Rep. Swan reintroduces film tax-credit bill

Rep. Kathy Swan is hopeful for the future of a bill she reintroduced this legislative session that would bring the film tax-credit program back to Missouri.

It's one of about a dozen states "out of the market" for film tax credits, Swan said.

The state had a program that began in 1999 and offered tax credits to film productions for up to 35 percent of their in-state expenditures, with a cap of $4.5 million. It had a sunset date of Nov. 28, 2013, and passed the Sept. 1, 2014, termination date without reauthorization from the Legislature.

Swan's attempt to restart the program last year met some skepticism from lawmakers who questioned the return on investment the state received from film tax credits. But the Cape Girardeau Republican was one of many to see firsthand how the state could benefit.

Production of the 20th Century Fox Film "Gone Girl" in Cape Girardeau lasted about two months in the fall of 2013 and generated more than $7 million. From lodging and office space to food and security, businesses throughout the city felt the economic boost. The production also hired 116 Missourians and used about 1,400 extras, many of them local.

The film was the last in the state to take advantage of the film tax credits. Twentieth Century Fox spent more than $7.8 million in audited expenditures while filming in Cape Girardeau, according to the state's economic development department, leaving it eligible to receive up to $2.36 million through the tax-credit program.

In a Wednesday hearing in front of the House Economic Development and Business Attraction and Retention Committee, eight people testified in favor of Swan's bill. Letters of support were written from the city of Cape Girardeau and the city's Convention and Visitors Bureau.

Swan said the committee had plenty of questions about the bill, but she's confident a recently proposed amendment will appeal to legislators and stakeholders alike.

Immediately after the hearing, representatives of St. Louis and Kansas City media and filmmaking groups met with Swan to discuss tax-credit percentages. With the proposed amendment, qualifying film productions would be allowed a tax credit equal to 20 percent for in- and out-of-state qualifying expenses. The original proposal suggested 20 percent for in-state expenses and 10 percent for expenses outside the state.

"This 20 percent across the board, I think, will be agreeable to everyone and the legislative body as well," said Swan, noting it's a middle-of-the-road number compared to other states.

The single number makes the process of administering credits simpler, especially when a filmmaker selects a location near state lines.

Kansas City, for example, would benefit from the more simplified approach, and should Cape Girardeau be selected as the setting for any other films, it could benefit. It's a short trip across the river into Illinois -- one even "Gone Girl" filmmakers made for a few scenes.

Unchanged in Swan's bill is the portion that would offer an additional 5 percent for qualifying expenses if at least 50 percent of the production is filmed in Missouri. Films also must include a logo at the end, noting filming took place in Missouri.

If the bill is approved, the program would expire six years after Nov. 28.

srinehart@semissourian.com

388-3641

Pertinent address:

Cape Girardeau, Mo.