A recent study on the film industry’s economic impact in Cleveland revealed a city ready to be competitive on a global stage. However, there is still work to do if the North Coast wants to elevate its modest silver screen success to the next level, maintains Greater Cleveland Film Commission (GCFC) president and CEO Ivan Schwarz.
Last year alone saw 30 productions shot in Northeast Ohio, a figure that could improve further through a more robust motion picture tax incentive than what’s currently available, Schwarz says.
The Ohio Motion Picture Tax Credit, currently capped at $20 million, reimburses production companies 25 percent of what they spend in Ohio and 35 percent of wages paid to residents. The credit has accounted for the equivalent of 1,729 full-time jobs and over $400 million in statewide economic impact since July 2011, according to the study prepared by the Maxine Goodman Levin College of Urban Affairs at Cleveland State University. This is a return on investment of $2.01, meaning for every $1 spent by the state through the incentive, $2 went into Ohio’s economy.
“That's a great number,” says Schwarz.
Great, but it could be better: The GCFC is angling to increase Ohio’s tax credit to keep in line with film-heavy states like Georgia, which offers up to 30 percent in transferable credits. Building sound stations and similar infrastructure would be another means of attracting new productions while creating additional employment opportunities for Clevelanders.
“It’s exciting to see Captain America on the street,” says Schwarz.
“But what really matters is the jobs we're creating.”
The impact study focused on the two-year period after the incentive’s cap increased from $10 million to $20 million. During that time, 71 percent of all Ohio production dollars were spent in Northeast Ohio for hotel rooms, craft services and more. A further tax increase would bump up the already popular region on the list of potential shooting locations, Schwarz says.
“We want this to be part of our income instead of saying, ‘Oh, we got lucky,’ ” he says. “We don’t want to dabble. This isn’t a hobby. At the end of the day, we want to create long-term, sustainable jobs that keep people moving here who want to work in this industry.”