A bipartisan group of State Senators have put their support behind a bill which could give Arizona a good-sized chunk of the nearly $200 billion movie and film industry.
Senate Bill 1708 would create a new movie production tax credit, something which Arizona has not had in decades. Proponents of the bill believe it is the best shot the state has at becoming a full-service production hub outside of Hollywood and New York, similar to what has developed in recent years in New Mexico and Georgia.
On Monday, the Senate Rules Committee announced SB1708 was “proper for consideration” allowing for the bill to move forward. It is now awaiting a third reading.
One supporter, Nick Simonetta, says Arizona no longer has a meaningful presence in the movie industry, despite a rich filmography history which includes classic Westerns as Red River, Rio Bravo, and the original 3:10 to Yuma. Arizona has also been the locale for several non-Westerns in recent decades, although most film only a scene or two in the state.
What Arizona needs to develop itself as an industry player is production facilities such as sound stages and editing bays, Simonetta said. That is where SB1708 comes in after nearly two years of development.
Arizona has had good success with business attraction incentives for other industries, including manufacturing, bioscience, and aerospace / defense. Now those efforts are being turned toward the movie industry which includes not only traditional production companies but also several streaming platforms, all competing for original content.
“This effort is about working with the movie industry to build up our facilities and workforce in Arizona,” he said. “The only way this works is if it is beneficial to the State, taxpayers, and the industry.”
Giving Arizona a foot up with the movie industry is that producers are already well aware of what the state has to offer in terms of geology and locations. Simonetta pointed out that for years California producers have been driving through Arizona or flying over the state on their way to film in other states with proactive tax credits.
“They want to come here and we’re missing out by not being able to attract them to stop in Arizona,” he said.
In the meantime, Arizona students are keeping film departments at the state’s colleges and universities busy. Most of those students, however, are moving out of state for work, Simonetta noted.
“By developing a production industry work force we will allow students to pursue their education and careers here in Arizona,” he added. “Thousands of Arizona kids would get to stay home.”
It is those jobs, and hundreds more, that motivate SB1708 supporters, including some labor unions.
The bill requires the Arizona Commerce Authority to implement an Arizona Motion Picture Production Program through which individual and corporate Credit for Motion Picture Production Costs would be claimed. The program parameters are spelled out in SB1708, as are the various credits available which in aggregate cannot exceed $150 million a year.
The tax credit would have no impact on sales taxes collected on a local level, although Simonetta noted municipalities will reap the benefits from increased hotel bookings, dining, and general purchases.
Arizona – America's Backlot from Arizona Film Office on Vimeo.