Harrell aims to get film industry incentives rolling

Bill seeks to make S.C. competitive again

COLUMBIA — Now that Hollywood's writers and producers have ended their standoff, state House Speaker Bobby Harrell thought movie production in South Carolina would gear back up.

"You would have thought as soon as the writer's strike ended, people would have flooded in," said Harrell, R-Charleston. "They did do that in other states."

It's a different story here, Harrell said, because of changes the state Department of Commerce made last June in the awarding of film incentives. He announced Tuesday plans to introduce legislation intended to expand wage rebates for in-state as well as out-of-state workers and to create an apprenticeship program for residents to gain experience in the industry.

"We have lost our competitive edge in an industry where tax incentives make or break deals," Harrell said, flanked by legislative supporters and industry insiders.

Barbara D'Alessandro, unit production manager for the Charleston-based "Army Wives" on Lifetime Network, testified to that.

"That is the No.1 thing that film-production companies look for," she said.

The state was booked with nine feature films, a television series and a TV pilot after the Legislature passed a film incentive package in 2005, according to the speaker's office. Since the incentives changed, however, just one new television pilot has been filmed here, although others argue the writers' strike played a role.

The Commerce Department's Coordinating Council for Economic Development modified the incentives in an attempt to ensure the state's return on investment and encourage the hiring of South Carolina residents over out-of-state workers. Another part of the incentives involves enticement for purchases from state suppliers.

Prior to the changes in the incentives, film industry wages for South Carolinians totaled $7.3 million and paid an average $6,880 compared with an average of $20,000 for nonresidents with wages totalling about $35.5 million, according to the Commerce Department. Further, the state paid $8.4 million to create 146 full-time jobs during one year, although more-liberal estimates put the number of jobs created at 7,100.

"We don't think it makes a lot of sense to use South Carolina tax dollars to hire people from out of state and purchase goods from out of state," said Joel Sawyer, press secretary for Gov. Mark Sanford, who oversees the Commerce Department.

Rep. Chip Limehouse, R-Charleston, said the idea is not to offer incentives indefinitely. Rather, it is to use them to build up a foundation for the industry in South Carolina.

"The goal is to get off subsidies eventually," he said. "Incentives are the B-12 shot we need to jump start the industry and remain competitive."

Harrell said the position is solidified by a study released Tuesday by the Moore School of Business at the University of South Carolina that evaluated the economic impact of the state's film incentives.

The study, which analyzed seven productions made here during 2006 and 2007, found that every $1 spent on wage rebates brought $1.30 to the state and every $1 spent on supplier rebates generated $3.86. In all, the projects generated more than $25 million in economic activity.

Martin Bluford, president of the newly formed FilmSC, a nonprofit created to promote the industry here, said restoring the incentives is vital.

"It is the prospect of having a film industry in South Carolina or not," he said.

Reach Yvonne Wenger at 803-799-9051 or ywenger@ postandcourier.com.