By: State Senator Chris_Lauzen

This was the assessment given by one of my astute senate colleagues as we sat talking about the Hollywood Film Tax Credit on Wednesday night.

Is it any wonder why people who understand what’s going on in Springfield seem so cynical? Senator Ricky “Hollywood” Hendon did Governor Blagojevich a favor today by passing an extension of a $4M tax credit which requires state taxpayers to “foot the bill” for the first 25¢ of every payroll dollar for film-making in Illinois.

The sponsor leveraged the rest of us into voting for it by attaching an important graphic arts equipment tax incentive as an amendment. Although the printing equipment investment tax credit has a reasonable five-year term, the problem with the Hollywood credit is that it’s only for one year.

You might ask, “Why would Democrats who aren’t traditionally pro-tax credit, support one, and for only one year?” This concern was raised during debate by no fewer than three state senators that the appearance of potentially unethical campaign contribution solicitation is just too great.

It’s no secret that the governor, with national political ambitions, has made a couple of fundraising trips to Los Angeles where many of these film-making location decisions are made. Some people wondered out loud, if this new found appreciation for $4M of tax credits might have the potential to appear as a trade of targeted financial benefits to a specific industry in exchange for future campaign contributions.

The easy solution to drain some of this potential impropriety would have been for the amendment to make the tax credit’s term five years so that at least potential contributors would not be on such a “short (one-year quid pro quo) leash”. The absence of that provision led my fellow senator to groan, “That ethics bill is a (gosh darn) joke!”

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Contact info:

State Senator Chris Lauzen
52 West Downer Place, Suite 201
Aurora, Illinois 60506

Phone: 630/264-2334
Fax: 630/264-1566
chrislauzen@lauzen.com

http://www.lauzen.com/