New governor would change film incentives

MILWAUKEE — The three main gubernatorial candidates all support changing the state's film incentives to attract more film projects, after Gov. Jim Doyle drastically scaled back tax credits a year ago.

But when it gets down to details, none gets specific.

The closest anyone has said to what he wants to do is Democratic candidate Tom Barrett, whose spokesman said Barrett supported the previous film tax credit program -- which included a 25 percent tax break -- and would like to see something similar reinstituted.

Republican candidates Scott Walker and Mark Neumann say they also support changing Doyle's $500,000 annual grant program.

Walker said he's looking at other states' incentives and still finalizing his plan. Neumann said he didn't support the original credits, saying there was no focus on developing a thriving new industry.

But the fact that the candidates support change was good news to Dave Fantle, president of Film Wisconsin's board, which promotes filming in the state.

"It's going to be a new day, with a new governor and we're optimistic we will be able to work with both the Legislature and governor to restore the tax credits," Fantle said.

He said the board wants to ensure the new incentives emphasize growing the creative economy and adding jobs. The board plans to bring in outside experts to look at other state's programs, among other things, to come up with the best proposal.

Incentives have been dramatically curbed and interest in filming in the state has waned since "Public Enemies," starring Johnny Depp, came to Wisconsin in 2008. The movie received $4.6 million in tax rebates and credits but only generated $5 million in economic activity, prompting state officials to replace the previous incentive plan with the grant program.

Crews filmed "Transformers 3" at the Milwaukee Art Museum last week, but it was for the look of its modern building along Lake Michigan. It won't qualify for the grant program.

Walker's spokeswoman Jill Bader said Walker was disappointed that Doyle made the incentives less attractive and he is looking at what other states have done before he comes up with a final plan.

"The film tax credits can give Wisconsin the competitive advantage we need to bring jobs and investment into the state," Walker said in a statement.

Neumann's spokesman Chris Lato said Neumann supports tax credits that lead to business growth. He said Neumann would conduct a cost analysis to ensure the incentives result in measurable economic development. He said the previous credits didn't have focus on developing a thriving new industry, and "Mark would demand more accountability and would work to ensure a more favorable result."

On his website, Barrett said he thinks the field "could provide more high-tech jobs that are of interest to the young, highly educated workers that Wisconsin needs to keep."

Barrett's spokesman Phil Walzak said Barrett would look at expanding the incentives beyond the $500,000 cap if it's fiscally responsible and supports Wisconsin jobs and businesses.

RDI Stages spent millions to expand its facility in St. Francis because of the incentives, said Owner Janine Sijan Rozina. She said within three months of opening a new building the incentives changed, calling it a "tremendous gut punch." She said they are struggling to keep their doors open, supporting themselves with commercials.

"Honestly, if I don't remain optimistic, it's very tough to come in every day," she said.

Jay Schillinger used to be head of business development at Pulse Communications in Green Bay, which had planned to expand in response to the incentives. But the owner declared bankruptcy, partly because of losing business due to the changed incentives. Schillinger bought the assets and started NorthCoast Productions in Green Bay. He said it's been doing well, concentrating on video production and commercials but he's pushing for better incentives knowing he and other parts of the industry could do much better.

He said the Depp film was great, but they had a number of independent films planning to film in Wisconsin that left when the incentives changed.

He said the industry was just gaining momentum when Doyle's actions caused it to come to a "screeching halt."

"We have to give it a chance and if the candidates are sincere in this, which I think they are, it needs time," he said. "... I think it's not far-fetched to think that Wisconsin could really be a hub of film making activity, which would be great for job creation."

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