Posted 21 January, 2010 in FilmUSA
From The Incentives Office
FLORIDA ALERT
Legislation has been introduced in Florida that would convert their current refundable credit to a transferable tax credit, which can’t be used until 2012. The credit will equal 20% of the qualified Florida spend, plus 5% for shooting during hurricane season, and 5% for family-friendly production. $75 million per year will be available. Cast and crew must be Florida residents to qualify, and all goods and services must be purchased from a Florida vendor.
IOWA R.I.P.
A panel of legislators appointed by the Governor has recommended total elimination of the film tax credit program.
NY STATE INCENTIVES
Governor Paterson has increased the proposed allocation from $350 million to $429 million per year starting in tax year 2010, with an increase in the percentage or number of shooting days that must be shot at a qualified facility, and the imposition of other restrictions to the program. The budget has not been passed, but will be voted on during the current legislative session.
Posted 7 January, 2010 in FilmUSA
From The Incentives Office
JANUARY PRODUCTION INCENTIVES UPDATE
CALIFORNIA — As a result of the California Film & TV Tax Credit Program, productions that were otherwise slated to leave California have been approved for the program and are filming in state. The program, which launched in July 2009, approved twenty-six projects for 2009 start dates. The remaining projects will begin filming in the first half of 2010.
Applications are still being accepted, with approximately $15 million in funds for “independent productions” remaining. Please contact the California Film Commission (”CFC”) for up-to-date allocation information, since projects may drop out, freeing up additional funds.
An additional $100 million (shared between independent and studio productions) will be available starting in July, 2010. The permanent regulations are currently under review. The CFC anticipates adoption of the regulations in February 2010.
ILLINOIS – Toronto-based Cinespace has announced development of an $80 million studio complex on an industrial site near the heart of Chicago. The project is being promoted as the biggest state-of-the-art production facility outside of Hollywood. Details soon.
LOUISIANA – With an increased tax incentive, Louisiana saw 63 productions completed over 2009.
New facilities: Los Angeles digital visual effects company Pixel Magic has opened an office in Lafayette; Worldwide FX, a major Bulgarian effects house, opened a division in Shreveport. Second Line Studios is finishing construction in New Orleans, with “Green Lantern” scheduled to be the first production. Maison Post, a full-service post-production house, has opened in New Orleans. Nu Image broke ground on Millennium Studios, their new sound stage complex in Shreveport. Meanwhile, Sony wrapped “Battle: Los Angeles” at Celtic Media in Baton Rouge.
MICHIGAN was the location of choice for 50 productions with total expenditures approaching $250 million. Although the new year has just started, MI anticipates over $150 million in production for 2010, with the possibility of $200 million or more.
No new stages have been completed, but there are a number in progress; in addition, there are good warehouses and at least 3 stages available, 2 in the metro Detroit area, 1 up in Manistee.
No changes are expected in the incentive program for 2010.
OHIO – The new incentives program has already awarded nearly $7 million in credits for 4 productions, including “Unstoppable,” a Denzel Washington film from Twentieth Century Fox that shot (partly) in the state in November. In addition, three films from Ohio-based Nehst Studios are scheduled for 2010.
Ohio offers a 25% refundable credit plus an additional 10% for local hires, with $30 million available for the 2010-2011 fiscal year.
OREGON – Response to the increased production incentive resulted in 2009 becoming the biggest year for film, television and commercial production in Oregon to date, with a reported $62 million in direct spending. With the higher program cap, Oregon hosted major productions such as the TNT series “Leverage”, CBS Films’ “Extraordinary Measures”, “Something Wicked”, “Meeks Cutoff”, and the recently completed Gus Van Sant film.
With Season 3 of “Leverage” already committed to return in 2010 and several other interested projects, 2010 will likely be an even bigger year than 2009. Some of the incentive funds are available now, with additional funds earmarked for next year. There are no legislative changes anticipated until 2011, when the full legislature meets.
TEXAS hosted a total of sixteen films in 2009, including 2 Robert Rodriguez films, “Machete”and “Predators”, and 10 Television productions — including ABC’s “The Deep End” and NBC’s “Friday Night Lights”. Plus sixty-five commercials and twenty-six video games qualified for the incentive grants, for a total Texas spend of $177 million. For 2010, the state expects both TV series to continue, plus thirteen episodes of “Jack & Dan” for Fox. Upcoming features include the Coen Brother’s “True Grit” in the Austin area and “Retractable”in Houston.
No program changes are anticipated in 2010, as the legislature does not go back into session until January 2011. $14 million remains for the current fiscal year.
Posted 7 January, 2010 in FilmUSA
Updates By Jurisdiction (courtesy of EP)
U.S. Updates
For more information on incentives in each state, visit theU.S. Overview on our website and click on the state of interest.
U.S. FEDERAL
An extenders bill has been passed by the House, including IRC Section 181. Due to time constraints, the Senate is not expected to pass it until next year, on a retroactive basis.
CALIFORNIA – Los Angeles
Mayor Villaraigosa is focusing on jobs in three sectors, including the entertainment industry. The city is renewing efforts to prevent jobs from leaving. It is expected to be easier to film on city properties, among other possibilities. (See news article.)
FLORIDA
A statewide jobs summit in January 2010 will look at whether film prouduction might create jobs (see news article).
GEORGIA
The Department of Revenue published proposed Film Tax Credit Rules, which are awaiting adoption and certification by the Commissioner. The Secretary of State will provide the effective date.
HAWAII
The Department of Business, Economic Development and Tourism’s Creative Industries Division (CID), which houses theHawaii Film Office, will continue to provide the core services and functions of film permitting, production servicing, tax incentive co-management and the marketing and operations of the Hawaii Film Studio. Georja Skinner, the former Maui film commissioner, and her staff can be reached through Creative Industries or the Film Office. A PDF is available with more information on how the Film Office functions within the Creative Industries Division.
IOWA
Governor Culver lifted the suspension of the state’s film incentive for projects already registered and in progress or completed. Projects that have not already received “award letters” from the state will not be considered for tax credits this fiscal year. Sixty-eight proposed film projects are eligible to start negotiating contracts for film incentives, with a $50 million cap for this year. No new projects will be approved until the Legislature and the Governor review and re-evaluate the program. (See Des Moines Register news article, Sioux City Journal news article, Quad-City Times news article, and LegalNewsline.com article).
MICHIGAN
The Department of Treasury issued a new FAQ regarding when an eligible production company can claim a film production tax credit. The FAQ clarifies confusion regarding the requirement for, and time line for processing, the “Post-Production Certificate of Completion Request.” Click here for a full list of Michigan Business Tax Film Credit FAQs.
NORTH CAROLINA
Governor Perdue signed an executive order reauthorizing the N.C. Film Council. The order adds duties to the council that include assisting in the development of the film industry and supporting incentives. (See news article.)
OKLAHOMA
Jill Simpson, Director of the Oklahoma Film and Music Office has asked the House Economic Development and Financial Services Committee to remove the annual $5 million incentive cap (seenews article).
PENNSYLVANIA
Pennsylvania is now accepting applications for projects that qualify for the Creativity in Film Tax Credit program. Qualified projects will be awarded credits available under the $60 million tax credit allocation available for FY 2010-2011 (the $42 million allocation of tax credits has been fully subscribed).
Applicants may apply for FY 2010-2011 tax credits at any time not more than 90 days prior to the start of principal photography; that is, projects may begin production prior to the commencement of that fiscal year. However, tax credit certificates for such projects will not be awarded until the first day of FY 2010-2011 (July 1, 2010) or completion of all requirements for issuance of the tax credit, whichever is later. Further information is available from thePennsylvania Film Office.
The Department of Community and Economic Development is in the process of finalizing the Film Tax Credit Program Guidelines.
International Updates
For more information on incentives around the world, visitour website and click on the region or country of interest.
AUSTRALIA
Ausfilm is reported to be preparing a strategy to stimulate international demand through co-productions, amidst speculation that it will request a short-term increase in the 15% location offset (see The Australian news article and Variety news article).
CANADA – Ontario
The Ontario Government has enacted Bill 218, which expands the Production Services Tax Credit to 25% of qualifying labor and qualifying production costs incurred in Ontario. The law is retroactive to expenditures incurred after June 30, 2009.
CAYMAN ISLANDS
The Cayman Islands Film Commission (CIFC) has publishedGuidelines and the Claim Application for the film production rebate.
FRANCE
The official publication of the regulations establishing the Tax Rebate for International Productions was released on December 1, 2009. Implementation of the law is retroactive to January 1, 2009.
GEORGIA
As part of the country’s new “film friendliness program, the National Film Center has posted a questionnaire regarding a proposed uncapped cash rebate of 25% of qualified local spend (see AFP news article and Telegraph news article).
GREECE
Disappointment over “outdated film funding laws” and the absence of production incentives similar to those found across the European Union resulted in cancellation of the Greek State Film Awards. The new culture and tourism minister pledged to work on a film law. (See news article.)
INDIA
The Information and Broadcasting (I&B) Ministry has sought a 10-year tax holiday from the Finance Ministry for the animation, gaming, and visual effects (VFX) industry, as well as other customs and tax benefits. (See news article.)
FROM CAST & CREW:
MISCELLANEOUS
CALIFORNIA
The Franchise Tax Board has announced that it is developing procedures and forms for claiming the California Film and Television Tax Credit that will be allowable to offset state income and franchise tax liabilities for tax years beginning on or after January 1, 2011. Taxpayers can claim the credit after the California Film Commission issues a credit certificate. In lieu of claiming the credit against their income tax, a qualified taxpayer may make an irrevocable election to apply the credit amount against qualified sales and use tax liabilities.
CONNECTICUT
Beginning 1/1/2010, Connecticut’s revised production tax credit program goes into effect. The minimum spend increases to $100,000 while a tiered credit structure between 10% – 30% replaces the flat 30% credit. Additionally, “star talent” is capped in the aggregate at $20 million. In order to qualify for the program, a production must conduct at least 50% of its principal photography days in CT or spend at least 50% of the film’s postproduction costs in CT.
IOWA
The Iowa Department of Economic Development announced that it would award no additional film tax credits for the remainder of the fiscal year (6/30/2010), deciding to focus its resources on projects already approved and contracted.
MICHIGAN
The Michigan Department of Treasury (DOT) recently released an FAQ regarding when a film production credit may be claimed. The DOT has determined that an eligible production company must claim or assign a film production tax credit received pursuant to section 455 of the MBTA in the tax year in which the postproduction certificate, signed by the Film Commissioner, is issued by the Michigan Film Office.
Only for tax years beginning prior to December 1, 2009, will the DOT consider written requests from production companies seeking exceptions to the policy expressed above. To qualify for the exception, the production company must be able to demonstrate significant hardship as the result of following the above policy. It is important to note that the expressed policy will be adhered to for all tax years beginning on or after December 1, 2009, with exceptions granted only in instances where delay in issuance of the postproduction certificate is caused by an error of the Michigan Film Office or Department of Treasury.
Once eligible production companies have submitted their applications for a postproduction certificate, they should allow approximately 60 days for review of the application as provided in statute (MCL 208.1455(5)), assuming the application and required supporting documentation is complete and additional information is not required. If additional information is required, the review may take longer than 60 days. Plan accordingly.
NORTH CAROLINA
Effective for taxable years beginning on or after January 1, 2010 a production company that has qualifying expenses of at least $250,000 may elect to take a refundable tax credit equal to 1) 25% of the qualifying expenses without the use of the sales tax exemption or 2) 15% of the qualifying expenses and the use of the sales tax exemption. The election must be made at the time the taxpayer files their tax return and the election is binding.
IRS MILEAGE ALLOWANCE
Beginning January 1, 2010, the standard mileage rate will be 50 cents per mile.
FUNDS STILL AVAILABLE? Here is the current status as reported to us today:
Alaska – Most of the $100M available
Arizona – $62M available
California – Substantial funds available
California – San Francisco – $400k available
Colorado – $700k available
Connecticut – No cap
Florida – No funds available
Georgia – No cap
Hawaii – No cap
Idaho – No funds available
Illinois – No cap
Indiana – $2.5M available
Iowa – Program Suspended
Kansas – Program suspended until 1/1/2011
Kentucky – No cap
Louisiana – No cap
Maryland – No funds available
Massachusetts – No cap
Michigan – No cap
Minnesota – Just under $760k available
Montana – No cap
New Mexico – No cap
New Jersey – No funds available
New York State – Funds available
New York City – No funds available
North Carolina – No cap
Ohio – $3.5M available
Oregon – $700k available
Pennsylvania – No funds available but accepting applications for next fiscal year
Puerto Rico – Funds available
Rhode Island – $15M available
South Carolina -$10M available
Texas – $15M available
Utah – $7.2M available for the tax credit, $2.7M available for the rebate program
Washington – $6M available
West Virginia -$9M available
Wyoming – Just under $300k available
Posted 5 December, 2009 in FilmUSA
http://www.mpaa.org/EconReportLo.pdf
Posted 4 December, 2009 in FilmUSA
THE PRODUCERS GUILD OF AMERICA IS NOT RESPONSIBLE FOR THE INFORMATION PROVIDED. PLEASE VERIFY ALL INFORMATION WITH THE FILM OFFICES DIRECTLY.
Here’s a link to a research site maintained by Adrian McDonald. http://www.runawayproductionresearch.com
Posted 25 November, 2009 in FilmUSA
Please check out the following link for comprehensive information on runaway productions as gathered by Adrian McDonald.
http://www.stop-runaway-production.com/
Posted 31 October, 2009 in FilmUSA
States offer upgraded incentives
Location hotspots from Arkansas to Utah
By KATHY A. MCDONALD
ARKANSAS
A “right-to-work” state, Arkansas initiated a production incentive program in July. Features, documentaries, musicvids, TV episodes and even trailers are covered, provided a production company spends at least $50,000 in state within a six-month period, with 15% of all qualified production costs eligible for a rebate. An additional 10% rebate is available for below-the-line personnel who are full-time residents of Arkansas. Post-production expenses are also eligible for rebate.
Key contact: Christopher Crane, Arkansas Film Commissioner
Arkansas Film Commission: arkansasedc.com/business-development/arkansas-film-commission.aspx
CALIFORNIA
In July, California began administering its five-year, $500 million tax credit production incentive program. A 20% tax credit can now be applied to crew and local vendor costs; above-the-line personnel are exempt. For a series that relocates to California, the credit is 25%. Productions are chosen by lottery.
The state has 50 regional film offices, and some California cities also offer deals in addition to state incentives. San Francisco refunds city costs and payroll taxes paid to the city during filming of up to $600,000 per production, provided a show lenses a majority of principal photography within city/county limits. For shows based in Santa Clarita that hire locally based crew, the city will subsidize most permitting fees and refund hotel taxes. In October, Los Angeles established some incentives: free parking in city lots after hours, business tax credits for business owners that allow filming for free and expanded film permit powers for FilmLA.
Key contacts: Amy Lemisch, director, California Film Commission; Stefanie Coyote, San Francisco Film Commission
California Film Commission: film.ca.gov
San Francisco Film Commission: filmsf.org
City of Santa Clarita Film Office: filmsantaclarita.com
Film LA: filmla.com
CONNECTICUT
Minimum expenditures for Connecticut’s transferable tax credits have been revised and will go into effect Jan. 1. Tax credit amount is dependent on the production’s total expenses or costs, from 10% to 30%. As of Jan. 1, a production will be required to conduct at least 50% of its principal photography days or 50% of its post-production in the state to be eligible, and no out-of-state expenses will qualify. Talent salaries are capped at $20 million and, to be considered in the total expenditures, must be subject to the state’s personal income tax.
Top facility: Connecticut Film Center, Sonalysts Media Group
Key contact: George Norfleet, film division director, Connecticut Commission on Culture & Tourism
Connecticut Commission on Culture & Tourism Film Division: cultureandtourism.org/cct/cwp/view.asp?a=2126&q=302556&cctNav=|
New London Film Commission: filmnewlondon.com
New Milford Film Commission: filmnewmilfordct.org
FLORIDA
As of July 1, the state has $10.8 million in funding for production rebates via its Film, TV and Digital Media Incentive. Film, TV, commercials, musicvideos, indie films and interactive entertainment are eligible for rebates that vary from 10% to 22%, depending on the production spend, whether local crews are hired and type of production. Indie films and documentaries as well as multiple commercials and musicvid productions can apply as well, with differing criteria for qualified spends. The state has 60 regional film offices to help navigate locations and incentive programs.
Top facilities: Universal Studios Florida; Telemundo Studios Miami; Big Time Prods.’ Ice Palace Studios, Miami
Key contacts: Lucia Fishburne, state film commission; Susan Simms, L.A. liaison/state film commission; Jeff Peel, director, Miami-Dade Office of Film & Entertainment; Suzy Spang, VP, Metro Orlando Film & Entertainment Commission
Film Florida: filminflorida.com
Miami-Dade Office of Film & Entertainment: filmiami.org
Metro Orlando Film & Entertainment Commission: filmorlando.com
GEORGIA
Since May 2008, Georgia has been offering a 20% tax credit for qualified spending. An additional 10% tax credit is available for approved productions that imbed an animated Georgia promotional logo within the finished product. Qualified companies can also utilize an immediate point-of-purchase sales tax exemption that can save productions up to 8% on most below-the-line materials and service purchases or rentals. There are no project or funding caps.
Top facilities: Tyler Perry Studios, Atlanta; Turner Studios, Atlanta; Riverwood Studios, Atlanta
Key contacts: Bill Thompson, deputy commissioner, Film Music and Digital Entertainment Office; Jay M. Self, film services director, Savannah Film Commission
Georgia Film Music and Digital Entertainment Office: georgia.org/GeorgiaIndustries/Entertainment
Savannah Film Commission: savannahfilm.org
KENTUCKY
In June, Kentucky created an incentive that provides a refundable income tax credit of up to 20% of approved production expenditures. There is a $500,000 minimum spend for features and TV productions; commercials are eligible with a $200,000 minimum spend. A 6% sales tax refund for qualified production expenses remains in place, but producers can opt in for only one program. Walt Disney Co.’s “Secretariat” is the first film to qualify for incentives.
Key contacts: Todd Cassidy, director, Kentucky Film Office; Nina Clooney, chair, Kentucky Film Commission
Kentucky Film Office: kyfilmoffice.com
LOUISIANA
Effective July 1, Louisiana upped its fully transferable film tax credit to 30% of total in-state expenditures. If Louisiana residents are hired, 5% of their wages and salaries qualify for a labor tax credit, with a wage cap of $1 million per individual. There is no cap on the amount of tax credits a single production can earn. Additionally, producers have the option of transferring credits to the state for 85¢ on the dollar. Jefferson Parish sweetens incentives with a 3% cash rebate for qualified local spends.
Top facilities: Raleigh Studios Baton Rouge at the Celtic Media Center; Second Line Stages, New Orleans
Key contacts: Chris Stelly, director, Louisiana Film & Television Office of Entertainment Industry Development; Jennifer Day, director, New Orleans Office of Film & Video
Office of Entertainment Industry Development: louisianaentertainment.gov/film/default.cfm
New Orleans Office of Film & Video: filmneworleans.org
Jefferson Parish Film Office: filmjeffersonla.com
Baton Rouge Film Commission: filmbatonrouge.com
MASSACHUSETTS
Productions that shoot at least 50% or spend half of their production budget in the state are eligible for a 25% tax credit for all production-related expenditures. From pre-production through post, filmmakers are eligible for 100% sales tax exemption for production-related items purchased in the state. Minimum spending is $50,000; digital media projects and documentaries are now eligible to participate. There are no caps on credits that individual projects can receive, and there is no cap on total number of credits in a given year. The tax credit applies to below- and above-the-line personnel, with no salary caps, provided the individual pays Massachusetts state income tax.
Top facilities: Two major soundstages are on the drawing boards: Plymouth Rock Studios and Southfield Stages; two others are proposed for Boston and Lowell
Key contacts: Nicholas Paleologos, director of the Massachusetts Film Office; Mary Chiochios, director of operations, Massachusetts Film Office
Massachusetts Film Office: mafilm.org
Berkshire Film and Media Commission: berkshirefilm.com
Boston Film Bureau: cityofboston.gov/arts/film/default.asp
MICHIGAN
Michigan has the U.S.’ most generous film tax credit program. The state offers a 40% refundable or transferable tax credit on film and TV spending in-state. The minimum budget for a qualifying project starts at $50,000. Productions can claim an additional 2% (42% total) for expenditures if filming is done in one of 103 “core” communities such as Detroit. Echoing New Mexico’s film crew advancement program, there’s a 50% credit for salaries of those Michigan-based crew receiving on-the-job training. Additionally, the state offers a 25% infrastructure investment tax credit.
Key contact: Janet Lockwood, director, Michigan Film Office
Michigan Film Office: michiganfilmoffice.org
West Michigan Film Office: wmta.org/west-michigan-film-office-68/
Film Detroit: visitdetroit.com/index.php/film-detroit
Wayne County Film Commission: reelwc.com/index
NEW JERSEY
New Jersey offers a 20% tax credit for qualified production expenses, provided the production meets certain criteria: At least 60% of the total project expenses, exclusive of post-production costs, must be incurred for services performed and goods used or consumed in New Jersey. There is also a 20% corporate business tax credit available for companies producing digital media content. Some purchases necessary for production (like lumber and hardware to build sets) are exempt from the state sales tax.
Top facilities: Rollercoaster Studios, East Hanover; TriStar Studios, Fairfield; MediaMix, Allendale
Key contact: Steven Gorelick, exec director New Jersey Motion Picture & TV Commission
New Jersey Motion Picture & TV Commission: njfilm.org
NEW YORK
On June 30, New York City’s “Made in NY” program ran out of funds (though legislation is pending that may change that). However, New York state’s 30% tax credit for production expenditures remains in place, with $350 million allocated in 2009. Allotment is based on a first-come, first-served basis. Productions in New York City are exempt from sales tax on production-related goods and services; there are no fees for permits, public locations and police assistance in the five boroughs.
Top facilities: Steiner Studios at the Brooklyn Navy Yard; Silvercup Studios in Queens
Key contact: Pat Swinney Kaufman, exec director, N.Y. State Governor’s Office for Motion Picture and TV development
New York State Governor’s Office for Motion Picture and TV Development: nylovesfilm.com
City of New York, Mayor’s Office of Film, Theater and Broadcasting: nyc.gov/html/film
Nassau County Film Office: nassaucountyny.gov/agencies/filmcom/
NORTH CAROLINA
As of Jan. 1, North Carolina’s film tax credit incentive will rise from 15% to 25%. A $250,000 minimum local outlay is required, and there is no cap on the fund; however, there is a per-project cap of $7.5 million. Post-production expenses qualify as well. Other exemptions: sales tax and hotel tax relief for productions.
Top facility: EUE Screen Gems added a 37,500-square-foot stage to its existing nine-stage lot in 2009.
Key contact: Aaron Syrett, director, North Carolina Film Office
North Carolina Film Office: ncfilm.com
Charlotte Regional Film Office: charlotteusa.com/Film/film_resources.asp
Wilmington Regional Film Commission: wilmingtonfilm.com
Durham Film Office: durham-nc.com/film
Piedmont Triad Film Commission: piedmontfilm.com
TENNESSEE
A “right-to-work” state with no personal income tax, Tennessee’s film, TV and commercial production incentives include up to a 32% cash rebate of qualified production spends. Once a production spends more than $1 million, an additional 15% kicks in from the state. Salaries and personnel fees are capped at $250,000 per individual. Some P&A expenses, such as DVD manufacturing, are also covered for those companies based in-state.
Top facilities: NorthStar Studios, 821 Entertainment, Paragon Studios
Key contact: Perry Gibson, executive director of the Film, Entertainment and Music Commission
Tennessee Film, Entertainment and Music Commission: tn.gov/film/film
Chattanooga Film Commission: chattanooga.gov/EAC/2919_ChattanoogaSETNFilmCommission
East Tennessee Television and Film Commission: ettfc.com
Nashville Mayor’s Office of Film: nashville.gov/ecdev
Memphis and Shelby County Film and Television Commission: memphisfilmcomm.org
WISCONSIN
Recently, Wisconsin capped the refundable tax credit program for film, TV and videogame productions at $500,000 annually until June. (Fiscal year 2010-11 will also have a $500,000 cap). A minimum outlay of $50,000 is now required to be eligible for incentives, which include a 25% credit on salaries paid to state residents making $250,000 or less and a 25% credit on qualified production expenditures in state; 35% of the project’s total budget must be spent in Wisconsin to qualify.
Top facility: RDI Stages, Milwaukee
Key contacts: Scott Robbe, Film Wisconsin; Dave Fantle, Milwaukee Film Office
Film Wisconsin: filmwisconsin.net
Film Green Bay: filmgreenbay.com
Milwaukee Film Office: visitmilwaukee.org/media/milwaukee-film-office
UTAH
As of July 1, Utah restructured its Motion Picture Incentive Fund. The state now offers up to 20% of expenses spent in state in the form of a cash rebate or refundable tax credit. Based on a minimum $1 million in-state production spending, the fully refundable tax rebate is not brokered; the state cuts production companies a check whether or not the company is based in state. Expenditures must be made in state; there is a $500,000 cap on the cash rebate; there is no cap on the refundable tax credit. For productions under $1 million, there is a 15% cash rebate available. Also available: a sales and use tax exemption on TV, video and film equipment. Hotel room taxes may be refunded as well.
Top facilities: Salt Lake Studios and Silver State in Salt Lake City; Moab: standing Mexican town set;Western towns: Salt Lake City;Heber: the Heber Western Town.
Key contact: Marshall Moore, director, Utah Film Commission
Utah Film Commission: film.utah.gov
Park City Film Commission: parkcityinfo.com
Moab to Monument Valley Film Commission: moabcity.org/filmcommission
PUERTO RICO
Puerto Rico offers up to a 40% transferable tax credit. Qualifying expenditures must be paid to a Puerto Rico resident or entity. Expenses include equipment, crew, travel (if through a local travel agency), hotels and any other local expenses during pre-production, production and post-production. To qualify, a production must shoot 50% locally or spend more than $1 million locally. Up to 50% of the cash invested as equity in the project may also qualify, provided the film entity or corporation organizes its financing structure in Puerto Rico.
Key contact: Mariella Perez Serrano, exec director Puerto Rico Film Commission
Puerto Rico Film Commission: puertoricofilm.com
Read the full article at:
http://www.variety.com/article/VR1118010632.html
Posted 19 September, 2009 in FilmUSA
Citing irregularities in the film incentive program, Chester Culver, Governor of Iowa, temporarily suspended approval of new applications or issuance of tax credit certificates yesterday evening. Mike Tramontina, Director of the Iowa Department of Economic Development (DED), resigned. Tom Wheeler, Director of the Film Office, has been put on administrative leave.
Posted 13 September, 2009 in FilmUSA
The money shot
Aug 13th 2009
From The Economist print edition
WITH its deserts and its slight air of decay, New Mexico is a good place to shoot a post-apocalyptic action film. But the state’s natural charms alone would probably not have been enough to lure the makers of “The Book of Eli”. Broderick Johnson and Andrew Kosove, who are producing the Warner Bros film, say they were particularly enticed by New Mexico’s generous production subsidies and interest-free loans.
All but seven of America’s 50 states now offer incentives to lure filmmakers. Some states refund a portion of in-state production costs, which may include actors’ salaries. Others issue rebates against state taxes that can be sold to local residents. The club is growing quickly. California, which resisted subsidies for years, recently approved its first clutch of recipients. Kentucky is considering its first application. With banks and hedge funds virtually out of the game, state governments are now the most important external source of funding in the film business.
Public largesse has led to some odd artistic decisions. “Gran Torino”, a story that originally revolved around Minnesota’s distinctive community of Hmong immigrants, was transplanted to Michigan to take advantage of that state’s subsidies, which can amount to 42% of production costs. The forthcoming “Battle: Los Angeles” will be filmed mostly in Baton Rouge, Louisiana—a reversal of the tradition by which southern California stands in for everywhere else.
Studies commissioned by the states tend to show a healthy return on investment. Filmmakers have certainly learned to follow the money: California’s share of big-studio productions dropped from two-thirds in 2003 to less than one-third in 2008 as its politicians dithered over subsidies. It is also likely that subsidies have helped America compete with Europe and Canada, although the weak dollar has probably done more to restrain what is known as “flyaway production”.
The continuing bidding war is likely to result in diminished returns for the states. Michigan’s subsidies, once considered improbably lavish, may soon be matched by Washington, DC. Alaska has approved a 44% rebate, although production companies must film in rural areas during the state’s gruelling winter to qualify for the full sum. Whatever the benefit to the states, however, the subsidies are becoming ever more important to Hollywood.
But as state budgets tighten, a backlash is gathering. This summer Indiana and Wisconsin reduced their rebates. A bill to do the same is before the Michigan legislature. In the Midwest the surge in foreclosures and the collapse of traditional industries has hardened hearts. Jud Gilbert, a Michigan state senator who opposes film subsidies, points out that if he could offer a 42% rebate on car production, that industry would not be in crisis.
Yet a broad retreat from film subsidies is unlikely. Some of the first places to offer rebates, such as New Mexico and Louisiana, now have impressive sound stages and a deep pool of production workers. States that want to compete with them will have to be extremely generous. And big studios and independent outfits are sharply trimming their film output in response to the credit crunch and a faltering DVD market. As the supply of work shrinks, the squabbling will only intensify.
Posted 9 August, 2009 in FilmUSA
Variety recently conducted an online poll among several hundred prominent location managers, UPM’s, AD’s and cinematographers asking them to rate locations in North America and around the world. These professionals picked their favorites using the following criteria:
• Visual appeal (dramatic scenery, urban intensity, fresh look, etc.)
• Ability to substitute for another location (Toronto for New York, etc.)
• Incentives (including rebates, tax credits, co-production opportunities)
• Film office support (permitting, local cooperation, etc.)
• Production resources (crews, stages, equipment rental, etc.)
Here’s what they told us.
The 10 greatest locations in North America are:
1. California, including Los Angeles and its surrounding area, San Diego, San Francisco, and countless spots throughout the state.
2. New York, including Manhattan and the rest of New York City, as well as upstate locations.
3. New Mexico, including Albuquerque, other cities, and picturesque remote areas.
4. Chicago, a muscular urban center with many resources.
5. Louisiana, including New Orleans, other cities and parishes, and rural areas.
The 10 Greatest locations in the rest of the world are:
1. Morocco, including Marrakesh, Fez, Rabat and the country’s landscapes.
2. France, including Paris, Provence and the Dordogne region.
3. Prague, a beautiful, film-friendly city.
4. Spain, including Madrid, Barcelona and the Canary Islands.
5. The U.K., with London Edinburgh among its top spots.
They also cited the following locations for their particular strengths:
For visual appeal:
Croatia, Hawaii and Panama
For the ability to double for other locations:
Arizona, Buenos Aires and Iceland
For their incentive programs:
Georgia (U.S.), Jordan and Michigan
For their supportive film offices:
Connecticut, Utah and Vancouver
And for their production resources:
Sydney, Montreal and Toronto
Join Variety as we visit these top-rated production centers around the world. We’ll showcase their beauty, profile their resources, and explain to filmmakers how they can stretch their dollars in such diverse yet practical places.
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