Posted 6 August, 2010 in FilmUSA
Courtesy of the Entertainment Economy Institute:
411 News
Marjories Galas
The sophomore slump did not apply to the PGA’s 2nd Annual Produced By Conference. Over 1,100 film and television professionals gathered on the 20th Century Fox lot to partake in a weekend of educational seminars ranging from exploring online and mobile distribution for exhibiting content to the best ways to utilize the latest technologies including stereoscopic movies and digital workflows. Many attendees flocked to the sessions that focused on how to make the most of shrinking budgets
The conference kicked off with an opportunity to discuss incentives with regional film commissioners on hand for a breakfast meet and great. A panel entitled “Produced in the USA: An Update on Domestic Tax Incentives” followed. The panel, moderated by Entertainment Partner’s Joe Chianese (who is also the moderator for 411 Publishing’s production incentives webinar series), was comprised of Thomas Ademek, Stonehenge Capital Company, LLC, Andrew Matthews, RKO Pictures, Bryan Yaconelli, Overture Films and Jennie Yamaki, Mandate Pictures.
Speaking to a very well attended room, the panel began by discussing the Federal 181 grant. The consensus was that the limited cap made this credit problematic. Ademek summed it up well: “There’s too much complexity for what a producer ultimately receives.”
Click here for full article: http://www.resource411.com/411Update/Issue/Articles/Story.cfm?StoryID=1109
Posted 6 August, 2010 in FilmUSA
Courtesy of The Entertainment Economy Institute:
Variety
Peter Caranicas
June 25, 2010
There’s a changing of the guard at the Michigan Film Office. Longtime director Janet Lockwood is stepping down. On Thursday, she’ll be replaced by Carrie Jones, who was appointed deputy director of the office earlier this year by Gov. Jennifer Granholm. Jones, a former Granholm fund-raiser, has no film or TV experience.
Lockwood has been the state’s top film officer for 19 years. Under her leadership Michigan established the nation’s most generous incentive program, offering film tax credits as high as 42% for qualified expenditures.
The incentives have helped attract several high-profile productions to the state, including “Gran Torino,” “Up in the Air,” “Hung” and “Real Steel.”
At the heart of Michigan’s incentives program is a 40% refundable and transferable tax credit on money spent on shoots in the state. Another 2% is available for productions situated in certain “core communities,” including Detroit. The minimum budget to qualify starts at $50,000.
Posted 24 May, 2010 in FilmUSA
Spring Incentives Guide Available Now:
Before May 31st: http://theincentivesoffice.com/SpringGuide2010.pdf
After June 1st: http://fs6.formsite.com/jeff5000/form834392194/index.html
Posted 3 May, 2010 in FilmUSA
Use the link below to launch. You must be registered to view Webinar.
http://event.on24.com/eventRegistration/EventLobbyServlet?target=lobby.jsp&eventid=198159&sessionid=1&key=F0C9BC11A5845C989249D100BC9D000C&eventuserid=35857443
Posted 14 March, 2010 in FilmUSA
In the last decade, state governments have “gone Hollywood,” or tried to, by enacting
dozens of movie production incentives (MPIs), including tax credits for film production. Hollywood might be expected to wield influence in the California state legislature, but it is more surprising to see movie and TV executives
throwing their weight around in Louisiana, Massachusetts, Michigan, New Mexico, and South Carolina. All these states and most others have enacted MPIs. Those who were quickest and most generous have landed productions. Other states are left empty-handed despite having offered embarrassingly generous tax abatements to attract filmmakers. Based on fanciful estimates of economic activity and tax revenue, states are investing in movie production projects with small returns and taking unnecessary risks with taxpayer dollars. In return, they attract mostly temporary
jobs that are often transplanted from other states.
Full Article: http://www.taxfoundation.org/files/sr173.pdf
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
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