  Tools for 2008 Updates by Jurisdiction Maximize Your Incentives with EP Upcoming Appearances |
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   The Essential Guide to U.S. & International Production Incentives, 2008, 1st Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld. Distribution will be at various events (see Happenings). Monthly Production Incentives Email Updates To sign up for our newsletter, please send your request to the EP Production Incentives Group. Recent Updates as of February 27th to website, including the "Basic Overview of U.S. and International Production Incentives" PDF. back to top |
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 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. ALASKA Senate Bill 230 has been introduced to the legislature. The Bill currently provides for a 30% transferable income tax credit for all qualified wages paid, including payments to nonresidents, for services performed in Alaska and qualified production expenditures directly incurred in the State. The credit is increased by an additional 10% of qualified expenditures paid to Alaskan residents, an additional 2% percent of qualified expenditures made in a rural area, and an additional 2% of qualified expenditures made in the State between October 1 and March 30. ARIZONA Arizona Department of Commerce issued new guidelines and application forms for its tax incentives program for Commercial Advertisements and Music Videos. $2,500,000 is available to Commercial Advertisements and Music Videos in 2008. BRITISH COLUMBIA The Canadian Province increased its Production Services Tax Credit to 25% of qualified BC labor expenditures. British Columbia also announced a new Distant Location Regional Tax Credit of 6%, to supplement existing BC tax credits. The new credit applies to qualifying BC labor at a "distant location." At least one day of principal photography at a "distant location" (outside of the Lower Mainland region, north of Whistler and east of Hope, excluding the Regional District) is required. CALIFORNIA Assembly Bill 832 is dead, but Assembly Bill 1696 is still pending in the Senate. GEORGIA House Bill 1100 has been proposed. The Bill increases the production credit up to 30% and eliminates the current tiered credit system providing more credits based on filming location and use of resident labor. The base credit is an amount not to exceed 20% of the base investment in Georgia and the production company shall be allowed an additional tax credit not to exceed 10% of such base investment if the qualified production includes a qualified Georgia promotion. ILLINOIS The Illinois Film Service Tax Credit expired on December 31, 2007. Legislation to extend the Film Tax Credit through December 31, 2008, passed the Illinois House of Representatives, and is awaiting immenent passage in the Senate. INDIANA The Media Production Expenditure Credit was enacted recently over Governor Mitch Daniel's veto of a 2007 bill (HB 1388) that creates a refundable tax credit on qualified production expenditures for a qualified media production. The new film credit is 15% for taxpayers claiming less than $6 million in qualified production expenditures and a discretionary rate (requires application and executed contract) up to 15% for productions with at least $6 million in qualified production expenditures. There is a $5 million (through 2011) annual cap for the new credit for all taxpayers. Minimum spend is $100,000 for theatrical and television productions and $50,000 for all other qualified media productions. House Bill 1388 also provides for a new gross retails sales tax exemption for transactions involving certain tangible personal property. However, the exemption does not apply to qualified production expenditures for which a taxpayer also claims a Media Production Expenditure Credit. Please visit the U.S. Overview for additional information. IRELAND The Irish government has new measures to strengthen the Irish tax incentive, Section 481 for film and television production. More specifically, new improvements include increasing the ceiling on qualifying expenditure for any one film from €35 million to €50 million, subject to EU approval. MONTANA New film incentive legislation will be introduced during 2009. NEW MEXICO Legislation to clarify and streamline requirements for loan-out payments to qualify for the 25% production credit did not pass. The proposed legislation requiring income tax withholding from performing artists would have replaced the current requirement that performing artists (receiving payments through a loan-out or "super loan-out") must pay New Mexico income tax for such payments to qualify. Similar legislation is expected to be introduced and passed during the next legislative session. NEW YORK New legislation to increase the New York State Production Tax Credit Program to 15%, to broaden the definition of qualified local spend, and to increase annual funding was introduced through the Governor's proposed state budget. Productions submitting film credit applications prior to the enactment of the enhanced film incentive, if any, will not be eligible for the enhanced film credit. ONTARIO The Canadian Province increased its Ontario Production Services Tax Credit to 25% of qualified Ontario labor expenditures. QUEBEC The Canadian Province increased its Refundable Tax Credit for Film or Television Production Services to 25% of eligible Quebec labor expenditures. SINGAPORE We added production incentive information to our International Overview related to the Film in Singapore! Scheme that provides grants up to 50% for productions meeting certain criteria. A brochure and application are available. SOUTH AFRICA South Africa issued new guidelines and applications for its Location Film and Television Production Incentive. Effective February 1, 2008, a rebate of 15% of Qualifying South African Production Expenditure (QSAPE) is available to foreign owned qualifying productions with at least R12 million of QSAPE. WISCONSIN Wisconsin provided additional clarification regarding qualified non-resident wages that may be claimed for its new 25% production tax credit. More specifically, non-resident wages qualify for the refundable production expenditure credit provided that they: (1) meet the statutory definition of production expenditures, which does NOT include talent and marketing, (2) are for services provided directly to an accredited production in the state, and (3) are paid by an entity other than claimant, such as a payroll service company. 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 |
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 Entertainment Partners recently hired a permanent employee in Louisiana to assist local productions and purchased local workers compensation policies in Louisiana and Hawaii to help maximize your production's incentives in these States!  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 |
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| *** Entertainment Partners purchased a local workers compensation policy in New Mexico to help maximize your production incentives in the state (more local policies to be announced soon!). *** 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 |
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 CHAPMAN UNIVERSITY Entertainment Partners will present a Production Incentives Panel and Discussion during March 2008. Visit the Happenings section of our website for updates. back to top |
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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. |