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January 24, 2012

EP Sponsored Women in Film (WIF) in Park City 2012

January 16, 2012

EP Incentive Solutions Update Available

January 13, 2012

EP Incentive Solutions Update Available

January 11, 2012

W-2 Hotline Now Active

December 8, 2011

Joseph Chianese Moderated 411 Publishing Webinar on Post Production Incentives

PRODUCTION INCENTIVES

Tools for 2010

The Essential Guide to U.S. & International Production Incentives, 2010, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld, is now available. Contact our Incentives Group to order your copy at no charge.

Monthly Production Incentives Email Updates Archive of previous newsletters is 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 30, 2010, have been posted to the website.

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Updates by Jurisdiction

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.

CALIFORNIA
The California Film Commission has already allocated its total of $100 million in incentive funding for the 2011 fiscal year, providing a waiting list for 45 additional projects. The program is set to expire in 2014, but efforts to extend and increase the incentive are planned. (See The Hollywood Reporter.)

CALIFORNIA - Los Angeles
Councilman Paul Krekorian is seeking to enhance location filming in L.A. through City Council motions to: (1) enact a new incentive for qualifying local productions, (2) review restrictive city contracts limiting private catering in specific locales, and (3) expedite refund payments when overpayments occur for film permits.

MASSACHUSETTS
Governor Patrick signed the economic development bill into law, which: (1) moves the Film Office underneath the Office of Travel and Tourism, and (2) creates the Massachusetts marketing partnership to oversee the Office of Travel and Tourism. These changes were effective immediately.

NEW JERSEY
The Attorney General's office has interpreted recent legislation suspending film incentive funding for 2011. The Attorney General's Memo opines that the legislation: (1) prevents the use of any tax credits during 2011 regardless of when they arose, (2) does not prevent the issuance of new credits in 2011 for use in future years (should the funding suspension not be extended), (3) does not prevent the transfer of credits in 2011, (4) does not prevent the use of tax credits before 2011, and (5) does not extend the tax credit carry-forward period. Interested parties have shared concerns with the Governor Christie's office.

NEW YORK
Some filmmakers have been confused about a few aspects of the recent state legislation amending the Empire State Film Incentive, including the new: (1) principal photography days requirement, (2) NYC qualified facility requirements, (3) definition of an "independent production company," (4) the certification regarding sales and use tax, and (5) the status of funding for the NYC incentive. Pending additional guidance from the state, EP Incentives Solutions provides the following analysis regarding the above-noted legislative changes to the Empire State Film Incentive:
     1. The new minimum 10% principal photography days test applies to all projects EXCEPT those of an "independent production company" or a TV pilot.
     2. The new "qualified facility" requirements apply only to qualified facilities in NYC, including armories in certain cases. Facilities elsewhere in the state continue to qualify under existing criteria.
     3. Qualified "independent production company" projects with maximum budgets of $15 million will qualify for exemption from: (1) the new, additional NYC facilities requirement with respect to armories, and (2) the new minimum 10% principal photography shooting days requirement. Independent production company projects with budgets exceeding $15 million must qualify under the project criteria applicable to publicly traded production companies.
     4. Our New York State Special Update published earlier this month provides new project criteria for Empire State Film Tax Credit applicants. An applicant must "certify that it will purchase taxable tangible property and services ...only from companies registered to collect and remit state and local sales and use taxes...." The Film Office advised that it will issue guidance to clarify the scope of the new sales tax certification requirement, in light of the broad sales tax exemption in New York State Department of Taxation and Finance Publication 28. Under Publication 28, the manufacturing exemption from sales tax is applicable to a broad spectrum of goods and services used in film production. The new legislation does not expressly include or exclude those exempt transactions. (See New York Film Commission.)
     5. The legislature has finished its regular session, so no new funding for the NYC incentive is expected this year -- in the absence of a special session. It is uncertain whether new funding would be fully retroactive to the date of exhaustion, in the summer of 2009. NYC is keeping new applications in a queue pending the passage of funding legislation. (See New York City Website.)

UTAH
Efforts are underway to persuade lawmakers to extend and enhance existing film incentives (see Utah Pulse and Deseret News).

International Updates

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.

AUSTRIA
The new Austrian Film Fund (FISA) began reviewing applications on August 16, 2010, on an informal and preliminary basis pending EU approval. The fund will create a queue on a first-come, first-served basis. EU approval is expected shortly. Application forms can be pre-filed online on the FISA website (German only).

EUROPE
A recent Variety article illustrates producers' concerns regarding recent and possible incentives cuts in European countries and regions.

MEXICO
ProMexico issued an office translation of the Mexico "Proaudiovisual" Fund Guidelines for informative purposes only. The Proaudiovisual Fund provides a maximum cash grant of 7.5% of eligible expenses incurred and invoiced in Mexico, with a minimum spend requirement of $70 million pesos per production project or $20 million pesos during post-production. A committee provides grants on a case-by-case basis, considering the application submitted and the producer's fulfillment of any necessary obligations. A producer may not receive financial incentives totaling more than 17.5% from both Proaudiovisual Fund and any return of Value Added Tax received from the Ministry of Finance and Public Credit. ProMexico also confirmed that three projects have already submitted applications for the Proaudiovisual Fund. (See EP's Mexico jurisdiction page.)

INDIA
Maharashtra Government has proposed granting industry status and extending benefits to animation, visual-effects, gaming and comics sectors, including a recommendation to grant a five-year entertainment tax waiver for such businesses (see Hindustan Times).

NIGERIA
A committee composed of the Nigerian Film Corporation and the Federal Inland Revenue Services organized a forum with local film industry stakeholders to plan for a Nigerian film tax credit.

THAILAND
Deputy Prime Minister Dr. Trirong Suwankiri announced the need for film incentives in Thailand in the near future because films, such as the Weinstein's "Shanghai," help promote the country and tourism (see Asia-Pacific News).

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Upcoming Appearances

Film Finance Forum East
“How to Limit Risk: From Identifying Co-Financiers to Guaranteeing Foreign Pre-Sales”
Tuesday, September 14, 2010, 2:30 pm to 3:45 pm (Eastern)
At the 2010 Film Finance Forum in New York, Joseph Chianese will participate in a panel on working with strategic partners to co-finance deals and guaranteeing pre-sales in the current market. Moderated by John Hadity (President and CEO, Hadity & Associates, Inc.), other panelists include Dominic Ianno (Chief Executive Officer, Indomitable Entertainment), Jay Cohen (Head of Film Financing and Packaging, The Gersh Agency), and A. Searle Field (President, United Atlantic Studios). The 2nd Annual Film Finance Forum East will take place on September 14 and 15 at The Metropolitan Hotel in New York. Register Today!

411 Publishing Webinar Series: "Spotlight on Canada"
Thursday, September 16, 2010, 11:30 am (Pacific)
A new series of production incentive webinars kicks off live from the Toronto Film Festival! Joseph Chianese will moderate the panel of film commissioners and filmmakers as they share a practical conversation about production incentives. Panelists include Robert Wong (Vice President, Tax Credits & Development, British Columbia Film), Jennifer Blitz (Director, Tax Credits & Financing Programs, Ontario Media Development Corporation), and Jean-Philippe Normandeau (Cultural Industry, Tax Credits Quebec). These webinars are presented by 411 Publishing and Variety.com in partnership with the Producers Guild of America. Registration is free and open to everyone. Register Today!

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What's New at EP

Website and Comparison Tool
Visit www.epincentivesolutions.com for the most up-to-date incentives information, including a new extensive glossary covering types of incentives, eligibility criteria, benefit limits, and other key issues to consider. Be sure to check out the Comparison Tool that enables you to compare incentives in up to three different jurisdictions.

EPPS Participating Vendor List
A participating vendor list is 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 participating EPPS Purchasing, Inc., vendor? Please contact Mary Ann McBride at 412.956.7325 for more information.

EP Incentive Solutions
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 Services section for more information and contact information for our EP Incentive Solutions specialists.

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Maximize Your Incentives with EP

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.

Florida
Hawaii
Illinois
Louisiana
Mississippi
New Jersey
New Mexico
Pennsylvania
Texas

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!):

California
Connecticut *
Florida
Georgia **
Louisiana ***
Michigan ****
New Mexico *****
New York
Pennsylvania ******
Utah

* EP and EPPS Purchasing, Inc., have a full-time Account Representative in Connecticut to help maximize your production incentives benefits. Please contact Scott Brant at 203.291.9399 for more information regarding our services in Connecticut.

** 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 full-time employees working in our Jefferson Parish office to help maximize your production incentives. Please contact Ryan Broussard at 504.296.2502 for more information regarding our services in Louisiana.

**** EP and EPPS Purchasing, Inc. have a full-time Account Representative in Detroit to help maximize your production incentives. Please contact Blane Hailemichael at 313.573.0018 for more information regarding our services in Michigan.

***** 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.

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DISCLAIMER: These newsletter materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and therefore this information may have been revised. Please contact your legal or tax advisors to confirm any laws or the effect of incentives on your project. For updates and more information, please visit the Jurisdictions section of our website.