PRODUCTION INCENTIVES

• Special Update: Michigan
• Updates by Jurisdiction
• Upcoming Appearances
• Maximize Your Incentives with EP

Governor Snyder presented his budget proposal, with annual funding for the film incentive capped at $25,000,000 annually beginning in 2012. Governor Snyder's plan discontinues the practice of appropriating money through the tax system moving forward. Instead, economic development incentives will be awarded through the appropriations process and reviewed for effectiveness. The Governor has recommended direct appropriation of general fund revenues of $25,000,000 for film incentives.

The Governor wants to finalize the budget by May 31, 2011. The House and Senate will need to pass legislation to meet the new budget guidelines, and the film incentive details can change during that process. In the meantime, producers with signed agreements in place will be entitled to the Michigan benefits under existing law. New applications will be reviewed based on the Governor's guidelines going forward.

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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 Alaska Department of Revenue has amended a regulation governing the credit that may be claimed against corporate income tax liability by Alaska businesses for film production expenditures within the state. The amended regulation explains the procedures for claiming a transferred credit certificate and for claiming a credit in the event that the certificate is lost, stolen, or misplaced. The regulations are effective March 4, 2011.

HAWAII
A number of bills have been introduced that could potentially impact the Motion Picture, Digital Media and Film Production Tax Credit. One bill (SB 1532), if passed as introduced, would repeal a number of "perpetual" tax credits, including the motion picture, digital media, and film production income tax credit in Section 235-17, effective December 31, 2012. (The technology infrastructure renovation tax credit would also be repealed.) Another bill (SB 1550) proposes to extend the incentive to special effects and animation and media infrastructure projects, increase the incentive rate of the tax credit in an unspecified amount.

MICHIGAN
See Special Update above.

PUERTO RICO
Governor Luis G. Fortuno is scheduled to sign the island's new film tax credit law during the first week of March. The amended law expands the 40% tax credit on payments to Puerto Rico residents (including equipment, travel, crew, and hotels) to include payments to non-resident talent, subject to a reduced 20% rate.

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411 Publishing Webinar Series: Oscar Nominated Film Financing
February 24, 2011, 11:00 am (Pacific)/2:00 pm (Eastern)
The next installment of the 411 Publishing webinar series will focus on the impact of production incentives on Oscar nominated films Black Swan, The King's Speech, The Social Network, and True Grit. Moderated by EP Incentive Solutions' Joseph Chianese, panelists will include Jim Davidson (Associate Producer, The Social Network), Amy Lemisch (Executive Director, California Film Commission), Iain Canning (Producer, The King's Speech), Andy Weltman (SVP, US Film Production, UK Film Council), Pat Kaufman (Executive Director, New York State Governor's Office for Motion Picture and Television Development), Lisa Strout (Producer and former Director, New Mexico Film Office), as well as producers from Black Swan and True Grit that are yet to be announced. These webinars are presented by 411 Publishing and Variety.com in partnership with the Producers Guild of America. Register for Free

Lights! Glamour! Action!
Pittsburgh, PA
February 27, 2011
EP is a supporting sponsor of the 11th annual "Lights! Glamour! Action!" Academy Awards fundraising event on February 27, benefiting the Pittsburgh Film Office. EP Incentive Solutions representative Mary Ann McBride will be attending the event. Visit the website to purchase tickets. 

International Film and TV Finance Summit
Los Angeles, CA
March 3 - 4, 2011
Joseph Chianese will moderate the "Current Developments in the Use of US State Tax Incentives" panel at the International Film & TV Finance Summit, presented by BNA Tax and Accounting and ATLAS. This panel takes place on Thursday, March 3, at 9:45 am. Register for the summit here. 

Film Finance Forum
Los Angeles, CA
March 8 - 10, 2011
EP will be participating in the 3rd annual Film Finance Forum, produced by Winston Baker. Joe Chianese will be a panelist on the "Controlling Volatility and Mitigating Risk" panel on Wednesday, March 9 at 2:45pm. Pick up the latest edition of The Essential Guide to U.S. & International Production Incentives at EP's booth and meet our EP Incentive Solutions team! Register online for the forum.  

UCLA Entertainment Symposium
Los Angeles, CA
March 11 - 12, 2011
EP is sponsoring the 35th Annual UCLA Entertainment Symposium: "Technotainment - RU Prepared 4 It?" EP will have a display table, so stop by and pick up our latest edition of The Essential Guide to U.S. & International Production Incentives and meet our EP team. Purchase tickets for the symposium. 

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