Senate committee advances legislation to attract movie, music producers to V.I.
Published: January 28, 2012
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The government hopes to lure more film projects such as this commercial being shot on St. Croix.
ST. THOMAS - The Senate Committee on Economic Development, Technology and Agriculture amended and moved forward a bill to lure film and music production to the territory Friday.
The Sustainable Tourism Through Arts-Based Revenue Streams Act - called the STARS bill - would expand the role, authority and name significantly of the V.I. Tourism Department's Office of Film Promotion, making it the Office of Filmmaking and Music Promotion. The expanded responsibilities would include promoting the music industry, much the way it already promotes the film industry.
When the commitee first heard the bill in October, the Tourism Department and the V.I. Economic Development Authority made suggestions for improving the legislation.
Bill sponsor Sen. Louis Hill crafted a substitute, which the committee passed Friday.
The amendment allows Tourism to do the initial outreach and screening of applicants, but once the department selects an applicant it will be forwarded to the Economic Development Authority, Hill said. The Economic Development Authority then will evaluate the applicant and put the tax incentives in place, Hill said.
To qualify for the program's benefits, an applicant must:
- Be a corporation organized and licensed in the Virgin Islands.
- Conduct recording or mixing at a locally licensed music studio, or conduct a film project on location in the territory. At least half of the content must be produce in the Virgin Islands.
- Agree to employ local professionals - recording engineers, filming assistants, musicians or other personnel - and to notify the V.I. Labor Department of employment opportunities.
Under the proposed legislation, a beneficiary would get a 100 percent tax break on the Gross Receipts Tax and a 90 percent tax on both corporate income taxes and personal income taxes.
Other stipulations would be included in the agreement, including a message that says "filmed in the U.S. Virgin Islands" or "partially filmed in the U.S. Virgin Islands" in the credits of a production.
Other perks include hotel credits - reduced room rates for hotels in the territory for the crews and talent coming to film or record in the territory. The government would cover the difference so the hotel would not lose money, but the revenue stream for that has not been defined yet, Hill said.
The production would have to spend a certain amount in hotel room nights to get the credits, and the credits would increase the more money is spent.
The bill was passed on to the Rules and Judiciary Committee on Friday with Senators Hill, Neville James, Shawn-Michael Malone and Terrence Nelson voting in favor of the bill. Senators Alicia Hansen, Patrick Simeon Sprauve and Janette Millin Young were absent at the time of the vote.
- Contact reporter Aldeth Lewin at 714-9111 or email alewin@dailynews.vi.
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