Governor Doyle Announces Universal Pictures' Film "Public Enemies" to be Shot in Wisconsin

New Film Incentives, Effective January 1, 2008, Draw Action-Thriller Starring Johnny Depp, Christian Bale and Directed by Michael Mann to State

For Immediate Release: February 26, 2008
Contact: Tony Hozeny, Department of Commerce, 608-267-9661
Carla Vigue, Office of the Governor, 608-261-2162

MADISON - Governor Jim Doyle today announced that Universal Pictures has committed to shoot portions of its upcoming film "Public Enemies," directed and produced by UW alumnus Michael Mann and starring Johnny Depp and Christian Bale, in Wisconsin. The company reached agreement today with the Wisconsin Department of Commerce on tax credits from the new Film Production Services Tax Credit Program.

"Welcoming the film industry to Wisconsin gives us an opportunity to showcase the rich diversity of our great state - its landscapes, its people, and its culture," Governor Doyle said. "Movies create a sense of place that stays in the minds and hearts of moviegoers long after the credits roll. And as the proud Governor of this wonderful state, I can't wait for the rest of the world to see on the big screen what we enjoy every day - the great state of Wisconsin."

"Public Enemies," the story of America's criminal folk hero John Dillinger (Depp), whose wave of bank robberies and the subsequent FBI manhunt - commanded by J. Edgar Hoover and run by Special Agent Melvin Purvis (Bale) - fascinated the nation in the 1930s.

This film will be the first major production to come to Wisconsin after new tax incentives for the film industry took effect on January 1, 2008. By producing in Wisconsin, the company could earn approximately $3.9 million in tax credits. The company expects to spend nearly $20 million in the state by conducting a portion of the filming in Wisconsin. Individual community locations have not yet been determined. In choosing Wisconsin, Michael Mann cited the high quality historic building stock in many Wisconsin communities that will lend authenticity to the action-thriller.

It is estimated that about 50 percent of money spent on a film production stays in the local community where filming takes place. Other states that have enacted credits, such as New Mexico and New York, have seen revenues jump anywhere from $125 to $600 million in their first year, due to incentives.

"It is a coup to have Johnny Depp, Christian Bale and Michael Mann headline the first film, but these incentives have just begun to work," Lieutenant Governor Lawton said. "They will continue to attract both blockbuster and smaller budget films to Wisconsin as more producers hear what a great place Wisconsin is to do business. Wisconsin is now a major player in attracting creative industries."

There are two film industry tax credits that went into effect on January 1, 2008:

Film Production Services Tax Credit - The credit is for an accredited film, video, electronic game, broadcast ad, or TV production. A production that is less than 30 minutes has to cost at least $50,000, and a production that is 30 minutes or longer has to cost more than $100,000. To claim the credit, the claimant has to either own the copyright for the production or have a contract with the copyright owner as well as a viable distribution plan. The credit can be claimed in three different ways:

• 25% of the salaries or wages paid to Wisconsin residents for services for the production that are rendered in the state, up to a maximum credit of $25,000 per employee.
• 25% of the production expenses paid by the eligible claimant to produce the production. Expenses for music, air travel, and insurance can be claimed as long the service provider is headquartered in the state.
• 100% of the amounts paid for sales taxes paid on the purchase of personal property and taxable services for the production.

Film Production Company Investment Tax Credit - A claimant can claim the following for the first three years that it is doing business in the state as a film production company:

• 15% of the purchase price of depreciable, tangible personal property, such as business equipment and vehicles. At least 50% of the property's use has to be for the film production company.
• 15% of the amount spent to acquire, construct, rehabilitate, remodel, or repair real property. The property can't be previously owned by the claimant.

Applicants for the credits submit an application to the Wisconsin Department of Commerce, which will determine eligibility, accredit the production, and estimate the amount of credits a project is eligible to claim following its completion of the project.

For more information on Commerce programs and services, contact the Commerce area development manager at: http://www.commerce.wi.gov/BD/BD-AreaDevManagers.html.

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