Lawmakers consider future of film tax credit

By: NBC 10 News | NBC 10
Published: February 25, 2010

PROVIDENCE -- Representatives of the film industry packed a State House hearing room Wednesday, trying to save the state’s motion picture tax credit.

Director Michael Corrente and actor James Woods were among those in attendance.

Supporters say the tax credit gives filmmakers an incentive to film in Rhode Island and that it pumps money into the local economy.

But Gov. Don Carcieri wants to eliminate the tax credit. He says the return on investment is not there and that a lot of money spent on film projects in Rhode Island doesn't actually go to Rhode Islanders.

Steven Feinberg, the director of the Rhode Island Film and TV Office, said about $50 million in film tax credits have been handed out over the past five years, meaning filmmakers have spent about $200 million on productions in Rhode Island.

"Let me tell you something, these companies spend the money so people can hire extra people in their delis or in their restaurants or at the car rental place. They actually spend the money. They feed the small businesses," Feinberg told the House Finance Committee.

The law provides a 25 percent tax credit for all spending in Rhode Island. The company must spend a minimum of $300,000 and more than half of the project must be filmed in the Rhode Island.