Lights. Camera. Action. Arizona Has High Production Values in the Film Industry

“When the film and television industry was just getting started, Arizona was a huge part of it,” relates Randy Murray, who, as co-owner with wife, Theresa, of Randy Murray Productions, has three decades of experience in Arizona’s film industry. Noting that John Wayne and John Ford both had homes here and Dick Van Dyke built a studio in Carefree near his home, he adds, “We were poised to have a strong, thriving, creative community working and living here.”

History

To start off with some name-dropping of examples of films from Arizona’s heyday as a filming location, Jason Carney, executive director of the Phoenix Film Festival, shares, “There have been many high-profile films shot in Arizona over the years. Among the titles are Midnight Run (1988), Bill & Ted’s Excellent Adventure (1989), The Grifters (1990) and Little Miss Sunshine (2006).” Speaking up for the southern part of our state, Peter Catalanotte, director at Film Tucson, part of the Tucson Conventions & Visitors Bureau, shares, “Since 1925, the film industry has relied on Tucson to provide stunning vistas and charming locales to hundreds of feature films of every genre. Some of the best-known examples include Rio Bravo (1959), Bonanza (1966), Alice Doesn’t Live Here Anymore (1974), Three Amigos (1986), Tombstone (1993), Tin Cup (1996), Three Kings (1999), Traffic (2000) and Goats (2012).” And Phil Bradstock, AZED Pro, film commissioner in the City of Phoenix’s Community and Economic Development department, offers examples from a Phoenix perspective: Psycho (1960), The Gauntlet (1977), Used Cars (1979), Raising Arizona (1987), Terminal Velocity (1994), Waiting to Exhale (1995), Jerry McGuire (1996) and The Kingdom (2006).

“Momentum was lost when Canada became the first region to offer huge tax breaks to lure Hollywood in the late ’90s,” Catalanotte says, explaining, “Big-budget films are expensive to make, so studios are only seeking locations where incentives are available.”

Also affecting the amount and types of projects Arizona attracts have been changes in consumer tastes and viewing habits as well as incentives, Bradstock notes. “In the 1980s and early 1990s, TV Movie of the Week projects were very popular, and we hosted many such projects but fell out of favor with consumers.” Other economic conditions added to the impact of Canada’s film incentive program, as Bradstock explains that Canada’s program, coupled with the U.S. exchange rate versus the Canadian dollar at the time, made that northern migration financially advantageous. “Then, in the early 2000s,” Bradstock continues, “states like Louisiana and New Mexico were at the forefront of crafting their state incentive package, which began to attract production and caused other states (like Arizona) to develop their own. As a result of the prior film incentive that was active in Arizona between January 1, 2006, and December 30, 2010, Arizona saw 56 projects utilize the program, with a direct spend on qualified expenditures of $110 million.”

Phoenix Film Festival; courtesy Phoenix Film Festival

However, not only was Arizona “late to the party” in offering incentives, says Carney, but “there was a sunset clause built in the incentive bill. The legislature did not have the appetite to renew the incentives, and productions immediately dwindled.”

“Timing is everything,” Murray observes, noting that just when the streaming services were coming of age, around 2010, Arizona’s incentive sunset in December 2010 and the state closed its film office. “When a studio was looking for a place to bring business, they would click on the state film office webpage and see ‘that site can’t be found.’ At the same time, New Mexico, Georgia and many other states were aggressively marketing to the growing film industry. Their foresight paid dividends, infrastructure, jobs and tax revenue flowed over Arizona and landed in these other states.”

Bradstock reports that, since Arizona introduced its new incentive January 1, 2023, the state has seen a renewed interest by the studios to film in Arizona. Gains, however, have been “hampered by uncertainty in the industry as a result of the recent writer’s and actor’s strikes, which is further complicated by the uncertainty surrounding the IATSE labor negotiations.”

Explains Arizona Senator David Gowan, author of the new incentive bill, “How the industry operates changed a couple of decades or so ago and film incentive programs became a staple for the generation of a significant industry presence in any particular state or location.” He notes this is not very different from major industries across the board. “States must compete for the attraction and retention of all types of major industries. That’s just how it works now,” he says. “The key is to be smart about it and put the returns and benefits to the state first in any type of business attraction program related to any industry. Arizona has, in fact, done an excellent job in these respects.”

Benefits

“Job growth and an increase in economic activity provide for natural increases in both income, sales and other taxes paid into the state, and at the local level as well,” says Senator Gowan. “And because of the nature of this particular industry, it is likely to effectuate these benefits throughout the state, not just in one static area.”

Plus, Carney points out, “There will be a core of business and individuals that will operate year-round and pay taxes.”

And Bradstock notes that film production positively affects businesses that are not even affiliated with the film industry or market themselves to the film industry. “When film projects come to town, they usually have nothing more than a script in hand from which to create the project, and they need to source almost everything else locally,” he explains. As examples, he notes this can include — but is not limited to — camera rentals, equipment rentals (jibs, dolly track, lights), wardrobe (retail stores from big box stores to boutique), props (furniture stores, antique stores), hair and makeup items (retail), construction materials (big box or specialized), hotels, vehicle rentals, and restaurants (crew meals on set), not to mention the fact that large productions will bring in the “above the line” talent (director, producer, star talent) who will live locally in a rental house or hotel and will visit local cuisines and spend their downtime exploring the City or state.

Furthermore, he says, “What is interesting to note is that the vast majority of film projects are financed out of state, so the impact is similar to tourism. The money is new to Arizona, goes towards salaries, rentals, and purchases, and remains in the state after the project wraps.”

Director Randy Murray filming on the campus of NAU; photo courtesy of Randy Murray Productions

Calling film an important American legacy industry and noting it’s a clean, high-tech industry filled with high paying jobs, Murray believes Arizona is “poised reap the rewards of an industry that is going to be a leading force in how we not only tells stories but how we communicate and engage within our world.” In fact, he’s particularly passionate about the storytelling part, observing that the film about the Arizona heroes who gave their lives protecting us, the Granite Mountain Hotshots, was shot in New Mexico; the film about the brilliant high schoolers from Carl Hayden who beat MIT in a robotics competition was filmed in New Mexico; and the film 510 to Yuma was filmed in New Mexico. “I think it is a matter of pride, we should be telling our own stories.”

Shares Carney, “There is a level of civic pride in community members when they see locations they know on the big screen. Think of Psycho, which was made over 60 years ago and people in the community still talk about the opening shot of The Westward Ho. Even small films filmed in the community get people excited, and the red-carpet events that come along with it.”

By its very nature, the film industry tends to broadly promote and elevate — nationally and even worldwide — the charms and points of interest in the places it focuses on for major film, television and streaming production, Senator Gowan points out, adding, “That is an especially substantial benefit for a tourism- or destination-focused state like Arizona.”

The Motion Picture Association reports the film industry generates $242 billion in wages and $33 billion spent on local businesses throughout the United States, of which Bradstock says, “Securing some of that capital benefits Phoenix.”

“Just like any other major business or industry that comes to and then thrives in our great state, it would ultimately bring substantial economic activity, thousands of quality jobs, and as a result an overall strengthening of our economy throughout the state, as well as increased revenues to our state,” says Senator Gowan. “And new and varying industries provide the state with economic diversity which truly ameliorates the negative impacts of any recession or downturn.”

Economic Development and Infrastructure

The film industry offers a wide range of employment opportunities. For instance, Catalanotte says, “A typical feature film or TV series employs the usual array of skilled workers: grips, electricians, carpenters, hair and make-up personnel, costumers, location scouts, truck drivers, et cetera.” But he goes on to describe other, less obvious, employment opportunities that can sometimes arise as well: Local owners of vintage cars can make money renting their vehicles for a film set in the past. Local homeowners and businesses can make money renting their homes, restaurants, or shops as a filming location. Local thrift stores and antique shops make money when filmmakers buy their merchandise to be used as props, wardrobe or décor. Local translators are sometimes hired when English is not the first language of the filmmakers. And local residents are sometimes hired as experts to assist the filmmakers with realistic portrayals, such as a local doctor being paid to stay on set during a medically related scene.

We have a strong infrastructure to support the industry. “We have worked with directors from all over the world and they are always so impressed with our crews and talent,” Murray shares.

Director Randy Murray filming on a set; photo courtesy of Randy Murray Productions

Says Catalanotte, “Tucson already has a fantastic crew base (we’re particularly strong in the grip department and the art department), but we’re working with one of the local film-related unions to develop a new workforce of carpenters, electricians, and other skilled laborers.”

And noting that there are many companies that provide equipment rental and services, Carney reports the Arizona Production Association has a great online guide that showcases the resources that are available. However, he notes, “Studios are an area of great need in the community. There are not enough sound stages to support a major influx of productions. This will need to be a priority.”

Film schools, on the other hand, is an area of strength. “ASU’s expanding film program along with private universities like Grand Canyon and Huntington that have smaller programs are great,” Carney says. In fact, Murray describes ASU’s as, arguably, the most future-focused film school in the world. And, in addition to the Scottsdale School of Film+Theatre at Scottsdale Community College, which Variety named among the top film schools in the country in 2023 and 2024, Carney says, “There are also lots of good things happening at Glendale Community College.” 

“Arizona now has an opportunity to focus our marketing and incentives on keeping these students here,” Murray says. “If we support them and help them get their careers started, they will put down roots and help us create a creative community in Arizona.” Obviously, growing the industry is critical for this. After all, as Carney points out, “There are many filmmakers in the community who would love to make a living working on productions, however there is rarely enough work to support them all. Additionally, we’ve seen so many filmmakers that have moved out of state for work, who would love to come home for regular production work.”

Festivals help keep the industry in the spotlight, and not just locally. “My work has been featured at festivals from L.A. to New York, from Toronto to Luxembourg, and I think our festivals are some of the best,” Murray shares. “I met a director from London who does a short every year just to submit to the Sedona Film Festival because he loves it so much. The fact that Phoenix Film Festival focuses on independent films sets it apart in a very crowed space.”

“There are many film festivals throughout the state,” Carney says. “Our flagship festival, the Phoenix Film Festival, continues to gather national attention and showcase the best in independent film. The Sedona International Film Festival is also a great festival, along with The Loft Film Festival in Tucson. There are a dozen-plus smaller festivals, including our Peoria Film Fest, International Horror & Sci-Fi Film Festival and Arizona Student Film Festival, with another fall event to be announced soon.”

Renewed Interest in Building an Arizona Film Industry

Arizona is a good fit for the film industry. Carney makes the point that Arizona’s variety of locations — from the desert to cities to forests — makes it a great place to shoot. Additionally, he says, “The minimal amount of rain days are also attractive to keeping productions on time and budget.”

The reverse — the film industry is a good fit for Arizona — is also true, as discussed above.

But Catalanotte believes that, without film incentives, a state isn’t even on the map, as far as Hollywood is concerned. “The significance of Arizona’s new film incentives law,” he says, “is that it says to the film industry, ‘Arizona is open for business and we’re wanting your industry here.’ The U.S. film industry generates billions of dollars each year, and this new law will help drive some of that economic impact here.”

Phoenix Film Festival; courtesy Phoenix Film Festival

The film incentive is administered by the Arizona Commerce Authority and marketed by the State Film Office and regional offices, such as the Phoenix Film Office and Tucson Film Office.

Officially titled the Arizona Motion Picture Production Program, the annual film and TV tax incentive provides a refundable tax credit based on qualified expenditures broken out as follows:

• 15% for a motion picture production company that spends up to $10 million;
• 17.5% for a motion picture production company that spends more than $10 million but less than $35 million;
• 20% for a motion picture production company that spends more than $35 million.

And it allows for additional bumps, as follows:

• 2.5% on below-the-line resident labor costs;
• 2.5% of the total amount of qualified production costs if:
  • The production company uses a qualified production facility in the state to produce the motion picture production, or
  • The production company films primarily at a practical location produces and films the project primarily in Arizona and performs all preproduction, postproduction and editing at an in-state qualified production facility;
• 2.5% of the total amount of qualified production costs if the production is produced and filmed in association with a “long-term tenant,” as defined, of a qualified production facility.

“The industry has a history here, especially in my part of the state in Southern Arizona,” says Senator Gowan. “The interest has always been there, especially in my District. We just needed to find the right way to make it happen for the state in order to rekindle the industry’s presence in Arizona in a meaningful way. We did that with the 2022 legislation, which struck the right balance to provide assurance of benefit for the state and its citizens while at the same time providing a program that the industry views as useful and competitive.”

Praising the incentive’s design, Murray says, “This is not an incentive that is designed to just pay studios to come here, work for a while and leave. Our incentive is designed to build infrastructure and build a creative community that loves Arizona and lives in Arizona.”

Pointing out that film is a clean industry, which creates employment opportunities and impacts local businesses in a positive way, Bradstock notes, “Additionally, it can lead to tourism dollars, as has been witnessed with movies like Brokeback Mountain and TV shows like ‘Breaking Bad,’ where the locations it was filmed have become tourist destinations.”

Learn from the Past and Move Forward

While we use the term “film” to describe the industry, it is much more than just major movies. Observing, “Arizona has cultivated a strong and vibrant industry that has diversified in all multimedia aspects over the years,” Bradstock explains the film industry includes commercials, TV shows (scripted and reality), documentaries, still photo shoots (catalog and car in particular) and music videos, among many other formats. “These types of projects generally do not seek an incentive and can have a strong impact on the local economy,” he says, noting that in 2023, the Phoenix Film Office documented $18.1 million in spending and creating more than 4,600 technical crew and talent positions. He believes having a film incentive will help increase these numbers by attracting larger projects, which will lead to larger budgets and more employment opportunities.

In terms of momentum, Bradstock says, “Should there be a slowdown in one segment — such as feature films, due to a lack of a film incentive — we keep moving forward because of the seasoned film professionals in our community who are adept at working on various multimedia projects.”

Phoenix Film Festival; courtesy Phoenix Film Festival

Important aspects of building a strong film industry, Carney believes, include taking care of the local community and making sure the existing film community has a place at the table throughout this process. “Giving them access to the infrastructure that the film incentives are bringing in and keeping them working is a major piece of the puzzle in ensuring success,” he says.

And there are lessons to be learned from previous experience. “Making sure production infrastructure is in place is a major improvement over what was built in the past,” Carney says. “With sound stages, production facilities and other ancillary production companies in place, there is a much better chance in long-term industry survival even if incentives are reduced or eliminated.”

Gowan anticipates the film industry growing exponentially as facilities are constructed that can serve as an Arizona production hub for the industry. “My understanding,” he says, “is that those efforts are substantially underway, and I am excited to see what happens next.”

“Arguably, our economy is built on people coming here: development and tourism,” Murray says, noting we spend tons of tax dollars encouraging people to visit. “One film or television series can do more for Arizona tourism than years of advertising. A film that creates jobs, fills hotel rooms and restaurants can sell Arizona for generations. Now that is a win-win for Arizona.”