Fake “Al Drew’s Music” in real Woonsocket set for Hachiko: A Dog’s Story

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FOR THE LAST several years, it has certainly felt like there’s been a little of that Hollywood magic wafting in the Rhode Island air. It was tangible if you heard actor Richard Gere announcing that he would be filming Hachiko: A Dog’s Story in the Ocean State. At the State House press conference, Gere effused that though both he and director Lasse Hallstrom are residents of a little town in upstate New York, they chose Rhode Island because of its right combination of “looks and tax credits.”

Listening to Gere, one might believe that Rhode Island had come up with the right mix of legislative and financial alchemy to compete with our much larger neighbors for Hollywood dollars. But it’s a competitive world out there and magic is, after all, based on illusion.

At the Tribeca Film Festival on April 22, New York Gov. David Paterson stated, “Recently, we started losing business to our neighbors, like Canada, Connecticut, and Massachusetts. New Yorkers never go down without a fight.”

The reason? According to a February report by Crain’s New York Business, New York lost $400 million in feature-film production to Connecticut, which until now had the most generous tax program in the country: 30 percent on all costs. New York also lost an additional $350 million to Rhode Island and Massachusetts. New York’s new incentive plan triples the tax credits offered to filmmakers, to 30 percent on in-state below-the-line costs, with an additional 5 percent in New York City. Combined with a 5 percent tax credit from New York City, producers will get a 35 percent rebate on many expenses when filming in and around the five boroughs.

At the Sarasota Film Festival, Florida Gov. Charlie Crist kicked off its annual ball by calling for a $5 million increase in the state’s film-incentive fund, which would be up from its current $25 million.

In 39 states, there are incentives in place to entice film companies to come to locations there and produce work. Since these incentives were introduced, more entertainment-industry work is happening within these states. They have reaped the economic windfall of jobs, use of services and literally millions of dollars being spent.

In New York, Katherine Oliver, commissioner of the Mayor’s Office of Film, Theater and Broadcasting, said an increase in film funding will create more jobs in the city, something of an anomaly during the current economic downturn. “The expansion of the state’s credit . . . means more employment opportunities for the more than 100,000 local New Yorkers who work in the entertainment industry here.”

In Rhode Island, unlike New York and Florida, there seems to be a complete misunderstanding about what the tax credits have accomplished. Specious arguments have been made about lost revenue from the credits. How can something be lost when it would not have existed without the credits? The film credits have been a magnet attracting work. If no substantial film business existed before the credits, and the credits brought in real business that gave the state millions in new revenue, then isn’t that found money?

Instead of capping or dumping the credits, Rhode Island needs to make them more competitive. We should take a serious look at what Massachusetts, New York, Florida and other states already know — and why we are missing the boat. To be competitive we should lower the threshold to encourage not just Hollywood filmmaking, but also independent filmmakers to use Rhode Island for their next projects.

We’re up against stiff competition. Our neighbors have been aggressive in developing and marketing their own tax-incentive plans. The Massachusetts Film Office’s polished Web site ( http://www.mafilm.org) touts the state as the second most filmmaker-friendly spot in the country. Filmmakers can take credits as a direct rebate at 90 percent of face value, which they can then sell at a market rate or carry forward for five years. Those who shoot only half a movie or spend half of a production budget in the state are eligible for 25 percent of the total spent.

With high anxiety surrounding the future of Rhode Island’s economy; from low employment figures, high foreclosure rates and slack personal-income growth, the benefits of these tax credits should be constantly enforced, using accurate details on how much is being spent in Rhode Island and exactly where the money is going.

In essence, the tax credits have turned lead into gold. They have brought in work where none would have existed and they have sold the state as a place to do business. With such grim economic forecasting for Rhode Island, the film tax credits have the potential to become an important source of revenue for our state, as well as an engine for employment.

We need to remove the blinders from our eyes and realize the value of these tax credits. Our neighbors are working hard to entice filmmakers to shoot projects in their states. If we continue to neglect the impact of our own credits and our own potential, there won’t be another news conference with Richard Gere extolling the virtues of the Ocean State. That brand of Hollywood magic will disappear in a puff of smoke, and Rhode Islanders will be wondering why they are once again left holding a bar of lead.

George T. Marshall is the executive director of the Rhode Island-based Flickers Arts Collaborative, creators of the annual Rhode Island International Film Festival. Adam Short is the producing director of the film festival.