive Program is that filmmakers use various services and industries to inject significant amounts of money into the local economy during production. Since the 90’s, these programs have been trying to attract business, allowing businesses to avoid taxes and spend that money directly on local businesses. However, critics point to research showing that: Incentives do not lead to real economic growth for the state.

Utah’s $500,000 figure could theoretically be easily achievable for production. $100 millionBut competition in filming and the specific needs of each community create obstacles. Dozens of potential filming locations have incentive programs, giving producers plenty of options. Utah has to compete with other states. Some states have no minimum amount to qualify. Maine Minimum $75,000.

As productions took advantage of tax incentives in places such as Georgia and New York City, a culture of building shoots on tax laws grew. In an attempt to maximize savings and satisfy nervous investors, line producers and accountants schedule shoots on days when they may be eligible for benefits. Producer Mary Jane Skalski, who worked on movies such as win win When untouchable, We talked to Cinemablend to explain why she felt the culture made sense for everyone.

“Very few companies spend 100% of their capital like a movie. We come to a place and spend it,” she told the site. We indirectly support many ancillary businesses: catering, hotels, sawmills, paints, consumables, office equipment, car rentals, gas, parking and car services.”

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