Illinois sweetens deal for movies

Illinois sweetens deal for movies By John Chase Tribune staff reporter Published July 11, 2005 Since becoming governor more than two years ago, Rod Blagojevich has wooed Hollywood like a teenage underdog in a melodrama trying to get the prettiest girl in school to notice him. He's held news conferences. He's passed laws. He's traveled to California, all with an eye toward getting directors and producers to make Chicago and Illinois a frequent locale for films and TV shows. And Blagojevich has had some success. But on Monday, the governor plans to take his love affair with Hollywood to the next level by signing legislation extending tax breaks for movie producers and enticing them with greater incentives if they hire more minorities from Illinois to work behind the camera. The bill-signing is expected to take place in Chicago on the set of "The Break-Up," a romantic comedy being filmed in Chicago and starring Vince Vaughn and Jennifer Aniston. Two years ago, the governor signed the state's first tax-break legislation for the film industry on the South Side set of "Barbershop 2." Since that time, big-name stars such as Julia Roberts, Christian Bale and Nicholas Cage have been spotted about town while filming "Ocean's 12," "Batman Begins" and "The Weather Man." State officials say the movie industry has since poured more than $144.5 million into the state's economy. "Illinois has once again become the Hollywood of the Midwest," Blagojevich said. "By extending and improving the tax credit that has been instrumental in generating millions and millions of dollars for our economy and putting thousands and thousands of people to work, you can expect to see Chicago and other parts of the state on the big screen for years to come." Under the new legislation the governor is expected to sign, Hollywood studios will see their tax credits for wages increase to 35 percent from 25 percent if the companies hire more minorities from Illinois, especially those in high-poverty areas. State Rep. Kenneth Dunkin (D-Chicago), one of the legislation's chief sponsors, said traditionally blacks, Latinos and women have had trouble finding work both behind and in front of the camera. "You don't see too many grips or light technicians or people behind the camera that aren't white and male," Dunkin said. "What we want to do is bring the film productions back here to Illinois and ... give folks who live in the state a chance to work on your production. Don't discriminate and give people an opportunity to work." The new legislation also gives some filmmakers another financial benefit by allowing them to transfer unused tax credits to other companies that want to make TV shows and movies here. The governor and General Assembly passed the first tax credit law in 2003 after what they said was a precipitous drop in the number of films, TV shows and commercials being made in Illinois. Much of the work, the governor has said, moved to Canada, where similar tax breaks were offered and the nation provided a favorable exchange rate. The state's film office reported in the late 1990s that the movie industry generated $124 million annually in Illinois. That number dropped to just $25 million in 2003, said Andrew Ross, a spokesman for the state Department of Commerce and Economic Opportunity. In 2004, Ross said, the industry employed 14,500 people while filming in Illinois and poured $76.5 million into the state's economy. So far this year, the industry has provided work for 5,000 people and generated $68 million, Ross said. Critics have questioned the need for the state to offer significant tax breaks to giant Hollywood studios at a time when the state is struggling to stay afloat financially. But Ross said that without the breaks, film companies just wouldn't come here. "The bottom line about this is the fact that but for these tax credits these productions wouldn't be in Illinois," he said. "It's an ultra-competitive world that we live in to try to get film productions to come to your locales.">