COLUMBIA--It's another war between the states.
This time it's the South against the South.
Southern states are fighting for the right to claim the most attractive tax
breaks available to filmmakers. The victor could reap millions spent by film and
television producers who shoot on location.
South Carolina thought it had triumphed when the Senate tripled some tax
breaks available to filmmakers two weeks ago. The bill was rushed through to
lure a potential big-ticket Hollywood movie and a network television series to
the Lowcountry.
Before the House could give the bill final approval, North Carolina and
Georgia lawmakers introduced bills to match, if not exceed, South Carolina's
offering to the industry.
But the Palmetto state fired back Thursday when the House approved an
amendment to put South Carolina back on top.
The rebate on wage taxes and sales tax is 5 percent. The Senate version
bumped both rebates to 15 percent, which North Carolina matched in proposed
legislation.
The approved House version, which now goes to the Senate, keeps the sales tax
break the same but increases the wage rebate to 20 percent. It also increases
the wage rebate's cap from $7 million to $10 million.
"It looks like they want to be a player," remarked Steve Rhea, a
Charleston-area film location scout.
Tommy Melton, publisher of a Charleston-based film-industry publication, said
the changes make South Carolina "the" place to film.
"Before these increases, we competed with every other Southern state," he
said. "The money was so much better (in other locations) that the money talked.
But now we are on a level playing field."
Rep. Bobby Harrell, a Charleston Republican who co-sponsored the legislation,
worked with the governor's office to develop the latest amendment. If it wasn't
changed, the potential $45 million movie and $48 million TV series could have
gone elsewhere, he said.
"The goal is to take advantage of the opportunity to get wonderful publicity
for our state," Harrell said.
Harrell said Gov. Mark Sanford talked to producer Joel Silver, reportedly the
man behind the movie, to make sure the changes would keep him from shooting
elsewhere. Silver, of "Matrix" and "Die Hard" movie fame, owns a home in
Ashepoo.
The state's proposed incentives still would be lower than those in Louisiana,
Nevada and New Mexico. But Film Commissioner Jeff Monks said that combined with
the state's natural assets, South Carolina would be one of the most attractive
packages available.
"It will help make us competitive in this industry," Monks said. "It will
certainly provide a real shot in the arm for the personnel and suppliers working
in the state."
State officials acknowledge that neighboring states could easily boost their
incentives as well.
"It's a game we've been playing for years and we'll continue to keep
playing," Monks said.
Harrell said he didn't think the race among Southern states would continue,
but left room for retaliation if it does.
"We -- probably -- won't go any higher," he said.
John Frank covers state politics and the Legislature from Columbia. Contact
him at jbfrank@postandcourier.com or (803)
799-9051.
