Eric Dean Freese, Cinematographer, Director of Photography, Camera Operator, Camera Assistant





		I endorse the IMPA recommendations for reworking the Film, Television and Video Promotion Program legislation. Dear Friends, On January 8, 2010, the Iowa Tax Credit Review Panel recommended to the Governor and Legislature that the Film, Television, and Video Project Promotion Tax Credit be eliminated. The taxpaying members of the Iowa film industry firmly disagree. This film incentive program has merit and should be kept. The incentives bring multiple benefits to Iowa's economy and culture. They facilitated a fast-growing and exciting economic engine for Iowa during a severe economic downturn. Film, television and video production attracts capital, creates a local production-related workforce, and generates tax revenues critical for public needs. It is a clean, green industry that provides good jobs and equal opportunity for urban and rural locations.We must let our Iowa state legislators know the benefits of the program. Please write your governor, senators and representatives, and voice your support at this crucial time. Employment Opportunities Production industry jobs are high quality Opportunities are skilled and high-technology employment Film production attracts new and retains current residents Many critics insist that film production creates only temporary work, which is simply not true. These are high-quality, good-paying jobs. Are other independent contractors who work from job to job—plumbers, electricians, carpenters—considered "temps"? Like these, film careers are project-based. The IDED High-Quality Average Hourly Wage is $18.60 Film workers are typically paid by day rates, which range from $150 - $1,000 On a film set, the typical working day is twelve hours The median day rate of $300 equates to an hourly wage of $25 The annual income earned by a film worker employed for 27 5-day weeks (4-6 productions) =$40,500 Add $3,900 if 13 of those weeks are six-day, common with feature films. Some of these jobs include Accountants Actors Animal Handlers Artists Assistant Directors Audio Recording Engineers Camera Operators Carpenters Caterers Choreographers Cinematographers Composers Costumers Directors Distributors Drivers Editors Electricians Extras Grips Investors Landscapers Lawyers Location Managers Makeup Artists Marketers Musicians Painters Picture Editors Producers Production Assistants Publicists Screenwriters Script Supervisors Sound Designers Stunt Performers Economic Benefits Diversify economic industries Bring out-of-state money into local economies Promotional vehicle for the state Increase tourism The motion picture and television industry actively invests in infrastructure and facilities that have a positive effect on community development and local real estate markets. Hotels Restaurants Fuel Hardware Stores Transportation Retail Stores The Local Multiplier Effect: For every $1 spent at a local business, $0.45 is reinvested locally Many states have recently developed thriving film industries Alaska Up to 44% tax credit on a minimum investment of $100,000 Rewards in-state hires and expenditures No statewide income tax or sales tax Connecticut Up to 30% tax credit on a minimum investment of $100,000 State funded Film Industry Training Program 2006-2007 economic impact $55.1 million in film production spending $20.72 million in new real gross state product (RGSP) 395 full-time equivalent jobs $6.58 million in new real disposable personal income through multiplier effect Georgia Up to 30% tax credit on a minimum investment of $500,000 Economic Impact Television networks, Hollywood studios, production companies and independent producers invested more than $521 million in Georgia The economic impact of this investment was $929 million 13 industry supply-chain companies have recently located to Georgia Louisiana Up to 30% tax credit on a minimum investment of $300,000 5% labor tax credit on payroll of Louisiana resident cast and crew Economic Impact Since 2002, when the first tax credits were introduced, the incentives have generated more than $2 billion in new revenue and spurred creation of thousands of high-wage jobs, state-of-the-art infrastructure development and new business opportunities. Shreveport's Nu Image/Millennium Films studio. Leasing 6.7 acres from the city for $1,200 annually for 49 years for a total of just less than $60,000 53,000-square-foot building is a $10 million project Michigan Must spend at least $50,000 in Michigan to be eligible. 40% refundable tax credit, across the board on Michigan expenditures. Claim an extra 2% if filming in one of the 103 Core Communities in Michigan Labor and Crew: 40%-42% Resident Below the Line. 40%-42% Above the Line regardless of domicile. 30% Non-resident Below the Line. $2 million salary cap per employee per production. There is no other cap and no sunset. Economic Impact Film production attraction efforts expected to create 5,993 new jobs Investment of more than $156 in Detroit and Pontiac for two major motion picture infrastructure projects Both projects will result in permanent production-related jobs in Michigan. New Mexico 25% Tax Rebate on all direct production expenditures, including New Mexico crew, that are subject to taxation by the State of New Mexico 50% reimbursement of wages for on-the-job training of New Mexico residents in advanced below-the-line crew positions Economic Impact Albuquerque Studios Opened June 1, 2007 $91.5 million, entirely privately financed Over the initial 20 months of operation Generated over $313 million Created over 2,600 high paying production jobs Paid over $7 million in gross tax receipts to the state Pays $600,000 in property taxes annually Ohio Tax credit is equal to 25% of non-wage and nonresident wage Ohio production expenditures and 35% of Ohio resident wage production expenditures, on a minimum investment of $300,000 Pennsylvania Up to 25% Tax Credit to films that spend at least 60% of their total production budget in PA Economic Impact 69 projects for FY 2007-08 and known ancillary activity has a net value of $524.6 million. Approximately 3,950 jobs are supported by these projects with $146.4 million in wages. Estimated that the state and local governments will receive nearly $18 million in revenues in the form of taxes, fees and permits as a result of the projects approved to receive Film Tax Credits in FY 2007-08 and known ancillary activity. Utah The Motion Picture Incentive Fund is a 20% post performance rebate of dollars spent in the State of Utah. Starting July 1, 2009, Utah offered a 20% tax credit. For productions under one million dollars, there is a 15% cash rebate film incentive available. The Sales and Use Tax Exemption is an exemption on TV, video and film equipment. The Transient Room Tax is a rebate on hotel accomodations. Iowa (potential) Gigapix/Recess Films, LLC Redevelop part of Southridge Mall in Des Moines as a soundstage Midsummer Film Productions Ltd. Planned to redevelop Quality Ford in West Des Moines as a soundstage Grasshorse Technologies Opened January 2009 in Mount Pleasant Have employed up to 20 people, 5 interns and 7 subcontractors Developing 3D animation curriculum for South Eastern Community College The Film Promotion Program can be successful and beneficial for Iowa by: Remaining competitive with other states' programs Increasing Film Office staff to provide proper administration and oversight Awarding contracts after considering estimates of Iowa crew to be hired, on-the-job training opportunities and the projected Iowa spend Measuring and reporting the economic impact of the program Considering other industry categories when developing administrative rules: Episodic television programs Commercials Animation Video game production For more information, call or email the Iowa Motion Picture Association, or visit www.impa.tv. The IMPA can also be found on Facebook and Twitter.Encourage our legislators to save the Iowa film industry. To find your legislators, visit http://www.legis.state.ia.us/FindLeg/. Thanks! Sources: "Iowa Film and the Future", Amy Johnson, Becky Gruening, Tammy Shutters, December 2009. "2009 Economic Impact of the American Motion Picture and Television Industry", Motion Picture Association of America, April 2009. Various state film office websites.
		© 2010 Eric Dean Freese. All rights reserved.