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EXCLUSIVE: Law & Order: SVU has become the first victim of New Jersey’s pending suspension of its film and TV production tax credit. The veteran NBC crime drama has been the highest profile TV series based in New Jersey. Its sets have been housed at NBC’s Central Archives building in North Bergen. But faced with losing the state’s 20% tax incentive, the show is headed to New York, which recently proposed boosting its incentive to $420 million annually.
In New York, Law & Order: SVU might move into the studio space at Chelsea Piers that has been occupied by the mothership Law & Order series. I hear Universal Media Studios, which co-produces the Law & Order franchise with Wolf Films, is looking into the viability of moving Law & Order: SVU into Law & Order’s old digs, which will be vacant soon, following the veteran series’ cancellation by NBC last month. Such a move would carry on a long tradition: Chelsea Piers has been so closely associated with the franchise, housing the mothership series as well as Law & Order: Criminal Intent, that a road leading to Pier 62 was renamed Law & Order Way in 2004.
L&O:SVU’s exit from New Jersey will probably have an impact on the local economy. L&O:SVU co-star Tamara Tunie and NBC Uni’s tax counsel Brian O’Leary were among those who testified in favor of keeping the New Jersey tax credit at a hearing earlier this month. According to estimates, nearly 7,000 New Jersey production workers earned more than $500 million in wages in 2008, the latest year available. More than 3,000 small businesses who supplied film and TV productions made a total of $508 million.
New Jersey Gov. Chris Christie’s budget reform package, which includes the scrapping of the tax credit, was approved by a state panel yesterday and is expected to pass a vote by both houses on Monday.
TV Editor Nellie Andreeva - tip her here.
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While it is regrettable that the NJ tax credits may go away, and the impact on local businesses will be major, I don’t think crew members will lose jobs. The same crew members from NY were driving to New Jersey; now the New Jersey residents will be making the commute. What will be a devastating loss is the entire crew from the mothership series that got cancelled will be out of work.
While there will be job losses across the board given that the original L & O is no longer in production one thing to keep in mind is that these are mostly UNION jobs which means seniority has a lot of pull. Workers from the out of production original (mothership) that have not already found production jobs elsewhere could end up taking the jobs at SVU from workers with less time in the union.
The local effect in Jersey would be more directly felt by local business’ that were utilized due to proximity for the SVU production not necessarily crew that can take a train across the river either way.
Bailey
Bailey doesn’t know what he is talking about. Yes, the shows are highly unionized, as almost all major production is in the metropolitan area. However, the motion picture craft unions have no “seniority” rules, and no influence on hiring policies of the production companies. The producers who sign a union contract agree to hire union workers and abide by contractual working conditions, pay rates, etc.
Some of the crew members on the original show had been working there for over 15 years, and they are not very well known outside of that show; employment may be difficult to find. But there is no expectation of crew from SVU or Criminal Intent being replaced by recently jobless members of the original crew.
That is not how it works in NY. Union seniority does not play into it at all when dealing with the techs and different crafts. It may with the teamsters, but the producers hire the crew THEY want.
Keep in mind that tax credits range from being a so-so deal to a horrible deal for the tax payers of the states that offer them (Georgia has a cap, while for a while Michigan did not). It makes the governor of the state offering the tax credits look good, because the media is star-struck and will cover the press conference of the governor announcing how he/she is “bringing work to the state,” etc. But go in depth the way one of the Boston papers did in the last year and if the reporter has the financial chops to explain this, you’ll see that this is not the great deal it’s made out to be. The money being paid out in tax credits has to come at the expense of something else (services to the taxpayers). It is (or should be) a zero sum game. All of it brings to mind Margaret Thatcher’s quote (to paraphrase): “The problem with socialism is that eventually you run out of other people’s money.”
Nice Thatcher quote!
Exactly. Well said. New Jersey has a good man in Christie.
Tax credits Are a burden on the taxpayer ! It is just another way that Tom Hanks,Spielberg and all the other GREEDY Producers and their union (The amptp) have gotten the taxpayer to finance their films.
Think about it..if the credit is say 30%..then in essence we the tax payers are investing in a company with no return and no longevity.
A producer will shoot a film in the highest credit paying state…the states would be better off allocating that money to finance new local business that creates jobs and has longevity in that state.
People better wake up to what the AMPTP is doing…right now they are trying to erradicate and take over the Screen actors Guild (SAG) by giving over 70 new shows to AFTRA.(which is a union that anyone with the cash can join !) I wont go on about this..but just look into it people,and don’t be fooled by Spielberg and Hanks on screen or public persona..they and the AMPTP are the greediest most vile creatures in the world..spielberg was just in the middleEast accepting billions from terrorist supporting arabs to help produce Arab films to appeal to a more worldwide audience and to change the worlds perception of them..ihe is teaching how to spread propaganda through the box office..And most recently theh commodities exchange has approved the trading of BOX OFFICE RECEIPTS !!!My God..When is someone going to investigate the AMPTP’s practices!!!
Georgia does not have a cap.
“…which are vacant following the veteran series’ cancellation by NBC last month.”
Oh, they aren’t vacant. All the sets are still up and nothing has been wrapped out. And sj2260 is right, the NJ crew wont be losing jobs, they will commute. The 20 year veterans of Law & Order, they lost the jobs in this case.
It’s nice to see my home state of New Jersey is just as boneheaded as my new home of California.
The distance between the two stage facilities is about 4 miles. It is likely the crew will move with the show. The bigger losses are the L&O mothership and Mercy (which shot in NJ).
The NJ tax credit had a cap of $10mil/year. SVU’s spend qualified to take just about all of it every year. Other projects had to wait in line to get paid.
Chelsea is max 10 miles from North Bergen so that wont be an issue when it comes to job losses.
Congratulations to New Jersey for its refusal to play into this never-ending race to see which state can give the greatest share of its taxpayers’ dollars to the poor, destitute producers. Any illusion of job creation is dispelled as soon as another state offers a 2% greater subsidy, and the production packs up and leaves. Existing jobs are merely shifted around the country, and around the world; few if any are “created”.
Anyone have any knowledge about what is happening with the 3rd L&O, Criminal Intent? Is it continuing for another season with the new Goldblum helmed cast or will SVU have another stage free at Chelsea Piers to move into?
Good ol’ Christie–the gift that keeps on taking.
Taking what? Explain how its a bad thing to let taxpayers keep there own money. Are you too simple to decide how you would like to use your own money. If L & O is such a benifit to NJ, why don’t you and other like-minded individuals donate your own money to the producers of L & O and leave everyone else alone. According to your beliefs, you and your ilk should see an immediate return. Good Luck!
As others here have noted, those NJ businesses that supplied L&O: SVU with goods and services will lose them as a client, which will prevent said businesses from earning “their own” money and will likely lead to them laying off people so they can’t earn their own money, either. And Christie cutting library/schools/public services/etc. (and letting his rich buds skate on taxes even though they get huge tax breaks already) will cost more in the long run in terms of quality-of-life damage–and people leaving because of declining municipal services coupled with an insane cost of living. But tea baggers like yourself not only are incapable of thinking, you’re too dumb to think ahead. You’re too busy whining about keeping your money even though that money-through-taxes makes life better for everyone. Howzabout you keep your money and not use roads, public utilities, police/firemen, schools, sanitation services or anything taxes pay for? No? Why–can’t you live up to your own “bootstraps” bullshit?
It would seem to me, that since these states and municipalities get into this “let’s offer tax credits” one upmanship, that if it was such a great idea. . . . why, they would offer tax credits to their citizens in the name of tax rebates.
Certainly $10M tax credit given to L&O, that in turn brings production there, that in turn hire industry firms, that in turn visit restaurants and boutiques would certainly apply to average joe taxpayer taking his share of $10M and visiting his local deli, his local mechanic or her local boutique.
In fact, one might even suggest after the $787B boondoggle spending spree, that it might have been better served as tax rebates to the likes of L&O or actual freakin’ citizens. But that would destroy the narrative.
you are an idiot. a 20% break to a producer means money in his pocket. A recent movie I worked on in NJ employed 134 people. that is 134 people who paid taxes in nj for working here during the shoot for 3 months, the rental facility which we rented the gear from who employees over 70 people who can remain to be employed and pay taxes and the local bars and stores which the craft service people, crew and anyone else associated with the show spent their money in.
I worked in the production office and we spent a total of 85 million. The producer got to pocket approximately 9 million because of incentives. payroll was almost 50 million. we paid roughly 1 million to local municipalities for security and street closures.
So, since Christie is not giving the rich money to shoot here, where will the town of north bergen get their money we were giving them to keep going? I guess they will lay off a few peopl and raise taxes.
yea, dont help the rich…u r a bonehead!
It is a sad day when NJ, birthplace of the American film industry, pushes out an industry native to the state. Thomas Edison built the first studio and Fort Lee became the first film town. To neglect that history is to throw away an important ingredient to our present – the film industry does bring money to the state and does create jobs. And if I am to believe some of the negative comments on the tax incentive program here, then Mayor Bloomberg, a first rate businessman, is wrong in his constant effort to keep the proper mix of tax incentives. I wish we had the leadership of a Mike Bloomberg on this issue in our state.
PLEASE LEAVE NEW JERSEY……THAT FAT DOODIE CHRISTIE SUCKS…..and the new york back stage crowd is looking for work since LAO left town………Hey Christie…..did u forget that the LAOSVU could just head to NYC……..HE’S THE WORST GOVERNOR EVER……
Chris Christie is a douche. What more is there to say?
Agreed an embarrassment to NJ Christie’s a total idiot. Everyone’s already commuting no biggie there. Wish L&O could have stayed but but at least SVU’s still around. NYCs still a great spot to shoot how bout more shows just move into NYC would rather be there any day than LA.
There is a lot more to say. Can you spend what you dont have especially if it is going to high end union salaries? As a resident of the state in the northern part very close to where this is going down the people I will feel sorry for are the gas stations, coffee shops, delis, garages that these film units patronize. These are not people who work for $50/hr – they work for minimum wage plus tips in most cases and anything that brought business into the area benefits them.
The NJ tax package was based on no right to work (benefits unions), no state cast or crew mandates (benefits unions), only sixty percent of goods purchased EXCLUDING post (benefits NY unions who did the post), hotel tax only kicked in after 90 days (doesn’t apply) and no minimum in-state expenditure AND only $10 in the fund. If the purpose of this is to benefit NJ then you write the tax package so its at least MUTUALLY beneficial. Right now the advantage is weighted on the side of the prod co.
Calling Christie names doesnt help either side – lived here 35 years. Corzine was worse.
Thank you, Marlene! Isn’t it amazing when someone who actually knows what they’re talking about contributes to the conversation? I also wish my old home state of NJ would promote and attract more production, but the tax credits in question are just a shell game. What is really needed is an investment in infrastructure, such as studio space and post facilities to anchor production long-term. As for Governor Christie, those commenters who resorted to name-calling are surely not supporters anyway.
You’re right when you talk about the gas stations and coffee shops who will lose out, but $50.00 an hour “high end union jobs” is where you fall on your face. Let’s get one thing straight, anyone working in the film business and belonging to a craft union isn’t getting rich! Most workers on a TV show work between 75 and 85 hours a week, and often the week ends sometime Saturday morning leaving them a day and a half to recover for Monday. Overtime allows them to earn $50.00 an hour, EARN! Believe me this is not a glamorous job and most will opt for less worked hours just to have more time with their families or themselves. But going back to the tax incentive, Jersey dropped the ball. It’s a proven formula with immediate results to the state, just ask New York.
Hey, Christie is doing something that should make the progressives happy — he’s eliminating tax cuts for the the rich (Hollywood)! L&O should stay in NJ — they’re doing their patriotic duty (as Joe Biden said) to pay more taxes.
You folks in New Jersey will be happy (if you’re honest with yourselves) when Christie’s changes save your state from bankruptcy. I wish there were more Chris Christie’s in this country.
Geez, you’d think all those liberals at Law and Order would love to pay more taxes, you know, their fair share. I guess they’re not very patriotic; Democrats only seem to care about their bottom line. But on the other side, who would have thought that increasing the cost of production though increased taxes would push businesses out of an area? /sarc.
What bothers me the most is the hypocrisy of it all.
@ Thomas. Correct. Guy spews leftist propaganda in his scripts, publicly says that the people with money should pay their “fair” share to people who don’t have as much money, but when it comes to his money, it’s different? Too funny. Then he goes out and costs families their jobs on top of it, which would have leftists starting fires in the street if it was a GOP.
The only reason this show is still on the air is because NBC is so devoid of quality shows they don’t have a choice.
This sounds like L&O got its tax avoidance advice from the world’s most famous wealth redistributionist blowhard, Bono.
Remember when he moved his music publishing business from Ireland to the Netherlands a few years back to save on taxes?
Typical lib- Pay taxes for thee, but not for me!
Hollywood is all for “taxing the rich fatcats!” until the rich Hollywood fatcats want to do business in a given locale. Then they demand tax breaks.
What this illustrates is that taxes drive business away. Are you listening, Obama?
TAXES KILL BUSINESS.
Good for Christie. Those poor starving directors aren’t getting any of my sympathy. And by the way if they hadn’t canceled their main propaganda piece LAO wouldn’t just happen to have a space open on the east side of the river…
I’m looking for this kind of leadership out here on the left coast…
WHAT—these hollywood types don’t want to give their fair share in taxes? I thought that was the liberal mantra. We have to listen to this ultra wealth libs telling us that the rich need to pay more. If their getting a $420,000,000 tax credit from NYC there must be a lot of money involved. The hypocrisy here is stunning, and under reported.
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There is a lot of money to be made by all parties concerned ,the production company will go where they stand to make the most and spend the least .I worked on SVU for three years i New Jersey and as a resident of NJ it was great for me ,first off not having to cross the GW Bridge saves you $8.00 a day then if you have to park forget it .On top of that it will most likely add 1 1/2 hours a day that your not getting paid for to your day ,and for most of us in NJ mass transit is not an option because of our work schedule which at times is in excess of 14 hours a day without the commute .YES THIS IS THE GLAMOR OF THE FILM INDUSTRY. The monies and jobs created by this industry (not only the union men and women) is at times huge . It seems that this governor has the same union busting mentality as the rest of his republican counterparts and yes writer these jobs are not the highest paying jobs around but they are jobs and when you work with these folks they are grateful to have them ,also by the way L&O’s CONTRACT DOES NOT AFFORD US A $50.00 AN HOUR RATE. What it does (did) do is allow us who live here spend time with our families ,I work mainly construction and rigging,and I have been living in this state for 52 years and believe we are still feeling the consequences of Whitman .New Jersey needs jobs and the union is not the cause of nj’s issues remember that