Film Production Credits: “The Situation” Is More Controversial Than Ever

When it comes to trying to jump start the economy, one method that readily springs to mind is the option of enacting credits targeted to particular industries to encourage economic development. On the surface, offering incentives to industries to locate or expand its operations in a state seems like a pretty good idea.  Despite this theoretical wisdom, however, there is one credit that has come under fire recently in a number of states because of its failure to accomplish its economic goals, and in New Jersey, has even become a source of remorse and political contention.  While film production credits were created to enhance state economies and  promote positive state image in the interest of attracting business, there are those who question whether the original intent of such legislation has been lost, and the credits are actually freebies to an industry that has learned to game the system.

The source of the current controversy in New Jersey centers around the state Economic Development Authority's announcement that $420,000 of that credit has been awarded to the reality show, "Jersey Shore," for the production of its 2009 inaugural season.  As most people who have not been living in the ether know, "Jersey Shore" is a "reality show" that purports to follow the activities of a group of young people who live and work together at (where else) the Jersey Shore.

Needless to say, reaction in certain circles has ranged from complete and utter disbelief to requests for the Governor to veto any award of such credits, an option that is currently being debated. While "Jersey Shore" has gained a significant following (partially due to extensive marketing and a creative use of social networking sites), it has also generated a substantial amount of controversy as assertions have been made that it damages the state's image.  Although one of the original working titles for the show, "Guidos," was rejected for its potential to anger Italian-Americans in the state, its portrayal of the ethnicity of the main characters has still made it objectionable to many people. The focus of the show on the wild party antics and questionable behavior of its main characters has left some to debate the extent to which the show qualifies as a positive step in the development of the television and movie industry in the state.  Neither the extent to which a movie or television show can generate negative publicity, nor the extent to which it can anger some of the state's taxpayers, is a factor for consideration when awarding film production credits.  The award of the credits is based solely on whether the producers are engaging in qualifying in-state production activities of those making the film or television show.

Despite the popularity of "Jersey Shore," the question remains as to whether the production has actually done anything to enhance the economy of the state.  Surrounding businesses in Seaside Heights, the Jersey Shore community in which the show is generally filmed (when they are not jetting off to Italy), report that they have experienced an uptick in business.  The problem here is that all business in that particular area is seasonable, and most of the patrons are transient.  Thus, the filming has not done a great deal to enhance the state economy overall.  

Although New Jersey is currently the most visible controversy, the film production credit has come under fire in other states as well.

The major problem with film production credits is that  The Star-Ledgerthe industry is a transient one, and its activities are generally temporary in one particular location.  While the film production credit has been the subject of debate and even repeal in some states (particularly in the Midwest), the credit has been touted by other states as a boon to the economy. 

One state in particular that has constantly touted its film production credit has been New York.   While certain areas of the state have languished, and the state has had serious problems with their budget, New York taxpayers have subsidized a large number of productions, including television shows such as "30 Rock," "Ugly Betty" and "Law & Order" (in its various incarnations) and movies such as "Sex and the City."  At some point, though, the legislators must ask themselves how much of the revenue from those shows the state (not only New York City) sees, and whether the reason that the productions were filmed in New York really had anything to do with the tax credit.  While many of these shows could be filmed in studios in California, or anywhere else, part of the attractiveness of the show is the New York ambience.  And of course, where else could "Jersey Shore" realistically be filmed other than at the Jersey Shore?

With the economic outlook in many states being increasingly more pessimistic, it is important for the legislators to review the extent to which the economy has benefited from the film production credits, or whether the cost to the taxpayers exceeds the benefit to the economy.

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