Movie incentive plan advances in Senate

A proposal intended to lure big-budget motion-picture productions to the state was given preliminary approval Tuesday by the Senate.

SB14, sponsored by Sen. Lyle Hillyard, R-Logan, offers a variety of tax credits and other financial incentives for movie-production companies to shoot on location in Utah.

Hillyard told senators that his bill only provides tax credits for money spent in the state and only offers them once production has been completed. He said motion pictures would be required to get prior approval for the credits, and "inappropriate" movies would not be approved.

Hillyard talked about the "tremendous side benefits" to the local economy when companies choose to film in the state. He said direct spending is generally in the $50 million range, with a "duplication effect" of about 279 percent from additional spending on things like restaurants and hotels.

The proposal has enthusiastic bipartisan support. Sen. Karen Morgan, D-Salt Lake, said the hefty return on investment makes it "truly a great way to go."

"In times of economic troubles, this is one of the best things we can do," Morgan said.

Sen. Mark Madsen, R-Eagle Mountain, agreed with Morgan and called the bill a "wonderful way" to encourage growth.

Madsen told committee members that after some "pretty fantastical" return on investment claims were made during interim consideration of the bill, his staff conducted a thorough analysis that showed the claims to be accurate.

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