Dayton Daily News

Ohio says state policy could squeeze out local filmmaking

Group seeks fair distributi­on of tax credits across state.

- By Sheridan Hendrix The Columbus Dispatch

COLUMBUS — Central Ohio filmmakers, unhappy with what’s viewed as an uneven distributi­on of tax credits, are calling on the state to cap the amount that film projects can collect.

Each year, filmmakers hoping to shoot in Ohio can apply for a 30 percent tax credit through the Ohio Film Office, which operates under the Ohio Developmen­t Services Agency. The tax credit is available to production­s spending a minimum of $300,000 per project in the state.

On July 18, the agency announced the 2017-2018 recipients of the film tax credit. Of the $40 million in available funds, two projects being filmed in Cleveland received $27.4 million.

Last year, 53 projects were approved for tax credits. Of those, 18 were canceled, 35 are anticipate­d to still move forward.

John Daugherty, executive director of the Greater Columbus Film Commission, said he is frustrated by the uneven distributi­on of this year’s tax credits.

“In reality, one production could wipe out the entire budget with a setup like this,” Daugherty said.

The Ohio Motion Picture Tax Credit was created in 2009 as a way to encourage filmmakers to come to the state and develop a stronger film industry.

Because these two projects are using a majority of the state’s tax credits, however, Daugherty said some filmmakers have been deterred from shooting in Columbus.

“When I get calls from filmmakers, one of the first things they ask is how our tax credits are,” he said. “And when I tell them they’re all gone until July 1, 2018, the conversati­on stops. It stops them from even applying.”

In September 2016, Gov. John Kasich signed legislatio­n raising the tax credit from $20 million to $40 million. The legislatio­n also eliminated a $5 million credit cap per project to allow production­s of all sizes compete more fairly.

Removal of the cap, however, makes Ohio less competitiv­e in the film industry, Daugherty said.

“Some sort of cap is in place in every successful state with film tax credits,” he said.

After studying incentive programs in other states, Daugherty found Georgia to have one of the biggest film markets in the country. Last year, Georgia gave out $660 million in film tax credits and received over $2.6 billion in economic returns, he said.

More than 30 production­s applied for film credits across the state this year. Of the $40 million available, northern Ohio received 60 percent of the credits applied for. Columbus production­s received 16 percent.

Last year, central Ohio was home to several different film projects, including a Nike commercial featuring golfer Jason Day and the new Bruce Willis film “First Kill,” which was set and filmed in Granville.

Daughtery, along with other Columbus film and art leaders, sent a letter to David Goodman, director of the Developmen­t Services Agency, urging a tax-credit cap be put in place.

Todd Walker, a spokesman for the agency, said the agency is not in charge of creating a cap for the tax credit.

“The Ohio Film Office works closely with local and regional film industry partners,” Walker said. “While our agency administer­s the state tax credit, ultimately the legislatur­e sets the law.”

He also explained that applicatio­ns may list one location but end up filming in another.

“We are currently reviewing the 22nd applicatio­n we received for fiscal 2018. The majority of those were not complete or the applicant declined funding. None of those projects lists its potential location as Columbus, which doesn’t prevent them from shooting in Columbus. It just isn’t listed on the original applicatio­n.”

 ?? LYNN ISCHAY / THE PLAIN DEALER 2011 ?? An action scene is filmed in Cleveland for the movie “The Avengers.” A Columbus film organizati­on is concerned that current rules could mean uneven distributi­on of credits around the state.
LYNN ISCHAY / THE PLAIN DEALER 2011 An action scene is filmed in Cleveland for the movie “The Avengers.” A Columbus film organizati­on is concerned that current rules could mean uneven distributi­on of credits around the state.

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