RI Tax Incentive Program Is Good For RI
RI Tax Incentive Program Is Good For RI
This blog is intended as the opening to a discussion. We want to hear both sides and get a clear debate going about the benefits/ drawbacks of the Tax incentive program. This blog allows you to comment below. If you feel passionate one way or another, please click on this blog and leave your response in the comment section.
My point of view:
As many of you know, the tax incentive program is under review. State legislature is proposing a cap on the credits. Many jobs and a whole lot of money has been promised, and so far, it seems that the credits have not brought in enough money and jobs to justify the expense. Especially in a time when the state budget is so low.
However, it seems many people who are not involved in the film community do not understand the issue and have many misconceived notions about the credits.
One: We want Hollywood here because we like movies.
Wrong. We want them here because it brings money to the state.
Tax incentive programs have a long history of success in bringing money to a state. It is one of the few economic stimulus programs that consistently works. It is never proposed because the state wants to make a movie, it is about creating revenue for the state and it's citizens.
From an article on the North Carolina Film industry:
"....film matters. In fact, it is big business, having brought more than $7 billion to the state since 1980, according to the N.C. Film Office. But now, other states want a piece of the action."
Two: they think we should have seen the full impact already.
Wrong. It will take a few years to build the resources in RI.
After two years, the program has brought over 200 million into the state and created thousands of jobs. However, this is nothing compared to what it will bring in over time. RI did not have the infrastructure to support the films entering the state two years ago. In the two years since the program has begun, that infrastructure has grown and is still growing. A studio has been built, crew has been trained, companies have emerged to take advantage of the boom in the film business. The more the infrastructure grows, the more money Hollywood will spend in Rhode Island.
Three: the jobs are part time, no benefits.
Wrong. Crew work is union work with benefits and tons of well-paid overtime
Granted, a crew member may only work for a few months at a time, with the endless movies, as well as commercials, corporate videos, etc, a crew member can easily get consistent employment. Also, they are paid so well with so much overtime, they will likely make more than most people with a full-time, year-round job.
Hollywood, having been ruled over by liberals, has notoriously powerful and excellent unions. As a result, crew jobs have excellent pay, consistent overtime and good benefits. The benefits work differently from most jobs which has led to the perception that crew workers do not have benefits. Not true. Other great things about working crew is, you do not need a college degree to get the job. You do need to work really hard and be reasonably healthy, because it is hard work with long hours.
That is the truth about the issue. Anyone questioning the facts in this blog need only search the internet to support it. I could give links to support these claims, but they are so numerous I do not have space on this blog.
Instead, I suggest you do what I did. Enter your search engine and type the words:
economic impact film industry
Links for every state with a similar program will appear. This program has an incredible potential to motivate the RI economy in a big way. Let us not miss this opportunity.
Just my thoughts.
Yours? comment below.
Mark Fogarty
RIFC president
From the Film and TV Office:
We are providing this information to you as a member of our state's film workforce. If you oppose establishing a cap on future film credits for the effect it might have on your livelihood, then please send a letter and/or make a phone call to your own district Senator and Representative to inform them how you feel about the proposed legislation.
If you are not sure who your Senator or Representative is, go to www.rilin.state.ri.us or look at the list and contact information below.
This blog is intended as the opening to a discussion. We want to hear both sides and get a clear debate going about the benefits/ drawbacks of the Tax incentive program. This blog allows you to comment below. If you feel passionate one way or another, please click on this blog and leave your response in the comment section.
My point of view:
As many of you know, the tax incentive program is under review. State legislature is proposing a cap on the credits. Many jobs and a whole lot of money has been promised, and so far, it seems that the credits have not brought in enough money and jobs to justify the expense. Especially in a time when the state budget is so low.
However, it seems many people who are not involved in the film community do not understand the issue and have many misconceived notions about the credits.
One: We want Hollywood here because we like movies.
Wrong. We want them here because it brings money to the state.
Tax incentive programs have a long history of success in bringing money to a state. It is one of the few economic stimulus programs that consistently works. It is never proposed because the state wants to make a movie, it is about creating revenue for the state and it's citizens.
From an article on the North Carolina Film industry:
"....film matters. In fact, it is big business, having brought more than $7 billion to the state since 1980, according to the N.C. Film Office. But now, other states want a piece of the action."
Two: they think we should have seen the full impact already.
Wrong. It will take a few years to build the resources in RI.
After two years, the program has brought over 200 million into the state and created thousands of jobs. However, this is nothing compared to what it will bring in over time. RI did not have the infrastructure to support the films entering the state two years ago. In the two years since the program has begun, that infrastructure has grown and is still growing. A studio has been built, crew has been trained, companies have emerged to take advantage of the boom in the film business. The more the infrastructure grows, the more money Hollywood will spend in Rhode Island.
Three: the jobs are part time, no benefits.
Wrong. Crew work is union work with benefits and tons of well-paid overtime
Granted, a crew member may only work for a few months at a time, with the endless movies, as well as commercials, corporate videos, etc, a crew member can easily get consistent employment. Also, they are paid so well with so much overtime, they will likely make more than most people with a full-time, year-round job.
Hollywood, having been ruled over by liberals, has notoriously powerful and excellent unions. As a result, crew jobs have excellent pay, consistent overtime and good benefits. The benefits work differently from most jobs which has led to the perception that crew workers do not have benefits. Not true. Other great things about working crew is, you do not need a college degree to get the job. You do need to work really hard and be reasonably healthy, because it is hard work with long hours.
That is the truth about the issue. Anyone questioning the facts in this blog need only search the internet to support it. I could give links to support these claims, but they are so numerous I do not have space on this blog.
Instead, I suggest you do what I did. Enter your search engine and type the words:
economic impact film industry
Links for every state with a similar program will appear. This program has an incredible potential to motivate the RI economy in a big way. Let us not miss this opportunity.
Just my thoughts.
Yours? comment below.
Mark Fogarty
RIFC president
From the Film and TV Office:
We are providing this information to you as a member of our state's film workforce. If you oppose establishing a cap on future film credits for the effect it might have on your livelihood, then please send a letter and/or make a phone call to your own district Senator and Representative to inform them how you feel about the proposed legislation.
If you are not sure who your Senator or Representative is, go to www.rilin.state.ri.us or look at the list and contact information below.
posted by Mark Fogarty at
11:07 AM
3 Comments:
This editorial was published by the Providence Journal.
http://www.projo.com/opinion/letters/content/LT_jaffe_RDY_04-13-08_DI9JHIC_v8.39d3132.html
Bob Jaffe: Tax dollars on arts well spent
01:00 AM EDT on Sunday, April 13, 2008
I am writing as an actor, a citizen and as the founding president of Rhode Island Citizens for the Arts.
As the budget “crisis” looms over our state, I know that some of the considered changes in budget allocations may relate to the arts, more specifically to the tax incentives that have been afforded to film production in the state.
I want to emphasize how important any dollars spent on (or taxes credited to) arts involvements are to our economic development.
There is absolutely no doubt in my mind that every penny spent on the arts leverages more money for Rhode Island and its businesses. This has been proven in study after study.
I know that the tax credits for filmmakers have come under some scrutiny recently. However, they have generated a level of activity and employment that makes Rhode Island a place that actors, crew workers and other film professionals can actually consider living in.
We need to continue to seed this investment.
Activity leads to training, to greater professionalism, to even more activity, and greater financial input to the economy — jobs, services, more business for our businesses.
We are beginning to see unprecedented gains in potential employment for people like myself for the first time since I came to live here.
We are beginning to see a local professionalism in our resident film community that is becoming the envy of other states. We are beginning to be recognized as a superb place to film by the national film community. And all of this brings money to the state.
I urge the legislature to continue to support the arts in every way — and to continue every incentive to nurture filmmaking in Rhode Island.
BOB JAFFE
Providence
Thank you for creating this blog. I am a 481 member and moved to RI about 2.5 years ago to work on Brotherhood. My boyfriend moved here as well and we recently bought a house here (that's economic impact right there). HOWEVER, now that we are hearing about the tax incentive being taken away or cut down, we are worried. Already we have had to take a few jobs up in Boston and pay to stay up there. If the tax incentive is reduced, we would definitely sell our house and move. I know MANY other 481 members who bought property in RI because they speculated a boom in film industry. Many of them are putting in tons of money (using local vendors of course) to remodel old homes in Providence and create more apartments that they usually rent to other film people who need a place to stay here. This is the kind of economic impact that they aren't taking into consideration. Especially in a housing crisis. Union film crew have invested in RI. Now we ask them to return the favor. KEEP THE TAX INCENTIVE. I think if they want to reform something, it should be putting more limitations on how many outside people they can bring in. They are still bringing in the bulk of their crew from NY or CA especially in higher paid positions - mostly out of an "attitude" that New Englanders lack as much experience. With all the work here, we've gained the experience but only a handful of us land the positions. If they want to reform the tax incentive, change the guidelines to help more local people get hired AND put more effort into making the names and types of local vendors who are film-friendly readily available. Maybe a book. (See Debbie's Book for LA resources or NY411/ LA411 for film. We should start our own publication). I hope everyone remembers to write their reps about this issue. Thank you!
Bob Jaffe: Tax dollars on arts well spent
01:00 AM EDT on Sunday, April 13, 2008
I am writing as an actor, a citizen and as the founding president of Rhode Island Citizens for the Arts.
As the budget “crisis” looms over our state, I know that some of the considered changes in budget allocations may relate to the arts, more specifically to the tax incentives that have been afforded to film production in the state.
I want to emphasize how important any dollars spent on (or taxes credited to) arts involvements are to our economic development.
There is absolutely no doubt in my mind that every penny spent on the arts leverages more money for Rhode Island and its businesses. This has been proven in study after study.
I know that the tax credits for filmmakers have come under some scrutiny recently. However, they have generated a level of activity and employment that makes Rhode Island a place that actors, crew workers and other film professionals can actually consider living in.
We need to continue to seed this investment.
Activity leads to training, to greater professionalism, to even more activity, and greater financial input to the economy — jobs, services, more business for our businesses.
We are beginning to see unprecedented gains in potential employment for people like myself for the first time since I came to live here.
We are beginning to see a local professionalism in our resident film community that is becoming the envy of other states. We are beginning to be recognized as a superb place to film by the national film community. And all of this brings money to the state.
I urge the legislature to continue to support the arts in every way — and to continue every incentive to nurture filmmaking in Rhode Island.
BOB JAFFE
Providence
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