Film bill losing its luster in Senate
No action expected on giving tax cuts to movie companies
Legislation that would give film companies state tax breaks for building sound stages and other facilities in Massachusetts appears destined to flop.
While the House debated for hours last night on a bill to allow film companies to claim a 20 percent tax credit for constructing sets and sound studios, Senate President Therese Murray said her chamber had no intention of taking it up before the end of the legislative session next week.
"I just don't think it's something that's affordable," Murray said yesterday in an interview. "It's not the top of our agenda."
She said lawmakers' time would be better spent on assessing a package controlling healthcare costs, approving bond bills, and reviewing the governor's budgetary vetoes.
"I don't think there's another bill that can come through here," Murray said.
The House debated for several hours last night before approving an expanded set of tax credits for film companies. House lawmakers also voted to expand the tax credits to the video game industry. But without the Senate going along, the legislation will die.
"That's too bad," said Representative Brian P. Wallace, a South Boston Democrat and a chief supporter of expanding the film tax credits. "It's a blow to the industry. We shoot movies here, but we don't make them."
The state already offers incentives to the film industry through a 25 percent tax credit enacted in 2006. The credits cost the state about $100 million a year, according to the state Department of Revenue. But, supporters argue, the credits help bring money to hotels and restaurants, not to mention the cultural cachet of having film celebrities regularly visiting Boston.
As the competition from other states increases - Michigan, for example, raised its tax credit to 42 percent this year - lawmakers have been looking to draw even more films to Massachusetts. Last month, Governor Deval Patrick met with several film studio executives in California.
Seven major-studio films have been shot in Massachusetts in the first half of 2008, and two more are scheduled for the second half, according to the Massachusetts Film Office. In comparison, two were made in Massachusetts in 2006.
The proposal would have directly benefited projects in Weymouth and Plymouth.
Plymouth Rock Studios, founded by former Paramount Pictures executives, plans to build a $422 million facility in Plymouth that would produce movies and weekly television shows and lease space to other moviemakers. The House bill would give it an $84 million tax break.
International Studio Group, which hopes to build a $300 million sound studio at the former South Weymouth Air Station, would receive $60 million yearly in tax credits, money company officials say they need to undertake the project.
Murray said companies should become more established before they start receiving tax breaks from the state, and she added that the company in Plymouth would still build the studio, even without the incentives.
"If you're serious, build it, start operating it," she said.
Company officials could not be reached last night for comment.
Matt Viser can be reached at maviser@globe.com. 