Connecticut looking to snag moviemakers fleeing Georgia

Connecticut officials say they are serious about turning Georgia’s potential moviemaking loss into their gain.

Gov. Ned Lamont formally invited several studios threatening to boycott the southern state to relocate to Connecticut. Georgia was among several states that have recently passed laws essentially outlawing abortion.

“We’re doing an awful lot of production here in Connecticut, so yes, I would welcome those guys from Georgia and Louisiana and some of the other folks that don’t feel comfortable producing in a state that disrespects women. Come on up to Connecticut,” Lamont said prior to his address to the business community in Fairfield this past week.

Opportunity knocking

The last few years have dealt Connecticut some bad economic hands, including a recent announcement that United Technologies would relocate its headquarters to Boston — as General Electric did in 2015 — and at least two failed attempts at bringing Amazon to town.

Regardless, Lamont and other state officials maintained that Connecticut could be a viable option for the film industry as they look to set up meetings with studio executives.

“I think that that is something we should consider,” said David Lehman, Department of Economic and Community Development commissioner. “I do think that is a business industry that will be around for a long time to come and we want to make sure that it’s here if the numbers work.”

Georgia stands to lose a $2.7 billion industry providing 92,000 jobs in the state if film studios there leave.

Though it’s still early, officials said Lamont is already talking to two of the three companies that have facilities in Georgia: Netflix, Disney and AMC.

“That’s the name of the game,” said George Norfleet, director of the state’s Office of Film, Television and Digital Media. “We need to have the opportunity to speak with them and hear what their concerns are and what their needs are and work with them to provide what they are looking for, and that is exactly what we intend to do to encourage them to come here.”

From a creative standpoint, Norfleet said the state has proven to be a versatile location for filmmakers.

Connecticut’s proximity to New York and its pool of media companies such as Greenwich-based Blue Sky Studios and WWE in Stamford also offer some appeal, according to analysts from Fitch Ratings.

Georgia has been a hot spot for studios for the past decade due largely to the state’s film production tax incentive, according to industry observers. To qualify, a production must spend at least $500,000 in the state — and the company can receive up to a 30 percent tax credit.

“I’m not sure what that means for Connecticut, but I do believe that it opens an opportunity for a state if they are looking to (bring them here),” said Fitch analyst Patrice Cucinello. “It think it could provide opportunities to other states that would be willing to offer tax incentives.”

Incentives sweeten the deal

For a time, Connecticut was practically giving credits away when the DECD began a film incentive program in 2006. It worked for a few years, drawing in hundreds of filmmakers, but ultimately lawmakers scrapped the motion picture credits because there was no proof they brought money and jobs into the state to balance the credits being offered.

The state hasn’t completely done away with tax credits for filmmakers, however. It focuses on digital media and television productions which Norfleet said could benefit streaming services.

“If you are budgeting to shoot something and you cannot build in some incentives from whatever jurisdictions you’re going to film in, it’s just not going to work, and the higher up studio execs are not going to green-light your budget unless they see some of that and we can provide that,” he said.

DECD offers up to 30 percent credit for productions, but to qualify for filmmakers, they must have at least $100,000 in expenditures in the state.

In addition to minimum expenditure requirements, a production company must conduct at least half of its principal photography and spend its post-production budget in-state to be eligible.

They can also qualify if they spend at least $1 million in post-production costs in Connecticut.

Not enough

Even with the current incentives program available, some say that may not be enough.

“(We need to) make ourselves the most competitive state with these tax credits,” said James Amann, a former speaker of the state House of Representatives. “Now that many other states are taking these tax credits, it is competitive … and that takes risk and legislation,”

Amann also served as an architect of Connecticut’s original film and TV incentives program in the mid-2000s as he looked to develop an “East Hollywood” in the state. He said the only way to lure companies like Disney and Netflix to the Northeast is to “do exactly what we did before.”