Bill Introduced to Bring Moviemakers to Colorado Broad bipartisan support for measure to stimulate economy
Denver – March 11, 2008 – Today, State Rep. Tom Massey (R- Poncha Springs) and State Rep. Cheri Jahn (D-Wheat Ridge) announced the introduction of House Bill 1355 (HB 1355) that creates a $25 million tax credit program designed to help stimulate the economy and create jobs by bringing film and video productions to Colorado.
The tax credit is for film or television productions that spend $250,000 or more in Colorado. After that number is reached, the production will qualify for a transferable 25 percent tax credit for all expenditures. The cap on the tax credit is $25 million per year.
The bill has broad bi-partisan support and is co-sponsored by Buffie McFadyen (D- Pueblo West), Alice Borodkin (D-Denver), Debbie Benefield (D-Arvada), Dorothy Butcher (D-Pueblo), Morgan Carroll (D-Aurora), Edward Casso (D-Thornton), Mark Ferrandino (D-Denver), Jerry Frangas (D-Denver), Sara Gagliardi (D-Arvada), James Kerr (R-Littleon), Marsha Looper (R-Colhan), Don Marostica (R-Loveland), Rosemary Marshall (D- Denver), Michael May (R-Parker), Anne McGihon (D-Denver), Wes McKinley (D-Walsh), Karen Middleton (D-Aurora), Joe Rice (D-Littleton), Ellen Roberts (R-Durango), John Soper (D-Thornton), Nancy Todd (D-Aurora), and Al White (R-Hayden).
HB 1355 is also gaining support from Colorado’s business and labor communities, including the Club 20 Tourism Committee, The Colorado Film & Video Association, Boulder Convention and Visitors Bureau, Durango Area Tourism Office, Glenwood Springs Chamber Resort Association, Steamboat Springs Chamber Resort Association, AFL-CIO, Teamsters, and the Screen Actors Guild among others.
“This is a wonderful opportunity for Colorado to gain an economic shot in the arm that will bring in more business, create more jobs and generate tax revenue,” said Rep. Massey. “Because Colorado and the country are facing a possible recession, this kind of business stimulus bill is critical.”
Film and television incentive programs are established in Arizona, Utah, Wyoming, Montana and New Mexico. With a 25 percent tax credit, New Mexico has seen production spending in the state go from $71 million in 2005 to $142 million in 2007. Since 2002, New Mexico’s film incentives have helped add $1.5 billion to the state’s economy. In fiscal year 2007 the state of New Mexico generated an economic impact from the film industry of $479.7 million dollars. The state generated over 173,000 worker days in the 2007 fiscal year.
“The sad fact is Colorado loses out on tens and tens of millions of dollars in business every year because we don’t have a sufficient film incentive program,” added Rep. Jahn. “Wyoming, Utah, Montana and New Mexico have all seen the wisdom of this kind of program – and are reaping the benefits. It is time Colorado gets in the game instead of pushing potential revenue away due to current state policies.”
Film and television productions impact all of Colorado, not just the Front Range. According to a 2002 University of Colorado study, in one year alone the industry had an economic impact in “at least 40 of Colorado’s 64 counties.”
“Recent large-scale film productions in Colorado spent more than $100,000 a day on catering, hotels, rental cars, equipment, personnel, extras and a host of other things,” said Kevin Shand, executive director of the Colorado Film Commission. “We look forward to helping producers learn about our proposed incentives and helping to bring their productions to Colorado.”
“Everyone knows that to make money you have to invest it wisely to get a solid return,” said Craig Meis, Colorado Film Commission chairman. “The state investing $25 million in this tax credit program will generate a return of $330 million dollars in economic activity. We could only wish to get that kind of return at the bank or from the stock market. Unlike other investments, it provides a guaranteed return because this is a tax credit for money already spent.”
Bill Specifics
House Bill 1355 Facts Minimum budget required to qualify for tax credit $250,000 Tax Credit 25 percent of expenditures Tax Credit Cap $25 million Direct spending if total tax credit is used $100 million Economic multiplier for industry 3.3 Total economic impact potential from tax credit $330 million
Example of Economic Impact
12 Day Production by Paramount Pictures in Colorado in 2007. · $3.25 million in Colorado expenditures o 2,000 hotel room nights o 11,880 work hours for Colorado residents § 65 trade professionals § 1200 extras · Unknown expenses by cast and crew during leisure time with expense budgets. · Unknown positive impact on tourism after film is released showcasing state.
-The Cherry Creek News-