Idaho films bill road to economic development
Idaho's film and television industry professionals who would prefer to work where they live now have a greater opportunity to do so. The state's new production incentive, passed last March, is a 20 percent cash rebate capped at $500,000 intended to be funded at $1 million each year for five years.
While this legislation is a significant step forward for Idaho's media industry, the program can only become effective when funded. As of September 2008, Commerce has requested $500,000 for the program for fiscal year 2010, half of the intended goal of the legislation.
Location production is highly lucrative and, therefore, ferociously competitive between states. Idaho will not get a share of this clean, high-paying manufacturing industry without an incentive.
Many states and territories have been creating robust, attention-getting incentives as lures. In April 2008 Michigan passed a 42-percent rebate for film and television productions that are filmed in the state. Their results: in just 19 weeks, 60 films have been approved and have signed agreements with the state, worth over $373 million of in-state production and thousands of jobs for Michigan residents.
It is reported that the film industry is the second largest high tech, non-polluting industry in the world, generating over $40 billion in direct domestic economic activity annually.
A Price Waterhouse Cooper's study estimated that the global filmed entertainment market will grow at a compounded annual rate of 7.1 percent through 2009. That rate represents an annual worldwide market of $199 billion in 2007, compared to $84 billion in 2004.
If Idaho will fund this incentive, the state has an opportunity to invest in this new business opportunity. However, film studios and financiers actively look for screenplays that can be shot in states with favorable production incentives.
The economics of production come first. Producers will alter a script to accommodate shooting in places where incentives are offered.
Our neighbors - Oregon, Washington, Montana and Utah - all have incentives in place and have developed an experienced crew base.
Though small, Idaho's incentive is competitive because it was designed to be easy to calculate in advance of production and easy to process.
This makes Idaho's incentive "friendly" for potential production partners with location needs suitable to Idaho's landscape to do business in Idaho.
Over the past two years, Idaho's industry workers have been contacting their legislators, describing the economic development opportunities offered by the production industry.
That is a significant accomplishment. The Idaho Film Office, in the Department of Commerce, works with industry workers, local business leaders and community organizations to create awareness, train workforce and find creative ways to enhance Idaho's Film Incentive Program.
With a new production incentive "in the wings," the film office will succeed in attracting small budget productions or even pieces of larger productions, employing Idahoans and bringing millions of new dollars into the state.
The Idaho Film Office is committed to make Idaho competitive. New legislation will be needed to stay relevant to this multi-billion dollar a year manufacturing industry.
Look for a workforce development program soon, as well as enhancements to HB 592. I was very proud to sponsor this bill, and for those that think this is a gift to Hollywood, I suggest that it is an industry builder and a great economic development opportunity for Bonner and Boundary counties and the state of Idaho.
Stay tuned.
Eric Anderson is the Idaho state representative for District 1.