Appleton: Will big-name movies set in Indiana ever be filmed here again?

In September Academy Award-nominated producer and director Lee Daniels finished filming "The Deliverance," a Netflix-backed horror film loosely based on a series of reported supernatural occurrences in Gary.

And where's the best place to film the dramatized story of Latoya Ammons, first shared in the IndyStar in 2014, and the apparent demonic possession of her son in northern Indiana?

Why, Pittsburgh, of course.

How about fellow Netflix film "The Prom," starring Meryl Streep and directed by "Glee" creator and Indy native Ryan Murphy set in a fictional small-town Indiana high school? Where was that filmed?

Los Angeles.

Last Week's Column:Appleton: I finally watched 'Breaking Away.' Am I now a real Hoosier?

As I watched the 1979 classic "Breaking Away" for last week's column, I wondered whether a successful, widely released film backed by a big studio and set in Indiana would ever be filmed here again.

In talking with a few local filmmakers, the outlook is pretty bleak. Recent progress has brought a spark of optimism, but Indiana's road to becoming a truly thriving film production draw is long and bumpy.

Taxes, taxes

A lack of state tax credits has been partially to blame for the lack of mainstream films made in Indiana in recent years. As film production costs have increased, other states began refunding 30, 35, sometimes 40 cents on the dollar for expenditures made within their borders.

Angelo Pizzo, creator of two iconic films, "Hoosiers" and "Rudy," set and shot in Indiana, told me in April the tax climate as it existed in 2022 was a total non-starter for productions of any significant size.

"At this present time, the way in which the tax structure is in these various states, there's not a chance in hell we would ever shoot 'Rudy' and 'Hoosiers' in Indiana," Pizzo said. "We couldn't afford to give away 30 cents on a dollar. By moving it to either Illinois, Kentucky or Ohio, we could find similar locations."

After several years of lobbying from filmmakers, the Indiana State Legislature authorized the Indiana Economic Development Corporation to begin awarding credits to media productions within the state.

IEDC now offers up to 30% in nontransferable income tax credits and has $5 million set aside for fiscal year 2022-23.

Spokesman Nathan Brown said the agency received 15 formal requests from planned film, podcast, TV and documentary productions during its initial application period, which ran from August through December.

'A credit you can't use'

John Armstrong and Zachary Spicer, co-founders of Bloomington-based Pigasus Pictures, praised the progress made during last year's legislative session but noted a fatal flaw in the current system.

"Indiana's film tax credit is the only one in the U.S. that is not transferrable, which means if you're an investor from outside the state, you can not invest in films here," Armstrong said. "You have a credit that you can't use."

Other states allow the sale of tax credits across state lines, often collecting taxes or fees as part of those transactions. Indiana also requires proof of funding before submitting for the incentives, and investors often need assurances of the tax credit before writing a check.

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The current credits may benefit a few small, locally financed productions, the duo agreed, but will not lead to measurable change.

Armstrong said there is global demand for the studio space and workforce in Indiana, but the legislation and tax rules must be updated. He is aware of a major streamer that wishes to film a series in the state, as well as companies that are looking to build their own studios.

"Think about if Hawkins in 'Stranger Things' was actually Terre Haute, and all of that money was coming into Indiana," Spicer said.

Pigasus continues to film in Indiana, such as last year's "So Cold the River," and nurture young production workers through internships and steady jobs. But Spicer said it's growing more difficult.

"We've been here for six years," he said. "If people want us to be here for another six years, the state needs to work with us."

"We were dead in the water on this five years ago, and there has been progress," Armstrong added. "But we need to get serious and get competitive."

Production needs

Benjamin Madrid, an actor, filmmaker and owner of Lumiere Academy, which teaches acting and film production classes in Indianapolis, said the state faces several hurdles beyond the tax credit question.

Indiana is not an established market for the various trade unions — writers, directors, producers, actors — that can dictate production terms and limit members' involvement on a non-union film, Madrid said.

While Indiana does have some talented creatives and production workers, Madrid said, not many outside the state are aware of them. Local production companies also often lack the size and equipment necessary for feature film production, as they are typically built for commercial shoots.

"There are only 11 types of cameras you can use (with the format necessary) to get on Netflix," Madrid said. "They are all $80,000 or more per camera. There are three of those types — maybe 10 cameras total — in Indiana."

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Madrid starred in and co-wrote "No Place," a 2020 action-comedy directed and financed by fellow local filmmaker Peter Matsoukas. The film was shot in Indianapolis and staffed by local talent. It was eventually sold to Lionsgate and is now available on Amazon Prime.

He believes the state needs to support this formula — locals shooting their own films with their own actors and crews, then selling to Hollywood — to improve its overall reputation in the industry and possibly attract larger productions.

Even then, he's not sure how many movies will come out of Indiana.

"No one attempts to be a corn farmer in Los Angeles," Madrid said. "The soil isn’t right for it. The same applies to being a filmmaker in Indiana.’

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Rory Appleton is the pop culture reporter and columnist at IndyStar. Contact him at 317-552-9044 and rappleton@indystar.com, or follow him on Twitter at @RoryDoesPhonics.

This article originally appeared on Indianapolis Star: Big films about Indiana are no longer made in Indiana. Why is that?