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It's a wrap (barely)

by DAVE GOINS/Press correspondent
| March 18, 2014 9:00 PM

BOISE - Lights, camera, action?

Monday, the Idaho Senate almost shut down the set on legislation to extend a film industry tax rebate for another six years.

But the film industry incentive measure managed to make it through, gaining final legislative passage on an 18-17 vote. If approved by Idaho Gov. Butch Otter, the legislation sponsored in the Senate by Sen. Shawn Keough, R-Sandpoint, becomes law.

House Bill 498 had North Idaho floor sponsors in both the Senate and House. Post Falls Republican Rep. Frank Henderson sponsored HB498 on the House side, where it cleared Feb. 21 on a 49-15 vote.

"The (Senate) vote was much closer than I thought it would be, but it passed, and that's the important thing," Henderson said of Monday's vote on HB498.

Keough also expressed surprise at the narrow margin of Senate approval on HB498. She said it was difficult to determine why there was that level of opposition because few opinions were expressed during the 10-minute sleeper debate and vote.

"It's a surprise. I mean, that's a one-vote margin," Keough said. "Again, I have no idea because there really wasn't any substantive (opposing) debate offered."

In fact, there was no opposing Senate debate. One opposing Senate vote, by Sen. Monty Pearce, R-New Plymouth, was explained during the roll call vote.

"New Mexico went down this road and realized it was a drain on revenue," Pearce said. "It was not the great enhancement and great opportunity they thought they were getting into and they had a number of years to experience that. So, with that, I'll be voting no."

Sen. John Goedde, R-Coeur d'Alene, said that a North Idaho film connection was the explanation for his yes vote.

"I well remember the Silver Valley and the filming of 'Dante's Peak,'" Goedde said. "It was a huge shot in the arm for an economy that was really struggling. And we had that opportunity in other areas. I vote aye."

On the other hand, Cottonwood Republican Sen. Sheryl Nuxoll, who represents Shoshone County - the film site for "Dante's Peak" - voted against HB498, as did Sen. Steve Vick, R-Dalton Gardens.

Other votes from legislative Districts 1-7: Sens. Dan Schmidt, D-Moscow and Dan Johnson, R-Lewiston voted against HB498, while Sen. Bob Nonini, R-Coeur d'Alene voted in favor of it.

The bill, if it becomes law, would extend the existence of Idaho's zero-balance "Film and Television Production Business Rebate Fund" to a July 1, 2020, sunset date, from its currently scheduled expiration date of July 1 of this year.

Potential film projects in Idaho would have to be successful before earning the rebate, Henderson said.

"It's after they've spent their money, after the money's in our local thing, after they've paid their taxes," Henderson said. "Then, a portion of that is refunded to them, as an incentive to them."

By the numbers, a fiscal note accompanying the bill details the rebate this way: "The program would provide a 20 percent rebate on specific Idaho expenditures if at least $200,000 is spent in Idaho when the production hires Idaho crew members. In any production qualifying under the program, 35 percent of the total crew must be Idahoans. The maximum rebate per production is $500,000."

Idaho Department of Commerce Director Jeff Sayer in February told lawmakers more than "$300 million in (film) projects have looked at the state."

The original Idaho film industry rebate incentive, Keough noted, was approved in 2008, but the recession curbed its use.