Indiana lawmakers OK film tax breaks

BY PATRICK GUINANE, Times of Northwest Indiana
pguinane@nwitimes.com

INDIANAPOLIS | The state Senate voted 36-11 Thursday to override Gov. Mitch Daniels' veto of 2007 legislation offering tax breaks to television and movie projects that film in Indiana.

The legislation, which now becomes state law, will provide a 15 percent tax credit on in-state hiring, purchasing and production costs for feature films, TV projects, music videos and commercials that film in Indiana. Supporters of the measure argue the state needs to compete with tax breaks already on the table in more than two dozen states, including Illinois.

"This bill is about building an industry in Indiana," said state Sen. Vi Simpson, D-Ellettsville.

But the tax breaks are expected to sap roughly $15 million a year from state coffers, which is why the Republican governor rejected the legislation last April. Daniels lit into legislators Thursday for ignoring his cost concerns.

"At the very moment when we are facing a national economic slowdown, and therefore taking every step possible to be even more careful with state tax dollars, when any spare dollar should be used for property tax reduction, legislators have given out $30 million in corporate subsidies, most of which are likely to go to existing businesses and not bring a single new job to our state," Daniels said in a statement.

The House already had voted 77-17 last month to override the governor's veto. State Sen. Jeff Drozda, R-Westfield, said film projects will be eligible to begin receiving the tax breaks in July.