PRODUCTION INCENTIVES

The Governor's Office of Film & Entertainment (OFE) is now certifying future year credits as described in the Notice of Proposed Rules for the new film incentive program. The funds will be allocated within each queue. The OFE is also accepting applications from currently certified High Impact TV series for future seasons. The OFE reports that 2010/2011 "allocation year" credits are still available.

It is now clear that funding allocated to subsequent years (post-2010/2011 fiscal years) can be accessed on a first-come, first-serve basis (determined by the "receipt date" of the original Application). Thus, the full 5-year incentive program funding of $242 million is currently accessible, but may not be claimed until the "allocation year." The Award Letter will specify the "allocation year(s)" in which the credits may be applied against a tax liability. (Note that principal photography must commence within 180 days of the application.)

The fiscal year funding allocation is as follows: 2010-2011, $53.5 million; 2011-2012, $74.5 million; 2012-2013, 2013-2014, and 2014-2015, $38 million per year. Once all funds have been allocated, projects will receive a conditional certification dependent upon credits becoming available in the future. The Rules address tax credit transfers. The OFE has posted the "Notice of Proposed Rules," "Frequently Asked Questions," "Definitions," "Application Instructions," and related Office of Tourism, Trade and Economic Development (OTTED) forms on its website.