PRODUCTION INCENTIVES

• Proposed legislation updates for:
• U.S. FEDERAL
• ARIZONA
• MICHIGAN
• MISSOURI
• NEW JERSEY
  
  
• Added incentives information for:
• CZECH REPUBLIC
• ITALY - Friuli Venezia Giulia
• SOUTH KOREA - Busan
• SOUTH KOREA - Seoul
  
  

DISTRICT of COLUMBIA (DC)

• Maximum Benefit: Effective October 15, 2009, and subject to available funding, the incentive is increased to 42% of qualifying direct production expenditures subject to DC tax or 21% of those that are not subject to DC tax; 30% of the qualified personnel expenditures; 50% of qualified job training expenditures and 25% of the base infrastructure investment
• Compensation and Project Caps/ Funding Per Year: Funding is determined on a case-by-case basis
• Project Criteria: Minimum local spend = $250,000
  
  

OKLAHOMA

• Type of Incentive: Cash rebate; non-refundable, non-transferable income tax credits for construction of OK film/music facilities and for investment in OK film/music projects
• Maximum Benefit: 35% Film Enhancement Rebate; BONUS: 2% for Oklahoma (OK) music/recording; 10% to 25% credit for construction of OK film/music facilities; 25% credit for investment in film/music project
• Project Criteria: Minimum budget for film must be ≥ $50,000 and local spend must be ≥ $25,000; minimum budget for OK music/recording bonus must be ≥ $20,000; minimum spend for 10% credit on music/film facility construction = $350,000 for film construction, $100,000 for music construction; 25% credit on projects over $1,000,000
• Sunset/Review: December 31, 2014
• Footnote: Rebates are not payable until July 1, 2010, in the order they are approved; payments of approved claims in excess of the annual funding will roll over to the following year. The sales tax exemption cannot be used in conjunction with the cash rebate.
  
  

CANADA - Alberta

• Maximum Benefit: 20% to 29% of qualifying Alberta (AB) spend (goods and services); there are 3 "Streams" of AB ownership which determine the amount of the benefit available: Stream I - Majority AB-Owned Productions = 27% to 29 %; Stream II - Equal or Minority AB Ownership = 25% to 27 %; Stream III - No AB Ownership (foreign ownership is permissible) = 20% to 22 %; BONUSES: Each Stream can earn an additional 1% to 2% of production expenses by employing additional Albertans in key creative positions
• Compensation and Project Caps/ Funding Per Year: Cap per project C$5,000,000; no annual funding cap
• Project Criteria: The production must be supported by a broadcast license of FMV or a distribution agreement and be shown within 2 years of completion; must be an eligible genre; minimum local spend of > C$25,000; production must provide evidence of 65% confirmed financing for projects > C$1 million, and 45% confirmed financing for projects < C$1,000,000; the projected grant may be included as part of the confirmed financing; must also provide either 1) audited financial statements for productions > C$500,000, 2) an engagement review for productions between C$200,000 - C$500,000, or 3) an uncertified final cost report with a statutory declaration for productions < C$200,000; application must be submitted prior to the start of principal photography
  
  

CANADA - Nova Scotia

• Maximum Benefit: The lesser of 50% of qualifying Nova Scotia (NS) labor expenditures or 25% of total production costs; Regional Credit BONUS: 10% of qualifying NS labor expenditures for productions shooting outside metro Halifax; tax credit caps at 30% of total production costs; Frequent Filming BONUS: 5% of qualifying NS labor expenditures on third film shot within 2-year period (not capped)
• Compensation and Project Caps/ Funding Per Year: No caps
  
  

CANADA - Ontario

• Maximum Benefit: 25% of qualifying Ontario (ON) labor expenditures and production expenditures; BONUSES: ON Computer Animation and Special Effects (OCASE) = 20% of qualifying ON labor related to digital animation and special effects work
  
  

CANADA - Saskatchewan

• Maximum Benefit: 45% of qualifying Saskatchewan (SK) labor expenditures (which can also include labor paid to non-SK residents who train a SK resident in all job categories, above- and below-the-line, to a maximum of 25% of eligible labor expenditures); labor caps at 50% of total production costs; Regional Tax Credit BONUS: 5% of total SK spend if > 50% of principal photography shot in SK and at least 40 km outside Regina or Saskatoon; Key Position BONUS: 5% of total SK spend for productions that attain > 6 out of 10 points for hiring SK residents in key positions
  
  

CAYMAN ISLANDS

• Type of Incentive: Cash rebate
• Maximum Benefit: 30% of qualifying local production expenditure and 20% to 30% of qualifying local labor expenditures depending upon residency status of the employees (the actual percentage is within the discretion of the Cayman Islands Film Commission; subject to a 5% contribution to the CI Film Industry Development Fund
• Compensation and Project Caps/ Funding Per Year: US$100,000 compensation cap per employee, aggregate wage cap per project of US$2,000,000; annual funding cap to be determined by May 2010
• Project Criteria: Minimum local spend > US$50,000 for productions of ≤ 29 minutes, > US$150,000 for productions ≥ 30 minutes during the 12 months beginning 8 weeks before principal photography through post-production
• Eligible Entities: Film production company incorporated in the Cayman Islands, with copyright ownership during production or direct contract with said owner
• Sunset/Review: None; to be reviewed at the end of the year
  
  

FRANCE

• Project Criteria: Minimum local spend = €1,000,000 for eligible fictional and animation projects including films, TV dramas, and TV series; minimum shoot (live action) = 5 days (N/A for animation); culture test
  
  

MALTA

• Type of Incentive: Cash grant
• Maximum Benefit: 15% to 22% of "eligible expenditure"; the rebate percentage is determined by the points obtained in the cultural test
• Compensation and Project Caps/ Funding Per Year: Eligible expenditures are capped at 80% of the overall budget; there are caps on a number of specific categories of eligible expenditures as a percentage of the total eligible expenditures, with a €50,000 cap on above-the-line "direct employment" and department heads below-the-line; or films with a budget > €25,000,000, additional labor costs are excluded; annual funding for 2010 = €2,000,000, subject to increases as approved by the Minister
  
  

TAIPEI CITY, TAIWAN (REPUBLIC OF CHINA)

• Compensation and Project Caps/ Funding Per Year: No caps; annual funding of US$1,000,000
  
  

TRINIDAD & TOBAGO

• Compensation and Project Caps/ Funding Per Year: Capped at US$300,000; to be reviewed in 2009-2010