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Many people are surprised when they hear that California doesn’t have a film commission that offers incentives to film production companies to film in the state. 44 states do, as do many countries, but California, well...we have HOLLYWOOD!
But film production companies are leaving the state to shoot in much lower-cost locales, many of which are cheaper because the local governments offer tax breaks and other incentives to lure production to their jurisdictions. California, argues state Assemblyman Paul Kerkorian (D - Burbank), needs to institute such incentives.
The members of the Capital Film Arts Alliance agree, which is why the 750-strong Sacramento area filmmakers organization has invited Kerkorian to speak to its first meeting of the new year, tomorrow (Tuesday, Jan. 20) at the Art Institute of Sacramento, 2850 Gateway Oaks Drive. The meeting starts at 7 p.m.
Kerkorian will speak on the importance of establishing incentives such as those that are luring production out of California. That loss of revenues costs the state tens of millions of dollars, argues Laurie Pederson, a local film producer who is hosting Kerkorian’s visit.
“44 other states subsidize film production,” she says. “I can spent $10 million in California, or I can do a $10 million film for $6 million two states away. It makes a difference in whether you can cast Mary Lee Jones or Charlize Theron in your film.”
In general, production costs are roughly the same everywhere, says Pederson, because it’s dictated by the number of people and number of production days. Hotel and other costs vary some, but that’s not what makes the difference.
But, she says, “If you give incentives, you reduce the costs to the producer. There are creative ways to do it. Most of the incentives are a tax incentive or rebate, or a politically-authorized or -funded savings. It ranges from 25-45 percent, it’s huge. Canada will hand you 50 percent, and guarantee that their people have a large role in the production.”
In California, local film commissions court producers, and some communities do pretty well, San Francisco being the obvious case. But that’s because if you want a film set in San Francisco, you’ve got to go to San Francisco. Sacramento is a different matter, a harder sell. And Sacramento doesn’t have a film commission. We get films done here, occasionally, but not often. And it’s costing us.
“For every dollar spent, you will see a return of $3-6 to that community,” says Pederson. “Food, recreation, lodging, transportation - there are a huge number of expenses that stay in a community. Most political people see this in terms of brick and mortar: If we bring in this big box store, we’re going to get this much in taxes or whatever.
“Films are different,” she says. “It’s like pitching green energy, because it’s new and it’s hard to understand. So they don’t fight for it. So for us, it’s an education process that has to begin somewhere. If we don’t start it and keep at it, it’s not going to happen.”
Pederson cites the Sacramento area’s most successful film producers as an example.
“Redwood Palms Pictures is based in the El Dorado Hills-Folsom area,” she says, “And they’ve got multi-million film productions. But they film everything out of state, because their business is not being pursued here. The Redwood Palms guys would love to stay here and put their money back in the community, but they have to go out of state to stretch their budgets.”
And, it might be added, they DID get Charlize Theron, for their 2008 film, “Battle in Seattle.”
“So we’re working to just continue to draw attention this, to beat that drum,” says Pederson. “We’re building this film community so that when all the storms converge, the timing will be perfect, and we’ll have the organization and process together.”
