[NEohioPAL] FACE OFF: HOUSE, SENATE PASS COMPETING FILMMAKER TAX CREDIT MEASURES

[Chris Singleton]

Gongwer Newspaper Report: 

 

FACE OFF: HOUSE, SENATE PASS COMPETING FILMMAKER TAX CREDIT MEASURES
The House and Senate on Tuesday passed starkly different measures to create tax credits for filmmakers, setting the stage for a showdown that would have made the late director John Ford proud.
For now, at least, there's a stalemate. Speaker Armond Budish (D-Beachwood) said the House would not be passing a $100 million tax credit program such as the Senate favors (SB 9). Sen. Tom Niehaus (R-New Richmond), the Senate president pro tem, said his caucus' plan is superior to the House's two-year, $20 million proposal (HB 6).

Another key difference: the Senate would provide for a transferable credit. The House, in tandem with Gov. Ted Strickland, have offered up a refundable credit.

Speaker Budish reiterated his argument that the House's approach was more realistic in the context of the budget situation and would be sufficient to jump-start the industry's development in the state.

"The film tax credit creates incentives for businesses to come to Ohio to create jobs and to build a film industry," he said after session. "It's important in these difficult economic times that we do as much as we can to bring new business and industry to the state."

Speaker Budish said the program was separated from the budget bill, where Gov. Strickland originally included it, "because we wanted to make sure that we don't lose opportunities that may exist in the state."

"I do not believe that at this point the House will pass a $100 million credit," he said. "A $10 million credit...is the right amount to begin to create the industry here in Ohio."

Last year, Gov. Strickland vetoed the larger proposal over budgetary worries and other concerns. Sen. Tom Patton (R-Strongsville) reintroduced the plan this year.

Sen. Tom Niehaus (R-New Richmond) said after the Senate session: "I think it's pretty obvious where our preferences are based on the fact that we passed the same legislation two times now."

"From our standpoint, if the film tax credit is a good idea, we think it should be more expansive," he added. "We think there ought to be more opportunities. I don't think any of us envision this bill as a break for one company. We're looking at multiple companies taking advantage of it."

"Obviously we'll be talking with the House. They feel strongly about their version, they know how we feel about ours. That's why we have the conference committee."

Cleveland was trying to lure a production company's headquarters to the city, and the efforts regarding Nehst Studios have largely driven the various legislative proposals.

Senate Action: The Senate approved its version of the bill on a 20-11 vote that saw members split along party lines.

Sen. Patton said during the floor debate that his measure would provide assistance to filmmakers and film companies that are considering Ohio as a location for shoots or permanent production studios - a sector that is expected to see significant growth in the next decade.

"Ohio has the ability to be a leader rather than a follower," he said.

The bill allows the state development director to certify qualifying projects, the sponsor said.
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