Missouri lawmakers have tried the final 5 classes to revive the state’s movie manufacturing tax credit score program, which expired in 2013.
However with Missouri’s Republican-dominated Basic Meeting dedicated to chopping, not including, tax incentives the final decade, and several other research indicating tax credit provide little profit, the proposals have withered in committee limbo.
In the course of the 2021 session, state Sen. Denny Hoskins, R-Warrensburg, sponsored Senate Invoice 367 , the proposed Present Missouri Movie & Digital Media Act, which sought to reauthorize a movie tax credit score like 35 different states do, together with 5 that body Missouri.
Below SB 367, the Missouri Division of Financial Improvement (MEC) would approve initiatives that get the tax credit score and conduct a full audit of expenditures earlier than manufacturing firms obtain tax credit.
The full quantity of movie credit awarded yearly can be capped at $4.5 million. The invoice supplied a 25% tax credit score for in-state bills and a ten% tax credit score for out-of-state bills.
If not less than half a undertaking is filmed in Missouri, a further 5% of bills can be awarded and one other 5% may be granted if MEC determines the movie “positively markets Missouri.”
SB 367 required all tax credit score recipients to incorporate a brand within the movie credit to point the undertaking was filmed in Missouri.
The invoice died after one listening to earlier than the Senate Financial Improvement Committee in February, the place it was endorsed by former Missouri Movement Media Affiliation’s Joni Tackett.
The motivation program outlined in SB 367 is an effective step, Tackette mentioned, however capping it at $4.5 million gained’t draw the productions the state desires – together with exhibits with settings in Missouri, like “Ozark,” “Sharp Objects” and “Three Billboards Outdoors Ebbing, Missouri,” that have been filmed in different states.
“How has Missouri fared because the sundown of the movie tax credit score in 2013?” Hoskins requested throughout that February listening to. “Not very properly. Missouri has not had any vital motion pictures filmed in our state because the sundown of the movie tax credit score.”
With pre-filing for the 2022 session is open by means of Dec. 1, a tax credit score program for movie manufacturing has not but been launched.
However Rep. Bruce DeGroot, R-Chesterfield, mentioned he’ll introduce a proposed ‘Leisure Business Jobs Act’ (EIJA) in 2022 that can present incentives for the dwell occasion and manufacturing business, together with movie.
“Let me say that once more, this proposal will carry new cash into the state. Missouri is at the moment receiving just about no funding on this business,” he wrote in a Tuesday Missouri Occasions’ column. ”A key function of the EIJA is that, not like different proposals, if no enterprise expenditures are made in Missouri, no incentives are awarded.”
DeGroot writes there’s “a big unmet demand within the leisure business for state-of-the-art amenities for tour rehearsals and productions, with present amenities having ready lists for a number of years. These present amenities are few and infrequently outdated.”
Due to “Missouri’s central location and entry to interstate and airport transportation,” he mentioned, it’s “supreme for sustainable growth in music and movie manufacturing infrastructure to fulfill this demand, bringing further cash into the state that might in any other case be spent exterior of Missouri.”
There are quite a few developments deliberate for the St. Louis space “to begin the method of creating Missouri a most popular location,” DeGroot writes.
“The EIJA doesn’t choose winners or losers within the market: It solely requires minimal expenditures in Missouri be reached. No incentives are supplied except these vital expenditures are made within the state,” DeGroot writes. “Below the necessities of EIJA, the expenditures made in Missouri will all the time far exceed the variety of incentives out there.”