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Doyle: End film tax breaks
Lawton disagrees, says incentives will keep bringing jobs
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Also by Rachel Vesco and Matt Tanger:
- Doyle: End film tax breaks (February 20, 2009)
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Gov. Jim Doyle proposed cutting Wisconsin’s tax credits for film productions Wednesday, despite Lt. Gov. Barbara Lawton’s support for the incentives.
The credits lured Johnny Depp and his film, “Public Enemies,” to various shooting locations throughout the state last summer, including the Capitol Square.
Although the governor originally supported the incentives, he is now proposing a $500,000 grant in place of them, which he hopes will go towards creating long-term jobs in Wisconsin, according to Department of Commerce spokesperson Tony Hozeny.
“The program was not going to get us to where we needed to get,” Hozeny said. “We have a responsibility to the taxpayers that it compares favorably to other economic programs in creating jobs.”
Even though Doyle supports cutting the tax incentives, Lawton still believes the tax credits are a benefit for the entire state.
According to Lawton spokesperson Ben Nuckels, the incentives help bring in revenue for the state while also creating jobs for Wisconsin citizens.
“According to an independent study by Film Wisconsin, 759 jobs were created as a direct result of the film incentives in at least 14 different communities,” Nuckels said. “[She] doesn’t feel like now is the time to end a bright spot in our economy.”
Nuckels said the end of the incentives would have long-term consequences for the state, citing the specific example of producer Susan Moses, who was set to film a movie in Milwaukee and Green Bay this May. Moses called Lawton’s office on Thursday to say if the incentives were not in place, she would not be filming in the state.
Lawton plans to work with the Legislature to ensure that the tax incentive is included their version of the budget.
Sen. Ted Kanavas, R-Brookfield, author of the tax incentive bill, agreed with Lawton.
“I think it’s a big mistake, and I think [Doyle is] missing the larger picture,” Kanavas said. “It’s not just about the films and it’s not just the employees, all these talented people that are coming home to work instead of in California.”
Like Lawton, Kanavas plans to fight for the incentive to be included in the budget during upcoming deliberations.
David Fantle of Visit Milwaukee, a group dedicated to tourism in the area, agreed as well, arguing that giving up on the plan just 13 months into its creation is bad for business.
“It was one of Wisconsin’s shining stars of the economy the past year, and to pull the rug out from under it is mind boggling,” Fantle said. “We will be at the bottom of the tier for film-friendly states.”
The Department of Commerce reported the production of Depp’s “Public Enemies” made the state $5 million during filming.
Wisconsin received about $4.6 million back due to the 25 percent credit, Hozeny said.
However, recent numbers released by the Motion Picture Association of America reveal that Universal Studios spent $18 million in Wisconsin while producing the film, and at least 1600 jobs were created.
Hozeny called into question the MPAA’s numbers and insisted the DOC’s numbers are correct.
Doyle spokesperson Carla Vigue said the governor’s office is not commenting directly on the matter.
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Public Enemies did not “create” 1600 jobs in Wisconsin. They were all temporary jobs (you might notice the production is over) and only 240 of those jobs were Wisconsin residents. Can anyone explain how spending Wisconsin tax money to temporarily employ workers from other states is beneficial to our economy? And don’t tell me that it brings in tourists. How many tourists visited Milwaukee because they loved Mr. 3000?
Hey Guv, how’s about we pay our federal taxes to the state of Wisconsin? Why raise our own state and local taxes when most of our federal taxes will be wasted on the war in Iraq and an economic stimulus package that most economists agree will not work? Half the cities in California are advocating the same thing. The pot’s about to boil over, so let’s make a decision, shall we?
This article was not very clear. Did the filming in Wisconsin of “Public Enemy” bring in money to the state or not? I believe the article is saying that the tax incenitve cost the state $500,000 but that the state gained, net, $4.5 million due to the money spent here by the film crew. If so, how is this not a benefit to the state? I think Barbara Lawton is right and the governor is all wet on this one. What am I missing?
To pull the plug on this revenue earning tax credit — that was just getting going and that was earning out state a favorable reputation in Hollywood — seems like a blunder of epic proportions. First, because it appears likely to cost us lots of potential future revenues. Second, because it double-crosses those producers and directors who have already made plans based on the credits we were offering.
I believe ending these tax credits will do very serious damage to the reputation of our state, as well as to our economy.
Here is the problematic part of the article:
“The Department of Commerce reported the production of Depp’s ‘Public Enemies’ made the state $5 million during filming.
Wisconsin received about $4.6 million back due to the 25 percent credit, Hozeny said.”
Actually, Gov. Doyle is claiming that “Public Enemies” created $5 million of economic activity in the state and received $4.6 million in tax credits, netting the state only $500,000.
But officials in Oshkosh alone estimated that the film shoot there generated $4 million, so the governor’s figures are very questionable. (See: http//www.thenorthwestern.com/article/20080422/OSH0101/30422019/0/specials)
The governor is not making sense. I have to wonder if maybe the former attorney general resented a movie made in Wisconsin about public enemy Dillinger? Or if he fears political fallout from another film made in Wisconsin about a priest chasing Satanic fallen angels?
A study by Ernst & Young found that 30 films produced in New Mexico in 2007 generated about $253 million in spending and directly created 5,989 jobs.
Another benefit of having “Public Enemies” filmed in Wisconsin went to the Milwaukee County Historical Society which received a location fee, lots of free publicity, and $100,000 towards its five-year, $7.5 million renovation of its downtown building.
So, Governor Doyle, please reconsider. Having Hollywood come to town can be a good thing econmically, in addition to being memorable, fun and exciting.