Reforming the film program: changes needed for Alaska business.

• Author: Harrington, Susan
• Position: FROM THE EDITOR

SB23 is expected to become active once the State Legislature convenes this month and may actually be one bill that passes before this legislative session is over. There is a sense of urgency by some to hurry up and pass it to prevent the Alaska film production incentive program from expiring next year. While many believe changes are needed to the program and this bill has several, some of these changes don't help Alaska business.

SB23 includes a 10-year, $200 million expansion of film tax credits; program audits every four years (2013, 2017, 2021); three years to spend at least $100,000 instead of two years; six years to use the credit instead of three years; six years to bring a lawsuit instead of one year--to name a few of the changes.

There are revisions to qualifying criteria language, i.e., "... the film office may consider [(1)] the effect of the production on (1) both the immediate and long-term prospects for the film industry in Alaska; (2) both the immediate and long-term prospects for the employment of Alaska residents; (3) both the immediate and long-term prospects for the economy of the state; and (4) the public perception of state policy on the utilization and development of the natural resources of the state."

Another change is the addition of a secrecy clause: "Sec. 12.AS44.33.234 is amended by adding a new subsection to read: (c) Information submitted in an application under (a) of this section is confidential and is not subject to inspection or copying under AS 40.25.110 -40.25.125." This speaks to the requests for more transparency to the program.

There's language requiring the CPA verifying qualifying expenditures to be licensed in Alaska, and that qualifying expenditures must be made by a production company licensed to do business in Alaska, and the expenditures must be made for work done in Alaska (but not necessarily by Alaskans).

There's a new requirement for end credits to include the film office logo and the words, "Filmed in Alaska with the Support of the State of Alaska and the Film Office, Alaska Department of Commerce, Community, and Economic Development" or not. The other option is "on each DVD or other media produced for distribution, a short Alaska promo...