Tax Credit Legislation Expected to Bring More Film Productions, Concerts to Missouri

      More television, movie, and concert productions could be coming to Missouri after the legislature approved tax credits targeting the entertainment industry. 

Representative Michael O’Donnell (Photo: Tim Bommel, Missouri House Communications)

      The “Show MO Act” created credits for up to 30 percent of qualifying expenses for live entertainment and tour expenses, if certain conditions are met.  It created credits equaling 20 percent of qualifying film production expenses, with additional credits available if more conditions are met.

      Senate Bill 94 had broad bipartisan support on its way through the House and Senate, and was signed into law by the governor last month.

      Representative Michael O’Donnell (R-St. Louis) said with tax credits, the first consideration is always whether they are fiscally responsible.

      “I always wonder do we really get our money’s worth, and I feel like there was so much built into this one that I felt like the answer to that question was yes,” said O’Donnell.

      “We really worked hard to try to make it as conservative as possible while at the same time leveling the playing field so Missouri can compete with other states,” said Cape Fair Republican Brad Hudson regarding the concert portion of SB 94.  “These kinds of concerts could be held in numerous different places within our state, and we’ve seen when a big name entertainer comes to town, the kind of revenue that that generates for a community is definitely notable, and I expect that we will see more of that after this legislation takes effect.”

      For an artist to qualify for the credits they must perform at least two concerts in the State of Missouri.

Representative Brad Hudson (Photo: Tim Bommel, Missouri House Communications)

      The only other state that offers tax credits to concert productions is Pennsylvania, which recently increased the cap on its credits due to their success.  Hudson said due to geography alone, Missouri could fare even better.

      “I am confident that this great state that we all know and love, when we can compete with other states we will win every day of the week because of where we’re located in the country, because of the people that we have here, and the resources that we have.”

      O’Donnell said Missourians could also get more opportunities to see their favorite artists.

      “They get a shot at seeing some entertainer that they wouldn’t otherwise see, who are in a lot of cases going to be doing one show on one side of the state and one on the other.”

      The state’s previous film tax credit program expired in 2013.  Since then the state has hosted little in the way of television and motion picture filming, while some major projects – even ones set in Missouri – have gone elsewhere.  The new law puts Missouri among 39 states that offer film incentives.

      Representative Steve Butz (D-St. Louis) has a brother in the film and live theater industry, who this past spring moved to Georgia to film a movie that might otherwise have been filmed in Missouri.

      “He, just as an actor, said hey, you know that Georgia has these film tax credits and the film industry has exploded in Georgia even to the point that Ozark, the show that was a huge success and was meant to be filmed, and it certainly is about, the Missouri Ozark region, was filmed in Georgia, as was this movie that my brother just filmed.  He said it absolutely is attracting and creating a film industry,” said Butz.  “He said Missouri is losing out on this.  You don’t have hardly any TV shows filmed there, you don’t have movie sets coming there.  They might use a few shots like to simulate something from the Midwest, or if it has to do with St. Louis or Lambert Airport or something, but they’re not actually moving the sets and the crews there.”

Representative Steve Butz (Photo: Tim Bommel, Missouri House Communications)

      The benefits of having things filmed in Missouri aren’t just financial.  There’s a boost to the very morale of communities, and that often spans generations.

      “There’s the hard to measure benefit of civic pride when a major movie comes to town.  The stars stay at your hotels, they’re seen publicly, your local people get to be the extras in the movie, and it just brings a lot of excitement.”

      The film tax credits are capped at $16-million dollars.  In addition to the 20 percent credit for qualifying film productions, another 5 percent can be earned if at least 15 percent of production takes place in a rural or blighted area; another 5 percent can be earned if a certain number of Missourians are hired; and another 5 percent is available if the production depicts Missouri or the region in a positive light.  The Department of Economic Development will decide which productions are approved.

      “It’s good for business, it’s good for the industry, it’s good for civic pride, and there is a solid return on the dollar,” said Butz.

      As with all tax credits, these will be reviewed annually by the legislature to ensure that they are benefitting Missouri.  As O’Donnell put it, “What’s the return on investment?  The state’s taxpayers are making an investment.  What are they getting back?  I think in this case we’re going to find ourselves very positive.”

      The legislation becomes effective August 28.  The new tax credits would expire in 2030 unless a future legislature and governor agree to extend them.

Legislature votes to incent film productions, touring musicians to come to Missouri

      With the third piece of statutory legislation to reach the governor this year the legislature tries to bring more entertainment industry projects and the dollars that come with them to Missouri.

Representative Kurtis Gregory (Photo: Tim Bommel, Missouri House Communications)

      House lawmakers have for years bemoaned the fact that major motion picture and television productions bypass the Show-Me State for states with better incentive packages – even productions that are set in Missouri

Senate Bill 94 would establish tax credits for film projects starting at 20-percent of specified costs, with opportunities for additional credits as other criteria are met.

      Dubbed the “Show MO Act,” House handler Kurtis Gregory (R-Marshall) said the program is well thought out.

      “Investments have to be made inside the state before the credits are handed out,” said Gregory.  “The Department of Economic Development will kind of have the final say in whether or not the credit goes out if it meets the program.”

      Improved film tax credits have been considered by Missouri legislators for years.  They often noted that when the 2014 movie Gone Girl was filmed in Missouri it brought $7.8-million to the state while hiring more than 110 Missourians and more than one thousand more appeared as extras. 

      More often, however, other states have won out on productions of stories that take place in Missouri because they have better incentive packages.  The Netflix series Ozark, even though it unfolded around the Lake of the Ozarks, was filmed in Georgia.  Even scenes taking place in the Missouri Capitol were filmed in Georgia’s capitol.

      Gregory told colleagues, “When film producers call the State of Missouri, call the state film office to say ‘We want to film this movie here,’ and they ask the next question, ‘What’s the incentive program in Missouri look like?” and when our film office has to then say, ‘We’ve got really great locations,’ because they can’t answer the question on whether or not there’s incentives in Missouri, there’s great business leaving this state.”

      SB 94 would allow film productions additional credits when at least half of filming is done in Missouri; at least 15-percent takes place in rural or blighted areas; at least three of a project’s departments hire a Missourian ready to advance in their field; or the project positively portrays the state or something in it.

      The bill also aims to bring more music industry dollars to the state by authorizing credits for rehearsal and tour expenses for live tours and associated rehearsals. 

Representative Steve Butz (Photo: Tim Bommel, Missouri House Communications)

      Legislators laid out limits for these credits as well, as Gregory explained.  “There must be at least $1-million spent with Missouri music vendors, they’ve got to rehearse in a qualified facility for a minimum of ten days, they also have to then do two concerts within the State of Missouri.”

      Those credits would be for 30-percent of tour or rehearsal expenses, capped at $1-million if expenses are less than $4-million.  No taxpayer could get a credit greater than $2-million for expenses between $4- and $8-million; nor greater than $3-million for expenses exceeding $8-million.  Combined credits are limited to $8-million per fiscal year.

      The film tax incentives would expire at the end of 2029 unless the legislature votes to extend them.  The tour and rehearsal credits would expire at the end of 2030 unless extended.

      The bill has broad bipartisan support, with lawmakers in both parties wanting to bring more entertainment industry proceeds to Missouri.  Representative Steve Butz (D-St. Louis) said as has happened with other businesses, the tax credits might get this industry to come to Missouri only to later stay and stand on its own.

      “Here’s another example where we take some help from government to prime that pump, got people willing to do business here,” said Butz.

      “Both of these bills are well-needed.  It’s going to drive industry and economic development to the state,” said Gregory.

      The House voted 113-45 to send that legislation to Governor Mike Parson (R) for his consideration.