Out-of-state tax incentives stymie local film industry

Oct. 5--The Inland Empire has netted more than $1.3 billion in economic impact from film projects since 1995, the Inland Empire Film Commission reports.

Last year filming in San Bernardino County poured more than $31 million into local coffers, including film crews spending at local eateries,

"It's really a pretty important generator to the economy and it helps sustain the economy in our area," said Dan Taylor, deputy director for the Inland Empire Film Commission.

But the county's cash flow from the film industry is down roughly 16 percent from 2007. The total amount flowing into coffers from film projects throughout the Inland Empire is down 25 percent from 2007 and has plunged a whopping 68 percent from its peak of $142 million in 2000.

Many California film advocates pin the decline on generous tax incentives on film production offered by other states. California locations often can't compete with up to 50 percent tax credits for production companies and investors in about 40 other states.

" Un t i l t h i s ye a r California was one of only a few states that did not have a tax incentive program for the film industry," Taylor said, "so a lot of our feature films have left the state."

In July California finally started offering tax incentives to keep films local, with $500 million set aside to lure in productions over the next five years. It was key for the Victor Valley capitalizing on Screen Gems' "Priest," an action-thriller that filmed in Lucerne Valley last week.

"Tax incentives made a big difference in keeping us here in California," said Doug Dresser, supervising location manager for Screen Gems. "It helped justify us staying close to home."

Dresser also credited the local commission and Bureau of Land Management in Barstow for administrative help along the way.

"That's really the main attraction -- the ease of permitting for the area and the relatively inexpensive rates to be able to shoot here," Taylor said, adding shooting near Hollywood also reduces travel expenses.

And California's competition may also be dwindling: Several cashstrapped states are scaling back or considering trimming tax incentives. In Iowa, for instance, the state's 50-percent film tax credit is under legislative scrutiny with lawmakers suggesting the program may soon be scrapped.

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