City may seek to lure more fifilms
Staff says plan could help level playing field with favored cities.
The city of Austin is considering a plan that would offer cash grants to Austin-based film, TV and digital projects based on their local wages.
When “Killer Women,” an ABC show about a female Texas Ranger, was looking for a spot in Texas to film its pilot, it chose Austin. But producers filmed the rest of the season in New Mexico, lured away by a better tax incentive package.
That’s exactly the scenario that Austin economic devel- opment officials want to prevent.
The City Council will consider a proposal Thursday to create a new TV, film and digital media incentive program that would offer a cash grant to Austin-based projects equal to 0.75 percent of local wages paid, capped at $250,000 per year.
It would clear the way for film and entertainment projects to obtain more from the city than its biggest TV success story to-date: “Friday Night Lights.” The popular TV show, which filmed in the Austin area and went off the air in 2011, approached the city in 2007 to receive a grant based on the number of local employees hired and the amount of sales and use taxes generated. In the end, “Friday Night Lights” received $157,254 from the city. Other incentives are modest: film and TV projects can also obtain fee waivers and the use of two Austin police officers.
Austin’s economic development staff says this incentive program could help level the playing field between Austin and other cities favored by film and TV producers, such as Shreveport, Louisiana.
“It is an increasingly competitive environment,” said Natalie Betts, the global business recruitment expansion coordinator for Austin. “It is an industry that is looking to reduce costs as much as possible to lower their risk.”
The money for this program would come from the city’s Economic Incentive Reserve Fund. According to a city-commissioned study by TXP Inc, the film and gaming industries contribute $1.27 billion annually to Austin’s economy.
Council members were briefed on the proposal at their April 17 meeting. Though several members pushed staff to defend the need and effectiveness of an incentive program, members appeared warm to the idea.
Kathie Tovo, who is running for re-election in the new District 9 in Central Austin, has voted against incentive packages in the past. She says this one makes sense because it aligns with a longterm goal to grow the creative class. Plus, she notes, “it is a really small investment.”
So small that it may not be enough on its own to lure multimillion-dollar TV and film projects to Austin. The state has a much bigger film and TV incentives wallet, with $95 million to spend over two years.
Texas awards film, TV and digital media projects based on how much they spend in the state, including wages. The maximum award is up to 22.5 percent for qualified projects, plus sales tax exemptions and refunds on other taxes.
But New Mexico and Louisiana have stronger incentive packages, offering tax credits worth more than 25 percent of spending.
Austin’s incentives won’t even be the best citywide incentives for film and television in Texas. Just an hour south, in San Antonio, the city offers a 2.5 percent rebate on expenditures in the city. Shreveport offers the same, plus an extra sales tax rebate.
“We’re not necessarily competing dollar for dollar with San Antonio,” Betts said. She said Austin has a strong film and television workforce. Last year, 20 film and TV projects filmed in Austin, according to state records.
“Every little bit counts in terms of reducing cost,” she said.
Texas awards projects based on howmuch they spend in the state, including wages.