No Handout
The Delaware Film Initiative is not a handout. It does not subsidize the industry, or give the industry a grant.
Nearly every state in the union has an incentive program to bring films to their location, and every single one gives money away to try and entice studios there. Some of the most successful programs give 40% and more of a film's budget.
For the films we are seeking to bring to Delaware, that would a check for over $6 million.
That is not the way for Delaware.
We have a better incentive program, and it is because we were the first state to invite a studio in on the ground floor.
Before the initiative began, we brought Joel Newton, Vice President of Hollywood Studios International (currently producing Michael Douglas' next film) to meet with the Film Task Force Committee put together by Representative. Blakey.
At that meeting he said:
"We do not need a handout, what we need are upfront loans, which we are happy to repay."
New Mexico has a program that is giving loans to films, and has been doing so for 6 years. In fact, they've loaned out over $198 million.
They've never had a single loan default, ever.
That's why Delaware's film incentive program has been called the "smartest financing program in the country" by film financier Scott Fischer of Firstar Films, producer of "Bank Job" and "Forbidden Kingdom."
Because while other states are simply trying to recover their losses we start out making surplus tax revenue from day one.
If you read the press on film incentive programs, they sometimes mention that taxpayers find them to expensive - and they are right. We don't believe in a handout, what we believe in is helping a $60 billion industry solve a problem with a smart bill, just like we did with the banks in the 80s.
But that means that while other states may only be getting $0.25 in tax revenue for every dollar they give the film industry, we can get that $0.25 back and our original dollar too!
But we didn't stop there. We also added a "Celebrity Tax" requirement that ensures every star pays W2 taxes in the state of Delaware. We also require anyone using the incentive to employ Delaware companies to produce the film. That means all the tax revenue from the film's production, including on producer's profits, will go to Delaware.
Let your senator and respresentative know, you support the Delaware Film Initiative and appreciate the fact that it doesn't use a subsidy, but a loan to bring the thousands of jobs to the state.
Contact your Senator, Representative
Let Legislative Hall know that you want to see the film industry in Delaware.
Or call (302) 744-4171 and they'll direct you to the right office.
