Locals might notice a few more camera crews and big-name actors in the coming years, as new incentives for the state’s film industry could have business-minded movie producers migrating to Oregon.
The incentives would come in the form of an additional $10 million in tax credits for film development and production contributions. These credits, which lower the taxes of people who make donations to Oregon-based film and television companies, are designed to foster the growth of the industry by creating additional operating revenue. Oregon Governor John Kitzhaber proposed the new tax credits last week when he revealed his budget recommendations for the next two years.
“I’ve included (in the budget) some line items targeted at economic development, and one of them is to boost the film and video tax credit,” Kitzhaber said. “There are quite a few movie operators looking for a place to land. We thought we might have them come here.”
Oregon is currently one of more than 40 states — and all Canadian provinces — that offer tax credits for their respective film industries. Yet Kitzhaber’s new tax credits come at a time when other states are doing the opposite and choosing to reduce their incentives as a way of dealing with recession-borne deficits. Oregon officials see this as an opportunity to profit in the film business and hope to alleviate the effects of the recession with more, not fewer, tax credits.
“The tax credit program is essential in recruiting film and television projects to Oregon,” said Vince Porter, executive director of the Oregon Governor’s Office of Film and Television. “It isn’t the only thing that can pull us out of the recession, but it certainly does have a broad impact across the entire economy in small business revenue, and it does employ a lot of people.”
The $10 million in tax credits would be an expansion to other film incentives already in existence. Oregon currently offers $15 million of these same tax credits and features other perks such as various project grants and the lack of a sales tax. Nevertheless, many involved in the field of film and television say the additional tax credits are well worth it and argue that the credits promote a lucrative, environmentally friendly industry in the state.
“Movies are made in locations where there are incentives,” said Kathleen Karlyn, director of the cinema studies program at the University. “It’s a business, and if Oregon has a good economic environment, that is going to be very, very compelling.”
All of Kitzhaber’s budget recommendations, including these tax credits, are currently moving through the Oregon Legislature and still await the approval or disapproval of the state Congress. But the interest for a film industry in Oregon is certainly evident.
For example, the University’s cinema studies program, which is only in its first year as a major degree, already represents 220 students. The film studies program at Portland State University has experienced similar popularity and has been forced to hire more faculty this year to deal with the influx of students. State officials see this as a sign for the need of a larger film industry.
“The amount of people who have signed up for the cinema studies program at the UO has far surpassed what they planned for,” Porter said. “I think it’s a good indication that there’s a talent base that continues to develop here, and that we should make sure it stays here in Oregon to do the work they study to do.
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