Jack Evans, chair of the D.C. Council’s finance and revenue committee, was frustrated a couple of years ago when the cast and crew for the blockbuster film “Wedding Crashers” set up shop on his Georgetown block, 31st and P streets Northwest.
After only two days, they picked up and moved to Baltimore, where they benefited from tax incentives provided by the Maryland government. It’s the common tale for the District, Evans said: Filmmakers show up, get their obligatory shots of the Washington Monument, U.S. Capitol and White House, and move on.
“What is it that we can do to keep these people here?” Evans asked Thursday, just before his committee unanimously adopted an economic incentive bill for large-scale movie and television productions. “Because they’re already here.”
The bill, which now moves to the full council, establishes the “Film D.C. Economic Incentive Grant Fund,” out of which would come awards to nationally distributed projects that spend at least $500,000 in the city over a period of five or more days. The grants cannot exceed 10 percent of the project’s qualified expenses in the District, or 100 percent of the taxes paid on qualified expenses.
Previous versions of the legislation called for significant sales and hotel tax exemptions, which the Office of Tax and Revenue vehemently opposed for myriad legal and financial reasons. Though he supports the tax exemptions, Evans said he wanted to put a law on the books immediately so that the city could offer incentives to the producers of the upcoming “National Treasure 2.”
“So long as the benefit is bigger than the incentive, it seems like a good deal,” said Council Member David Catania, indicating his support for the bill.
The measure calls for an initial $1.6 million deposit into the fund, but only after the chief financial officer certifies the revenues are available.
“I’m quite pleased with what we walked away with,” said Crystal Palmer, director of the D.C. Office of Motion Picture and Television Development. “But we do need to get that funding in place.”
Maryland’s film incentives
» Sales tax exemption for project supplies and services
» No state sales tax for hotel stays longer than 30 days
» Wage rebate program of up to $12,500 per eligible employee
