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Incentives proposal seeks to lure film crews to Colorado

By Joanne Kelley, Rocky Mountain News (Contact)

Published January 15, 2009 at 12:05 a.m.

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Colorado's film industry returned to the state Capitol on Wednesday, aiming to persuade lawmakers to approve a more modest incentives program than the one that failed last year.

With an eye on luring movie productions to the state, the Colorado Film Commission hopes its latest proposal will fly because its $10 million cost would be offset by payroll and sales taxes paid by film companies that come to Colorado.

"We don't have the budget to do more," said Rep. Tom Massey, R-Poncha Springs, a sponsor of the legislation to establish financial incentives to draw filmmakers to Colorado. "We've pared down the amount we're asking for, and we've done our homework."

Actors and production crews living in Colorado held a noontime rally in support of the bill on the steps of the Capitol.

Last year's failed proposal would have allowed for transferable tax credits for film or television productions that spend $250,000 or more in Colorado. The program would have been capped at $25 million a year.

This year's plan would be "revenue neutral" for the state, according to the Colorado Film Commission's executive director Kevin Shand.

He pointed to a 2008 study by the University of Colorado's Leeds School of Business, which concluded that a 10 percent refundable tax credit program with a $10 million cap could increase film activity by $100 million.

Colorado's film industry has argued that productions no longer choose locations based on scenery or a movie's plot, but look first at states that offer financial incentives.

Comments

  • January 15, 2009

    12:27 a.m.

    Suggest removal

    Slash writes:

    Please pass... please.

  • January 15, 2009

    6:59 p.m.

    Suggest removal

    John1S writes:

    A study just two weeks ago in New Mexico showed that for every dollar in tax incentives, the state got back fourteen cents in tax revenue. There's a push there to revoke the tax incentives. While incentives might bring in money to hotels and restaurants and industry professionals, overall it's a losing deal for Colorado citizens. For sources, search for "New Mexico" "film industry" and "fourteen cents"; see also forbes.com and the New Mexican press.

  • January 22, 2009

    12:47 p.m.

    Suggest removal

    Gabe Stein writes:

    It takes a while for these kinds of incentives to pay off, but it can be successful. Look at Vancouver, for instance.

    Plus, for the film industry, location is a big deal as well as incentives. New Mexico does not have as much going for it as Colorado does. Colorado has a major and growing metropolitan city as a backdrop, a fairly well entrenched indy film community, as well as a lot of established and respected international film festivals (Aspen, Telluride, etc.) Plus, many actors, directors, etc. have cabins in the mountains, and the mountains themselves are a pretty good draw.

    Combine that with favorable sunny weather throughout most of the year, and you have a much better situation than NM for film industry.

    This needs to pass.