U.S. Senator Blanche Lambert Lincoln (D-AR) with co-sponsors Senators John Breaux (D-LA), Richard Durbin (D-IL), Mary Landrieu (D-LA), Rick Santorum (R-PA) and Olympia Snowe (R-ME) have introduced bipartisan legislation today called the U.S. Independent Film and Television Production Incentive Act of 2001 (Senate Bill No. 1278) designed to level the playing field for American businesses and workers in the increasingly competitive worldwide marketplace for motion picture production.

Aimed at keeping film production--and the revenue and jobs it generates--in the U.S., the U.S. Independent Film and Television Production Incentive Act of 2001 would, among other things, create a targeted wage tax credit for low budget independent productions filmed in the U.S.

According to a study issued earlier this year by the U.S. Department of Commerce, foreign tax incentives designed to lure film productions offshore are costing the American economy more than $10 billion per year.

The government study concludes that the losses are not limited to the entertainment industry, but have also deeply impacted small businesses that service the industry throughout the United States, including hotels, restaurants, catering companies, equipment rental facilities, transportation vendors and many others.

Senate Bill 1278 would provide a wage tax credit for productions of films, television or cable programming, mini-series, episodic television, and movies of the week that are produced in the United States with total wage costs between $200,000 and $10 million. The amount of the wage tax credit, in most cases, would be 25% of the first $25,000 in qualified wages per employee. In low-income areas that qualify under the existing "new markets" tax initiatives, the credit would be 35%.

"Over the past decade, production of American film projects has fled our borders for foreign locations, a migration that results in a massive loss for the United States economy," said Senator Lincoln. "My legislation will encourage producers to bring feature film and television production projects back to cities and towns across the United States.

"The benefits of hosting such productions do not flow only to the film and television industry. These productions create ripple effects, with revenues and jobs generated in a variety of other local businesses. We need to level this playing field, and this bill will assist in that effort.

"Arkansas has been proud to host the production of many feature and television films, with a history that includes the opening scenes of Gone With the Wind, civil war epics like Blue and the Gray, North and South, Soldiers Story, Biloxi Blues, Legend of Boggy Creek, and most recently Sling Blade.

"There is a lot of local interest and support for the film industry in Arkansas. My bill will make it possible for us to continue this tradition and we hope to encourage more of these projects to come to Arkansas."

The most recent U.S. government and industry measurements of economic activity indicate that motion picture and television production generates revenue of more than $50 billion per year, employing directly or indirectly more than 630,000 Americans.

Senator Lincoln's legislation is strongly supported by a broad alliance of guilds, organizations and small businesses representing hundreds of thousands of American workers, including:

• Academy of Television Arts and Sciences
  
• American Film Marketing Association
  
• Association of Independent Commercial Producers
  
• Directors Guild of America
  
• Entertainment Industry Development Corporation
  
• Film US (an association of nearly 200 national, state and local film commissions)
  
• International Alliance of Theatrical Stage Employees (IATSE)
  
• Southern California Chapter of the Association of Imaging Technology and Sound (ITS)
  
• Producers Guild of America
  
• Production Equipment Rental Association
  
• Recording Musicians Association
  
• Screen Actors Guild
  
• Theatrical and Television Motion Picture Special Payments Fund

The U.S. Conference of Mayors is also an active supporter of the wage credit and related efforts of the alliance.

The alliance of guilds, organizations and small businesses is currently working with a bipartisan group in the House of Representatives where similar efforts are being pursued.

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CONTACTS:

• ATAS: Meryl Marshall (323-669-0824)
  or Dick Askin (323/460-5800)
  
• AFMA: Jean Prewitt (310- 446-1002)
  
• DGA: Chuck Warn, Janine Alexander (310-289-5333)
• EIDC: Morrie Goldman (323-957-1000 x 122)
  
• Film US: Dawn Keezer (412-261-2744 work) (412-512-8750 cell)
  
• IATSE: LindaJo Loftus - publicist (310-455-9181) or Joe Aredas, International Representative-In-Charge (818-980-3499)
• ITS: Bob Solomon (310-434-6504)
  
• Motion Picture Fund: Dennis Dreith (323) 966-2966 X810
• PGA: Vance Van Petten (323-960-2590 x104)
  
• PERA: Ed Clare (818-906-2467)
  
• RMA: Phil Ayling (323-462-4762)
  
• SAG: Greg Krizman (310-549-6652)