Posted 26 May, 2008 in SC News
South Carolina is attempting to improve its incentives program, by expanding the law to provide an a 20% wage rebate for all hires (up to $1M) with an additional 10% rebate as an incentive for hiring South Carolina residents who earn over $18/hour. The bill also includes an apprenticeship program that rebates 50% of qualified wages. The legislation has passed the state house, and is now under consideration by the senate. Anyone wishing to send a message of support may go to: http://votervoice.net/target.aspx?id=cmcc:24679177
Posted 26 May, 2008 in GA News
Georgia now offers 30% incentives. The transferable credit is 20% of qualified spend, plus an additional 10% tax credit on qualified spend for inclusion of a Georgia animated logo in a prominent position during opening titles or end credit roll. The Georgia incentive has a $500K hire cap, but no caps for the state program or per show.
Posted 26 May, 2008 in FL News
Instead of increasing the appropriation, Florida squeezed its fiscal year allocation from $25 million to $5 million. The Governor originally requested an increase to $40 million, but in a dramatic session the legislature reduced it step-by-step to zero, then finally approved $5 million.
Posted 18 May, 2008 in CA News
Governor seeks to retain California productions
By ASSOCIATED PRESS
SACRAMENTO — Gov. Arnold Schwarzenegger said Friday that California must increase tax incentives to movie and television studios as a way to keep them from moving their productions out of state.
He said incentives being offered by other states are luring studio projects away and costing California tens of thousands of jobs.
Tax credit proposals have repeatedly failed to clear the Legislature. Legislative spokesmen expressed support for the idea Friday but worried about the lost taxes when California is struggling with a budget deficit Schwarzenegger said could reach $20 billion next year.
The governor’s comments were sparked by ABC Studios’ plans to move production of “Ugly Betty” from Los Angeles to New York.
Studio spokeswoman Charissa Gilmore declined comment Friday, saying no final decision had been made. She also declined comment on whether tax incentives would help keep the production in California.
“What happened was (productions that shifted to other states) didn’t come back to California; they went to Louisiana, they went to Florida, they went New Mexico because they give great tax incentives,” Schwarzenegger said.
New York Gov. David Paterson signed a law last month that triples his state’s film tax credit. Companies can receive a 35% credit if at least three-quarters of their production is filmed in the state.
A series of Assembly speakers, all from Los Angeles, have pushed unsuccessfully for a California tax credit since 1998. They include Assembly Speaker Fabian Nunez, who steps down as speaker next week and is termed out of office after this year, and his successor, Karen Bass.
“If the governor would propose ways to increase revenue to offset the credit, this would be a blockbuster hit in the Legislature,” Nunez spokesman Steven Maviglio said in a statement. “Unfortunately, the governor has never included funding in any of his budgets for the bill and has undermined the bipartisan support the credit has enjoyed by proposing a cuts-only budget.”
Besides New York, Alaska lawmakers last month voted to give state corporate income tax breaks of 30% or more to offset money spent in the state on movie production. Michigan boosted its credit to 42% of production expenses last month.
Massachusetts enacted credits in 2006 and increased them this year. However, a state Dept. of Revenue report last month found the incentives cost the state $138 million in lost tax revenue.
Posted 18 May, 2008 in FilmUSA
The top five film incentive packages in the U.S.
By MATTHEW ROSS, Daily Variety
For the past six years, Louisiana and New Mexico have reigned atop the
ever-expanding list of states that have opened their coffers to the movie
business. But they’re certainly not the only draws out there. Producers and
studios have more choices than ever before, and the trend shows absolutely
no sign of slowing down.
Over the past year, we’ve seen how a single new piece of legislation can
change the entire U.S. landscape in an instant, whether it’s coming from
states with established production services (New York) or a new upstart
whose financial package is simply too good to resist (Michigan).
Picking the best incentive packages in the U.S. is far from an exact
science, but we’ve given it a shot. Herewith, we present our top five. (Of
course, things could always change next week.)
LOUISIANA
The granddaddy of the incentive boom continues to impress and endure. When
Hurricane Katrina and its aftermath made shooting difficult in New Orleans,
production houses and crew members set up shop in other cities such as
Shreveport and Baton Rouge without missing a beat. And 2008 is shaping up to
be a record year — 28 productions have come through the state through
April, a pace that should easily eclipse 2007’s record of 53 productions for
the entire year. The reason: Along with its 25% transferable credit for all
in-state expenditures and an additional 10% on labor for state residents,
Louisiana continues to develop its production resources, which now include
the Cinelease soundstages in Shreveport and the Celtic Media Center in Baton
Rouge. Upcoming and recent pics include David Fincher’s “The Curious Case of
Benjamin Button,” with Brad Pitt, and Oliver Stone’s “W.” Louisiana
continues to be a favorite location for both the Weinstein Co. bring in
regular business.
NEW MEXICO
Like Louisiana, New Mexico boasts one of the most established, effective
incentive programs in the U.S. Rather than offer tax credits, the state
provides a flat-out cash rebate covering 25% of all in-state expenses. In
addition, it offers 0% loans (in exchange for backend participation) of up
to $15 million on shows spending at least $2 million within the state. In
previous years, the one knock on New Mexico was that it had scant facilities
and hardly any qualified local crew. That situation is being remedied. Last
June, Albuquerque Studios, a $75 million soundstage and production hub,
opened its doors. Recent and upcoming productions to take advantage of the
new facility include Taylor Hackford’s “Love Ranch,” Jim Sheridan’s
“Brothers” and McG’s “Terminator Salvation: The Future Begins,” currently in
prep.
CONNECTICUT
In only two years, Connecticut has gone from nonentity to major player in
the incentive game, and has offered further proof that film-related
legislation has the ability to give local economies an immediate boost.
Thanks to its generous 30% tax credit and its close proximity to the
resources and crew of neighboring New York, Connecticut has managed to lure
a slew of high-profile productions recently. Seven features are shooting
there, including Andrew Jarecki’s “All Good Things” with Ryan Gosling and
Kirsten Dunst, P.J. Hogan’s “Confessions of a Shopaholic” and Sam Mendes’
“Farlanders.”
NEW YORK
Until a few weeks ago, New York had one of the weaker incentive programs in
the nation. That still didn’t stop more than 250 features from shooting in
the state last year. Those stats are about to be shattered. In April, Gov.
David Paterson and the Legislature teamed up to pass a bill that tripled the
state tax credit on production expenses to 30%, with an additional 5% thrown
in for shows shot within New York City. For productions big and small, the
cringe-inducing costs of shooting in Gotham have suddenly become easier to
manage.
MICHIGAN
The new kid on the block, Michigan rounds out the list purely based on its
unmatched investment, which was announced last month. It includes a
phenomenal 40%-42% cash or tax-credit rebate (whichever the
producers/financiers prefer) on all in-state expenditures, plus a 30%
reimbursement for nonresident below-the-line crew members. Simply put, this
is the best package ever to be introduced in the United States. But that
doesn’t mean there won’t be significant hurdles to overcome, the most
glaring of which is Michigan’s utter lack of any significant production
resources or local crew. Expect that situation to change, and fast. Just
look at Louisiana and New Mexico.
Posted 3 May, 2008 in OK News
Dear film and music industry member,
As we approach the last stretch of our 2008 Oklahoma legislative session, I am providing you with an update on the status of this year’s initiatives designed to bolster our Oklahoma industries. So far, two of our initiatives have passed and two are still under consideration.
As detailed below, HCR 1047, the resolution which provides for the designation of a state rock & roll song in conjunction with the 2009 launch of the Oklahoma History Center ’s exhibit, Another Hot Oklahoma Night, was passed unanimously by the Senate on April 22 and is now adopted. In the first week of its launch, the rock song website, www.oklahomarocksong.org, has received approximately 4500 unique visitors and over 900 nominations of a total of 192 songs. Visitors have logged on from all fifty states in the U.S. and from as far away as the UK , Australia , Norway and Thailand . For more information or to vote, you can also go to our website at www.oklahomafilm.org.
We are also very pleased to announce that Senate Bill 3198, which provides for the creation of a task force to study approaches to creating a statewide Creative Artists Guild, was also recently signed into law by Governor Henry.
House Bill 2583, which contains revisionary language for the Oklahoma Film Enhancement Rebate Program and the Tourism Development Act, and Senate Bill 2129 which contains revisionary language for the Qualified Venture Capital Company Tax Credit, are both going back to conference committee and are awaiting committee assignment. Our industries may still have work to do in order to get these bills passed. Once I know to which committees the two remaining bills have been assigned, I will notify you so that you may weigh in with your legislator.
BILLS STILL IN PLAY
HB 2583 –- Representative Terry Hyman and Senator Randy Bass
Revises Oklahoma Film Enhancement Rebate Program and Oklahoma Tourism Development Act
· As a means of incentivizing the use of Oklahoma musicians, music and music facilities for the film industry, include an additional 2% rebate if the production company spends at least $20,000 for music created by Oklahoma residents or for recording music in Oklahoma .
· Refine Loanout/LLC Language based on Oklahoma Tax Commission input.
· Expand the distribution requirements to include a provision for the inclusion of nationally recognized network or cable television pilots
· In an effort to keep up with industry trends, expand definitions to include not only “film and music production facilities�, but also “digital media� facilities.
· Lower the minimum expenditure threshold for participation from $500,000 to $100,000 for music production and post production facilities and $350, 000 for film production, post production, visual effects and digital media facilities to encourage development of facilities in Oklahoma at more practical thresholds, particularly for music.
Passed the Senate Floor 32-16 on April 15; On April 22, the bill was sent back to conference committee since it now has a $50,000 impact. Currently awaiting committee assignment.
SB 2129 –– Sen. Mazzei, Reps. Peterson and Brown – Revises Qualified Venture Capital Company Tax Credit, the Small Business Capital Formation Incentive Act and the Rural Venture Capital Formation Incentive Act.
As a follow-up to 2006 legislative amendments that closed loopholes to ensure the tax credits were providing the desired stimulus to the Oklahoma economy, this legislation seeks to close remaining loopholes by ensuring that the tax credits are calculated on amounts invested by the investor plus borrowed amounts for which they are personally liable for repayment. It also modifies several definitions including allowing for the possibility of more qualifying expenditures such as payroll.
Passed the House Floor 85-5 on April 24. As of April 30, several amendments have been added resulting in a fiscal impact being attached to the bill. It has been sent back to conference committee where it is currently awaiting committee assignment.
BILLS/RESOLUTIONS PASSED
HCR 1047 – Representative Joe Dorman – Oklahoma Rock & Roll Song Resolution -
Provides for the designation of a state rock & roll song in conjunction with the 2009 launch of the Oklahoma History Center ’s exhibit, Another Hot Oklahoma Night. From March 1 to August 1, 2008, the Oklahoma Historical Society will host a website located at the address www.oklahomarocksong.org, as well as have polling locations at special events and at the Oklahoma History Center, allowing the public to nominate an official Rock and Roll Song. In August 2008, the nominations will be pared to ten appropriate songs by a panel of experts. This panel will consist of an appointee by the Governor, an appointee by the Speaker of the House, and an appointee by the President Pro Tempore of the Senate, two appointees by the Office of the Oklahoma Film and Music Commission, and two appointees by the Oklahoma Historical Society. From September 1 to November 15, 2008, the public will be allowed to vote on the official Oklahoma Rock and Roll Song to be presented to the First Session of the Fifty-second Oklahoma Legislature in 2009.
Adopted unanimously on the Senate Floor on April 22. Process complete.
SB 3198 – Rep. Lee Denney – Creation of Task Force on Creative Artists Guild
This would be a new law creating aTax Force on Creative Artists Guilds to study approaches to organizing, establishing, and supporting creative artist guilds in Oklahoma in order to provide a cooperative structure for artists to advance visual and performing arts through education, exhibitions, and workshops.
Passed the Senate Floor 36-10 on April 14; Signed into law by Governor Henry on April 18.
