[UPDATED] Film Incentives Bill Becomes Law

Daniels says legislators have given out $30 million dollars in corporate subsidies, most of which will go to existing businesses and not bring any new jobs to Indiana. He says the decision comes at a time when any spare dollars should go to property tax relief.

Supporters, such as State Senator Vi Simpson (D-Ellettsville), believe the bill is about creating an industry in Indiana. She says some universities in the state are training students who have to go out of state to find work with production companies.

Press Release

TEXT OF STATEMENT FROM GOVERNOR:

"At the very moment when we are facing a national economic slowdown, and therefore taking every step possible to be even more careful with state tax dollars, when any spare dollar should be used for property tax reduction, legislators have given out $30 million in corporate subsidies, most of which are likely to go to existing businesses and not bring a single new job to our state. It's truly an irresponsible decision, and I can't imagine what they were thinking."

Source: Office of the Governor

Press Release

Indianapolis, Ind. -- The Indiana State Senate voted 36-11 today to override Governor Mitch Daniels’ veto of House Enrolled Act 1388, a bill that would grant several incentives to bring more film production to Indiana.

Cosponsored by State Senator Vi Simpson (D-Ellettsville), House Bill 1388 authorizes a refundable tax credit for certain media production expenses incurred in Indiana. Productions that qualify include feature films, documentaries, music videos, TV shows and radio advertising. The governor vetoed the legislation on April 27 last year.

“When we think of the film industry we think of the people we see in the credits, but it is so much more,” said Simpson. “This bill is about building an industry here in Indiana. At some of our universities we are training students who have to go out of state to find work. This bill is very important not only for my district, but for the state as a whole.”

The tax credit may be granted only if the expenses are at least $100,000 in the case of film or television expenses or at least $50,000 in the case of other qualified productions. The Indiana Economic Development Corporation would approve a production’s application for the credit if it is economically viable and will increase economic growth and job creation in Indiana.

“The governor said when he vetoed this bill it came with too high a price tag, but the millions of dollars that the film industry spends in the states in which they work could greatly benefit our state. Indiana has a lot to offer the film industry, but a filmmaker is going to shoot where it is the most economical for the production. Indiana has been losing out to neighboring states and these incentives are necessary to recruit filmmakers to come here and make their investments.”

Twenty-nine states offer various levels of incentives for media productions. The state of Louisiana has seen revenue from film jump from $20 million to over $600 million in the first four years after enacting incentives. Five years ago, Illinois began offering tax credits on in-state film production costs and brought in $77 million and 15,000 jobs in 2003.

Films that have been shot in Indiana include “Breaking Away,” “Eight Men Out,” “Madison,” Hoosiers,” “A League of their Own” and “Rudy”.

The House of Representatives voted 77-17 on January 8 to override the veto and with the Senate’s action it now becomes law.

Source: Indiana Senate Democratic Caucus