Lawmakers consider tax breaks for Winfrey, Springer shows

SPRINGFIELD -- From Chicago, it's "The Oprah Winfrey Show," brought to you with a little help from Illinois taxpayers. Or, this Jerry Springer throwdown is funded in part with a break from Barack Obama's home state.

A measure advancing at the state Capitol could make those scenarios a reality.

Some Chicago Democrats are pushing to expand a tax break for movie productions filming in Illinois to include talk shows that spend $5 million on productions here.

That would include shows like Winfrey's and Springer's that already film in Illinois and any other big-budget shows looking to start up or relocate in Chicago or elsewhere.

Sen. Rickey Hendon wants to build on the success of movie incentives and bring in talk show jobs and other benefits in a slowing economy. If Winfrey gets something out of that, it's fine by him.

"She doesn't need it. We need it," said Hendon, D-Chicago. "But if Oprah is able to save a little money, maybe she'll produce a little more. I think giving her a tax credit right now would be a good thing."

But critics say that money should go to more worthy goals, like improving classrooms or repairing roads and bridges.

"That's just a waste of taxpayer dollars," said Ralph Martire, executive director of the Center for Tax and Budget Accountability.

Since Gov. Rod Blagojevich pushed for it in 2003, Illinois has offered a tax break to movie and television productions to encourage them to shoot here. It gives them a 20 percent credit for Illinois production spending, including a break on salaries for up to $100,000 per Illinois worker.

The state's Department of Commerce and Economic Opportunity says more than 40 states offer some kind of movie incentive. More than $16 million in credits were handed out between 2004 and 2006, the agency says. The movie industry brought more than $250 million into the state's economy during that time, with updated 2007 tallies to be released soon.

The House voted 108-7 in January to extend the tax credit another year. In the Senate, Hendon two weeks ago added on talk shows and a committee approved the measure 13-0. It needs approval by the full Senate and again in the House before going to the governor.

A spokeswoman for Oprah's Harpo Productions Inc. said the company is waiting to see how the final legislation would apply.

Sixteen states already cover talk shows in their incentives, including New York and Massachusetts, the Blagojevich administration says. It supports extending the tax credit another year and says including talk shows could be a source of stable revenue in a competitive market.

Sen. Dale Righter, R-Mattoon, notes that films provide temporary financial benefits while talk shows would supply long-term rewards. He hopes it leads to other tax credits getting approved.

"If you provide a little incentive, you can create jobs," Righter said.

Others say it's the wrong approach, especially as dozens of other tax break proposals for people and businesses are blocked because the state budget is too strapped to afford them.

Martire said it doesn't make sense to extend the tax credit when Winfrey and Springer are already here and others are established filming in New York or California. He thinks tax breaks generally fall far short of major investments in education and infrastructure in encouraging business development.

Rep. Bill Black, R-Danville, voted against extending the movie tax credit in January. Colleagues criticized breaks for other businesses as unnecessary but then supported the movie credit, he said.

Their votes send a "strange message" to companies trying to survive in a difficult economy, Black said.

"It just seems like we have two different scripts, no pun intended," Black said. "The evils of big business, but Hollywood isn't big business. It's cool."