—PHOENIX Employment in Oregon's film industry has grown 75% in five years, Gov. Kate Brown said this week.
Supporters say the industry is bringing economic benefits to the state and its localities despite significant tax concessions the industry receives.
Brown tweeted about the growth and spoke at a celebration of the 100th episode of the NBC series "Grimm," a supernatural police drama filmed and set in Portland.
Oregon is one of more than 30 states that offer tax incentives aimed at attracting filmmakers and television producers.
Oregon's primary incentive program, the Oregon Production Investment Fund, offers cash rebates to productions in the state. Qualifying film or television productions may receive a 20% cash rebate on production-related goods and services paid to Oregon vendors and a 10% cash rebate of wages paid for work done in Oregon, including both Oregon and non-Oregon residents.
Tim Williams, executive director at the Governor's Office of Film & Television, said he believes Oregon has some natural advantages in attracting filmmakers but that the industry also helps drive lasting economic growth.
"We're not that far from Los Angeles, and we're not Canada," Williams said, meaning that Oregon offers a location convenient for Hollywood without the hassle of doing business in a foreign country. Williams said that Oregon's incentive program is not as robust as that offered by a number of other states, particularly because the OPIF rebates are capped at $10 million annually and generally hit that cap very quickly. But he said it provides the state with the ability to compete for those productions that might otherwise not consider Oregon.
"The incentive program allows us to have a seat at the table," Williams said.
Besides "Grimm," Oregon is also home to the IFC comedy "Portlandia" and was also the principal shooting location for the 2014 Reese Witherspoon film "Wild," even though much of the film was set elsewhere.
A 2011 Northwest Economic Research Center study commissioned by the film office found that "the employment returns for the program are strong, but the tax revenue raised through increased activity did not fully fund the program." But the same study noted that Oregon's and Portland's economies would likely take a hit in the absence of the program and the out-of-state productions it helps attract.
"If the incentive program was eliminated and out-of-state productions disappeared from Oregon, it would most likely have negative effects on the rest of the industry as skilled workers moved to areas with steadier, high-paying work, which would hurt other supporting industries," the study found.
Williams said that the state's film industry is not fully reliant on Hollywood, and that "Portlandia" and "Grimm" have contributed to a positive rebranding of Oregon that has led to a stronger in-state industry as well, employing more people and contributing to the tax base.
"In the past five years we've seen people move here that want to work here," Williams said.
The state plans to produce another economic impact study of its film industry next year, Williams said.
