By Michael Peltier
The News Service of Florida
Citing increased competition and the explosion of new media, the House Finance and Tax Council on Thursday approved a series of tax incentives backers say are necessary to lure lucrative contracts to the state.
If not, the state will find itself on the cutting room floor as other states push ahead with aggressive campaigns to land not only feature films, TV and commercials, but a host of new media from digital games to special effects that can be created anywhere.
“We need to do this now,” said House sponsor Rep. Stephen Precourt, R-Orlando. “Our neighbors are having to go to other states to find work.”
Toward that end, the panel unanimously approved HB 697, which would allow the state to issue up to $75 million in corporate income and sales tax credits to qualified entertainment enterprises. The credits could be used to offset costs of production and materials.
The bill would distribute available funds among a handful of general areas including commercial and music videos and independent productions. The credits would be transferable.
In a nod to the state’s tough financial picture, the measure converts current cash incentives to transferable tax credits that won’t be redeemable until 2011. Precourt cautioned that foot dragging on the part of the Legislature would have immediate consequences in what has become an increasingly aggressive competition among states to land entertainment industry business.
“The new media clusters are beginning to form,” Precourt told the committee. “We need to make a conscious decision to stay in the business or not.”
Testimony from Paul Sirmons, a line producer for the upcoming faith-based feature film “Letter to God,” said the filmmaker, Possibility Productions Pictures, appeared to bear that out.
Six months after spending $3 million in the Orlando area during a 28-day shoot, Sirmons said the company has plans and the financing on hand to produce two more filims. Where the company chooses to do that will depend on what lawmakers do in the next several weeks.
” We hope to make those pictures in Florida,” Sirmons said. “There are too many other states that have incentives. It would be too much of savings for us to turn it down.”
A similar bill, SB 1430, was approved by the Senate Commerce Committee on Wednesday. Film incentive are also included in SB 1752, a comprehensive job creation package sponsored by Sen. Don Gaetz, R-Niceville. That measure passed the Senate 38-0 earlier Thursday.
