Legislative Issues: Incentives

One of the realities of media production in the 21st century is production incentives. Incentives are investments made by state and national governments to bring film, television and sometimes commercial production to their jurisdictions. These can be rebates made directly to production companies, or in the form of tax credits. Either way, they represent substantial savings to production companies. Currently 41 states have significant incentive programs.

For the past decade, Virginia has had the Motion Picture Opportunity Fund to serve this purpose. During some budget years the state legislature makes a relatively substantial appropriation into this fund, and other years little or no money is put in there. The amount is often a direct result of the financial challenges facing our governmental budget.

In 2009, due in great part to the efforts of the Virginia Production Alliance, the state legislature approved ground-breaking legislation so that a fee for all video and gaming rentals made in Virginia hotel rooms would be used to support the Motion Picture Opportunity fund. The amount of money this will generate is not known, and it is not anticipated to be enough to make us competitive with the largest incentive funds in the country. Still, it was a significant victory and signals the fact that the legislature understands the value of Virginia’s media production industry and wants to support it.

The Virginia Production Alliance has taken the lead on numerous legislative issues since the earliest days of its existence when it was known as the Virginia Production Services Association. It was responsible for the Sales and Use Tax Exemption for filmmakers, as well as the creation of the Motion Picture Opportunity Fund. Financial donations made by industry members and businesses have made possible the hiring of Bud Oakey and Advantus Strategies to lobby on behalf of Virginia production legislation. This group has worked hard on our behalf, and been successful. However, lobbyist Bud Oakey has commented many times that it is the hard work and commitment of the Virginia Production Alliance and its members that ultimately made the difference. This work included emails, letters and personal visits to the legislators, participation in political events, and the annual Film Day event, during which lawmakers and their staffs are educated about the value of the media production industry to the state.

There is currently no legislation pending, but planning and work on behalf of the industry never stops. What can you do right now to support the cause?

JOIN THE VPA: The most important thing you can do is to join the Virginia Production Alliance. A large membership roster shows the legislature that there is a sizable and committed group of individuals and businesses working in film, television and video production in the state.

DONATE: If you have a little extra money in the budget, the VPA could really use your help. Donations are used to promote VPA initiatives, primarily those involving legislative issues.

KEEP CONNECTED: When the time comes to support new legislation, it’s important to be able to rally everyone and inform them of developments. This needs to be done as quickly and efficiently as possible. To receive notices by email, sign up for the listserve. The VPA is active on all the major social networking sites, so you can receive information there as well. Otherwise, check the VPA website, including the Hotline and the blog as often as you can.