Diversifying the Alaskan Economy….an Attempt

So…. the Alaska State House Finance Committee sits on a bill that would extend the Alaskan Film Production Tax Credit for three more years.  Who cares…right?

Wrong!

The AK Film credit works like this.  Production Companies apply for the credit…submitting a script….or scope of the project.  The AK film office decides if this project will enhance the Alaskan economy.  If it’s a go, upon completion an Alaskan accountant will audit the spending.  The base tax credit is 30% but can go up to 44% if the production company pays Alaskan residents wages, makes expenditures in AK during the off season and pumps money into rural economies.

Based on their entitled percentage…production companies can sell their tax credit to Alaskan businesses that pay uber taxes…..LIKE OIL COMPANIES!  Production companies usually sell their credits for 80-90% of their true value.  However, those AK companies who buy the tax credits can write them off at their FACE VALUE when paying their AK taxes.  What fun!  It’s not a 2 billion dollar cut in taxes….but every little bit helps…doesn’t it?

OK…so “Everybody Loves Whales” wrapped up shooting and ….Voila!  $16.5 million gets pumped into the AK economy!  No drilling…no oozing black stuff pouring into the ocean or onto the tundra…no fish being annihilated …and spawning beds are still safe and fun to spawn in.

…but wait

Not only is there one movie….another movie starring John Voight was filming at the same time.  Additionally several reality TV shows have found a home under the AK film credit:  “Deadliest Catch” (although, this one was already underway before the tax credit)…”Ice Road Truckers”….”Sarah Palin’s Alaska” (God, help us)….”Alaska State Troopers” and “Cowboys of the Sea”….ALL SINKING THEIR MONEY INTO THE ALASKAN ECONOMY.

An unexpected outcome of all this Alaskan Hollywood business is the insatiable interest in Alaska.  Who needs the Las Vegas Alaskan Tourism shrine when you have hours of free advertising!!

In a discussion with Representative Pete Petersen I discovered that because of the “Alaska State Troopers” reality program, this is the first time they have been able to fill all their positions.  Calls are coming in from those asking how they can become a Trooper in AK.

Though Alaska has had a fledgling film industry there is now a potential solid market for those trying to forge a career in film.  The University of Alaska in Fairbanks has just approved a Bachelor of Arts in Film.   A few days ago, I opened my classes to two forward thinking teachers who are offering film classes during the ASD summer school in Chugiak and Dimond.  Not only does that mean we can grow our own film talent and we can keep them working in AK….but perhaps we won’t see as many horrid local commercials and PSAs!  

We’ve been listening to the cries for economic diversification.  This is a no brainer!!!  And yet….the House Finance Committee sits on it after it was passed unanimously in the Senate…it won’t move out of finance until session begins again in January next year.  After all….it’s Johnny Ellis’ bill….he didn’t allow for the oil company $2 billion tax cut that was passed by the House.  That’s it….hold the prosperity of Alaska hostage while the House plays it’s little vindictive games.  “The smelly kitchen of politics…”  -Creon , Antigone

Andrea Lang