Film rebates given top billing

Lights, camera, action: Sean Penn, left, performs in a scene from “Milk,” which was filmed in The City last year. The Board of Supervisors is slated to vote on legislation that would increase incentives to film in S.F. (Cindy Chew/The Examiner)

SAN FRANCISCO — If you pay them, they will film.

That’s the gist behind offering moviemakers a larger rebate for filming in San Francisco, a move aimed at breathing new life into The City’s ailing movie industry.

The film industry, which boomed in the 1990s, reached an all-time low in 2003 and the first half of 2004.

The loss of movie magic in San Francisco comes with an economic toll. Between 2001 and 2006, 1,099 film-industry jobs were lost, along with more than $123 million in spending and more than $8.4 million in tax revenue, according to a Film Commission report.

In an effort to reverse that trend, the Board of Supervisors is scheduled to vote on legislation Tuesday that would increase the cap of the current film-rebate program.

The incentive under the proposal depends on the production’s budget and spending. The recent $22 million production of “Milk” received a $99,215 rebate from The City. Under the new proposal, it would have received $188,631, which is what producers spent on city payroll taxes and fees.

“The rebate program has been underutilized largely because of the restrictive nature of what costs are eligible for rebate,” Supervisor Michela Alioto-Pier said during last week’s Budget and Finance Committee meeting on her legislation to lift the program’s cap.

“San Francisco must do more than to just rely on our good looks or the occasional San Francisco story line to bring in productions,” said Alioto-Pier, who introduced legislation creating the rebate program in 2006. “If we don’t, our artists, our actors, directors [and] camera-rental companies will continue to move away until we no longer have the support infrastructure needed to make films locally.”

Advocates of a film rebate said it’s a small price to pay for the economic benefits film activity generates, from restaurant sales to tourism.

The new film-rebate legislation will also likely include a provision to create more jobs in The City. The Budget and Finance Committee sent the legislation to the full board for a vote on the condition that an amendment is made to ensure any production benefiting from the rebate hires locally.

A much larger debate about the film-rebate program is expected in coming months since it’s scheduled to expire in June. That debate is expected during discussions about San Francisco’s proposed budget for the fiscal year beginning July 1. The City must close a projected deficit of more than $460 million, and many services and jobs are on the chopping block.

Luring filmmakers

Recent productions would have received a larger rebate if a current proposal had been place.

How recent film activity benefited city workers

Source: Office of the Budget Analyst