Delaware hopes to attract out-of-state dollars, in-state work with film tax credit

Why Should Delaware Care?
The Matt Rife comedy “Unaccompanied Minor” is the first film to take advantage of Delaware’s new film and entertainment production tax credit. The politicians behind its passing hope to stimulate economic development, provide jobs for Delawareans and build a thriving production industry in the First State.

From musicians like SZA and Journey, to NFL athletes Saquon Berkley and Jason Kelce, the Pine Box Studios, a rehearsal and production space in Wilmington, has been no stranger to famous faces in the five years since its opening. 

But Pine Box Studios has never been the site of a feature film production — until now.

Top Rope Studios, an independent film production company helmed by producer and Delawarean Christopher Lemole (“The Peanut Butter Falcon”), is currently renting the space for one month to shoot “Unaccompanied Minor,” a road trip comedy directed by David Dobkin (“Wedding Crashers”) and starring comedian Matt Rife. 

Delawareans have spotted the crew filming at iconic locales — The Charcoal Pit, historic New Castle and the historic Newark train station — in recent weeks. 

Now, Top Rope Studios has set up shop at The Pine Box Studios. Georgia-based Shoot Aviation has assembled an airplane interior set inside the space made from a decommissioned American Airlines aircraft. 

“This is my first time in a laydown seat in first class,” joked The Pine Box Studios General Manager Brian Market as he gave Spotlight Delaware a tour of the plane. “We’ve seen some pretty decent-sized sets for the commercials that we’ve had here, but nothing like this.”

Market said Top Rope Studios first called about booking a space in July, mere days after the General Assembly passed House Bill 364, establishing Delaware’s first film and entertainment production tax credit. 

“That’s why this legislation was so important,” Market said. “Everyone told us, ‘You’re not going to get the film and TV stuff until a tax credit is on the books because they’re going to go to another state.’”

The 30% transferable tax credit is available to productions of feature films, TV series, commercials, music videos, video games and esports that spend more than $100,000 in Delaware in a 12-month period. 

The state has budgeted up to $10 million annually for the program, meaning the program has the potential to attract about $33 million in production spending to Delaware annually, according to Joe Zilcosky, regional business manager with the Delaware Division of Small Business.

Applications officially opened on Sept. 16 but are retroactive to July 1, when the General Assembly passed the bill. 

Gov. Matt Meyer held a ceremonial bill signing for HB 364 at The Pine Box Studios on Sept. 30.

During the ceremony, Lemole explained that he moved back from Los Angeles to the Wilmington area six years ago and is honored to make a film in his home state. 

Lemole sees Delaware as an ideal filming location for several reasons, including its proximity to cast and crew across the East Coast and its scenic cityscapes, rolling hills, beaches and farmlands.

Zilcosky was unable to share at this point how much Top Rope Studios plans to spend in Delaware, but he said its tax credit would amount to only a fraction of the state’s $10 million budget.

He added that the state will begin an outreach campaign in January to attract more production companies to Delaware. Zilcosky said the plan is to get the word out through social media, advertising, conferences and The Writer’s Guild of America, as well as by initiating “one-on-one contact” with production companies. 

“We’ve already spoken with some studios in Hollywood,” he said. 

The goal of attracting production companies to Delaware is to expand job opportunities for locals — not only those directly involved in the entertainment industry, but also those involved in hospitality, restaurants, transportation and more, Market said. 

During his remarks, Meyer recalled the filming of “Dead Poets Society” in 1988 and 1989, which saw Middletown’s St. Andrew’s Academy and the surrounding New Castle County as a stand-in for Vermont’s fictional Welton Academy. He said a high school peer who worked on the film moved to California to pursue a career in the film industry.

“Our hope is, in the next generation, they will stay here,” he said about Delaware’s up-and-comers in the film industry.

Lemole said that, while the new tax credit will bring out-of-state dollars in the short-term, there is much more potential for Delaware’s economic development by fostering its film industry.

“Further down the line, the goal is to attract crew moving into the state from out of state, and then start film training programs in high schools, trade schools and universities,” he said. “Lastly, setting up in-state vendors, production and post facilities, as well as more sound stages, will bring an influx of economic activity into Delaware.”

For House Majority Leader Kerri Evelyn Harris, who sponsored HB 364, the impact of the film tax credit is not merely economic. Harris represents District 32, including southeast Dover and surrounding areas in Kent County.

“I represent a district that has extreme haves and have-nots,” she said. “I have kids who don’t see a future for their tomorrow. If I can put them on a bus and bring them up here and say, ‘Just stay out of trouble a little bit longer, and this could be a space for you,’ that’s success.”