The state’s budding film industry is taking a hit as major motion picture producers essentially shut down film production in preparation for a possible actors’ strike.
“People have basically been deferring to starting projects [until] the fall,” said George Norfleet, director of the Film Division in Connecticut’s Commission on Culture & Tourism.
The slowdown comes at a time when the Connecticut film industry was beginning to report significant growth. Almost $500 million has been spent on film production in the state since Connecticut’s tax credit program went into effect in July 2006, according to state estimates. By comparison, six months prior to the implementation of the tax credit, production spending was about $750,000.
Unlike tax incentives offered in many other states, Connecticut’s 30 percent tax credit includes salaries for directors, writers and performers.
National Slowdown
Although tax incentive programs have cropped up across the country, production has hit the brakes nationwide as the possibility of a strike has essentially brought major productions to a halt, said Kevin Segalla, president of the Connecticut Film Center.
“No one wants to get into production on a major motion picture when there’s the possibility of a strike,” said Segalla, whose company helps finance movies, find set locations and assist production in the state. “We had a very busy spring, and now they’re taking a wait-and-see attitude.”
“That’s definitely unfortunate,” said House Speaker James A. Amann, a leading proponent of the tax credits. “Certainly, when you’re trying to grow an industry that doesn’t help anyone.”
But Connecticut can continue to boost its film industry work force as Screen Actors Guild negotiations drag on, Amann said. “One thing we do lack is experienced crews,” he said. “We need to keep up investing in university systems for training and with internships.”
Earlier this month, Connecticut launched a film training program at three community colleges. It covers on-set jobs as well as behind-the-scenes careers. The program, which is spread out over three phases, will eventually place some participants in professional production mentorships.
Increasing its industry work force is one strategy Connecticut has to keep up with other states.
New York, for example, tripled its tax credit in April from 10 percent to 30 percent. The state is offering an additional 5 percent credit for productions filmed in New York City, and it has extended the bonus credit program an extra two years to 2013.
But New York’s incentive program only covers technical and crew production costs and expenses for facilities, makeup, set production, wardrobe and background talent — not the steeper expenses of wages for writers, directors, producers and performers.
The New York program was created in response to competition from neighboring states, said Pat Swinney Kaufman, executive director of New York’s Governor’s Office for Motion Picture & Television Development.
Between the 2006 fiscal year and the 2007 fiscal year — the first year of Connecticut’s tax incentives — New York lost out on $750 million in production spending, according to her estimates.
Kaufman said New York decided not to provide incentives covering wages for writers, producers and performers because the state is already attractive to filmmakers.
“We feel that we have so much to offer,” Kaufman said. “We are a major production center, we have all the major infrastructure. We have the crew base, the actors. And you get New York. Under the circumstances, you don’t have to match dollar-for-dollar what other regions may do.”
Amann said he welcomes the competition because he thinks increased activity in surrounding states will ultimately benefit Connecticut, thanks to a spillover effect. He said the state may eventually have to restructure its tax credits to remain competitive, but he cautioned against overdoing it.
“It gets to the point that you’ve got to be careful what you’re doing,” Amann said. “We have to be smart about it.”
It was only a matter of time before New York upped its own credits to be more competitive with Connecticut, said Jeanine Basinger, chairwoman of the film studies department at Wesleyan University.
Connecticut’s Appeal
However, Basinger said she’s not concerned about Connecticut losing business to New York.
“What’s based in New York will stay in New York,” she said. “Connecticut has interesting geography, architecture and all sorts of things that will draw people to make films.”
On the whole, Connecticut’s tax credits remain more competitive than New York’s, Segalla said.
Connecticut was listed in Variety magazine as one of the top five states with the best incentive package for the movie business.
Last year, 45 films were produced in Connecticut, which broke a state record.
By spring of this year, seven major films — including “Indiana Jones and the Kingdom of the Crystal Skull” and “The Sisterhood of the Traveling Pants 2” — and a handful of independent movies had been in production in Connecticut.
The tax credit also is recognized for attracting film production companies to the state. Blue Sky Studios, a digital animation production company, announced in January it will move to Greenwich from its White Plains, N.Y., location.
In April, Hollywood East/Area 51 was chosen to redevelop a 78-acre site in Stratford into a movie studio. And in Bridgeport, the zoning board is considering a plan to build a 60,000-square-foot movie production facility.
