State's film fund is almost dried up

A few months after it was greenlighted, a fund designated to lure filmmakers back to Utah is almost dry. And the fund's director said some structural problems are already becoming apparent.

Only $160,000 remains of a $1 million fund designed to attract filmmakers to Utah, according to Mark Renda, the state's Industrial Assistance Fund director.

The fund, a demonstration program established in May at the recommendation of the Legislature's Motion Picture Task Force, designated $1 million in IAF money for film incentives.

The incentive allows film, commercial and television productions to get tax rebates, with no single project receiving more than $500,000 in rebates. Bonus money (though the total may still not exceed $500,000 per project) is given if Utah is included in the project narrative or storyline.

To date, four projects have met the fund's criteria and have together received $840,000, Renda told the task force Tuesday. One of the films, "World's Fastest Indian," stars Anthony Hopkins. Meryl Streep is slated to star in another, "Dark Matter." Both films are in pre-production.

Though it was a coup for the state to snag the four films, task force members and IAF officials agreed that Utah's entertainment/film incentive program needs retooling. Currently, Renda said, the IAF board looks for projects that will "leave" dollars in the state, through infrastructure build-up or jobs; projects that already have their budgets secured; and those that have distribution arrangements in place (or a reasonable likelihood for securing distribution).

The fund structure also doesn't quite fit into the established IAF framework, Renda said. Traditional IAF money goes to companies that promise to create jobs for the long term. Films generally do not, Renda said, though they do employ crew members, many of whom live permanently in the state.

"If you're going to create a specific fund for investment or rebates, we probably think it should be outside of the Industrial Assistance Fund," Renda said. "It's an apples and oranges comparison, and our board is predisposed towards permanent jobs, and this industry has a poor nexus between the employer and employee. Left to our own devices over time, this board would probably not do as many film incentives as the state may want to do."

Renda said the board should administer all incentive funds, but the funds should be kept separate.