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SALT LAKE CITY -- The state's economic development department wants to remove a $500,000 limit on film incentives offered to major motion picture productions in Utah.
Jason Perry, executive director of the Governor's Office of Economic Development, said Tuesday that removing the cap would allow Utah to better compete with neighboring states in luring big budget films.
"Right now, we're in the lowest category of incentives. This would put us to the middle of the pack. But really, as we have worked on our economic model, it's not essential for us to be the highest bidder for these projects. There are a lot of very legitimate business reasons why films should be and are coming to the state of Utah apart from the incentives," Perry told The Associated Press.
He will present lawmakers with a proposal on Wednesday, less than a month after a special session was called by Gov. Jon Huntsman to slash the state budget by about $272 million.
"This is a difficult time to be making such a proposition, which is why we are going to great lengths to make sure we apply the right business model to this incentive," Perry said.
Currently, Utah offers a post-performance rebate of 15 percent of every dollar spent in the state of Utah. A production must spend a minimum of $1 million in the state to qualify and the maximum benefit for each project is $500,000.
Utah spent $3.9 million in film incentives last year, up from $1 million the year before.
A draft of the bill Perry will present calls for offering the rebate to small budget productions and offering a refundable tax credit for larger budget productions. Perry said his office is also considering increasing the rebate portion to 20 percent. "This legislative session is aimed at making the state of Utah a premier destination for films. The film industry knows our crews, they are familiar with our talent and they are second to none," he said. "We will start to make those big budget films in this state."
Under the proposal, the Utah Tax Review Commission would re-evaluate the program every five years to determine its effectiveness.
A study by the Governor's Office of Planning and Budget said that Utah's film industry had a $138 million economic impact last year.
The study said the film industry created 1,100 new jobs last year , $25.7 million in personal income and $2.9 million in new tax revenues.
A final decision on the incentives package wouldn't be made until lawmakers convene in January.
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On the Net:
Utah Film Commission http://film.utah.gov/
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