The Southwest conjures up all sorts of images; most of them full of cactus and empty desert vistas that stretch to the horizon. However, the states of Arizona, New Mexico and Texas have a lot more to offer filmmakers than genuine Wild West landscapes. Some areas are becoming favorite destinations for producers because of their highly competitive tax packages and others for their growing infrastructure.

ARIZONA

Arizona offers filmmakers a wide variety of locations and also benefits from its proximity to California and year-round good weather. The state has been much on display recently, thanks to such high-profile films as Universal’s The Kingdom and Into the Wild. Although set in the Middle East, The Kingdom was primarily filmed in the Phoenix metropolitan area, utilizing locations throughout the East Valley. The project employed an estimated 1400 Arizona residents in extras casting and crew related positions. Into The Wild utilized locations in Arizona including: Page/Lake Powell, Marble Canyon, Grand Canyon, Kingman, and Bullhead City. The Grand Canyon 3-D also just wrapped production in Arizona. The project, an IMAX documentary, focuses on the history of the canyon as well modern irrigation facilities and techniques. Arizona locations included The Grand Canyon, Yuma, and Lake Powell. Another recent project, a BMW catalogue shoot, took place near Lake Pleasant, and two indie films, Vacuuming the Cat and Jake's Corner have also been shooting in the state.

“Part of Arizona’s allure is a panorama of locations that can represent any geographic location in the United States visually, and ideal weather conditions for year-round shooting. Producers can traverse the state in a few hours and experience vastly different terrains, which lends itself well to keeping production budgets in line with financial resources and still getting varied looks,” says Harry Tate, director of the Arizona Dept of Commerce Film Office.

“The film, television, and photographic industries in Arizona are very important to the economy in that they bring in dollars from other states and countries to be spent here on film, television, and photographic production services and personnel. This means jobs and wages for Arizona’s industry professionals and affiliated service people and suppliers to the industry. The film and television industry has a firm basis in technology and innovation, and entrepreneurship, and it accommodates both urban and rural components, thereby making it a viable economic catalyst without boundaries. This is attractive to the state of Arizona, as the Governor and Legislature works to increase the influx of companies and employment opportunities, for Arizonans. There is a broad base of available talent living in Arizona. This includes almost all disciplines of the film and television industry. Trade unions, professional associations, and guilds are also represented in Arizona to help facilitate the location of talent, crews, support companies, and other resources.”

“We’ve added financial incentives that offer budgetary reasons to consider filming in Arizona,” adds Tate. Qualified productions can earn transferable tax credits and tax exemptions for producing their projects (films, television programs, video games, photo-shoots, etc.) in Arizona. Pre-approved projects can earn transferable tax credits based on Arizona expenditures in the following amounts: $250,000 - $1 Million: Eligible for a 20 percent transferable tax credit; More than $1 Million: Eligible for a 30 percent transferable tax credit. The tax credits may be used to offset Arizona tax liability, sold, or transferred.  Unused tax credit amounts may be carried forward for up to five years. Productions can also receive Transaction Privilege Tax & Use Tax exemptions for Arizona expenditures totaling $250,000 and up. When building a studio or constructing another eligible infrastructure project in Arizona, one can qualify for transferable tax credits equal to 15 percent of the eligible Arizona project costs. Various requirements apply.

The tax credits generated by infrastructure projects may be used to offset Arizona tax liability, and they may be sold or transferred.  Unused tax credit amounts may be carried forward for up to five years.

To sum up, Tate notes that many industry professionals have chosen Arizona not only for their productions but also for their home. “Professional crew, talent, equipment are all available in Arizona. Numerous statewide film offices and resources are available to assist with productions. Government entities, educational institutions, and private sector work together to provide services and facilities in Arizona.”