Oregon Public Broadcasting

The sun is setting on a series of tax credits in Oregon. In 2009 lawmakers voted to sunset nearly all of the state's tax credits on a rolling basis every six years. That would allow them to review each one and decide whether it's worthy of renewal.

The first batch is going under the microscope now and includes things like incentives for reforestation and hand-outs to the film and television industry.

The television show 'Leverage' is filmed in Portland. Photo courtesy of Electric Entertainment.

One of the beneficiaries includes the TNT television series "Leverage" starring Timothy Hutton. This episode is set in the fictional country of San Lorenzo.

Actor 1: "Half the time they're telling us things we already know the other half they're telling us things that just aren't true."

Actor 2: "Excuse me, who are you?

Actor 1: "James Draper, election consultant. General Flores hired me to run the last week of his campaign."

The setting may be fictional, but the place where it was filmed is the very real city of Portland.

"Leverage" is in the midst of taping its third season of shows in Oregon. But executive producer Dean Devlin says "Leverage" wouldn't be in Oregon at all if it weren't for the state's tax credit for film and television production.

Dean Devlin: "Without the incentives, we wouldn't be there. The incentives are essential."

The tax credit that helped lure Leverage to Oregon will expire unless the legislature acts to renew it. It's one of about 20 tax credits that could meet the same fate.

And there's no shortage of people urging lawmakers to continue those credits. Vince Porter is executive director of the Oregon Film and Video Office.

Vince Porter: "Today I'm here to share some information with you about the success of the Oregon Production Investment Fund, and why extending the sunset date of the tax credit is worth supporting."

Porter came armed with a long list of numbers. The upshot? He says handing out tax credit goodies to shows like "Leverage" is itself a way to leverage tax dollars. He says the investment has more than paid for itself, with the producers spending some 80 million dollars in Oregon so far.

To a certain extent lawmakers have to take it on faith that tax credits like this one are an economic gain for Oregon.

Ginny Burdick: "That's a very difficult calculation."

Democratic Senator Ginny Burdick is the Senate Co-Chair of the Tax Credits Committee.

Ginny Burdick: "And I'm not sure that we'll ever do it perfectly."

She says the newly formed panel will be asking a series of questions about each credit that's about to expire.

Ginny Burdick: "We’ll be evaluating whether the activity would have taken place without the credit. In other words, why should we subsidize activities that are going to happen anyway."

Some credits are meant to encourage certain kinds of behavior, such as investments in renewable energy. Republican Representative Vicki Berger also serves on the committee. She says tax credits will be judged by more than simply how many jobs they create, it any.

Vicki Berger: "Those are tougher choices because they work at some level, and how do you measure that against the cost to do that. These are difficult policy choices."

The renewable energy credits are among the costliest that lawmakers will review this year. And likely to generate the most controversy.

But many of the tax credits appear headed for approval. In fact Governor John Kitzhaber's proposed budget assumes that all of them will be renewed.

Jody Wiser of the group Tax Fairness Oregon says that's probably a safe bet.

Jody Wiser: "Generally speaking the only voices are proponents of whatever it is. And you know, we're all able to be advertising agents. We all know how to speak well of what works for us."

But even if all of the tax credits are renewed, it would have a relatively small impact on the Oregon budget. The expiring credits add up to about $40 million in lost revenue for the next budget cycle.

On the Web:

Oregon Joint Committee on Tax Credits