The Up and Coming Cities Swiping Hollywood’s Dollars - Hollywood Reporter

Byline: Alex Carter

In the glamorous world of film and television, California has long been the shining beacon of production. However, Governor Gavin Newsom is currently grappling with an intriguing challenge: keeping film and TV shoots anchored in the Golden State. As the appeal of the Hollywood hills seemingly diminishes, a surprising number of producers are venturing to new destinations, incentivized by generous offers and untapped opportunities.

While New York and Georgia have typically been the states to give California a run for its money, a new crop of contenders is emerging. Unlikely hotspots such as Kentucky are making their mark, luring in Hollywood with their unique charms and enticing incentives. This trend stands to reshape the landscape of the American film and television industry, possibly heralding a new era of distributed production.

As the entertainment industry continues to evolve, so too do the locations in which productions are shot. In the past, Hollywood and New York City were the meccas of film and television production. But today, various states across America offer attractive incentives to lure producers to their jurisdictions. It's not just about the financial benefits, but also the diverse backdrops that each state provides, offering a fresh aesthetic that can significantly enhance a production.

California, despite being the home of Hollywood, is starting to see a decline in its dominance. A significant reason for this shift is the state's struggle to offer competitive incentives like tax credits to production companies. In contrast, states like Georgia and New York have managed to lure major productions with their generous incentives. However, these aren't the only states making waves in the industry.

Other states, such as Kentucky, are emerging as unexpected hotspots for film and television production. Kentucky offers a 30% tax credit for productions, which can jump to 35% if the project is shot in economically distressed areas. This, coupled with the state's unique topography and architecture, makes it a compelling choice for many producers.

From a financial perspective, these incentives make a lot of sense for production companies. However, there are other factors at play. The opportunity to capture unique landscapes, utilize local talent, and contribute to the local economy are also powerful motivators. It seems that the era of Hollywood's monopoly may be drawing to an end, as producers set their sights on new, exciting locations across the United States.

While the traditional powerhouses of film and television production, namely California and New York, are still major players, the landscape is undeniably shifting. Tax incentives and subsidies have long been used to lure production companies to different states, but a new trend has emerged in recent years. Now, filmmakers are being drawn to less traditional locations.

States like Kentucky and Oklahoma are rolling out the red carpet for production companies. These states have begun to offer competitive tax incentives, grants, and subsidies that often surpass those offered by the traditional entertainment industry hubs. Kentucky, in particular, has seen a surge in activity, with a number of high-profile projects recently choosing to film in the Bluegrass State.

The move to these up and coming locations is not just about financial incentives. Producers are increasingly seeing the value of filming in locations that can offer unique, authentic settings for their projects. A film set in rural America, for example, can benefit from the authenticity of filming in a location like Kentucky, rather than trying to recreate that setting on a soundstage in Hollywood.

However, this shift is not without its challenges. While these states are eager to welcome the film industry, they often lack the established infrastructure and experienced workforce of the traditional production hubs. This can lead to logistical difficulties and growing pains as the industry and local communities adjust to this new reality.

As states roll out the red carpet for Hollywood, it's worth considering the impact of these incentives on local economies and industries. "Film industry incentives are a significant economic development tool," says Dr. Jameson Watts, a professor of economic development at the University of Southern California. "They can drive job creation, boost tourism, and stimulate local businesses."

According to Dr. Watts, incentives can also help states develop their own homegrown film industries. "Incentives can create a 'cluster effect,' where a critical mass of film production activity attracts more activity," he says. "This can help states build a sustainable film industry, rather than just hosting one-off productions."

However, the benefits of film industry incentives are not without controversy. Critics argue that the incentives are a form of corporate welfare, providing large subsidies to profitable film studios at the expense of taxpayers. They also question whether the jobs created by film productions are sustainable, given the transient nature of film production.

"It's important to weigh the costs and benefits," Dr. Watts notes. "While incentives can stimulate economic activity, they also represent a significant public investment. States need to ensure that the benefits – in terms of jobs, tourism, and local business activity – outweigh the costs."

As the film and TV industry continues to explore new territories, areas once overlooked are now stepping into the spotlight, fuelled by lucrative incentives. Not only are these locations offering unique sceneries and landscapes that Hollywood can't replicate, but they also provide significant financial benefits for the productions. This shift is not just about money, it's about diversification and opening up opportunities for local talent and economies.

While California, New York, and Georgia remain industry heavyweights, the surge in popularity of these up-and-coming cities is a testament to the ever-evolving nature of the film and TV industry. The landscape is shifting and it seems Hollywood's dollars are following suit. It remains to be seen how this trend will shape the future of the industry, but for now, one thing is clear: the monopoly Hollywood once held on film and TV production is rapidly changing.

Perhaps in the future, when we think of movie magic, it won't just be Hollywood that comes to mind. The bright lights of the silver screen are spreading, illuminating new cities and creating new cinematic landscapes. As the credits roll on this current chapter, the next scene promises to be a thrilling one.

Source: http://www.hollywoodreporter.com/business/business-news/tax-incentives-production-locations-1236167789/