3-Year, $1.5M Funding: SEDA Investment Will Grow Local Film Industry

Staff Report From Savannah CEO

Monday, October 19th, 2015

Savannah and Chatham County are enjoying an uptick in film production as part of the $6 billion generated this year by film and television production in the state.

Georgia is now the third busiest state in the country for entertainment production, behind California and New York.

This success is due at least in part to Georgia’s generous tax credits for film and television production that were enacted in 2008. Production companies can earn up to a 20 percent credit on their costs, including payroll.

If production companies include the Georgia peach logo in the credits, they can earn another 10 percent. And the credits benefit more than the film industry. Filmmakers are entitled to earn 20 percent in credits for their health and travel insurance if they use companies with headquarters in Georgia.

While Savannah is positioning itself as the second leading city for film production — behind Atlanta — the expense of attracting crew members is keeping the Hostess City from even greater success.

Recently abandoned incentives in North Carolina, as well as reduced support in Florida, have left industry workers looking for a place to go. Putting Savannah on the map not only as a short-term filming destination, but also as a city capable of accommodating entire productions, can be accomplished within three years, said Ralph Singleton of the Savannah Economic Development Authority, this summer.

This week, SEDA stepped in and voted to fund a three-year, $4.5 million Savannah Entertainment Production Incentive to attract those in the industry looking for a new home.

The hope is that local incentives, coupled with the state’s already existing perks, will help build a sustainable production industry in Chatham County by increasing both the number of productions filmed here and the number of qualified crew members calling Savannah home.

“It’s a chicken and an egg thing. We would get more work if we had the crews. But we need more crews to get the work,” said William Hammargren, the city’s film services director has said. “We will double the amount of money film productions will bring in, but it’s unrealistic to think we can double the amount of work that will come in because we don’t have the crews.”

Lee Thomas, deputy commissioner for film, music and digital entertainment for the Georgia Department of Economic Development, agrees with Hammargren’s assessment and applauded the SEDA investment.

“Because Savannah has a limited crew base, it has historically been more expensive to shoot there than Atlanta, since productions need to bring in additional workers from nearby markets,” Thomas said. “I believe that SEDA’s incentives will help alleviate this additional cost and that in three years the labor pool will be strong enough to support the increased business.”

The new incentives, which will take effect Jan. 1, will offer $1.5 million per year based on a combination of first-come, first-served and reviewed by SEDA senior staff. Approved projects will get a 10 percent cash rebate on spending in Chatham County, while experienced crew members with at least seven years of experience will get $2,000 in relocation expenses.

SEDA has a good track record in its investments for Savannah’s future. Working with the Georgia Ports Authority, SEDA was instrumental in courting shippers and acquiring large tracts of land to offer sites for warehousing and distribution services.

For the ports authority and SEDA, the project was an expensive and daring leap of faith.

But it was the right vision at the right time and, once implemented, it quickly began distancing Georgia’s ports from the competition. Savannah is now the fourth largest container port in the country.

Likewise, SEDA’s latest investment was a collaborative effort that included city and county governments, the Creative Coast, SCAD and other area colleges and universities.

Team work and a vision can go a long way in helping SEDA succeed in its mission to create jobs, attract investment and grow the regional economy.