In January, a bill that would repeal the sunset date on tax rebates for film productions in rural Utah communities was proposed to Utah’s legislative government. If approved, the bill will take effect in May.
H.B. 78, the Motion Picture Incentive Amendment, was introduced in the 2024 legislative session to replace the 2022 bill S.B. 49, the State Film Production Incentive Amendment. Both of these bills allow the state government to return a certain amount of tax money back to production companies that have made films in smalltown Utah at the end of each fiscal year, encouraging these companies to select those locations for their production.
In order to receive the financial bonuses, the productions would need to adhere to subsection 63N-8-104 of the Economic Opportunity Act. This section outlines standards and limitations between the state office and the motion picture production or digital media company. These rules ensure that film companies will operate in a way that “stimulates economic activity in rural areas of the state.”
After the first bill was passed in 2022, the production for “Horizon: An American Saga” selected Moab as its filming location. Moab’s economy relies on tourism, and the filming of this movie provided a boost in the food and lodging businesses.
The saga is set to film its second and third installments near St. George. Joyce Kelly, the sales manager of the Greater Zion Convention and Tourism Office, said that the second movie of the series would bring an estimated $90 million into Washington County’s economy.
Because of its unique landscape, many communities in southern Utah rely on tourism to circulate money. However, the landscape also attracts filmmakers, and by incentivizing production companies to utilize local resources, the industry could cement itself as another steady source of economic activity in these areas.
H.B. 78 has many of the same qualities as its predecessor, but its repeal of the sunset date means that the tax rebates would become a permanent fixture in Utah’s film industry. The policy would be reviewed biannually by Utah’s Legislature.
The benefits already seen from the film production incentives would be prolonged upon the approval of the bill. In the future, the motion picture industry could become an essential part of rural Utah’s economy.
Story: Heather Turner
Photo courtesy of SUU
Editor: Anna Mower
news@suunews.net
