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From the White House – New Federal Approach to Hiring
Tax credits lure film production companies, creating jobs and boosting region's economy
By Paula Schleis
Beacon Journal business writer
Published on Sunday, Jan 10, 2010
Three of the first four movies to receive a Motion Picture Tax Credit under a new Ohio incentive program will be made in Northeast Ohio.
The Ohio Department of Development (ODOD) last week announced the four films will share $7 million in tax credits.
Even before the legislation was signed into law in July, the tax credits were doing their job of luring films here, said Ivan Schwarz, executive director of the Greater Cleveland Film Commission. The commission helps film producers find partners throughout Northeast Ohio.
Early last year, in anticipation of the tax credit being approved, a New York production company called Nehst Studios set up operations in Cleveland. Nehst chairman Larry Meistrich is an industry veteran, producing films such as Sling Blade and You Can Count on Me.
Three independent films planned by the company, which are receiving the tax credits, are The Kid Who Only Hit Homers (based on a set of popular children's books), the horror sequel Strangeland 2, and a Vivica A. Fox project called Cleopatra Smiles.
Schwarz said the company will soon begin scouting for filming locations around the region.
The fourth movie to receive a tax credit is Unstoppable, a big-budget film from Twentieth Century Fox starring Denzel Washington about an unmanned runaway train carrying toxic chemicals.
The film was shot in several eastern and southeastern Ohio locations in November and December.
The ODOD said Twentieth Century Fox extended the number of shooting days in Ohio because of the tax credit.
''Ohio is already seeing an economic boost from the production of these films,'' said ODOD Director Lisa Patt-McDaniel. ''Ohioans are getting a chance to be part of the motion picture industry and generate income for their families. Production crews are also utilizing restaurants, hotels, and other businesses in several Ohio communities.''
In total, the four movies are expected to employ nearly 3,000 Ohioans as part of the production crews and extras, and bring in roughly $25 million in economic activity to the state, her office estimated.
Schwarz said there are other reasons to want the movie industry to succeed here.
''We want to create an industry . . . that will help us keep the young people here and attract people back,'' Schwarz said. Besides, he said, Ohio needs to keep up with 39 other states that already have a similar program.
Schwarz has seen an increased number of calls from filmmakers since the tax credit was passed, including some with an interest in the Akron area.
Film on Soap Box Derby
Jeremy Henthorn said when he took the helm of the ODOD's new Ohio Film Office, one of the first projects he pursued was a film being done by actor-producer Corbin Bernsen, whose credits include L.A. Law, Major League and Psych.
''I heard he wanted to make a film about the Soap Box Derby, so I called his office and said if you're doing this . . . have you thought about coming here?'' Henthorn said.
Bernsen has made several trips since, and now seems set on filming the movie in Akron.
''There are all these kinds of stories that exist in smaller cities that kind of open them up to Hollywood,'' Henthorn said.
Tony Troppe, an Akron developer who has been a vocal advocate of efforts to promote the film industry, was thrilled at the announcement of the tax credits.
The upcoming movies are ''a wave of activity we have been anticipating and it's very positive and it's indicative of more to come,'' he said. ''There's a series of great works that are on the horizon here because of the enlightened interest the state is taking in pursuit of these arts.''
Henthorn noted that it's everyone's hope that, in addition to the temporary economic boost a film brings to an area, more company's like Nehst will see the benefit to staying year 'round.
''Tax credits have gotten films out of Hollywood and to other areas. Now we want to entice them not only to come for the three months to shoot a film, but to stay.''
Plenty of talent in Ohio
Henthorn and Schwarz said there is plenty of filmmaking talent in Ohio to sustain a role in the industry.
''We're never going to be an L.A. or a New York,'' Schwarz said, ''but it's a $60 billion pie and there's no reason we can't get a piece of it.''
In order to be eligible for the tax credit — which is administered by the Ohio Film Office — the production companies must show reviewable progress to the Ohio Film Office within 90 days of receiving the notification letter. Tax credit is granted when production is completed.
A total of $30 million in tax credits are available for interested production companies in fiscal year 2010-2011.
Paula Schleis can be reached at 330-996-3741 or pschleis@thebeaconjournal.com. Follow her on Twitter at http://twitter.com/paulaschleis.
Three of the first four movies to receive a Motion Picture Tax Credit under a new Ohio incentive program will be made in Northeast Ohio.
Get the full article here.
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