Indiana Playing Catch-up after Film Tax Incentive Program Expired in 2012
Indiana, long known for its most famous film “Hoosiers” is looking to move into the film tax credit incentive landscape as their most recent incentive program expired in 2012. Lawmakers have introduced HB 1219 to create a program to get Indiana back on the map for production with a proposed annual credit cap of $15 million. “Hoosiers” tells the story of a small-town high school that improbably won the state basketball championship in 1954 and the movie became an instant classic of Indiana lore. While the film was entirely shot in Indiana, the state has hosted relatively few productions even while its previous program, lasting from 2007 till 2012, was in effect. With neighbor states Illinois and Ohio regularly hosting productions and adding to their programs, proponents of the legislation hope Indiana can reap the economic benefits production provides.
The bill stipulates that at least $35,000 of qualified expenditures must be incurred in state and that 50% of all expenses be spent in Indiana. Productions can receive credit for 30 percent of in-state labor expenditures or 20 percent of in-state production expenditures or 35 percent of Indiana workforce training expenditures. Proponents of the credit note that if “Hoosiers” were shot today, it probably would be filmed in Illinois and Ohio based on their incentive programs. While hit TV series set in Indiana like “Stranger Things” and “The Middle” capture the state’s atmosphere, both were filmed elsewhere based on production incentives. Indiana provides a strong backdrop for shows like these and with new legislation lawmakers hope the local Indiana economy can prosper as well.