With the writers' strike looking like it'll wrap up this week, Crain's points us towards another problem for New York's entertainment industry.
Seems our neighbor Connecticut has started to offer up a deal no self-respecting Hollywood suit can refuse -- a 30% tax rebate on all production costs. The incentive program started in 2006 and in 2007 alone we've lost approximately $400 million in production revenue to the Constitution State. The problem has spread to Rhode Island and Massachusetts as well, both adopting their own incentive programs and racking up an additional $350 million that should have lined our pockets.
What's more, even movies about New York are being filmed in the suburbs. The Bronx Is Burning was filmed in Connecticut and used a ball field in Norwich as Yankee Stadium. Blasphemy! Silvercup Studios president, Stuart Match Suna, says “If they can fake the Bronx in Connecticut, they can do anything. We have to find a way to keep these jobs here.“
So what's the solution? After some gentle nudging, "Gov. Spitzer's 2008 state budget proposal includes funding to increase New York State's tax credit to 15% from 10% and start including both above- and below-the-line costs, which means production companies will now get a rebate on their biggest costs, the actors' and directors' salaries. The proposed budget also raises the annual benefit cap to $75 million by 2011 from $60 million now. The new budget, if passed, would be coupled with New York City's current 5% rebate on below-the-line expenses." Pat Kaufman, New York's state film commissioner, believes that if this passes we'll be back in the game.
Still, many companies are moving from the city to CT right now, as the state continues to seek out developers to build movie studios. Their director of Culture and Tourism confirms they are building an industry there, but can it really compare to New York?
Pictured: Leonardo DiCaprio filming in Southport, CT via Matt Hintsa's Flickr.
