PRODUCTION INCENTIVES

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• Updates by Jurisdiction
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Recent Updates, as of November 23, 2010, have been posted to the website.

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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.

UNITED STATES
Debate over the value of film tax credits has been raised by a report from the Center on Budget and Policy Priorities; the Motion Picture Association of America (MPAA) responded (see TheWrap.com).

FLORIDA
The Governor's Office of Film & Entertainment has posted a program overview and highlights, with related rules, forms, etc., making it clear that the full $242,000,000 (5 years' funding) is available as needed and may be accessed before its "allocation year." (See EP Special Update on Florida.)

LOUISIANA
The Film Office has reminded producers that any production seeking to capture the additional 5% for Louisiana labor must maintain the declaration of residency forms as well as supporting documentation in the employee's personnel file. The State may request this documentation as back up for the issuance of motion picture credits.

MICHIGAN
Governor-Elect Rick Snyder announced that he plans to appoint House Speaker Andy Dillon State Treasurer, subject to Senate confirmation. Critics of the film tax credit claim that Dillon is supportive of the credit. Governor-elect Snyder has also been quoted as stating that the film tax credits need restructuring. (See Detroit News and MLive.com.)

NEW MEXICO
The New Mexico Film Office has clarified the purpose and intent of the Taxation and Revenue Department regulation defining "direct production expenditures." In order to simplify audits, the regulation allows only expenditures incurred and paid directly by the production company to qualify. Expenditures incurred and paid by a third party, even if incurred on behalf of the qualified production company, will not be considered. The purpose of this rule is to avoid review of invoices incurred by multiple entities for a single production. For example, an expense incurred by a third party and not reimbursed by the production company will not qualify despite having been incurred on the production entity's behalf.

PUERTO RICO
Proposed legislation to extend the film tax credit to non-resident talent at a reduced 20% rate passed in the Senate and House and is awaiting a last Conference Committee to discuss some of the amendments. If passed, the legislation would expand the list of eligible projects, reduce and simplify the minimum spend, and eliminate the principal photography requirement. In addition, the annual credit would be raised from $15,000,000 to $50,000,000. It is hoped that the Governor will sign a final bill by year-end. (See LA Times.)

International Updates

Independent Film & Television Alliance (IFTA) Production Conference
Friday, December 3, 2010
Entertainment Partners is co-sponsoring this year's IFTA Production Conference. Pick up the latest edition of The Essential Guide to U.S. & International Production Incentives, 2010 at EP's display table and meet our EP Incentive Solutions team! Click here to register online for the conference.

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