*NEW* The Essential Guide to U.S. & International Production Incentives, 2009, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld, is now available. Contact our group to order your copy at no charge. The 2nd Edition features a new programming matrix (for U.S. and Canada only) to help distinguish what types of projects qualify for each jurisdiction offering a film incentive.
Monthly Production Incentives Email Updates Archive of previous newsletters is now available. Click here to sign up for our newsletter.
Follow the EP Production Incentives Group on Twitter for instant updates on incentives and events at www.twitter.com/filmincentives.
Recent Updates, as of August 6, 2009, have been posted to the website, including the "Basic Overview of U.S. and International Production Incentives" PDF.
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Please contact Joseph Chianese (818.955.6242) or Marco Cordova (818.955.6278) regarding EP's new special pricing for our New Mexico super loan-out services. These loan-out services in New Mexico help qualify your production's non-resident "performing artists" for the NM film tax rebate. Additional discount will apply if using both EP's New Mexico super loan-out and EPPS Purchasing, Inc., services.
Preferred vendor lists are now available for EPPS Purchasing, Inc., which provides production equipment and supplies, at competitive rates, in certain states to help maximize your production incentives. Please contact Marco Cordova at 818.955.6278 regarding our EPPS Purchasing, Inc., services.
Want to be a preferred EPPS Purchasing, Inc., vendor? Please contact Mary Ann McBride at 412.956.7325 for more information.
Please contact EP's production incentives specialists by email or by phone at 818.955.6216 if you have any questions regarding your next production. We can help you budget your next production and find the most beneficial incentives at no charge. We also provide fee-based services for production incentives administration, finance facilitation, corporate-structure planning, and agreed-upon consulting projects. Visit our website section for more information and contact information for our production incentives specialists.
U.S. Updates For more information on incentives in each state, visit the U.S. Overview on our website and click on the state of interest.
ALASKA The Department of Commerce, Community, and Economic Development adopted final regulations for the Alaska Film Production Incentive Program, effective June 18, 2009.
CALIFORNIA Governor Schwarzenegger has announced the first 25 film and television productions to qualify for the new production incentive (see press release).
CALIFORNIA - San Francisco Ordinance 162-09 extends the Scene in San Francisco rebate program through June 30, 2012, and further modifies the definition of "qualified production cost."
DISTRICT OF COLUMBIA (DC) Substantial amendments to the film incentive grant have been proposed as part of the Budget bill. Those provisions include a rebate, subject to available funding, of 42% of qualified production spend subject to DC tax, 21% of qualified production spend not subject to DC tax, 30% of qualified personnel expenditures, 50% of qualified job training expenditures and 25% of a qualified infrastructure investment. There is a minimum local spend of $250,000.
IOWA The Film Office has posted new materials regarding changes effective July 1, 2009. The key changes include: tiered caps on compensation based on spend, eligibility of above-the-line resident talent with spend over $10,000,000, a 4-year 25% income exclusion for local vendors, a requirement for a 50% funding commitment, a new 2-payment administrative fee equal to 1/8 of 1% of the value of the credit, a 4 month contract expiration, a new third party spend review requirement and an annual funding cap of $50,000,000.
LOUISIANA Changes in the law (HB 898) require producers to break out and exclude state and local (sales and use) taxes from qualifying expenditures. For further details, see R.S. 47:6007 B (9).
Entertainment Partners is working with the Film Office and interested parties to resolve other issues raised by the recent legislation in the pre-certification letter.
LOUISIANA - Baton Rouge Mayor-President Kip Holden announced that he will ask the Metro Council to approve a $175,000 cash incentive, in addition to the state incentive, to bring "Battle: Los Angeles" to the city and would do the same for studio projects (see news article).
MICHIGAN The Michigan Film Office has posted a Michigan Film Production Incentive Information Packet, including: an application, the film production incentive agreement, an application attachment checklist, a description and schedule of qualified direct production expenditures, a sample budget, and an overview of withholding obligations.
NEW JERSEY Previously introduced proposed legislation has been withdrawn and replaced with A4160 and S3002, which increase the annual cap on film production credits to $50,000,000, and the cap on digital media tax credits to $10,000,000, with an additional 2% credit for purchases in or services provided by a resident of an Urban Enterprise Zone. These bills will be considered when the legislature reconvenes in September.
NEW YORK - Suffolk County The "Next Exposure: Low Budget Independent Film Completion Grant" is available to qualified projects that have completed 80% of principal photography within the county. Two grants of $7,500 will be made based on applications postmarked by October 2, 2009.
NORTH CAROLINA SB 943, which would increase the production credit from 15% to 25%, passed in the Senate and was reviewed by the Finance Committee before being sent to the entire House on August 6, 2009.
OHIO Governor Strickland approved a refundable production expenditure credit of 25% on qualifying local spend (excluding resident cast and crew), and 35% credit on resident cast and crew for projects with a minimum qualifying local spend in excess of $300,000. There is a $5,000,000 project cap and funding of $30,000,000 for the fiscal biennium (July 1, 2009, to June 30, 2011), with $10,000,000 allowed for the first year. The credit will not become effective until October 16, 2009, and is subject to rescission by referendum before that time. (See HB 0001, especially pages 165-170, et seq.)
PUERTO RICO P C0377 (HB 377), extending the sunset date to December 31, 2019, has passed and is awaiting the Governor's signature. The Treasury Department is authorized to increase the cap if need be on a case-by-case basis. (See news article.)
SOUTH CAROLINA The Film Commission announced that up to $200,000 might be made available to filmmakers who partner with the media arts department at the University of South Carolina or the film, radio and television department of Trident Technical College. Each partnership will be eligible to receive up to $100,000 to create a short film through the S.C. Production Fund. September 18, 2009 is the deadline for the first round of applications.
WISCONSIN Governor Doyle issued a partial veto of the film incentives provisions in the budget, and made significant changes. He signed into law a refundable tax credit of 25% capped at $500,000 a year. The credit applies to residents' salaries and wages of $250,000 or less, and local production expenditures. Thirty-five percent or more of the budget must be spent in Wisconsin, with a minimum spend greater than $50,000. There is also a 15% credit for film production company investments. For further details, see pages 116, 164, 312-314, 317, 352-354, 355, 370-374, and 393 of Act 28.
For more information on incentives around the world, visit the International Overview page on our website and click on the region or country of interest.
CANADA - Alberta Grant percentages for eligible costs have been increased by six per cent. The three streams available to film and television productions are now at the following levels: Stream I - 27% to 29%, Stream II - 25% to 27% and Stream III - 20% to 22%. The project cap has been raised to $5 million from $3 million. Changes are retroactive to April 1, 2009. The fund's value remains fixed at $20 million for fiscal year 2009-2010. For more information, visit the Alberta Film Office.
CANADA - Manitoba The local film industry is considering options to boost the number of local productions. One suggestion is to expand the incentive base to include goods and services, rather than the current approach of including only local labor. (See news article.)
CZECH REPUBLIC Two of the country's top politicians are now in agreement with the local industry that something needs to be done to attract more production to the Czech Republic. The leaders of the two main political parties pledged to push for incentives after the general elections in October. (See news article.)
FRANCE The French Producers' Guild has started an American & International Desk to advise foreign producers who seek a French company to work with on the new French Tax Rebate For International Production (TRIP). The Desk will be fully operational on August 24, 2009. (See news article.)
SOUTH AFRICA Variety reports that the Independent Producers' Organization has been making presentations to Parliament to revive and clarify the Section 24F tax break that was misused in the 1980s (see news article).
Entertainment Partners has purchased Workers' Compensation policies from local brokers throughout the United States to help maximize your production incentives! Listed below are those production incentives states where EP currently has a local policy.
More policies to be announced soon!
Entertainment Partners has an office in each of the following states to help maximize your production incentives (more to open soon!):
* EP and EPPS Purchasing, Inc., have a full-time Account Representative in Georgia to help maximize your production incentives benefits. Please contact Karen Sortor at 678.690.8469 for more information regarding our services in Georgia.
** EP and EPPS Purchasing, Inc., have a full-time Account Representative in Louisiana to help maximize your production incentive benefits. Please contact Ryan Broussard at 504.296.2502 for more information regarding our services in Louisiana.
*** EP and EPPS Purchasing, Inc., have an office at Albuquerque Studios. EP provides super loan-out services in New Mexico to help maximize your production incentives. For more information contact the EP Production Incentives Group.
**** EP and EPPS Purchasing, Inc., have a full-time Account Representative in Pennsylvania to help maximize your production incentive benefits. Please contact Mary Ann McBride at 412.956.7325 for more information regarding our services in Pennsylvania.
The Art of Line Producing University of California, Los Angeles August 11, 2009 Marco Cordova will be a guest speaker discussing various government incentives and issues.
L.A. County Bar Association Tax Section Entertainment Tax Committee "Hot Topics" Seminar The Olympic Collection, Los Angeles, CA September 17, 2009 A panel of experts, including EP Consultant Barbara Rosenfeld, will update attorneys, accountants, other professionals and executives interested in current developments affecting the taxation of those in the entertainment industry -- both domestically and when working abroad.
Please visit the Happenings section of our website for updates.