Bill targets $125M in tax credits for movie industry | News
State lawmakers have agreed to use the lure of millions of dollars in tax credits in hopes of bringing Hollywood to Arizona.
But not everyone is sure they want the folks associated with the film and TV industry here.
HB 2156, approved by both the House and Senate, would allow any production company to get up to $25 million when it uses an Arizona production facility or films a motion picture primarily in Arizona as long as it does all of the pre- and post-production activities in the state.
And the legislation, now headed to Gov. Doug Ducey, would permit the state to give away up to $125 million a year.
The idea, according to proponents, is to breathe new life into what was once a more thriving film industry that dates back at least as far the 1930s when John Ford saw Monument Valley and decided to film Stagecoach here with John Wayne.
And the studios at Old Tucson were for a long time the site for various westerns, ranging from The Lone Ranger to Three Amigos, before much of the facility was destroyed in a 1994 fire.
But what’s happened more recently is that productions that are supposed to be portraying events in Arizona are actually being filmed elsewhere.
Exhibit No. 1 for Rep. Richard Andrade, D-Phoenix, is the 2015 film Spare Parts. It was based on four students on a robotics team from Carl Hayden High School in Phoenix who built an award-winning robot with $800 and parts scavenged from old car, even competing against a team from MIT.
Only thing, Andrade said, is it was filmed in New Mexico which, unlike Arizona, offers tax incentives.
Rep. David Cook, R-Globe, said he has seen the same thing while watching movies and features on Netflix.
“Those film production companies had scenes in Arizona presented in their series,’’ he said.
“But guess what?’’ Cook continued. “They weren’t filmed here, they weren’t spending their money here. They were doing it somewhere else as a facade of ‘this is Phoenix and in Arizona.’ ‘’
Rep. Shawnna Bolick, R-Phoenix, said she sees what is in HB 2156 as a violation of the Gift Clause provision of the Arizona Constitution. It prohibits governments from making donations or grants to any individual, association or corporation.
Her objections, however, went beyond the financial and legal issues.
“We don’t need another carve-out for specific industries to attract ‘woke’ Hollywood actors and studios to our state,’’ Bolick said.
Rep. Jake Hoffman, R-Queen Creek, said, “They are sexualizing our children, they are degrading our culture, they are glorifying violence.”
“Hollywood does not represent the people of Arizona,’’ Hoffman continued. “It is not the industry the people of Arizona want.’’
He acknowledged that the legislation prohibits credits for anything considers “obscene.’’ But Hoffman said that still is too broad, meaning even anti-American films could qualify. So could political productions.
“Under this bill, if Hillary Clinton were to come here in 2024 and film a political commercial, she could qualify for a refundable tax credit,’’ Hoffman complained.
But Rep. Teresa Martinez, R-Casa Grande, had a different take on all of this.
“I don’t like woke Hollywood, I don’t like their ideals, I don’t like their ideology,’’ she said. “But what I do like? I like jobs.’’
The record on such credits in Arizona is not good.
A 2009 report by state commerce officials said the 2008 credits designed to lure Hollywood producers to Arizona actually lost the state $6.3 million that year.
According to that study, the productions given credits generated 317 full-time jobs in the industry. Another 413 jobs were created indirectly by Arizona spending by filmmakers.
All totaled, the report said, that generated about $2.3 million in additional state and local taxes. But Arizona gave out more than $8.6 million in credits to get that benefit.
Proponents of this new version say it is different with protections to ensure it does not lose money for the state.