Could Utah lure productions from Hollywood?

SALT LAKE CITY — Gone are the days when all films are shot, directed, edited and produced in Los Angeles, the home of Hollywood.

California Gov. Gavin Newsom is trying hard not to let the "City of Angels" lose its status as a globally known entertainment hub.

"It's on life support," he told reporters in May. "We need to step things up, and this is all part and parcel of economic recovery, economic growth."

Many factors contributed to the trend of Hollywood's slow demise, from the writers' and actors' strikes in 2023 to the streaming industry's hostile takeover of the world of entertainment. L.A. is also more expensive compared to other film hubs like Georgia and New Jersey, which also offer tax credits alongside cheaper labor.

Three weeks ago, Newsom more than doubled the film and TV tax credit program in California from $330 million to $750 million a year. He also awarded a total of $1.1 billion to 16 new shows at a time when the state is struggling with a $12 billion budget deficit.

It will be a while before this increased funding bears any fruit. In the meantime, other states across the U.S. are attempting to lure away more projects by offering the film industry similar tax incentives.

Texas, one of nearly 40 states to offer a film tax credit, is also upping its game.

In late June, Gov. Greg Abbott allowed for the passage of a bill that increased the state's film tax credit from $200 million every two years to $300 million.

As The Ankler notes, Texas isn't "in the same league as" other production hubs, like California or New York.

But it will "occupy a second tier of states, including Louisiana and Pennsylvania, where subsidies are significant enough to consistently attract production."

So, where does Utah fit in?

What's Utah's film tax credit like?

The Beehive State's tax credit isn't as sizable as that of California or even Texas. But the state has benefited from it, according to the Utah Film Commission, managed by the governor's office.

"There is some competitiveness there," Utah Film Commission director Virginia Pearce said, but Utah has an edge because it receives many specific outdoor location requests.

But Utah does, at times, lose projects to other regional locales, like California, New Mexico, Montana and Canada.

What Utah fails to offer in terms of big incentives, it makes up for through a "film-friendly" attitude, said Pearce. Plus, the cost of filming in Salt Lake City is much lower than, say, Manhattan — another bonus.

In December last year, the Utah Film Commission celebrated 100 years since the first film was shot in the state. The 1924 silent Western, "The Deadwood Coach," was produced in Cedar City. In addition to the centennial accomplishment, the commission also celebrated its 50th anniversary.

The tax incentives came much later. The latest iteration, the Motion Picture Incentive Program, was created by the Utah Legislature in 2011, with incentives capped initially at $6.79 million. This sparked growth in the local film industry for a few years.

As the Deseret News has previously reported, about 75% of the first three seasons of "Yellowstone" were filmed in Utah, including locations in Heber City, Oakley, Kamas, Grantsville and Logan. As one of the latest productions to come to the state, "Yellowstone" spent roughly $80 million over three years.

But Utah could not keep up with the incentives other states offered.

The fourth season of "Yellowstone," which aired in November 2021, was filmed almost entirely in Montana, where Paramount tapped into a $12 million incentive. This left a void in Utah.

In 2022, Kevin Costner, the star of "Yellowstone," was scouting locations for another project, "Horizon: An American Saga — Chapter 1." The production set the groundwork for a western epic universe.

Costner eyed Utah at the time, but publicly advocated for the passage of a bill — SB49 — before he made any commitments.

The bill introduced an incentive of $12 million for any production that filmed 75% of its project in the rural parts of Utah. It also raised the annual cap by close to $2 million to $8.3 million.

Related:

'Yellowstone' spinoff among new productions set to film in Utah

"Yellowstone" is coming back to Utah — sort of.

"'Yellowstone' had already gone to Montana at that point," said Virginia Pearce. So, it wasn't just about one show anymore.

"This was really a reaction to rural counties seeing the economic benefits that could come with them, and hotels they use, and the restaurants ... you know, just the overall spend."

She estimated an average production company spends between $100,000 and $150,000 a day.

A 2021 study for the Motion Picture Association of Utah, conducted by Olsberg SPI, found that for each $1 spent on the tax incentive, Utah's economy makes $7 back through production spending. "Film-influenced tourism" also generated over $6 billion for the state in the last decade.

As for the rural incentive program, Pearce said roughly 28 projects were approved, and those projects brought more than $200 million in spending to the state.

What do filmmakers come looking for in Utah?

Utah has attracted several other notable projects. Film studios often come looking for unique landscapes, which the Beehive State has in abundance, whether it's red rocks or the salt flats.

A few projects come because of the state's powder snow, like HBO's "Mountainhead," an Emmy-nominated satire about tech billionaire friends, which was primarily filmed at a $65-million home in Park City.

"They needed a really opulent, beautiful home slope side," Pearce recalled about the "Succession" inspired screenplay.

Other popular requests her office gets are from productions that don't want the set to be too specific.

"A lot of films are looking for kind of an 'any town in the U.S.A' look. Disney loved that about Utah. They could shoot in Tooele, Midvale, and Liberty Park, and it kind of can look like any city," the Utah Film Commission director explained.

Read the full article at Deseret.com.

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