Analysis: Should Taxpayers Spend $75 Million A Year To Subsidize Zack & Miri Make A Porno?

There is no doubt the public and therefore politicians are in a "no tax increase,""cut the size of government" mood these days. They want every dollar spent to go to a valid public purpose and to create some lasting public value.

So, many taxpayers are surprised when they learn $75 million a year of their tax money has gone to support the production of movies like Zack and Miri Make a Porno ($5.7 million), has subsidized Danzel Washington in Unstoppable ($20.8 million) and supports TV productions like the QVC home shopping network ($3.7 million).

Since the PA Film Production Tax Credit Program was adopted in 2007 at the urging of Gov. Rendell, some $242.5 million in taxpayer dollars have gone to subsidize productions like Russell Crowe in The Next Three Days ($7.3 million), Sigourney Weaver and Twilight's Laylor Lautner in Abduction ($8.9 million) and the Restaurant Impossible TV show on the Food Network ($1.3 million).

The most recent report by the Department of Community and Economic Development for FY 2010-11 said the $242.5 million in tax credits issued so far has "injected over $1 billion directly into Pennsylvania's economy, generated an estimated $1.8 billion in total economic activity, and supported nearly 14,500 jobs."

To qualify for the tax credit, at least 60 percent of the total production budget must be spent in Pennsylvania, therefore movies like Batman: The Dark Knight, which filmed in Pittsburgh this summer, do not qualify.

Even though a 2009 Legislative Budget and Finance Committee report found "there is a net fiscal loss" when comparing the taxes generated by productions and the cost of the tax credits in the first years of the program, Gov. Rendell was an avid supporter of the program.

The report also noted film and television production is going on in Pennsylvania without the tax credit program, but concedes some of that production would be at risk without the credit program.

The main economic beneficiaries of the productions, the report said, were to transportation, lodging, car and truck rentals, gas stations, food and beverage establishments, construction and other personal services.

The economic benefits lasted as long as the film or television show was in local production.

Other state tax credit programs have been enacted to support Educational Improvement, Homeowners' Emergency Mortgage Assistance, Economic Development Districts, Neighborhood Assistance, Research and Development and Coal Waste Removal, most with some sort of lasting value to show for their public investment.

This is especially true of the Resource Enhancement and Protection (REAP) Tax Credit Program which was increased to $10 million by Gov. Corbett and the General Assembly in July to help farmers install permanent best management practices.
Even fiscally conservative Gov. Corbett, like most legislators, is a fan of the film tax credit.

In a recent news article, he was quoted as saying, "There was never a doubt in my mind that we need to have the film tax credit. And I would like to see, at some point in time, that we be able to grow the film tax credit. A lot of that is going to depend on the economy. But rest assured that we will work to do our best to keep this industry going."

The question is, in these tight budget times, can state government afford to be star-struck?

Should we continue to spend $75 million a year of taxpayer money on Zack and Miri and the QVC home shopping channel, or should we provide more support to programs (PA Environment Digest is showing its bias here) like REAP and Growing Greener which have real, lasting environmental and economic value for the public?

So far the answer has been to support One for the Money ($7.7 million), Love and Other Drugs ($6.4 million) and Kitchen Impossible on the DIY Network ($686,765).

If legislators and the Governor can come up with a scheme to spend $75 million a year to give temporary jobs to Russell Crowe and Sigourney Weaver, surely they can also come up with a Marcellus Shale drilling impact fee that makes sense?

If not, then taxpayers should at least score some free tickets out of the deal!

Here are just a few of the film and television productions benefitting from Pennsylvania's Film Production Tax Credit in FY 2010-11--

Movies

-- Unstoppable: about a runaway freight train starring Danzel Washington and Chris Pine (Star Trek) - $20.8 million tax credit

-- I Am Number 4: a sci-fi thriller about an alien trying to save his species from other evil aliens - $8.1 million tax credit

-- One For The Money: An unemployed lingerie buyer convinces her bail bondsman cousin to give her a shot as a bounty hunter - $7.7 million tax credit

-- The Next Three Days: thriller staring Russell Crowe and Elizabeth Banks - $7.3 million tax credit

-- Abduction: starring Twilight's Laylor Lautner and Sigourney Weaver - $8.9 million tax credit
-- Love and Other Drugs: a romantic comedy about a pharmaceutical salesman - $6.4 million tax credit
-- Dark Fields (Limitless): starring Robert DeNiro - $4.8 million tax credit
-- Still I Rise: An inspirational drama about education - $3.9 million tax credit
-- The Perks of Being A Wallflower: About an introvert freshman taken under the wings of two seniors who welcome him to the real world - $2.8 million tax credit.
-- The North Star Movie: Produced by North Star Movie LLC but A Google search turned up no information on the film - $1.1 million tax credit
-- The Genesis Project: Produced by Genesis Film Productions LLC but a Google search turned up no information on the film - $862,151 tax credit.
-- The Sibling: a horror film - $329,000 tax credit
--Backwards: A sports romance - $317,900 tax credit
-- The Discoverers: a movie about a dysfunctional family who embark on a Lewis & Clark reenactment trek - $276,728 tax credit
-- The Fields: A thriller staring Cloris Leachman - $145,278 tax credit
-- Future Weather: a character-driven drama about three generations of women navigating responsibility and self-fulfillment - $136,590 tax credit
-- 99 Percent Sure: a romantic comedy - $10,412 tax credit
Other movies include: The Lovely Bones, The Last Airbender, My Bloody Valentine, Zack and Miri Make A Poro

Television Shows

QVC Network Shows - Around the House, Beauty Beat, By Popular Demand, Cooking on Q, Denim & Co, Diamonique Jewelry, Easy Solutions, Electronics Today Kitchen Ideas, PM Style, Problems Solved, Q Check, QVC Morning Show, Savings on Style, Susan Graver Style: $3,760,933 in tax credits

Outlaw: Open 4 Business Productions - $1.6 million tax credit

Restaurant Impossible, Food Network: $1,356,6113 tax credit
Lindsey's Way, The Road Less Traveled: $703,625 tax credit
Kitchen Impossible, DIY Network - $686,765 tax credit
The Drill Team Series: A& E Network - $685,481 tax credit
Dinner Impossible, Food Network: $636,238 tax credit
The Best Sports Legends: Steve Rotfield Productions, Inc. - $267,387 tax credit

Whaddyathink: Steve Rotfield Productions, Inc. - $300,190 tax credit
Noodle and Doodle, Sprout Network: $479,403 tax credit

Staten Island Cakes: $426,632 tax credit

Locke & Key: produced by Steven Spielberg for Fox Television - $1,813,045 tax credit

Twisted Justice, Justice Project LLC - No information turned up in Google search - $247,378 tax credit.

Seeking Solutions with Suzanne: Exploring The Arts: $219,604 tax credit

Philadelphia: The Great Experiment - $196,812 tax credit

Weekends with Luis, HGTV Network: $175,440 tax credit
Extreme Makeover Home Edition: $160,412 tax credit
Them Idiots: starring Jeff Foxworthy, Larry the Cable Guy and Bill Engvall - $66,548 tax credit
UPMC Community Benefits Video: $63,386

Source: Film Tax Credit Report FY 2010-11, FY 2009-10, FY 2008-09