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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 2009

2009, 2nd Edition of The Essential Guide The Essential Guide to U.S. & International Production Incentives, 2009, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld, is now available. Contact our group to order your copy at no charge. The 2nd Edition features a new programming matrix (for U.S. and Canada only) to help distinguish what types of projects qualify for each jurisdiction offering a film incentive.

Monthly Production Incentives Email Updates Archive of previous newsletters is now 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 September 9, 2009, have been posted to the website, including the "Basic Overview of U.S. and International Production Incentives" PDF.

What's New at EP

LOUISIANA
EP now processes payroll from its Jefferson Parish, Louisiana office. Our expansion enables Louisiana productions to maximize its production incentives in the State by qualifying EP payroll handling fees for the new Louisiana tax credit program. Louisiana now offers a 30% tax credit on qualifying expenditures, which includes payments to nonresidents, plus an additional 5% bonus (subject to a $1,000,000 cap per person) for payments to residents. As a reminder, EP's handling fees are also considered qualifying spend for the 3% Jefferson Parish film incentive. Please contact Ryan Broussard at 504.296.2502 if you have any questions regarding our services offered in Louisiana.

MICHIGAN
EPPS Purchasing, Inc., is now serving clients in Michigan, and we hired a new Michigan Account Representative, Blane Hailemichael, to serve local productions! EPPS Purchasing, Inc., is the industry leader in providing point of sale services to maximize your production incentives, and all six major studios and many major independent productions have purchased or leased items from EPPS since 2007. Please contact Marco Cordova at 818.955.6278 regarding our EPPS services available in Michigan and throughout the U.S.

NEW MEXICO
EP's super loan-out company can now pay BOTH non-resident individuals and loan-out companies directly. 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. EP super loan-out services in New Mexico help qualify your production's non-resident "performing artists" (actors and stuntmen) for the NM film tax rebate.

VARIOUS STATES
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.

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.

ALASKA
The Department of Commerce, Community and Economic Development recently announced the appointment of Dave Worrell to lead the Alaska Film Office (see press release).

San Francisco - CALIFORNIA
The Board of Supervisors has authorized $400,000 for the 2009-2010 fiscal year from the $1.8 million funding commitment over 3 years. Once the funding has been depleted, the Board can authorize additional amounts.

CONNECTICUT
A recently passed budget bill changes the existing motion picture and digital animation production and infrastructure project expense tax credits, applicable for income years commencing on or after January 1, 2010.

Changes to the motion picture and digital animation tax credits include: (1) a minimum spend of $100,000 for a 10% credit, a minimum spend of $501,000 for a 15% credit, and a minimum spend in excess of $1,000,000 for a 30% credit; (2) a minimum local principal photography requirement of 50% for the film credit; (3) an aggregate project cap on star talent compensation subject to local income tax of $20,000,000 (in addition to the per person cap of $15,000,000); (4) exclusion of costs for the independent certification; (5) exclusion of all costs incurred outside the state, but used within; (6) infomercials have been excluded from eligible formats; and (7) the independent audit must be completed by an approved firm.

The digital media and motion picture infrastructure project credit has also been changed to require a minimum qualifying spend of $3,000,000 to be eligible for a 20% credit. The Department of Economic and Community Development administers all three credits and charges an application fee. Finally, there is no post-certification remedy against a transferee. The only recourse is for fraud and material misrepresentation against the alleged wrongdoer. (See bill details, especially pages 117-132).

DISTRICT OF COLUMBIA (DC)
The existing film incentive has been amended as part of the newly passed budget bill. The Mayor has signed the budget, pending an unrelated line-item veto. The legislation is effective October 1, 2010, despite the possibility of further action by the City Council and a Congressional review period beyond that date. The revised incentive is: a rebate of 42% of qualified production expenditures subject to tax in D.C. (or 21% of those that are not subject to local tax), and 30% of the qualified personnel expenditures, with a minimum spend of $250,000. The rebate is subject to available funding, which has not yet been determined. There is also a 50% rebate for qualified job training expenditures and a 25% infrastructure rebate. (See Subtitle H of the budget.)

IOWA
The Department of Economic Development (DED) has adopted and filed emergency rules to implement the new incentive legislation, which makes several changes to the Film, Television, and Video Project Promotion Program. The rules: (1) establish application deadlines, (2) require a minimum amount of funding prior to application approval, (3) allow the DED to charge a registration fee, (4) allow the DED to negotiate the percentage benefit with the producer and investor, (5) allow portions of compensation paid to the above-the-line talent to become eligible spend, (6) require the above-the-line talent to become Iowa taxpayers, (7) limit the qualifying compensation paid to other labor and personnel, (8) allow the DED with the Department of Revenue to establish a list of negotiable expenditure items, (9) remove reference to obsolete documentation, and (10) spread the vendor benefit over 4 years. For further details, see Iowa Administrative Code, DED Rule 261, Chapter 36.

A Legislative Rules Committee met to discuss objections to the new annual cap. (See news article.)

LOUISIANA
Patrick Mulhearn has resigned as Assistant Director of Louisiana Film and Television for the Office of Economic Industry and Development. (See press release.)

MICHIGAN
Proposed changes to the film incentive laws will not be resolved until the budget is passed. Governor Granholm expects the budget to be passed next month. (See news article.)

NEW MEXICO
Governor Richardson wants to keep film production tax credits, according to comments made as the legislature prepares a special session to work on the budget in October. (See news article.)

NORTH CAROLINA
Governor Perdue signed legislation adding an "alternative" tax credit at 25%, subject to sales and use tax adjustments and income tax. (See news article and Film Office website.)

OHIO
The Film Office has clarified that eligible expenditures count as of the date the Governor signed the new incentive legislation (July 17, 2009), but refunds cannot be made until 90 days after.

PENNSYLVANIA
Proposed changes to the film incentive laws will not be resolved until the budget is passed. (See news article.)

PUERTO RICO
Governor Fortuño signed Project 377 extending the 40% tax credit for film productions until 2019. (See press release.)

TENNESSEE
The Film Commission website contains updated incentive requirements for the film and television production incentive, which is now at 17%. The minimum qualifying local spend is reduced to $150,000 (within 12 months after conditional certification of eligibility) for production companies headquartered in the state. All salaries are now capped at $250,000. (The 15% headquarters refund remains unchanged, with no caps.)

WEST VIRGINIA
The Film Office website contains the new statute, legislative rules, and forms for the transferable tax credit, effective July 9, 2009.

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.

CANADA - British Columbia
A local lobbying effort is underway to improve the film incentives to compete with recent expansions in other provinces. (See news article.)

ISRAEL
Sigal Admony-Ravid has been appointed new Israeli consul for Economic Affairs.

ITALY
The European Commission (EC) has approved Italy's package of film tax incentives under the EC Treaty state aid rules. The incentives are available through December 31, 2010. (See news article.)

Variety reports on a U.S.-Italian, public-private deal between the Piedmont Film Commission and Endgame Entertainment, which established a $32 million fund to contribute to mid-range projects with 75% of their budgets in place. (See news article.)

Maximizing 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*
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 *
Illinois
Louisiana **
Michigan **
Massachusetts
New Mexico ***
New York
Pennsylvania ****
South Carolina
Utah

* 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.

** See What's New at EP section above.

*** 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.

Recent Events

Louisiana Production Accounting Workshop
August 11 - 18, 2009
Richard Guay, EP New York, recently hosted several days of the New Orleans Video Access Center (NOVAC) Production Accounting Workshop, highlighting EP’s products and services. He also participated on a panel that emphasized Incentives, payroll, audits, and other timely topics. Thanks to Alice Amorosino Roque of NOVAC, Diane Wheeler of Second Line Stages, and all attendees for making this a success.

Photo Left to Right: Stephanie LeGrange (Attorney for Entertainment in Louisiana), Patrick Mulhearn (former Assistant Director for Louisiana Film and TV), Katie Kuchler (CPA, Malcolm M. Dienes, LLC), and Richard Guay (EP New York)

Upcoming Appearances

L.A. County Bar Association Tax Section
Entertainment Tax Committee "Hot Topics" Seminar
The Olympic Collection, Los Angeles, CA
September 17, 2009
Barbara Rosenfeld, Tax Consultant to EP, will moderate this seminar, designed to update experts in the entertainment industry on current tax developments both domestically and internationally.

411 Publishing Webinar Series
"Spotlight on California, New York, and Connecticut"
September 23, 2009
This is the second in a series of webinars that Joe Chianese will moderate, presented by 411 Publishing and Variety.com in partnership with the Producers Guild of America. The webinar will cover tax incentive programs in the following states: California, New York, and Connecticut. There will be follow-up commentary on each state's infrastructure to “help producers meet their budgets and create the best looking film possible from a location standpoint.” Click Here to Register

2009 New York International Film & TV Finance Summit
PricewaterhouseCoopers Conference Center, New York, NY
October 5 - 6, 2009
EP’s Joe Chianese will moderate a panel on October 6 entitled “Current Developments and Availability of U.S. State and International Tax Incentives for Financing Film Production -- Where to Go to Get Your Film Financed,” with Richard Guay, from EP New York, participating as one of the panelists. The panel will cover a wide variety of film finance and production incentive programs through a series of outlined questions, as well as provide practical tips, pitfalls, and traps for the unwary in using production tax incentives.

Association of Film Commissioners International (AFCI) Cineposium
Sheraton Universal Hotel, Universal City, CA
November 3, 2009
Joseph Chianese will moderate the Film Financing panel at the AFCI Cineposium. The panel will cover various aspects of film financing in today’s economy, such as where funding is originating, what financial strategies are being used, and how to incorporate tax incentives into financial plans.

Please visit the Happenings section of our website for updates.

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.