Capitol Fax.com - Your Illinois News Radar » Report: Two flix nixed by Rauner money block
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Report: Two flix nixed by Rauner money block

Thursday, Jun 4, 2015 - Posted by Rich Miller

* Crain’s

Chicago’s future as a growing center for film and TV production could quickly fade to black unless Springfield’s budget war eases and crucial state tax credits are restored, industry sources are warning.

Gov. Bruce Rauner announced [Tuesday] that he will “defer application approvals” for any new film credits, which entitle a producer to receive up to 30 percent of qualified in-state expenditures. The freeze won’t be lifted until the GOP governor and majority Springfield Democrats resolve budget and related matters.

The freeze apparently won’t apply to continuing TV shows that are headed into new seasons, including “Chicago Fire,” “Chicago P.D.” and “Empire.” But a rumored medical show from “Fire” and “P.D.” producer Dick Wolf may be on the block. And it’s not clear if Spike Lee’s much-discussed new film “Chiraq” will be caught in the freeze. […]

“Hollywood and the film industry are a pretty skittish lot,” one that had to be lured here even though the industry was partially founded here a century ago, [Matthew Irvine, director of the School of Cinematic Arts at DePaul University] added. “It won’t take much to scare them off.”

* Irvine could be right. Check out what Ruth Ratny at ReelChicago.com reports

To set your mind at ease, Illinois Film Office director Christine Dudley has made it known that all existing approved applications will continue to be processed, issued and transferred and that the statue is still in full effect.

New applications will not be processed, however, until this issue is resolved. Dudley encourages filmmakers to continue to file applications, although their approval will be deferred, reports Mark Androw, AICP/Midwest chapter president

The application process applies to all film genres that are eligible to receive a 30% Illinois tax credit on their projects. TV shows “Empire,” “Chicago PD” and “Chicago Fire” are safely set for the new seasons. However, funders of two entertainment projects backed out and left Illinois upon hearing the news.

Emphasis added.

       

42 Comments
  1. - walker - Thursday, Jun 4, 15 @ 9:39 am:

    Way to hurt Illinois jobs.


  2. - Say It Ain't So!! - Thursday, Jun 4, 15 @ 9:39 am:

    “funders of two entertainment projects backed out and left Illinois upon hearing the news.”

    Bruce is really shaking up Illinois!!


  3. - PublicServant - Thursday, Jun 4, 15 @ 9:41 am:

    Congratulations Bruce. You just single-handedly cause two job creators to leave the state. Great agenda ya got there /s


  4. - Roland the Headless Thompson Gunner - Thursday, Jun 4, 15 @ 9:43 am:

    This is pure political vindictiveness. Madigan backed the tax credit, and those movie/tv jobs are overwhelmingly union jobs. That’s all this is about.


  5. - Wordslinger - Thursday, Jun 4, 15 @ 9:46 am:

    Handouts to Hollywood aren’t at the top of my list of fiscal or economic concerns.

    I understand that’s how the game is played, but I need to educate myself on the actual ROI on all these handouts before I get too worked up on a freeze before a budget is approved.


  6. - Oswego Willy - Thursday, Jun 4, 15 @ 9:46 am:

    ===“Hollywood and the film industry are a pretty skittish lot,”===

    This.

    Toronto, and interior shots, can make a workable “Chicago”, with canned Chicago exteriors.

    I doubt it will come to that.


  7. - OneMan - Thursday, Jun 4, 15 @ 9:47 am:

    So do you like government handouts/tax breaks or not. Heard lots of complaining about them for the CME and Cat here, but they are ok for guys who make movies and TV?

    Trying to understand..


  8. - illinoised - Thursday, Jun 4, 15 @ 9:47 am:

    Shrinking the economy, one program cut at a time.


  9. - Roamin' Numeral - Thursday, Jun 4, 15 @ 9:47 am:

    He wants us to be more like Indiana and Wisconsin. The problem is, no one wants to watch Milwaukee P.D. or Indianapolis Fire. No one.


  10. - Rich Miller - Thursday, Jun 4, 15 @ 9:48 am:

    ===but they are ok for guys who make movies and TV?===

    Not necessarily. But there are always consequences and they should be out there to see.


  11. - Huh? - Thursday, Jun 4, 15 @ 9:51 am:

    The guy who says he wants to make the state more pro business, just drove 2 businesses out of the state. I am so confused.

    I am beginning to think that the real intent is to do the opposite of whatever Madigan would do.


  12. - Streator Curmudgeon - Thursday, Jun 4, 15 @ 9:51 am:

    Um, isn’t the goal to make Illinois more FRIENDLY to businesses who want to come in?


  13. - walker - Thursday, Jun 4, 15 @ 9:52 am:

    Every item on Rauner’s latest emergency cut list was a political statement, more than anything to do with the numbers.

    The Governor’s message: “The Dems didn’t give me a proper budget, so I don’t have enough money to spend.”

    Thin abut that for a second.


  14. - MrJM - Thursday, Jun 4, 15 @ 9:53 am:

    Sure jobs are leaving the state, but what kind of jobs?

    Jobs in film and television just sell foolish dreams and expensive illusions based on a slick script and fancy computer tricks. When the lights come up, those in the industry get richer and the customer leaves with nothing.

    Those Hollywood charlatans should find employment in a legitimate, productive business like finance.

    – MrJM


  15. - phocion - Thursday, Jun 4, 15 @ 9:53 am:

    Has there ever been a cost-benefit analysis of the film tax credit?


  16. - Nick Name - Thursday, Jun 4, 15 @ 9:53 am:

    Jobs and the arts — those are for little people.


  17. - walker - Thursday, Jun 4, 15 @ 9:53 am:

    Sorry, still havinge problems seeing my own comment before it’s posted. above should be

    “Think about that for a second”.


  18. - Precinct Captain - Thursday, Jun 4, 15 @ 9:53 am:

    Bruce Rauner has never met a middle-class job he can’t kill.


  19. - OneMan - Thursday, Jun 4, 15 @ 9:55 am:

    == Not necessarily. But there are always consequences and they should be out there to see. ==

    No disagreement on they should be out there to see, but just asking the folks who would complain about Bruce’s dog walking on water by saying it can’t swim.


  20. - Peoria Guy - Thursday, Jun 4, 15 @ 9:58 am:

    Your average liberal: “Thank God this corporate welfare has been stopped!”

    One would think there would be rejoicing.


  21. - JS Mill - Thursday, Jun 4, 15 @ 9:59 am:

    =Those Hollywood charlatans should find employment in a legitimate, productive business like finance.=

    Well played sir, you made me spit out my coffee!


  22. - 47th Ward - Thursday, Jun 4, 15 @ 9:59 am:

    This is just another special interest howling because its pet project is threatened with cuts.

    Stimulus, response. Cut program, howl that the end is upon us.

    The film industry can get in line behind the human service providers, the doctors and nurses, the special education teachers, etc. Things are tough all over. Why should the movie industry be spared?


  23. - Anonin' - Thursday, Jun 4, 15 @ 10:01 am:

    Guessin’ BVR has investments in other companies. Wonder if he gave Dudley, a well like GOP hanger on


  24. - VanillaMan - Thursday, Jun 4, 15 @ 10:01 am:

    These jobs are here to capture what makes Illinois different from other places. Governor Competition isn’t understanding that. He thinks if Illinois was more like, say, Indiana or India, then it will get more companies looking for cheaper places to assemble Fruit of the Loom tidy whities and that’ll be a big win for us.

    I guess he imagines a state where owners can live in Kenilworth and their sweat shops can operate in Decatur. You know, kind of like an American Venezuela.


  25. - Chicago Hack - Thursday, Jun 4, 15 @ 10:02 am:

    Good attempt at a Variety-esque headline.


  26. - Hedley Lamarr - Thursday, Jun 4, 15 @ 10:02 am:

    Dick Wolf should do a reality show on Rauner.


  27. - Wordslinger - Thursday, Jun 4, 15 @ 10:08 am:

    OneMan and PG, you have your full victim on this morning. You should volunteer at the Trib. They’re a little short-handed today.

    Expanding on what Walk said, these cuts and freezes aren’t so much a part of the war with the Dems, but a softening of the ground for the inevitable tax increase the governor wants, needs and will sign.


  28. - Oswego Willy - Thursday, Jun 4, 15 @ 10:09 am:

    ===Dick Wolf should do a reality show on Rauner.===

    The waivers, Z and Lance will never let Rauner sign the waivers…

    However, Rahm did have that CNN “Documentary”, that I already forgot happened, so there’s that.


  29. - Bluegrass Boy - Thursday, Jun 4, 15 @ 10:10 am:

    I have no idea of the actual ROI on allowing these tax breaks for entertainment producers. But I do know there’s quite a bit of “trickle down” employment related to creating these things (extras, equipment rental, catering, etc.). So it’s not all going into the pockets of Hollywooders.


  30. - walker - Thursday, Jun 4, 15 @ 10:15 am:

    ==the inevitable tax increase the governor wants, needs and will sign.==

    We keep saying it Word, and most Rauner supporters keep ignoring this reality.

    It doesn’t match the narrative.


  31. - A guy - Thursday, Jun 4, 15 @ 10:15 am:

    ===These jobs are here to capture what makes Illinois different from other places.===

    Not positive I love the image that CPD and Chicago Fire project about our great city, but I really like both shows. Empire…still getting used to it.

    Funny that Hollywood does everything it can to get out from under the unions (that’s the big draw in Toronto and Vancouver!) and now we’re using them as the best example?

    This will all work out.


  32. - Littleone - Thursday, Jun 4, 15 @ 10:18 am:

    There’s a video on the Film Office website that shows the impact of the tax credit on working people. It’s a few years old but still good information- http://www.illinois.gov/dceo/whyillinois/Film/Media/Pages/EconomicData.aspx


  33. - Anonymous - Thursday, Jun 4, 15 @ 10:18 am:

    I’m fine with this, also fine with any criticism Rauner takes over it. This game isn’t always fair.


  34. - Justan Observer - Thursday, Jun 4, 15 @ 10:19 am:

    As one who frequently works in the film industry, the tax credits in Illinois (unlike many states) do have some pretty strict rules to ensure that Angelina Jolie’s salary does not get written off at the taxpayer’s expense. The money that qualifies for a tax break truly does have to go toward Illinois workers and Illinois vendors, businesses, etc. See the summation below: The following are the rules and requirements for the Illinois Film Tax Credit:

    Illinois Production Spending includes tangible, personal property and services purchased from Illinois vendors and compensation paid to Illinois resident employees.
    An Illinois vendor is an entity that provides goods and services to the applicant and is domiciled in the state.
    An Illinois resident qualifies as someone who has a valid Illinois state ID or driver’s license, issued prior to commencement of production.
    Compensation maximum is $100,000 for each Illinois resident employee.
    Must spend at least $50,000 in Illinois Production Spending for a project less than 30 minutes.
    Must spend at least $100,000 in Illinois Production Spending for a project 30 minutes or over.
    Receipts and financial materials must be processed by a Certified Public Accountant.


  35. - Downstate Illinois - Thursday, Jun 4, 15 @ 10:38 am:

    Another thing to consider is that the film production tax credits bring jobs to Illinois that would go to other states or Canada where we would receive no benefit.


  36. - Belle - Thursday, Jun 4, 15 @ 11:05 am:

    TV Shows and movies create interest in locations and generate tourism. Money generated by tourism is highly coveted.
    Rahm is probably seething since Chicago and ORD reap the big benefits but there is a trickle down effect into other areas of the State. (museums)


  37. - Louis G Atsaves - Thursday, Jun 4, 15 @ 12:40 pm:

    I’m trying to find the article, but I do recall reading that Louisiana and several other states have cut back or eliminated tax credits for “Hollywood” movies/television shows filmed in their states. Turns out the return on the investment (tax breaks and other goodies) just wasn’t materializing.

    Still looking.


  38. - Arthur Andersen - Thursday, Jun 4, 15 @ 12:55 pm:

    Belle, I would be interested in reading a serious study that shows people watching Chicago Fire or a superhero movie decide to visit Illinois museums. Not buying it.


  39. - VanillaMan - Thursday, Jun 4, 15 @ 12:55 pm:

    I do recall reading that Louisiana and several other states have cut back or eliminated tax credits for “Hollywood”

    Yeah - all they were getting for their money was more of those “Swamp People” stuff, and those kinds of shows just bring in new Louisianans.


  40. - walker - Thursday, Jun 4, 15 @ 1:17 pm:

    One Man: your comment that we should be consistent on tax credits to companies who bring jobs is well-taken.

    They might be a zero-sum-game nationally, and might involve bluffs and feints, but if they work we should do them. Part of “working” in this case is maintaining Chicago as a national cultural phenomenon and a world class city overseas.

    Support both DCEO turnaround ideas, and EDGE credits, etc. Agree that they must be managed tightly and transparently.


  41. - park - Thursday, Jun 4, 15 @ 8:56 pm:

    Never understood why these credits existed. Understand the ’sex’ of having movie people around for some people, but why this should be subsidized is beyond me. Make your freakin’ ‘Chicago’ movies in Toronto, I don’t care. Want to shoot on location here, pay the freight.

    Craziness. Good thing for Rauner to eliminate early on.


  42. - Under Further Review - Thursday, Jun 4, 15 @ 10:56 pm:

    I want to see the third and final season of “Boss.” Do it now!


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* Isabel’s afternoon briefing
* Things that make you go 'Hmm'
* Did Dan Proft’s independent expenditure PAC illegally coordinate with Bailey's campaign? The case will go before the Illinois Elections Board next week
* PJM's massive fail
* $117.7B In Economic Activity: Illinois Hospitals Are Essential To Communities And Families
* It’s just a bill
* Showcasing The Retailers Who Make Illinois Work
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today's edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Pritzker calls some of Bears proposals 'probably non-starters,' refuses to divert state dollars intended for other purposes (Updated)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller