Four of the nation's most prominent Governors — Arnold Schwarzenegger of California, George E. Pataki of New York, Rick Perry of Texas and Jeb Bush of Florida — have pooled their considerable influence to advance the interests of their states, including the fight against Runaway Production
Calling their alliance "The Big Four" these governors of the nation's four most populous states have agreed to jointly lobby members of Congress on issues of mutual concern. With a House/Senate conference to reform the FSC/ETI (Foreign Sales Corporation/Extraterritorial Income Tax Regime) to meet beginning in September these governors have sent a formal letter, adorned with the seals of their states, to House Speaker Dennis Hastert; Senate Majority Leader Bill Frist; Senate Finance Committee Chairman Charles Grassley and House Ways and Means Chairman Bill Thomas, urging the inclusion of six provisions of particular importance to all four governors. One of those six is the Runaway Production incentive provision contained in Senate bill S. 1637, the Jumpstart Our Business Strength (JOBS) Act.
"As governors of the four most populous states, we represent over one-third of the nation's gross domestic product," the July 15 letter pointed out. "Our states employ over 43 million people and represent the largest agricultural, manufacturing, technology, tourism and service-based economies in the country."
The Runaway Production incentive provision contained in Senate JOBS Act, allows for the immediate expensing of production costs of qualifying films (75% of production in the United States). The first $15 million in expenditures would be able to be written off in the first year in which the expenditure occurred. Production expenditures over $15 million would be written off over a three year period.
In their letter the governors recognize that billions of dollars and thousands of domestic jobs, both within the entertainment industry and in ancillary businesses dependent on the industry, have been lost to the incentives other countries have enacted to lure U.S. film productions. This provision seeks to level the global playing field.
"As governors of the four most populous states, we represent over one-third of the nation's gross domestic product," the July 15 letter pointed out. "Our states employ over 43 million people and represent the largest agricultural, manufacturing, technology, tourism and service-based economies in the country."
This represents the first time in recent memory that the governors of the nation's four most populous states have entered into a formal agreement to jointly lobby members of Congress.
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