Fresh off the success of a competition cooking show, GOP lawmakers are again circulating legislation to create state tax incentives for film and TV production, arguing Wisconsin is missing out on “economic benefits that most other states enjoy.”
Under the latest version of the bill, a newly created State Film Office would be able to allocate up to $10 million in film production and investment tax credits per fiscal year — double the amount that would have been provided by a previous version of the legislation.
Republican Reps. Dave Armstrong of Rice Lake, Calvin Callahan of Tomahawk, and Karen Hurd of Withee as well as Sens. Julian Bradley of New Berlin and Patrick Testin of Stevens Point, recently circulated a co-sponsorship memo seeking to rally support for the proposal.
As with the earlier bill, the memo notes Wisconsin is one of just five states with no film office or commission and one of 10 with no production incentives.
“State tax incentives are a lucrative strategy that allows Wisconsin to benefit from increased economic activity,” authors wrote. “Incentives attract filmmakers and their projects, which contribute to local businesses, job creation, and tourism — boosting the overall economy. Under LRB 2456/2810, no money leaves state coffers until the production’s expenses are spent and justified.”
Along with establishing a State Film Office under the state Department of Tourism, the bill would create tax incentives for film production companies equal to 30% of eligible salaries or wages paid as part of producing a film, video, broadcast advertisement or TV program, with various limits such as the production needing to exceed $1 million in budgeted expenditures.
The legislation would also establish similar income and franchise tax credits of 30% for production expenditures and 30% of certain property purchases, remodels or repairs within the company’s first three taxable years doing business in Wisconsin.
Compared to the earlier version, the total dollar amount available for tax credits and the percentages used in calculating those credits are larger based on a comparison to last year’s memo.
New in this year’s legislative effort, the lawmakers reference the success of Season 21 of the TV show “Top Chef,” which spent about $5 million filming in Wisconsin after being offered $400,000 in state incentives through a Wisconsin Economic Development Corp. deal. The memo also notes Milwaukee had a $1.5 million bump in hotel room bookings from “Top Chef” viewers over a six-month period.
“A Christmas film project currently wrapping production in Door County has spent more than $600K over three weeks in Wisconsin,” authors wrote. “Now imagine the benefits to the state and local economies if Wisconsin had a state film office dedicated to attracting productions, instead of the current ad hoc approach.”
The effort is being applauded by Action! Wisconsin, a coalition of film industry advocates that want to see a dedicated State Film Office created. In a release, the group notes the bill will be introduced and referred to committee after April 22, which is the co-sponsorship deadline.
JoAnn Jardine, a photographer in Superior and coalition member, says “everyone benefits” when a film or TV production comes to town.
“Film and television productions book lodging, cater shoots, dine out, and use local transportation,” she said. “They also shop and hire locally and statewide in the trades and crafts.”
The group notes movie filming on location adds $670,000 per day to the local economy, while “big budget” productions have a $1.3 million daily local economic impact, based on figures from the Motion Picture Association.
