  Tools for 2008 Updates by Jurisdiction What's New at EP? Maximize Your Incentives with EP Upcoming Appearances |
      |
   The Essential Guide to U.S. & International Production Incentives, 2008, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld. Distribution will be at various events (see Happenings). Monthly Production Incentives Email Updates An archive of previous newsletters is now available. To sign up for our newsletter, please send your request to the EP Production Incentives Group. Recent Updates as of April 27th to the website. back to top |
|
 NOTE THAT SEVERAL OTHER STATES ARE EXPECTED TO INTRODUCE NEW FILM INCENTIVE LEGISLATION. For more information on proposed legislation and additional incentives updates, visit the Recent Updates section. U.S. Updates ALASKA Senate Bill 230 has passed the House and the Senate and is awaiting transmittal to the Governor for signature. The bill creates a transferable production credit of 30% of qualifying production local spend, plus: 10% for wages paid to Alaska residents, 2% for expenditures in a rural area, and 2% for expenditures between October 1 and March 30. GEORGIA House Bill 1100, which increases the production credit to 30%, was passed by the House and the Senate and is awaiting the Governor's signature. If signed, the current tiered credit will be eliminated and replaced with a base credit not to exceed 20% of the base investment in Georgia, with an additional 10% credit for a "qualified Georgia promotion." ILLINOIS House Bill 2482 passed both the House and the Senate and is awaiting the Governor's signature. The Bill extends the sunset date of the Illinois film incentive program to December 31, 2008. The expired statute provided a transferable tax credit of 20% of qualifying local spend (compensation not to exceed $100,000 per resident employee), plus 15% of the Illinois labor expenditures in specially designated areas, with no caps. IOWA We have obtained clarification from the Iowa Film Commission and Department of Revenue that a "registered project" is eligible to receive both the 25% investor tax credit and the 25% expenditure tax credit on the same expenditures, provided that the credits are claimed by taxpayers with different Federal employer identification numbers. JEFFERSON PARISH (Louisiana) The Parish enhanced its economic incentive fund through a 3% cash rebate for qualifying local expenditures within the Parish. New productions, which have not yet received any Jefferson Parish incentives may receive up to $100,000 and subsequent productions within 12 months may receive up to $115,000, with an additional $10,000 if there is a production office and leased premises to be used as a soundstage in Jefferson Parish. Eligible productions must spend at least $150,000 and must either have a local production office or utilize a facility for filming within Jefferson Parish. MICHIGAN A package of incentive bills have been enacted, including a refundable business tax credit of up to 42% of qualifying direct production expenditures in "core communities" or 40% of direct production expenditures in other locations, and 30% of qualified personnel expenditures. (0.5% of each credit is deducted as an application and redemption fee payable to the "Michigan film promotion fund.") There is a $2,000,000 cap per person for compensation for personal services for the direct production and qualifying personnel expenditures. The minimum local spend is $50,000. MISSISSIPPI House Bill 1351 has passed the House and Senate and is awaiting the Governor's signature. The bill amends the cash rebate to provide 20% of qualifying local spend, 20% of qualifying payroll = $1,000,000 paid to non-residents, and 25% of qualifying payroll = $1,000,000 paid to residents. The per project cap is raised to $8,000,000, and a $20,000,000 fiscal year cap is added. There is a minimum local spend of $20,000 in base investment and/or payroll. NEW YORK The Governor has signed legislation increasing the film tax credit to 30% of below-the-line costs, and to the extent not used to offset taxes, the credit is refundable in a single year. The annual funding is increased to $65,000,000 in 2008, $75,000,000 in 2009, $85,000,000 in 2010, $90,000,000 in 2011 and 2012, and $110,000,000 in 2013. The credit is extended through 2013. Since the credit structure remains the same, the existing application forms on the website should be used until they are revised to reflect the rate increase. WASHINGTON The Governor has signed Senate Bill 6423 which is effective June 12, 2008. This amendment to the cash rebate eliminates the $1,000,000 per production cap, changes the investment requirement for TV commercials from $250,000 to $150,000, and provides that the B&O tax credit will remain at a dollar for dollar amount rather than decreasing the credit to 90% starting in 2009. Note also that Washington's crew base is 3 deep statewide, and a crew directory is available. WEST VIRGINIA House Bill 4684 has been approved by the Governor, making the credit transferable. Beginning January 1, 2008, the credit is 27% of qualifying local spend and an additional 4% if 10 or more residents are employed full time, for a maximum of 31%; beginning January 1, 2010, the base credit is reduced to 22%, with no change in the incremental increases for local hires, for a maximum of 26%. There is a minimum local spend of $25,000. International Updates FRANCE Trade papers have reported that the French government is considering the extension of a 20% tax break on below-the-line costs with an increased cap of $6,300,000 (€4,000,000) to foreign films with certain elements linked to France's culture, its heritage or the country itself. NOTE THAT SEVERAL OTHER STATES ARE EXPECTED TO INTRODUCE NEW FILM INCENTIVE LEGISLATION. For more information on proposed legislation and additional incentives updates, visit the Recent Updates section. back to top |
|
 EP New Mexico is moving to Albuquerque Studios during May and recently hired new staff to help with productions in New Mexico. Entertainment Partners also purchased new workers compensation policies from local brokers to help maximize your production incentives! See the following list of production incentive states where EP has a local policy: Florida *NEW* Hawaii Illinois *NEW* Louisiana New Mexico Pennsylvania Texas *NEW* More policies to be announced soon! back to top |
|
  Entertainment Partners has an office in each of the following states to help maximize your production incentives (more to open soon!):California Connecticut Florida Illinois Louisiana * Massachusetts New Mexico ** New York Pennsylvania South Carolina Utah |
|
| * Entertainment Partners has a full-time account representative in the State to help maximize your production incentives. ** EP relocated one of its most experienced paymasters to its office in Albuquerque to service its New Mexico clients. ** EP New Mexico Production Incentives Packet available. For more information contact our EP Production Incentives Group. back to top |
|
 Tribeca Film Festival New York April 23 - May 4, 2008 EP will attend and distribute the 2nd Edition of "The Essential Guide to U.S. & International Production Incentives." back to top |
|
DISCLAIMER: These newsletter materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice nor relied upon 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 Overview section of our website. |