BYU NewsNet - Legislating from the hill

Legislators are considering a bill that would allow Utah movie-goers to see more locally filmed movies like “Indiana Jones and the Last Crusade” and “Dumb and Dumber.”

Utah’s scenic terrain has been the setting for hundreds of movies and television shows, and the motion picture industry has provided a steady source of income for the state. Recent economic conditions, however, have made it necessary for lawmakers to take additional steps to ensure that the industry will continue to thrive.

The Senate approved a proposal last week that would motivate film producers to use the state’s money in big-budget motion picture productions. The House is now taking the bill up for debate.

In 2005, the Utah Legislature created the Motion Picture Incentive Fund, which provides financial incentives to motion picture companies that produce motion pictures, television series or made-for-television movies within the state.

The proposed legislation this year, SB14, is sponsored by Sen. Lyle Hillyard, R-Logan, and would increase the current Motion Picture Incentive Fund from a 15 percent post-performance rebate to 20 percent.

These incentives come in the form of a variety of tax credits for money spent in the state. The credits are offered once production has been completed, ensuring that the state of Utah benefits from the program. In addition to the immediate costs of movie production — estimated to be in the $50 million range — the state benefits from additional spending on restaurants, hotels, recreation, etc.

“This new bill will sustain, grow and make Utah one of the premiere destinations for filmmaker’s all over the world,” said Jason Perry, executive director of the Governor’s Office of Economic Development.

The incentive fund’s return on investment for the state has been a high priority for the Governor’s Office of Economic Development and the 2009 legislative session.

“This bill is a great way to increase economic activity through film production,” Perry said.

Supporters of the bill have said that the movie industry has a total economic impact of $138 million in Utah, and that the industry created 1,099 jobs and produced $27.5 million in personal income and $2.9 million in tax revenue for the state.

Marshall Moore, director of the Utah Film Commission, is confident the legislation will put the state on higher competitive ground with other states.

“This bill will make the state more competitive with other states like New Mexico and Louisiana in attracting bigger budget productions,” Moore said.

One thing Utah has going for it is the Sundance Film Festival, which has attracted filmmakers, celebrities and tourists to Utah for decades. The festival serves as an important source of income for the state, and this year served as an effective channel for Utah to communicate the merits of the film incentive legislation to filmmakers all over the world.

“As a sustaining sponsor of the Sundance Film Festival, we are always excited to host filmmakers from all over and promote both independent and studio productions,” Moore said.

In addition to gaining the support of filmmakers abroad, the proposal has enthusiastic bipartisan support within the state senate. Sen. Karen Morgan, D-Salt Lake, said the sizable return on investment from the motion pictures makes it “truly a great way to go.”

“In times of economic troubles, this is one of the best things we can do,” Morgan said.