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Montana’s Film Incentive Bill Signed by the Governor

Montana Film Office Wins Top Award for Advertising

Montana gained more traction in the film recruiting arena
with the passage of House Bill 40 – The Big Sky on the Big Screen Act –
which was signed into law May 3, 2007.

"This is an important part of Montana’s economy, and we aim to grow it,"
Governor Schweitzer said upon signing the bill. "Film and television
production brings new dollars into our economy, and puts our state in
the spotlight for the world to see."

The legislation, sponsored by Representative Dave Gallik (D-Helena) and
Senators Kim Gillian (D-Billings) and Bob Hawks (D-Bozeman), is designed
to encourage film production in Montana. The measure gives production
companies a 14 percent incentive rebate on all Montana labor hired for
film production and a nine percent rebate on all production-related
Montana expenditures including lodging, equipment rental, fuel, lumber
and construction materials.

"This legislation will significantly increase tax revenues and jobs for
our young, talented university graduates," said Montana Department of
Commerce Director Anthony Preite. "It is a tool to improve the clean,
creative, year-round film industry we already have. The benefits to
Montanans are endless."

This is an improvement over the original Big Sky on the Big Screen bill
that was passed during the 2005 legislative session. The 2005 bill
provided for a 12 percent tax credit on Montana labor used during
filming, and 8 percent for money spent on goods and services in Montana.
But it also capped the tax credits on the first million dollars spent.

While raising the percentages on the tax credits is a priority to stay
competitive, the most significant benefit derived from this revision of
the Big Sky on the Big Screen Act is that the $1 million cap was
removed.

"The cap effectively put us out of the running for any project larger
than $10 million," Montana Film Office (MFO) Manager Sten Iversen
explained. "There are too many states ahead of us with tax credits and
caps of $7 million to $10 million, or no cap at all."

Courting Hollywood has become an increasingly competitive endeavor.
Iversen just returned from a Los Angeles trade show where more than 300
film offices worldwide were in attendance trying to lure film producers
their way. In the two years since Montana enacted their original film
bill, Montana’s incentives have been surpassed by nearly 16 states. HB
40 moves Montana back up the ladder about six rungs. According to a
panel of Hollywood insiders who presented at Montana’s 2007 Economic
Development Summit in Butte last week, Montana needs to keep their
incentives competitive to remain attractive to film companies. The
panel, which included production executives from Disney, applauded
Montana for their efforts in updating the legislation and being
proactive in attracting production.

In other film news, Montana was recently honored for its advertising
work promoting film production in the state. The Association of Film
Commissioners International (AFCI), the worldwide professional
organization of film offices, honored national and international film
commissions with the AFCI annual marketing awards. The MFO won the top
award for color advertising for their "Leave Your Passport, Bring Your
Vision" campaign, which was designed by their advertising agency, Wendt
Advertising. The judges, whom consisted of film industry professionals,
selected Montana’s winning entry over submissions from film commissions
from around the world.

"For our Film Office to be recognized for their work among this caliber
of competition is very exciting," said Governor Schweitzer. "I applaud
their outstanding work and I am confident their advertising is catching
the eye of film producers as well!"

The Montana Film Office is a part of the Department of Commerce and
promotes filming in Montana as a means of economic development. In
2006, Montana’s film industry generated $7 million in film production
spending within the state. Film production created 122 full-time
equivalent jobs in the film industry and 57 full-time equivalent jobs in
the general economy. In addition, the film industry contributed
$560,000 of tax revenue to the state.

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Marissa Kozel
Public Information Officer
Montana Department of Commerce, Director’s Office
406-841-2772
[email protected]

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