The Wall Street Journal is reporting that movie producers in a cash starved Hollywood are basing major creative decisions on financial considerations, namely, where they can get the biggest tax incentives and government subsidies.
For example, the paper’s Lauren A. E. Schuker writes that producer Ingo Vollkammer changed the location of a planned action thriller, titled ‘Velocity,’ three times, from Texas, to Madrid, to Berlin and, finally, Montreal. Each of these changes required script rewrites.
‘Velocity,’ which reportedly stars Halle Berry, moved to Madrid in 2007, as the weakening Euro and government subsidies would help save millions. Then Germany offered to absorb 40% of the budget if Vollkammer moved the shoot there and used a German director. Then the Euro strengthened, so another rewrite set the film in Montreal. Vollkammer ultimately plans to shoot ‘Velocity’ in Canada, in March, with a German director, securing both subsidies and tax incentives.
The climactic final scene was moved from a U.S. government building to a Madrid train station to the Olympic Stadium.
“I realized I can’t be too fussy about the creative elements of my movies,” Vollkammer told the paper.
The WSJ also says “The Men Who Stare at Goats,” a comedy about military intelligence that stars George Clooney and is partially set in the Middle East, was shot half in Puerto Rico and half in New Mexico. Both places offer large tax incentives, which shaved about 15% off the final budget.
Many countries and states have been increasing tax incentives and subsidies in hopes of attracting film production dollars. Both independent producers and major studios are taking advantage — Warner Bros. shot Clint Eastwood’s ‘Gran Torino’ in Detroit after Michigan enacted its tax credits.
In 2008 New York state announced plans to triple tax credits for film and television productions. And in February 2009, California Governor Arnold Schwarzenegger signed legislation creating better tax credits for the same, while Ontario, which had recently hiked its credits, opted to make them permanent. These coffers, however, are not bottomless and, also in February 2009, it was announced that New York had already run through the $515 million set aside for the tax credit program through 2013.
(Photo by PR Photos)