The Essential Guide to U.S. & International Production Incentives, 2009, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld, will soon be available. Contact our group to pre-order your copy at no charge.
Monthly Production Incentives Email Updates Archive of previous newsletters is now available. Click here to sign up for our newsletter.
*NEW* Follow the EP Production Incentives Group on Twitter for instant updates on incentives and events at www.twitter.com/filmincentives.
Recent Updates, as of July 9, 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.
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 Services section for more information and contact information for our production incentives specialists.
U.S. UpdatesFor more information on incentives in each state, visit the U.S. Overview on our website and click on the state of interest.
CALIFORNIA
San Francisco, CAThe San Francisco Board of Supervisors' budget committee approved a plan to fund the local incentive program for three more years. Reports say that the Board of Supervisors will likely support the program in principle, but limit the funding to $400,000 for the next year (see news article).
COLORADOThe Governor signed HB 1010 on June 4, 2009, capping "qualified payroll expenditure" at $3,000,000 per person and reducing funding (see the June 2009 Production Incentives Update).
DELAWAREHB 250 has been introduced to establish a loan program for qualifying film projects for amounts up to $5,000,000 or 30% of the project's total budget.
FLORIDASB 2602, which was signed by the Governor last month, increases the independent Florida filmmaker project funding appropriation from 5% to 10% and reduces the digital media project funding appropriation from 10% to 5%.
INDIANAThe Indiana Film Office confirmed the state has eliminated the sales tax exemption for film productions.
KENTUCKYThe Governor signed legislation enacting a refundable income tax credit of 20% with a minimum spend of $500,000 for a motion picture production, $200,000 for a commercial, and $50,000 for a documentary, payable on or after July 1, 2010. Above-the-line salaries are capped at $100,000 per person.
LOUISIANAGovernor Jindal signed several incentive bills on July 9, 2009. Among the bills signed, HB 898, relating to the motion picture investor tax credit, raises the tax credit to 30% with a 5% bonus for resident payroll up to $1,000,000, with a state "buy back" of the credit at 85% of face value for projects certified on/after July 1, 2009. Productions may now be required to include a state brand or logo, and may be required to pay the cost of an additional audit. The infrastructure project credit has been deleted.
In addition, SB 277 increases the digital interactive media tax credit to 25% for applications submitted on/after July 1, 2009, with a 10% bonus for resident payroll.
MAINEProposed legislation (reported in the May 2009 Production Incentives Update) to expand the media production incentive has not been passed, but will be carried over to any special or regular session of the 124th legislature. The next general session begins January 6, 2010.
MASSACHUSETTSSection 62 of Chapter 26 of the Acts of 2009 has repealed unfavorable film tax credit provisions in the 2010 budget bill. The motion picture incentive remains intact and unchanged.
The Massachusetts Department of Revenue issued a July 2009 Report on the Massachusetts Film Industry Tax Incentives.
MONTANAThe Montana Film Office announced Studio 406, a bundling of all the incentives it offers into one package, including free location scouting, free office furniture, and traffic control signage.
NEW JERSEYThe Department of the Treasury, Division of Taxation issued a letter ruling, dated June 17, 2009, confirming that qualified film production expenses incurred for goods used or consumed in the state are includible in the numerator and denominator of the 60% test and are eligible for the 20% credit regardless of the origin of the goods.
NEW YORKThe State Senate has been ordered to comply with the Governor's order to convene a special session, but Republicans have indicated their intent to appeal the ruling (see news article). Given the lack of a tie-break in the absence of a Lieutenant Governor, it remains unclear what will happen to the pending incentive legislation.
SB 2724 has been amended to increase funding for the tax credits by $420 million in 2011, 2012, 2013, 2014, and 2015. A new provision defining an "independent film production company" has been added, with an allocation of $3,000,000 per qualifying film that may be claimed in the year of completion.
NEW YORK CITYAs of June 30, 2009, the "Made in NY" tax credit for qualified film and television production reached its full allocation of $192.5 million. Funds are no longer available for new applications. New York City proposed an extension of the program in May and is awaiting passage of its legislation. Pending legislative action, applications can still be submitted to New York City, but it is unclear whether new legislation will cover applications received during the interim.
SB 5842 has been introduced as enabling legislation to authorize New York City to increase the amount of tax credits allowed for 2009, 2010, and 2011 by $24,000,000 to $54,000,000 a year, while maintaining the credit at its current 5% level. The additional authorized amount cannot be claimed until on or after January 1, 2011. In addition, there is a new provision defining a "qualified independent film production company," which may claim allocated credits up to $250,000 per qualified film in the year of completion. The bill is retroactive to January 1, 2009.
NORTH CAROLINAThe Senate passed proposed legislation (SB 943) to increase the refundable tax credit to 25%, effective January 1, 2009. The bill is now in the House.
OREGON The Governor signed SB 863 creating a new "local filmmaker" incentive under the OPIF program. The program is available for projects with minimum budgets of $75,000, but less than $750,000. In addition, 80% of the labor spend must be for resident payroll. This program is effective and applications will be accepted beginning January 1, 2010. Implementing rules will be promulgated to address reimbursement and other criteria.
SB 621 also passed and is awaiting the Governor's signature to increase funding for the OPIF from $5,000,000 to $7,500,000 effective October 1, 2009. Of this funding, 5% is allocated to the "local filmmaker" program.
PENNSYLVANIAEconomics Research Associates issued a report evaluating the economic impact of the film production tax credit, concluding that the "total industry produces fiscal benefits to the Commonwealth of $62.7 million."
VERMONTThe Governor signed H. 313 establishing an initiative to build a local media and film industry by inviting the Vermont Film Corporation, film and media industry, and local colleges to propose a program to develop a media and film sector in the local economy on or before January 30, 2010.
WISCONSINGovernor Doyle reduced annual funding for the film tax incentives to $500,000 (see news article).
For more information on incentives around the world, visit the International Overview section on our website and click on the region or country of interest.
NEW SOUTH WALES, AUSTRALIAThe government delivered A$5,000,000 to the state's film funding body, doubling its fund that invests in the production of local films, television, and digital media.
ONTARIO, CANADAThe government is proposing further enhancements to its film and television production services tax credit by expanding the credit to incorporate all qualifying local production costs, including qualifying labor and the purchase or rental of qualifying tangible properties, such as equipment and studio rentals, effective for expenditures incurred after June 30, 2009.
QUEBEC, CANADAThe government has expanded the tax base for the 25% refundable production service tax credit to include all local spend, not just local labor. The tax base for the computer-aided special effects and animation credit has also been expanded, with a rate reduction to 5%. The changes do not apply to the qualified low-budget production credit. (See press release.)
FRANCEThe European Commission recently approved the Tax Rebate for International Productions (TRIP) introduced by the Finance Law for 2009. The publication of the decree will provide criteria for meeting the cultural test and details for qualifying expenses. (See overview of France Incentives on our site.)
NEW ZEALANDPeter Jackson will lead a review of the activities of the New Zealand Film Commission to ensure it remains effective in a rapidly changing international movie climate (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.
411 Publishing Webinar - "Incentives 101: How Producers Can Maximize Their Tax Incentive Benefits" Joseph Chianese participated in the first production incentives webinar presented by 411 Publishing and Variety.com on June 24, 2009. In partnership with the Producers Guild of America, "Incentives 101" delivered a high-value, informative discussion and "how to" guide for producers looking to maximize their tax incentive benefits.
The archived webinar can be viewed at LA411. Register for the event, then launch the presentation using RealPlayer. If you do not have RealPlayer installed on your computer, you may download it here for free.
Philadelphia Film Market (PFM) Marco Cordova moderated the "Navigating Production Incentives and Exploring New Software" panel at the inaugural Philadelphia Film Market in June (pictured below). EP also had a booth and raffled several prizes throughout the tradeshow. Winners include Michael Wingate Jones, Matt Godfrey, and Scott Currie. Thanks to all for visiting EP at the 2009 PFM!
Photo Left to Right: Christine Peluso (Tax Credits, LLC), Richard Guay (EP New York), Sharon Pinkenson (Greater Philadelphia Film Office), and Marco Cordova (EP Production Incentives).
Please visit the Happenings section of our website for current updates.