A bill sponsored by Rep. Dave Gallik, D-Helena, removes a $1 million cap on incentives and increases tax credits passed in 2005 that are offered to moviemakers who film in Montana, hire local workers and spend money in the state.
The House endorsed the measure, 65-35. A final vote is scheduled Monday.
"This film incentive industry, in particular for those who are looking around, it is competitive," Gallik said. "Forty states have some sort of incentives. We are about in the middle of the pack."
His proposal would increase from 12 percent to 14 percent a credit on the first $50,000 of the salary of a Montana resident working on a film production. It would also bump up the credit for certain types of spending in Montana from 8 percent to 9 percent.
Dubbed "The Big Sky on the Big Screen Act," the same bill was one of Schweitzer's top priorities when it was introduced last session, but passed with the reduced incentives. Some Republicans last session objected to what they saw as giving tax breaks to wealthy Hollywood producers instead of Montana business owners.
Rep. Ed Butcher, R-Winifred, voiced those same concerns Saturday, and suggested putting off the increases until next legislative session to see if "(producers) put their money where their mouth is."
"My concern is we have not received any accounting yet because the tax year is not in yet," he said. "We don't have any idea what we really got out of these companies."
Other opponents called the bill bad economics and said the state shouldn't be subsidizing multibillion dollar companies on the backs of Montana taxpayers.
"Since when should big business be treated like a welfare recipient?" Rep. Roger Koopman, R-Bozeman, said.
Supporters argued film productions, many of which are run by small companies, provide jobs and bring in big bucks to small communities. The incentives are also a way to keep Montana filmmakers in the state, they said.
Gallik cited figures from the state Department of Commerce showing production companies spent $7 million in the state last year _ a 25 percent jump over 2005.
The Montana Film Office has attracted 23 productions to the Treasure State since the tax breaks were passed in 2005, he said, but has also lost several others "because our incentives weren't up to speed with the surrounding area."
The bill is House Bill 40.
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