U.S. Is Looking Better Close Up

Zane Zidel planned to film his low-budget horror flick "Coil" in Canada.

But with the dollar sagging, the price of staying in the U.S. to film isn't so scary. Rhode Island now looks good. So does Louisiana.

"It used to be if you wanted to save money, you went to Canada," Zidel said. "Now, I'm looking at other options."

Zidel strolled through the Santa Monica Civic Auditorium on Friday afternoon, carrying five bags stuffed with sales pitches from states and countries. All were vying for his business at the annual Locations Trade Show held by the Assn. of Film Commissioners International.

Some 180 film commissioners from 33 countries came to the three-day convention, which ends Sunday, hoping to fill their treasuries with some of the money that film crews spend when they shoot on location.

But credit the weaker dollar for changing the nature of the runaway-production problem that has plagued California for more than 20 years.

Shooting in film-friendly countries such as Canada, Australia and Ireland is more expensive. At the same time, states including New Mexico and Louisiana are moving in for a slice of the production pie, offering tax breaks and other financial incentives.

"What the states figured out is that when the dollar was so low, it was the time to strike because less production would go to Canada and it had to go somewhere else," said Steve MacDonald, president of Entertainment Industry Development Corp., which issues film permits in Los Angeles.

Seizing on the development, more than a dozen state legislatures are developing tax incentives to lure production.

New Mexico, where the upcoming Adam Sandler movie "The Longest Yard" was filmed, is one of the most aggressive. The state has seen its film production mushroom from $8 million three years ago to $120 million last year. Producers of the TV series "Wildfire" recently chose to shoot in Albuquerque instead of Vancouver.

"The higher Canadian dollar has helped us tremendously," said Lisa Strout, director of New Mexico's film office. "It used to be it wasn't so much of a battle. It was, 'I need desert; I need location.' Now it's all about money and these incentives."

Gov. Arnold Schwarzenegger has promised to fight runaway production and is reportedly working on an incentive program. But proposals for state financial sweeteners have historically been a tough sell in Sacramento, where some legislators have criticized them as unnecessary giveaways.