Nick Bertelsen is in film school in California I believe. He used to work at Cinequipt movie equipment rental in Des Moines and I used to rent crap from him. Thanks, Nick, for sending the below. Please stay in touch!! Hopefully, the right people will read this attachment. Heck, maybe even Senator Herman C. Quirmbach will even read it! (pictured: me wonderin' if Senator Quirmbach will read this).
Basic Overview of
U.S. and International Production Incentives *
* These 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. The materials were updated as of December 29, 2009. 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 effect of incentives on your project. For updates and more information, please visit our website at www.epincentivesolutions.com.
Joe Chianese Kathleen Kane
Vice President Sr. Account Executive Business Development and Production Planning Business Development and Production Planning
jchianese@entertainmentpartners.com kkane@entertainmentpartners.com
Marco Cordova Director Business Development and Production Planning mcordova@entertainmentpartners.com
www.entertainmentpartners.com www.epincentivesolutions.com
U.S. DOMESTIC
U.S. FEDERAL * Type of Incentive: Immediate deduction Benefit (if eligibility requirements are met): 100% of the production cost (up to $15,000,000 or $20,000,000) Compensation and Project Caps/Funding Per Year: Deduction applies to the first $15,000,000 of production costs ($20,000,000 if incurred in designated low-income areas) Project Criteria: ≥ 75% of total “compensation” (does not include participations and residuals) must be for services performed in the U.S. Sunset/Review: December 31, 2009
* An extenders bill has been passed by the House, including IRC section 181. Due to time constraints, the Senate is not expected to pass it until next year, on a retroactive basis.
ALABAMA Type of Incentive: Refundable income tax credit Benefit (if eligibility requirements are met): 25% of qualified spend (excluding payroll to residents) and 35% of all payroll to residents Compensation and Project Caps/Funding Per Year: Annual funding caps, including incentives granted for sales, use, and lodging taxes: $5,000,000 for fiscal year 2009, $7,500,000 for fiscal year 2010, and $10,000,000 for fiscal year 2011 and subsequent years Project Criteria: For qualified state-certified productions (excluding productions limited to only soundtrack projects): minimum spend = $500,000 and maximum spend = $10,000,000; qualified soundtrack projects: minimum spend = $50,000 and maximum spend = $300,000 Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
ALASKA Type of Incentive: Transferable tax credit (with 3-year carry forward) Benefit (if eligibility requirements are met): 30% of qualifying production local spend, plus 10% for wages paid to Alaska residents, plus 2% for expenditures in a rural area, plus 2% for expenditures between October 1 and March 30 Compensation and Project Caps/Funding Per Year: Aggregate tax credits ≤ $100,000,000 Project Criteria: Minimum local spend = $100,000 in consecutive 24-month period Sunset/Review: The earlier of exhaustion of the cap or July 1, 2013; reports to the legislature are required within 30 days after the start of each regular session Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: N/A (state does not impose sales & use tax)
ARIZONA * Type of Incentive: Transferable production and infrastructure income tax credits (with 5-year carry forward) Benefit (if eligibility requirements are met): 20% of qualifying production local spend between $250,000 and $1,000,000; 30% of qualifying production local spend > $1,000,000; 15% of base investment in eligible infrastructure projects Compensation and Project Caps/Funding Per Year: $8,000,000 per project in 2009, and $9,000,000 per project in 2010; $60,000,000 total funding ($43,256,104 remaining as of May 22, 2009) for 2009, and $70,000,000 total funding for 2010, 5% of the total is reserved for use with respect to commercial advertisement and music video production Project Criteria: Minimum local spend = $250,000 in 24 months; 50% of full-time employees = residents in 2009 to 2010 Sunset/Review: December 31, 2010 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes
* HB 2611 and HB 2472 were held in committee and held awaiting committee of whole as of December 17, 2009.
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
ARKANSAS Type of Incentive: Rebate Benefit (if eligibility requirements are met): 15% of qualifying local spend; plus 10% of below-the-line payroll paid to full-time Arkansas residents Compensation and Project Caps/Funding Per Year: Salaries > $500,000 are excluded; there are no project caps; funding shall consist of revenues as authorized by law; applications are accepted on a first-come, first-served basis Project Criteria: Minimum local spend ≥$50,000 within 6 months. Payments must be made from an Arkansas financial institution. Sunset/Review: June 30, 2019 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
CALIFORNIA * Type of Incentive: Non-refundable, non-transferable (except for “independent films” or transfers to affiliates) income tax credit (with 5-year carry forward), or sales and use tax credit (with 5-year carry forward); income tax credits cannot be applied until 2011 Benefit (if eligibility requirements are met): 20% of qualifying local spend in the case of qualifying features, MOWs, miniseries, and new television series for basic cable; 25% of qualifying local spend for qualifying “relocating” television series and “independent films” Compensation and Project Caps/Funding Per Year: No compensation caps; feature film budget cap of $75,000,000; “independent film” budget cap of $10,000,000; $100,000,000 funding per fiscal year from 2009/2010 to 2013/2014; ≤ $10,000,000 a year set aside for “independent films”; annual allotment on first-come, first-served basis, and may use 1 subsequent year’s funding Project Criteria: ≥ 75% of the production days or total production budget within the state; minimum budget of $1,000,000 for a feature film, an independent film, and a new television series; minimum budget of $500,000 for MOWs and miniseries; “independent films” qualify if produced by a company that is not publicly traded or owned > 25% by publicly traded companies Sunset/Review: June 30, 2014 Sales Tax Relief for Productions Available: Yes Hotel Occupancy Tax Relief Available: Yes
* Principal photography of the qualified motion picture commences after the date on which the application is approved by the California Film Commission, but no later than 180 days after the date of that approval.
San Francisco, CA Type of Incentive: Film and Television rebate program Benefit (if eligibility requirements are met): 100% of "qualified production cost" (100% of City costs and the 1.5% payroll tax) Compensation and Project Caps/Funding Per Year: $600,000 project cap; $1,800,000 in funding committed over three year period beginning July 1, 2009; the Board of Supervisors has authorized $400,000 for the 2009-2010 fiscal year; once the $400,000 is depleted, the Board can authorize additional amounts Project Criteria: A "qualified low-budget film production" (budget ≤ $3,000,000) must spend ≥ 55% of total principal photography days exclusively in the City; a "qualified film production" (budget > $3,000,000) must spend ≥ 65% of total principal photography days exclusively in the City. The production office must be located in the City and County of S.F.; the qualified production must enter into an agreement with the City that demonstrates good faith efforts to participate in the City's First Source Hiring program. Sunset/Review: June 30, 2012 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
Santa Clarita, CA Type of Incentive: Subsidy of permit fees for locally based and recurring productions Benefit (if eligibility requirements are met): Waiver/subsidy of MOST Film Office permitting and use
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
fees for locally based productions; refund/waiver/subsidy of basic permit processing fees for recurring productions Compensation and Project Caps/Funding Per Year: $150,000 (all incentives combined) for fiscal year 2009 Project Criteria: Locally based productions must meet the following criteria: (1) have ≥ $1,000,000 per feature film, episodic television episode and per television pilots, movies, and mini-series, (2) principal photography in Santa Clarita Valley (SCV) ≥ 65%, and (3) crew must be ≥ 15% SCV residents; recurring productions either (1) pulls six local permit fees within fiscal year 2009, or (2) production is based at a sound stage or movie ranch within SCV ≥ four consecutive weeks Sunset/Review: June 30, 2010 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
COLORADO Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 10% of qualifying local spend Compensation and Project Caps/Funding Per Year: $3,000,000 cap on compensation; 2009-2010 fiscal year funding is set at $600,000 by the General Assembly, less $480,011. Project Criteria: Minimum local spend = $100,000 for qualified local companies, $1,000,000 for out of state companies; ≥ 75% of below-the-line budget = qualified local spend; ≥ 75% payroll = qualified local payroll Sunset/Review: July 1, 2017 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
CONNECTICUT Type of Incentive: Transferable production expense credit; transferable infrastructure project credit; transferable digital animation production company credit (3 transfers allowed with 3-year carry forward from year incurred) Benefit: (if eligibility requirements are met): 30% of production expenses with phase out of those incurred outside the state and used within (January 1, 2009 = 50% exclusion, January 1, 2010 = 100% exclusion); 10% to 20% of qualifying infrastructure investments; 30% of qualifying digital animation production costs, including optioning or purchase of IP rights if such expenses are <> $50,000 per year (an interactive website must spend > $500,000 per year); for state-certified infrastructure projects costing > $15,000 and < $150,000, the credit is 10% of the investment; if the cost is ≥ $150,000 but < $1,000,000, the credit is 15% of the investment; and for projects costing ≥ $1,000,000, the credit is 20%; for tax years beginning January 1, 2010, a 10% credit is available for minimum qualifying local spend of $100,000 to $500,000; a credit of 15% is available for spend of $501,000 to $1,000,0000; and a 30% credit is available for a qualifying local spend in excess of $1,000,000 for the film and digital animation credits; film projects must meet a 50% local principal photography requirement or 50% of post-production costs. Sunset/Review: None; review annually for "Workforce Competitiveness" status report; sections 12-217jj, kk and ll are amended, subject to annual review Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes Please visit www.epincentivesolutions.com for more comprehensive and updated information. DELAWARE Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: N/A (State does not impose sales & use tax) DISTRICT OF COLUMBIA Type of Incentive: Rebate Benefit (if eligibility requirements are met): 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 Sunset/Review: Annual review on or before December 31 of each year, for the fiscal year concluding September 30 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No (however, grant program may apply) FLORIDA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 15% of qualifying local spend (10% for digital media projects); 5% bonus if 75% of production days in Florida between June 1st and November 30th (digital media and independent filmmaker projects are not eligible for the 5% bonus); additional 2% family-friendly bonus with strict definitions Compensation and Project Caps/Funding Per Year: Cap on residents’ compensation of $400,000 for the general production and independent Florida filmmaker queues, and $200,000 for the digital media queue; $10,800,000 (for the fiscal year beginning July 1, 2009) annual fund with 85% appropriated to general projects, 10% appropriated to independent Florida filmmaker projects, and 5% appropriated to digital media projects; first-come, first-served on a fiscal-year basis; productions can cross fiscal years Project Criteria: ≥ 50% of cast (including extras) and below-the-line crew must be residents or eligible students; minimum local spend = $625,000 for general production projects. Independent Florida Filmmaker projects minimum local spend = $100,000 and maximum spend = $625,000 and must employ Florida worker in six key positions. Digital Media projects minimum local spend = $300,000. Sunset/Review: October 1st Annual Report; unexpended balance of appropriated funds reverts after June 30, 2009 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes GEORGIA Type of Incentive: Transferable tax credit (1 transfer to 1 or more transferees with 5-year carry forward) Benefit (if eligibility requirements are met): 20% of the “base investment” in the state, plus 10% if the qualified production activities include a “qualified Georgia promotion” Compensation and Project Caps/Funding Per Year: There is a $500,000 per person per project cap on W-2 salaries, but no cap on compensation paid to loan-outs or subject to 1099 reporting; no project or funding caps Project Criteria: Minimum local spend = $500,000 Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes HAWAII Type of Incentive: Refundable income tax credit Benefit (if eligibility requirements are met): 15% of qualifying spend in Hawaiian counties with a population ≥ 700,000 (currently only Honolulu county) and 20% of qualifying spend in Hawaiian counties with a population < spend =" $200,000" spend =" $200,000;"> $50,000 for productions <> $100,000 for productions ≥ 30 minutes Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
INDIANA Type of Incentive: Refundable tax credit Benefit (if eligibility requirements are met): Up to 15% of qualified production expenditures for productions based upon agreement executed with Film Indiana and the Indiana Economic Development Corporation Compensation and Project Caps/Funding Per Year: No per project cap; $2,500,000 funding per year.
Project Criteria: Theatrical and television projects must incur or make qualified production expenditures ≥ $100,000; digital media productions, audio recording or music video, radio or television advertising, and training, external marketing or communications media productions must incur or make qualified production expenditures ≥ $50,000 Sunset/Review: December 31, 2011 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
IOWA * Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
* The incentives program has been temporarily suspended.
KANSAS * Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
* The film production credit for tax years 2009 and 2010 has been suspended.
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
KENTUCKY Type of Incentive: Refundable credit payable on/after July 1, 2010 Benefit (if eligibility requirements are met): 20% of (1) qualifying expenditures, (2) qualifying payroll paid to below-the-line crew, and (3) qualifying payroll paid to "above-the-line crew" Compensation and Project Caps/Funding Per Year: $100,000 per person cap on above-the-line "crew" (actors, directors, producers, writers) Project Criteria: Minimum local spend = $500,000 for a "motion picture production," $200,000 for a commercial, and $50,000 for a documentary. Sunset/Review: December 31, 2014 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
LOUISIANA Type of Incentive: Partially refundable, fully transferable motion picture production tax credits; as a last resort, the credits can be transferred to the state of Louisiana for 85% of face value on projects certified on/after July 1, 2009 Benefit (if eligibility requirements are met): 30% of qualifying local spend including the payroll for residents and non-residents, and 5% of resident payroll ≤ $1,000,000 Compensation and Project Caps/Funding Per Year: $1,000,000 per person cap on 5% resident payroll credit; no project or funding caps Project Criteria: Minimum local spend > $300,000 Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
Jefferson Parish, LA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 3% of lodging, payroll for residents, and all other local spend Compensation and Project Caps/Funding Per Year: $100,000 per project cap for new productions by a production company that has not previously received Jefferson Parish incentives; $115,000 per project cap for subsequent productions (must bring project within 12 months of prior project); $10,000 increase to per project cap for productions having a production office and leasing a soundstage in Jefferson Parish; annual program funding varies Project Criteria: Minimum local spend = $150,000; must either (1) have local production office or (2) utilize soundstage or alternative filming facility located in Jefferson Parish Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
Shreveport, LA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): Sales taxes paid on lodging, lease, rental and other local production expenditures Compensation and Project Caps/Funding Per Year: $150,000 cap on new productions; $165,000 cap on subsequent productions within 12 mos.; $10,000 cap increase if a Caddo Parish-based post production company is used. Project Criteria: Minimum qualifying local spend = $300,000; must either (1) have its production office within Caddo Parish or (2) utilize a soundstage within the Parish Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
MAINE * Type of Incentive: Wage rebate (and non-refundable tax credit for investment in certified media productions) Benefit (if eligibility requirements are met): 10% on non-residents; 12% on residents Compensation and Project Caps/Funding Per Year: Wages are capped at $1,000,000 per person; no project or funding caps Project Criteria: Minimum local spend = $250,000 in 12 consecutive months Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
* LD 1449/HP 1005 which proposed to expand the incentive, will be carried over to any special or regular session of the 124th legislative session.
MARYLAND Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 25% of qualifying local spend Compensation and Project Caps/Funding Per Year: No per project cap; $1,000,000 program budget for 2009-2010 fiscal year beginning July 1st Project Criteria: Minimum local spend = $500,000; > 50% of production must be local Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes
MASSACHUSETTS Type of Incentive: Partially refundable, transferable tax credit; 5-year carry forward from year incurred (NOTE: Taxpayer may elect to receive a 90% refund of the credit to the extent credits are first applied to taxes) Benefit (if eligibility requirements are met): 25% of payroll in the state (excluding persons paid ≥ $1,000,000); no 50% test (see below) for payroll credit; 25% of local spend (including salaries ≥ $1,000,000) if either: (i) > 50% of total production expenses are incurred within the state, or (ii) ≥ 50% of principal photography days are within the state Compensation and Project Caps/Funding Per Year: No caps Project Criteria: Minimum local spend = $50,000 Sunset/Review: December 31, 2022 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes
MICHIGAN * Type of Incentive: Refundable and transferable business tax credit (or non-refundable, non-transferable income tax credit); non-refundable, transferable infrastructure investment tax credit (and non-refundable, non-transferable qualified job training expenditure credit for resident below-the-line crew with a 10-year carry forward) Benefit (if eligibility requirements are met): 42% of qualifying direct production expenditures in “core communities” or 40% of direct production expenditures in other locations; 30% of qualified personnel expenditures, i.e. nonresident below-the-line crew (or 50% qualified job training expenditure credit for resident below-the-line crew); 25% infrastructure investment tax credit Compensation and Project Caps/Funding Per Year: $2,000,000 cap per person for compensation for personal services for direct production and qualifying personnel expenditures; $20,000,000 annual cap for infrastructure investments Project Criteria: Minimum local spend = $50,000 for direct production and qualifying personnel credit; $250,000 for infrastructure investment tax credit Sunset/Review: Annual report required for the direct production and qualifying personnel credits; September 30, 2015 for the infrastructure investment credit Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No Loan Program Available: Yes
* Numerous bills have been introduced to modify the existing film incentives. Click here to search for bills.
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
MINNESOTA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 15% to 20% of qualifying local spend Compensation and Project Caps/Funding Per Year: $1,250,000 appropriation to film production jobs program during fiscal year 2010 Project Criteria: Minimum local spend = $5,000,000 within a 12-month period for the 20% credit; local principal photography ≥ 60% for feature films; minimum local spend ≥ 60% of total budget for TV series, internet programs, documentaries, music videos, and TV commercials; total production budget ≥ $200,000 for internet programs, documentaries, and TV commercials (no budget requirements if the commercial project has a national distribution) and ≥ $50,000 for music videos Sunset/Review: Until all funds are expended Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes, for commercial productions
MISSISSIPPI Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 20% of the qualifying local spend; 20% of payroll paid to nonresidents and 25% of payroll paid to residents Compensation and Project Caps/Funding Per Year: Up to $1,000,000 on individual resident and nonresident payroll qualifies for the rebate; $8,000,000 rebate cap per project; $20,000,000 fiscal year cap (as of February 15, 2009, $18,000,000 - $19,000,000 of funding remains during current fiscal year) Project Criteria: Minimum local spend = $20,000 in base investment and/or payroll Sunset/Review: No sunset date for the main rebate; the non-resident payroll rebate expires on June 30, 2012 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes
MISSOURI* Type of Incentive: Transferable tax credit; 5-year carry forward from year incurred Benefit (if eligibility requirements are met): 35% of qualifying local spend, excluding compensation > $1,000,000 paid to any person Compensation and Project Caps/Funding Per Year: $4,500,000 annual funding Project Criteria: Minimum local spend = $50,000 if <> 30 minutes in length Sunset/Review: November 28, 2013 (unless reauthorized) Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
* HB 767, to increase the annual funding to $10,000,000, has not progressed since April 28, 2009.
MONTANA Type of Incentive: Refundable tax credit Benefit (if eligibility requirements are met): 14% of residents’ wages; 9% of qualifying local spend; new requirement that eligible expenditures must be paid in full before credit is claimed Compensation and Project Caps/Funding Per Year: Per person cap of first $50,000 on resident wages; no project or annual caps Project Criteria: No minimum spend; certification Sunset/Review: December 31, 2014 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: N/A (State does not impose sales & use tax)
NEBRASKA Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
NEVADA Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
NEW HAMPSHIRE Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: N/A (state does not impose sales & use tax except for rooms and meals)
NEW JERSEY * Type of Incentive: Transferable tax credit Benefit (if eligibility requirements are met): 20% of qualifying local spend and qualified digital media production spend Compensation and Project Caps/Funding Per Year: Cannot reduce tax liability by > 50%; $10,000,000 per year Project Criteria: ≥ 60% of total spend (excluding post-production) must be local; local digital media content production expenses must be ≥ 2,000,000 Sunset/Review: June 30, 2015 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes Loan Program Available: Yes
* A4160 and S3002 include the following proposed changes: make the credit refundable, increase the credit to 40% on qualified film production expenses (it remains 20% for digital media production expenses) with an additional 2% credit for purchases in or services provided by a resident of an Urban Enterprise Zone, reduce the local expenditure requirement to 50%, increase the annual cap on film production credits to $50,000,000.
NEW MEXICO Type of Incentive: Refundable tax credit * Benefit (if eligibility requirements are met): 25% of qualifying local spend Compensation and Project Caps/Funding Per Year: There is a $5,000,000 cap per project on the credit for all “performing artists’ ” compensation (i.e., amounts paid to performing artists in excess of $20,000,000 will be not be eligible for the credit); there are no other project or funding caps Project Criteria: None Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes Loan Program Available: Yes
* Productions may benefit from either the gross receipts tax deduction/sales tax exemption or the 25% refundable tax credit, but not from both.
NEW YORK * Type of Incentive: Refundable film production tax credit; there is also an investment tax credit for qualified film production facilities Benefit (if eligibility requirements are met): 30% of qualifying production local spend; 4% to 5% of the eligible investment credit base Compensation and Project Caps/Funding Per Year: $75,000,000 in 2009, $85,000,000 in 2010, $90,000,000 in 2011 and 2012, $110,000,000 in 2013; annual allotment on first-come, first-served basis (if exhausted, carries over to next year’s allotment); additional funding of $350,000,000 was authorized in April
Project Criteria: Qualified production costs at a qualified film production facility must be ≥ 75% of such costs within and outside NY (requires at least 1 day at a qualified facility on a set); if production costs at a qualified facility are < $3,000,000, then shooting days in NY outside qualified production facility must be ≥ 75% of shooting days within and outside NY. The investment tax credit is available for tangible property containing at least 1 sound stage ≥ 7,000 SF, which is principally used as a qualified film production facility and the taxpayer provides ≥ 3 qualified services, including but not limited to studio lighting grid, lighting and grip equipment, multi-line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heating, ventilation and A/C Sunset/Review: December 31, 2013 Hotel Occupancy Tax Relief Available: No Please visit www.epincentivesolutions.com for more comprehensive and updated information. Sales Tax Relief for Productions Available: Yes * There are 3 bills pending to modify the state film production credit: A05784 establishing a post-production credit, A08144 including writer salaries and fees within eligible production costs, and A09060 removing the cap on the aggregate amount of tax credits allowed. New York, NY * Type of Incentive: Refundable tax credit (to the extent not used to offset taxes, the refund will be paid in 2 equal payments in the current and following tax years) Benefit (if eligibility requirements are met): 5% of qualifying local spend, and outdoor media valued at 1% Compensation and Project Caps/Funding Per Year: $30,000,000 annual cap on first-come, first-served basis (if exhausted, carries over to next year’s allotment) Project Criteria: Qualified production costs at a qualified film production facility must be ≥ 75% of such costs within and outside NYC; if qualified production costs are < $3,000,000, then shooting days in NYC outside qualified production facility must be ≥ 75% of shooting days within and outside NYC.; location costs and post-production costs qualify if ≥ $3,000,000 is spent in a qualified facility Sunset/Review: December 31, 2011 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes * There are 3 bills pending to modify the city film production credit: A00229 increasing the credit to 15%, A08761 to reduce the rate of the credit, phase out TV series, and impose a cap, and A08805 establishing an incentive for qualified independent film production companies, authorizing additional credits. NORTH CAROLINA Type of Incentive: Refundable tax credits Benefit (if eligibility requirements are met): 15% of qualifying local spend (NC income tax credits are subject to NC tax; therefore, net film credit is 13.97% after tax); beginning January 1, 2010, an "alternative" refundable credit has been added at the rate of 25%, subject to sales and use tax adjustments and the state income tax Compensation and Project Caps/Funding Per Year: Cap of $1,000,000 on compensation; $7,500,000 per feature film; no other caps Project Criteria: Minimum local spend = $250,000 Sunset/Review: December 31, 2013 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes NORTH DAKOTA Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No OHIO Type of Incentive: Refundable tax credit Benefit (if eligibility requirements are met): 25% of qualifying local spend excluding resident cast and crew; 35% of resident cast and crew Compensation and Project Caps/Funding Per Year: Per project cap of $5,000,000; $30,000,000 funding for the fiscal biennium July 1, 2009, to June 30, 2011; $20,000,000 for subsequent biennia (not more than $10,000,000 may be allowed in the first year) Project Criteria: Minimum qualified local spend must > $300,000 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
OKLAHOMA Type of Incentive: Cash rebate; non-refundable, non-transferable income tax credits for construction of Oklahoma (OK) film/music facilities and for investment in OK film/music projects *
Please visit www.epincentivesolutions.com for more comprehensive and updated information.
Benefit (if eligibility requirements are met): 35% Film Enhancement Rebate, BONUS: 2% for OK music/recording; 10% to 25% credit for construction of OK film/music facilities; 25% credit for investment in film/music project Compensation and Project Caps/Funding Per Year: $5,000,000 per year Project Criteria: Minimum budget for film must be ≥ $50,000 and local spend must be ≥ $25,000; minimum budget for Oklahoma 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 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes (the sales tax exemption cannot be used in conjunction with the 35% to 37% rebate)
* 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.
OREGON Type of Incentive: Cash rebates consisting of the Oregon Production Investment Fund (OPIF), the "local filmmaker" or indigenous OPIF, and the Greenlight Oregon Labor Rebate (GOLR) Benefit (if eligibility requirements are met): Up to 16.2% of wages paid (residents and non-residents and exclude entire compensation if Oregon compensation > $1,000,000 for each individual); 20% of qualifying local goods/services (other than wages); rules to implement the reimbursement and other criteria for the "local filmmaker"; OPIF will be available prior to the effective date of January 1, 2010 Compensation and Project Caps/Funding Per Year: No per project cap; $7,500,000 annual funding cap for the OPIF effective 10/1/09 (10% labor and 20% local goods/services rebate); no annual funding cap for 6.2% GOLR Project Criteria: Minimum local spend for OPIF = $750,000; local spend for the "local filmmaker" OPIF is ≥ $75,000, but < $750,000; minimum local spend for GOLR = $1,000,000 Sunset/Review: December 31, 2011 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: N/A (State does not impose sales & use tax) PENNSYLVANIA Type of Incentive: Transferable tax credit (with a 3-year carry forward for the original recipient only); an assignee may not use the credit to reduce its tax liability by > 50% Benefit (if eligibility requirements are met): The credit is 25% of qualifying local spend Compensation and Project Caps/Funding Per Year: There is a $15,000,000 per project cap on aggregate compensation paid to performing artists, and an annual funding cap of $75,000,000 Project Criteria: Minimum local spend ≥ 60% of the budget Sunset/Review: None; a report on the effectiveness of both incentives is due September 1st of each year Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
PUERTO RICO Type of Incentive: Transferable film and infrastructure tax credits Benefit (if eligibility requirements are met): 40% of qualifying local spend; for infrastructure projects, the lesser of 40% of the cash investment or 20% of the budget Compensation and Project Caps/Funding Per Year: 50% of the cash invested as equity in the film project; $15,000,000 per year (project cap can be raised on a per project basis) Project Criteria: ≥ 50% of principal photography must be local OR local spend ≥ $1,000,000; minimum budget for short-subject films = $100,000, for series = $1,000,000; for infrastructure projects, budgets > $5,000,000 qualifying spend or investment ≥ 25% of existing FMV Sunset/Review: December 31, 2019 Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
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RHODE ISLAND Type of Incentive: Transferable tax credit Benefit (if eligibility requirements are met): 25% of qualifying spend Compensation and Project Caps/Funding Per Year: No per project cap; annual cap of $15,000,000 Project Criteria: > 51% of principal photography days must be local; minimum budget = $300,000 Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: No
SOUTH CAROLINA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 20% of all wages subject to withholding paid to actors (including stunt performers), SC residents and anyone working on a TV series (excluding persons paid ≥ $1,000,000); 10% wage rebate for non-resident crew up (working on projects other than a TV series) to $3,500 per person; 30% of qualifying local spend (paid to eligible SC suppliers) Compensation and Project Caps/Funding Per Year: No project caps; annual funding of $10,000,000 for wage rebate and 26% of admissions tax collected for previous year for the supplier rebate, approximately $5,500,000 for fiscal year 2008-2009 (as of May 28, 2009, supplier funds are still available thru June 30, 2009 and will be carried over if unused; both wage and supplier funds will be re-filled on July 1, 2009, bringing the total for both to $19,500,000) Project Criteria: Minimum local spend ≥ $1,000,000 during tax year Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
SOUTH DAKOTA Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
TENNESSEE Type of Incentive: Grant and refundable credit Benefit: (if eligibility requirements are met): 17% of qualifying local spend (from Film Commission) and an additional 15% refund for qualifying local headquarters (from Department of Revenue) Compensation and Project Caps/Funding Per Year: All personnel salaries and fees capped at $250,000 for the film and television production incentive; funded by gifts, grants, donations and appropriations by the General Assembly, with approximately $9,300,000 available on September 8, 2009 Project Criteria: Minimum local spend within 12 months of Certificate of Conditional Eligibility = $500,000 if headquartered outside the state, and $150,000 if within; declaration of residence required for qualifying TN payroll (the Commission has discretion to deviate from these requirements when a production is determined to have a beneficial impact on the State); $1,000,000 local spend to qualify for the headquarters rebate from the Department of Revenue Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
TEXAS Type of Incentive: Grant Benefit: (if eligibility requirements are met) 5% to 15% of qualifying local spend or 8% to 25% of wages paid to Texas residents; if ≥ 25% of filming days are in “underutilized areas,” the grant is increased by 2.5%for the local spend option or 4.25% if the wage option is selected; the incentive is tiered based on local spend (5% incentive for reality and talk shows; 70% resident cast requirement is N/A) Compensation and Project Caps/Funding Per Year: No caps; compensation in excess of $1,000,000 is excluded; $7,500,000 in funding remains for the fiscal year ending August 31, 2009 Project Criteria: Minimum local spend = $250,000 for film or television program, or $100,000 for a commercial, series of commercials, educational and instructional videos and digital interactive media
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productions; ≥ 70% of cast and crew must be residents (unless it is determined that there are insufficient residents to fill the positions); ≥ 60% of the moving image must be filmed locally Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
UTAH Type of Incentive: Refundable tax credit and cash rebate Benefit (if eligibility requirements are met): 20% of the “dollars left in the state” Compensation and Project Caps/Funding Per Year: Tax credit offered without a per project cap; funding for the tax credit is capped at $7,793,700 for the 2009-2010 and 2010-2011 fiscal years; annual funding for the cash rebate is capped at $2,206,300 (as of March 30, 2009, approximately $900,000 in funding remains for the 2008-2009 fiscal year) Project Criteria: Minimum local spend of $1,000,000 Sunset/Review: Review on or before October 1, 2014, and every 5 years thereafter Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
VERMONT Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
VIRGINIA Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): Discretionary cash rebate Compensation and Project Caps/Funding Per Year: Based on funding appropriated by General Assembly; $200,000 available as of July 1, 2009, plus any monies collected through the Digital Media Fee (hotel/motel movie rental fee) going forward Project Criteria: Performance-based incentive that provides cash rebate at the Governor’s discretion, taking into consideration length of filming, job creation, trainees hired, goods and services purchased Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
WASHINGTON Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 30% of qualifying local spend Compensation and Project Caps/Funding Per Year: $3,500,000 per year annual funding Project Criteria: Minimum local spend = $500,000 for feature films, $300,000 for television productions, $150,000 for commercials Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
WEST VIRGINIA Type of Incentive: Transferable tax credit (with 2-year carry forward) Benefit (if eligibility requirements are met): 27% of qualifying local spend and an additional 4% if 10 or more residents employed full time, for a maximum of 31% Compensation and Project Caps/Funding Per Year: No per project cap; $10,000,000 annual funding Project Criteria: Minimum local spend = $25,000 Sunset/Review: None Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: Yes
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WISCONSIN Type of Incentive: Refundable tax credit Benefit (if eligibility requirements are met): 25% of salaries and wages paid to residents making ≤ $250,000; 25% of qualifying local spend; 15% of amounts to establish or operate a film production company in the state Compensation and Project Caps/Funding Per Year: Funding is set at $500,000 for the 2009-2010 fiscal year Project Criteria: Minimum local spend > $50,000 for aggregate salary and wages within 12 months of the start of principal photography; ≥ 35% of the total budget must be spent in the state Sunset/Review: None Hotel Occupancy Tax Relief Available: No Sales Tax Relief for Productions Available: Yes
WYOMING Type of Incentive: Cash rebate Benefit (if eligibility requirements are met): 12% to 15% of qualifying local spend Compensation and Project Caps/Funding Per Year: No per project cap; $900,000 funding appropriated as of June 12, 2009 Project Criteria: Minimum local spend = $200,000 Sunset/Review: Annual report June 30, 2011 Hotel Occupancy Tax Relief Available: Yes Sales Tax Relief for Productions Available: No
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