Oregon lures filmmakers

House OKs legislation to provide tax breaks to big-budget movie makers who film here

The Associated Press

SALEM — Trying to entice more Hollywood movie-makers to Oregon, members of the state House of Representatives have approved legislation that would offer a big tax break on films made in the state.

Oregon has played host to big-budget movies in the past, from "The Ring 2", which was filmed in Astoria, to Kevin Costner’s apocalyptic dud "The Postman," which was made in Central Oregon.

But the state often loses out to locations like Louisiana, New Mexico and Vancouver, B.C., that have gone all out to attract movies, and the good-paying jobs they can bring.

Legislation approved by the House would offer big-budget projects a rebate worth the state income taxes that would have been paid for labor on the project.

"We have all the right things in Oregon except the incentives that other states have that have pulled these productions away," said Rep. Vicki Berger, R-Salem.

Only projects that spend more than $1 million would be eligible for the new credit.

The incentive will at least help Oregon get a foot in the door when advance teams start calling, said Veronica Rinard, executive director of the Oregon Film & Video Office, a four-person semi- independent state agency in Portland.

Sixteen states offer incentives for film projects, she said.

During the 1990s, the state attracted $30 million a year in television, commercial and feature-film work but that has dwindled to about $10 million annually.

The legislation was written to have no impact on other parts of the state budget, Rinard said, because there won’t be rebates unless the million-dollar projects come to Oregon. And those projects seldom consider Oregon anymore, she said.

The labor rebate will be about 6 percent of the cost of labor on a project, which is what analysts believe would be the income taxes paid by film crews.

Instead of going to the general fund, the income tax dollars from workers on those projects would go to a holding account. If the verified costs at the end of production exceed $1 million, the state would send a rebate check.