Missoula, Montana, is no stranger to stunning landscapes, but over the past year, a different kind of scenery has been taking shape – a burgeoning film studio called Story House. The arrival of Story House, promising hundreds of jobs and a boost to the local economy, has sparked both excitement and scrutiny, raising a key question: will these economic incentives actually benefit the residents of Missoula and the state of Montana? The move highlights a growing trend of film production relocating to states offering generous tax breaks, and the potential consequences for communities welcoming these projects are complex.
The allure for production companies is clear. Montana’s “Big Sky” tax credit, enacted in 2019, offers a 20% rebate on qualified production expenditures, with an additional 5% available for filming in less populated “frontier counties.” The Montana Department of Revenue details the program, designed to attract film and television production to the state. Story House, founded by veteran producer Ross Smith, saw an opportunity to capitalize on these incentives and establish a permanent filmmaking hub.
Smith, formerly of companies like Mandalay Pictures and Blumhouse Productions, announced plans in early 2023 for a 12-soundstage campus and associated production facilities. Montana Public Radio reported that the initial investment was projected at $50 million, with the potential for significant expansion. The promise of creating over 300 jobs, ranging from construction to post-production, quickly gained attention from local officials eager to diversify the Missoula economy.
The Economic Argument for Film Tax Credits
Tax credits for film production are a common tool used by states to attract investment and create jobs. The logic is straightforward: by reducing the cost of filming, states can incentivize production companies to choose their location over others. This, in turn, leads to spending at local businesses – hotels, restaurants, equipment rentals – and generates tax revenue. However, the effectiveness of these credits is a subject of ongoing debate among economists.
Critics argue that film tax credits often represent a zero-sum game. Although one state may attract a production, it often does so at the expense of another, simply shifting economic activity rather than creating net growth. The jobs created are often temporary and specialized, benefiting a relatively small number of people. A 2021 report by the Tax Foundation raised concerns about the cost-effectiveness of these credits, noting that they can be prone to abuse and may not deliver the promised economic returns.
Proponents, however, point to the broader economic impact. Beyond direct spending, a thriving film industry can attract skilled workers, foster creativity, and enhance a state’s image. They as well argue that the “multiplier effect” – where initial spending generates further economic activity – can amplify the benefits of film production. Montana’s supporters emphasize the potential for Story House to build a sustainable filmmaking ecosystem, attracting independent filmmakers and creating long-term opportunities.
Local Concerns and Community Impact
While the economic potential is significant, the arrival of Story House hasn’t been without its concerns. Some residents have expressed worries about the impact on housing affordability, increased traffic, and potential strain on local resources. Missoula is already facing a housing shortage, and the influx of workers associated with the studio could exacerbate the problem.
“We need to develop sure that any economic development benefits everyone, not just a select few,” said local community organizer, Sarah Miller, in a recent town hall meeting. “We need affordable housing, living wages, and a commitment to preserving the character of our community.”
Another point of contention revolves around the transparency of the tax credit program. Some critics argue that the criteria for qualifying for the credits are too vague, allowing for potential loopholes and abuse. They call for greater oversight and accountability to ensure that the benefits are distributed fairly and that the state is getting a good return on its investment.
Story House’s Progress and Future Plans
As of late 2023 and early 2024, Story House has begun construction on its Missoula campus, with the first soundstages expected to be operational in the spring of 2024. The Missoulian reported that the company has already secured several independent film projects to be shot at the facility. The studio is also partnering with local film schools and organizations to provide training and mentorship opportunities for aspiring filmmakers.
The studio’s long-term vision extends beyond simply attracting outside productions. Story House aims to develop its own slate of original content, focusing on stories that showcase Montana’s unique landscapes and culture. This could further solidify the state’s position as a filmmaking destination and create a more sustainable industry.
Navigating the Challenges of Film Incentives
The Story House project in Missoula serves as a microcosm of the broader debate surrounding film tax credits. While the potential economic benefits are undeniable, it’s crucial to address the potential downsides and ensure that these incentives are structured in a way that maximizes their impact and minimizes negative consequences. This requires careful planning, transparent oversight, and a commitment to community engagement.
States considering similar incentives should learn from the experiences of others, focusing on programs that prioritize long-term sustainability, workforce development, and local economic integration. It’s also important to recognize that film production is just one piece of the economic puzzle, and that a diversified economy is essential for long-term prosperity.
The Montana Department of Revenue will be releasing its annual report on the Big Sky Economic Development Credit in the fall of 2024, providing a more comprehensive assessment of the program’s impact. This report will be a key indicator of whether the state is achieving its goals and whether the benefits of film production are being shared equitably.
The arrival of Story House represents a significant investment in Montana’s creative economy. Whether it ultimately delivers on its promise of jobs and economic growth remains to be seen, but the conversation it has sparked is a vital one for communities across the country grappling with the challenges and opportunities of attracting film and television production.
What are your thoughts on film tax credits and their impact on local communities? Share your perspective in the comments below.
