Luring Hollywood here: Leaders near pact on film tax credits
By Donna Goodison
Thursday, April 26, 2007 - Updated: 09:57 AM EST
Beacon Hill leaders and the Patrick administration are close to agreement on proposed tax-credit reforms that would make it more enticing for Hollywood studios to shoot big-budget movies in Massachusetts.
Getting the picture: Related articles, multimedia & images ? Graphic: Luring filmmakers to Massachusetts
Deliberations are coming to a head as administration officials engage in talks with several companies interested in building multimillion-dollar soundstages here to create a ?Hollywood East.?
?The final details of the plans that we?re working on with the Senate and the governor?s office are coming together now,? said David Guarino, spokesman for House Speaker Salvatore DiMasi. ?(DiMasi) wants to do whatever we can within a tight budget year to encourage growth in the film industry in Massachusetts.?
Neither Guarino nor a spokesman for Gov. Deval Patrick would reveal changes under consideration. But studios have told the Massachusetts Film Office that the $7 million cap on the current tax-credit package discourages blockbuster movies, costing $100 million or more, from filming in the Bay State.
It?s unclear whether the changes will incorporate those already proposed by state Rep. Brian Wallace (D-South Boston and Dorchester), who co-sponsored the original legislation enacted last year.
In addition to removing the $7 million cap, Wallace wants an increase in the tax credits given toward productions? in-state payroll costs.
Wallace also wants to eliminate the ?sunset? provision that makes the tax credits available only through 2012. That?s seen as a key change necessary to pave the way for large film-related infrastructure projects, such as soundstages, to be built here.
?I?ve been working with (Undersecretary for Business Development) Bob Coughlin on some of this stuff, and he?s been talking to some companies who are talking about relocating here and possibly building a soundstage here,? Wallace said. ?They?re just kind of waiting on the legislation. We have the speaker?s support, which is a major hurdle.?
Jose Martinez, spokesman for the governor, confirmed the soundstage talks, but declined to reveal specifics. ?There are discussions with the industry,? he said.
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