We coulda been a contender

by Rebecca Collins, MNDialog • June 9, 2008 • There was an article in the Twin Cities Daily Planet earlier this week about a casting call in St. Paul for Hmong actors to star in the next Clint Eastwood film, called Gran Torino. The movie is about a Hmong family, their Korean War veteran neighbor (rumored to be played by Eastwood) and the relationship they forge around his beloved Gran Torino.

Arts Orbit is a multisource blog about the local arts scene, featuring both original contributions by Daily Planet writers and entries reprinted from partner blogs and online publications.

The production company held auditions here because Minnesota, with 46,352 Hmong residents, is home to the second largest Hmong population in the U.S. Not only that, the screenplay was written by a Minnesotan and set in Columbia Heights — so it seems logical that the movie be cast and filmed in Minnesota, right? In fact the production did scout locations here. But in the end, the movie went to Michigan and will begin filming there this month, with a tentative release date of December 2008.

Why?

Because of the power of state incentives. Thirty-five states now offer some form of production incentive—either a rebate or a tax credit. In April, Michigan launched a 40% cash rebate on all Michigan production expenditures. This includes non-resident crew and talent fees. Basically, if you have a project that spends at least $50,000 in Michigan (following all their guidelines, of course), your production is eligible. A million dollar project could receive a $400,000 rebate. All of this is to bring new money and jobs to a state desperate for both.

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In April, Michigan launched a 40% cash rebate on all Michigan production expenditures. A million dollar project could receive a $400,000 rebate.

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There has been a rush of feature production to Michigan, with budgets both large and small. Seventeen projects are in some phase of production in Michigan right now.

Wisconsin, New York, Illinois, Louisiana and New Mexico (to name just a few) also offer incentives ranging from 20 to 35 percent. Production crews on location rent hotel rooms, condos and apartments, dine out, shop, rent cars, and most importantly, pay state income taxes.

And incentives work. In Minnesota, the Warner Bros. feature North Country filmed on the Iron Range during 2004 and an estimated $5 million was spent in local communities. These projects provide jobs for members of our production community – one of the largest in the Midwest. Wisconsin and Michigan do not have the crew base that we do.

I want to stress that I’m NOT just talking big budget studio features. We’re also talking commercials, TV series, documentaries and independent films. Gran Torino is just a high-profile project that serves as an example.

So what can Minnesota do to compete?

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We need a larger incentive fund pool to attract larger projects and perhaps an increase in the percentage of rebate – or a switch to a tax credit.

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In a tough year for economic stimulus legislation, MFTVB was able to strengthen Snowbate, Minnesota’s 15% rebate program, receiving $1.299 million in supplemental funds and increasing the incentive percentage to 20% for projects that spend more than $5 million in the state over a 12-month period. The statute was also amended to include digital media and distribution via the Internet.

Longer term, we need a larger incentive fund pool to attract larger projects and perhaps an increase in the percentage of rebate – or a switch to a tax credit. The addition of an investment tax credit would be another way to strengthen our production market.

There is also the question of whether or not these programs are sustainable over the long term, especially Michigan’s. There is rumbling in Michigan about the lack of crew base, infrastructure and tools and that Michigan’s incentive is an irresponsible move that was fast-tracked through the legislature, leaving lawmakers to figure out how to cover all the rebates.

But for now, incentives remain the name of the game, especially for studio features. It’s imperative that we (not just our production community but WE, meaning the entire state, which serves to benefit if projects like this come here) remember the story of Gran Torino as we (already) prepare for the 2009 legislative session.