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Report: Two flix nixed by Rauner money block

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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.

posted by Rich Miller
Thursday, Jun 4, 15 @ 9:35 am

Comments

Way to hurt Illinois jobs.

Comment by walker 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!!

Comment by Say It Ain't So!! Thursday, Jun 4, 15 @ 9:39 am
Congratulations Bruce. You just single-handedly cause two job creators to leave the state. Great agenda ya got there /s

Comment by PublicServant Thursday, Jun 4, 15 @ 9:41 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.

Comment by Roland the Headless Thompson Gunner Thursday, Jun 4, 15 @ 9:43 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.

Comment by Wordslinger 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.

Comment by Oswego Willy Thursday, Jun 4, 15 @ 9:46 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..

Comment by OneMan Thursday, Jun 4, 15 @ 9:47 am
Shrinking the economy, one program cut at a time.

Comment by illinoised 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.

Comment by Roamin' Numeral Thursday, Jun 4, 15 @ 9:47 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.

Comment by Rich Miller Thursday, Jun 4, 15 @ 9:48 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.

Comment by Huh? Thursday, Jun 4, 15 @ 9:51 am
Um, isn’t the goal to make Illinois more FRIENDLY to businesses who want to come in?

Comment by Streator Curmudgeon Thursday, Jun 4, 15 @ 9:51 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.

Comment by walker Thursday, Jun 4, 15 @ 9:52 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

Comment by MrJM Thursday, Jun 4, 15 @ 9:53 am
Has there ever been a cost-benefit analysis of the film tax credit?

Comment by phocion Thursday, Jun 4, 15 @ 9:53 am
Jobs and the arts — those are for little people.

Comment by Nick Name 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”.

Comment by walker Thursday, Jun 4, 15 @ 9:53 am
Bruce Rauner has never met a middle-class job he can’t kill.

Comment by Precinct Captain Thursday, Jun 4, 15 @ 9:53 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.

Comment by OneMan Thursday, Jun 4, 15 @ 9:55 am
Your average liberal: “Thank God this corporate welfare has been stopped!”

One would think there would be rejoicing.

Comment by Peoria Guy Thursday, Jun 4, 15 @ 9:58 am
=Those Hollywood charlatans should find employment in a legitimate, productive business like finance.=

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

Comment by JS Mill 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?

Comment by 47th Ward Thursday, Jun 4, 15 @ 9:59 am
Guessin’ BVR has investments in other companies. Wonder if he gave Dudley, a well like GOP hanger on

Comment by Anonin' 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.

Comment by VanillaMan Thursday, Jun 4, 15 @ 10:01 am
Good attempt at a Variety-esque headline.

Comment by Chicago Hack Thursday, Jun 4, 15 @ 10:02 am
Dick Wolf should do a reality show on Rauner.

Comment by Hedley Lamarr Thursday, Jun 4, 15 @ 10:02 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.

Comment by Wordslinger Thursday, Jun 4, 15 @ 10:08 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.

Comment by Oswego Willy Thursday, Jun 4, 15 @ 10:09 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.

Comment by Bluegrass Boy Thursday, Jun 4, 15 @ 10:10 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.

Comment by walker 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.

Comment by A guy Thursday, Jun 4, 15 @ 10:15 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

Comment by Littleone 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.

Comment by Anonymous Thursday, Jun 4, 15 @ 10:18 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.

Comment by Justan Observer Thursday, Jun 4, 15 @ 10:19 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.

Comment by Downstate Illinois Thursday, Jun 4, 15 @ 10:38 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)

Comment by Belle Thursday, Jun 4, 15 @ 11:05 am
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.

Comment by Louis G Atsaves Thursday, Jun 4, 15 @ 12:40 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.

Comment by Arthur Andersen 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.

Comment by VanillaMan Thursday, Jun 4, 15 @ 12:55 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.

Comment by walker Thursday, Jun 4, 15 @ 1:17 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.

Comment by park Thursday, Jun 4, 15 @ 8:56 pm
I want to see the third and final season of “Boss.” Do it now!

Comment by Under Further Review Thursday, Jun 4, 15 @ 10:56 pm