It was exciting for some people to have actor Johnny Depp in Darlington last summer to film his upcoming movie "Public Enemies." His and the film crew's short stay here attracted a number of fans and media attention.
But at what cost?
The state government ended up spending $4.6 million in tax credits to help pay for Depp and his entourage to shoot their film in Wisconsin. While the total spending by the film's producers is subject for debate, the state's commerce department estimates that the real economic impact to Wisconsin was $5 million.
Gov. Jim Doyle apparently has decided that the tax credits no longer are worth the return. Only one year after tax incentives to the film industry that Doyle supported went into effect, the governor is proposing to kill them. Given the perilous state of Wisconsin's economy, it's the right decision.
Doyle's budget proposals to bridge a $5.7 billion shortfall include replacing the film incentives legislation with a $1 million grant program that would provide $500,000 per year. The film industry says that would effectively remove the incentive that enticed "Public Enemies" to be brought to Wisconsin. Another film, "Feed the Fish," starring Green Bay native and "Monk" star Tony Shalhoub, is being filmed in Door County.
The reality, however, is that the state cannot be in the business of providing tax incentives to film companies in the hope that there will be a positive economic return. There are fewer movie stars today bigger than Johnny Depp, and "Public Enemies" is a high-profile film. The return on the state's investment was only $400,000. Other projects may not bring such a return. The state can't afford that risk.
There's also the question of whether film companies should need tax incentives. The airwaves the past few days have been full of news of how people are turning to movies during this economic recession. The film industry is not struggling. Should it need state incentives, paid for by Wisconsin taxpayers, to bring its profitable business to Wisconsin? If the state is the proper setting for a film, wouldn't it be shot here anyway?
In prosperous times for state government, a tax incentive for film companies is a nice luxury. In tough times, however, it's an expense Wisconsin can't afford.
But at what cost?
The state government ended up spending $4.6 million in tax credits to help pay for Depp and his entourage to shoot their film in Wisconsin. While the total spending by the film's producers is subject for debate, the state's commerce department estimates that the real economic impact to Wisconsin was $5 million.
Gov. Jim Doyle apparently has decided that the tax credits no longer are worth the return. Only one year after tax incentives to the film industry that Doyle supported went into effect, the governor is proposing to kill them. Given the perilous state of Wisconsin's economy, it's the right decision.
Doyle's budget proposals to bridge a $5.7 billion shortfall include replacing the film incentives legislation with a $1 million grant program that would provide $500,000 per year. The film industry says that would effectively remove the incentive that enticed "Public Enemies" to be brought to Wisconsin. Another film, "Feed the Fish," starring Green Bay native and "Monk" star Tony Shalhoub, is being filmed in Door County.
The reality, however, is that the state cannot be in the business of providing tax incentives to film companies in the hope that there will be a positive economic return. There are fewer movie stars today bigger than Johnny Depp, and "Public Enemies" is a high-profile film. The return on the state's investment was only $400,000. Other projects may not bring such a return. The state can't afford that risk.
There's also the question of whether film companies should need tax incentives. The airwaves the past few days have been full of news of how people are turning to movies during this economic recession. The film industry is not struggling. Should it need state incentives, paid for by Wisconsin taxpayers, to bring its profitable business to Wisconsin? If the state is the proper setting for a film, wouldn't it be shot here anyway?
In prosperous times for state government, a tax incentive for film companies is a nice luxury. In tough times, however, it's an expense Wisconsin can't afford.
