LIGHTS, CAMERA, ACTION! Growing the film and music industry in Arkansas. BY GREG NABHOLZ
MATTHEW MARTIN
T
he creative economy is one of Arkansas’s largest economic sectors, employing thousands of people. While The Natural State continues to produce more than its fair share of talent in the film and music industry, most of this incredible talent leaves the state to pursue careers in other places. This out-migration trend may be turning, as the impact of COVID, advances in technology, improved infrastructure and a low cost of living and doing business combine to make Arkansas more attractive. New economic development legislation passed in the last six years and the formation of statewide, industry-focused education and advocacy programs aim to retain talent. And organizations such as Arkansans for the Arts work to develop an ecosystem in which creative industries can thrive and homegrown talent can stay here at home. The Arkansas Cinema Society, for example, is a statewide nonprofit whose mission is to be an umbrella organization for all things film. It successfully pushed for enhanced film incentives during the most recent legislative session. When Act 797 becomes law in July, the existing film rebate payable through the governor’s discretionary fund will be maintained, and the act also creates a transferable tax credit of 20% to 30% of qualified purchases, with a $4 million annual fund allowance. It also adds an extra 10% rebate or credit for veteran hires and veteran-owned businesses. “It’s our hope that the new tax credit will make it possible for the state to sustainably incentivize more productions every year so that more Arkansas filmmakers can both live and work in the state that we all love,” Arkansas Cinema Society Executive 46 | BLOCK, STREET & BUILDING VOLUME 7 | 2021
AMBER LINDLEY/PRODUCER ON THE WESTERN DISTRICT DOCUMENTARY
A scene being filmed for The Western District Documentary (2020) at Farm Studios in Northwest Arkansas.
Director Kathryn Tucker said. “Most universities and colleges in Arkansas now have budding film programs and they are growing. This bill is about creating job opportunities to keep our talent at home in Arkansas. This is not about Arkansas giving money to outside companies, it is about employing Arkansans in Arkansas with outside money.” This legislation will put Arkansas on the same path as many other states that used tax credits to build strong filmmaking ecosystems. One limitation to Act 797, however, is that the transferable tax credit annual allowance is capped at $4 million. Because film production generates new revenue, the tax credit comes out of revenue that would not have existed in the first place. Case in point: In 2005 Georgia capped their annual credit at $10 million, which was increased to $140 million in 2010. By 2012, Georgians realized they were essentially capping their own ability to create new revenue and jobs, market their state and promote tourism. So Georgia uncapped their film tax credit altogether. This resulted in $2.9 billion in direct spending in the state and an $80 billion economic impact in 2019. That’s why more and more “Made in Georgia” credits with that iconic peach are viewed by millions of people daily. New Mexico, a state with a smaller population than Arkansas, recently doubled their tax credit cap from $55 million to $110 million. Cities and regions are stepping up with their own incentives, offering things like moving allowances and bonuses, dedicated housing for artists and workers, new mixed-use film/music production studios and local sales tax rebates on film and music production.
