The Dunn County News reported that the Wisconsin state legislature passes Senate Bill 563, also known as the Film Wisconsin Incentives Bill. Sponsored by a bipartisan list of legislators, the bill provides new tax incentives for the film, television, commercial and video game industry to encourage economic growth and create jobs in Wisconsin.
Effective July 1, 2007, the incentive package includes a refundable tax credit of 25 percent of direct production expenditures and a 25 percent investment tax credit for investing in Wisconsin-based productions. Also offered are a sales and use tax exemption for machinery, equipment, and services used in production and post-production, a small state income tax credit to artists who are Wisconsin residents, and use of state-owned buildings and locations free of charge as available, with no fees for permits.
One of the reasons so many areas are introducing this type of legislation is because the film, television, commercial and video game industry strengthens high tech manufacturing and tourism. It is estimated that about 50 cents of every dollar spent in film production stays within the local community, not only through local hiring, but through all the support businesses that are involved, such as hotels, catering companies, restaurants, and transportation providers.
The problem with all of this to me is that this part of show business is becoming a commodity now. Everyone is jumping ont the bandwagon. While it may do some short-term good, overall, I would think in the next few years, most states and many countries will be offering similar packages, as many are already doing.
If Hollywood says costs are still going higher for producing movies, you have to wonder where it's going with so many low-cost options available to them.
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