CO House committee: TV commercials should get incentives
Bill also eases local spending and hiring requirements
by Richard J Schneider
DENVER -- Legislation that will make it easier for out-of-state production companies to take advantage of Colorado's media production incentive easily passed a House committee in early February and faces clear sailing through the full Colorado House and Senate.
The measure is part of a package of housekeeping bills designed to raise the profile of creative industries in Colorado. On February 3, 2010, the House Business Affairs Committee approved House Bill 1180, which would:
- Expand the state's 10 per cent cash rebate incentive to include the production of television commercials.
- Eliminate the requirement that 75 per cent of the production budget be spent in Colorado.
- Remove the mandate that 75 per cent of the production crew be Colorado residents.
- Slash the minimum amount that out of state production companies must spend in Colorado from $1 million to $250,000.
- Clarify language relating to state income tax payment requirements for highly-paid stars or other crewmembers, such as directors and directors of photography.
Rep. Tom Massey, R-Poncha Springs, introduced the bill. Massey has been the prime sponsor of production incentive legislation during several sessions of the legislature.
During the 2009 session, Massey's attempt to significantly increase the size of the state's incentive program failed, largely because of he budget crisis facing the state. However, lawmakers did approve other marts of his bill, which expanded the types of productions that would be covered by the current incentive program as well as create a new Office of Film, Television and Media within the governor's office of economic development.
The 2009 legislative actions led to the dissolution of the non-profit Colorado Film Commission and moving its staff to the new state office.
Director of the new office, former Colorado Film Commission director Kevin Shand, worked with lawmakers to develop the house-keeping proposals included in HB 1180.
Film industry experts say Colorado's incentive, which is a 10 per cent cash rebate on qualified in-state expenditures, is too low to be competitive with other more aggressive film incentive states, such as neighboring New Mexico.
Shand has said that the 75 per cent in-state spending requirement and the 75 per cent local hire mandate make it all but impossible for any out of state production company to do both with a Colorado production location.
By eliminating both of these spending and hiring requirements, as well as lowering the total minimum expenditure requirement from $1 million to $250,000, an out of state production company is more likely to take advantage of the Colorado incentive, according to Shand.
Minimum qualified expenditure requirements for in-state production companies remains at $100,000, which gives Colorado producers a leg-up on out of state companies.
Expanding the program to include commercials should help as well, since many national spots are produced in Colorado.
If Massey's new bill passes and is approved by Gov. Bill Ritter, the list of eligible productions would include films, television programs, video games, industrial productions and commercials.
The other bills in the creative industries package include a proposal to combine Shand's office with several other state arts-related offices into a single group and a measure to beef up the expenditures on art in public places at all eligible state-funded construction projects.
CFVA Members: Contact your elected Representatives and Senators to tell them you favor passage of House Bill 1180. Contact information can be found at the Colorado General Assembly website: http://www.leg.state.co.us/. If you are not sure who your Representative or Senator is, check out Project Vote Smart at this web address:http://www.votesmart.org/.
To contact Richard J Schneider, a long-time Denver writer and video producer, just email him at richardjschneider@comcast.net.
