Updates by Jurisdiction
For more information on incentives in each state, visit the Production Incentives map on our website and click on the state of interest.
SB 122, which provides a transferable tax credit for certain expenses incurred for production of certain film, TV, and digital media content, was signed into law. Although signed on July 3, the bill is effective as of July 1, 2018. While the program’s rules and regulations are pending release, elements of the incentive include:
- 30% of qualified production expenses, provided the production company meets the following requirements:
- Incurs at least 60% of total film production expenses in-state (exclusive of post-production costs) or incurs more than $1M in qualified production expenses
- Commences principal photography within 180 days from the original application date or 150 days from the date of approval of the application
- Excludes payments in excess of $500K made to a highly compensated individual for:
- Costs for a story, script, or scenario used in the production of a film; and
- Wages or salaries or other compensation for writers, directors, including music directors, producers, and performers
- 35% in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem County
- Reality/Non-Scripted television is eligible for the tax credit if the production company commits to own, lease, or occupy a production facility of no less than 20K square feet for a minimum term of 24 months and invest no less than $3M in such facility which must be located in an Urban Enterprise Zone
- Allows the production entity an additional credit equal to 2% of the qualified film or digital media production expenses provided that:
- The application is accompanied by a diversity plan
- The plan is approved
- The authority has verified that the applicant has met or made good faith efforts in achieving the goals stated within the diversity plan
A proviso was passed within the Motion Picture Incentive Act, stating that any uncommitted funds shall be carried forward from the prior fiscal year and must be used solely for wage and supplier rebate funds pursuant to the Motion Picture Incentive Act and may not be used for any other purpose.
For more information on incentives around the world, visit our website and click on the country of interest.
CANADA – ALBERTA
Alberta will introduce the new Interactive Digital Media Tax Credit on September 4th. The credit will refund digital media companies 25% of salaries, wages, and bonuses paid to Alberta-based employees. There will also be a 5% increase on payroll costs for underrepresented workers, including women, indigenous peoples, and people with disabilities. (See The Star – Calgary)
Initiated by the Hungarian National Film Fund, the European Commission has approved the raise of Hungary’s tax incentive to 30%. The tax incentive is available for film productions shooting in Hungary. The film support scheme is extended until the end of 2024.
EPFS Locations Spotlight
EP Financial Solutions is a primary contributor to Variety‘s “Artisans” Feature, spotlighting various filming locations around the world. Here are the locations we have covered in recent weeks.
Producers looking for different kinds of locales for their next projects are turning increasingly to Thailand, which recently launched a 20% rebate on qualified spend. Specifically, Thailand’s rebate on qualified spend ranges from 15% to 20%. It can include a 3% bonus for the hire of Thai personnel in key positions, and a 2% bonus if the project in question also promotes Thai tourism.
Indeed, the Southeast Asian country is a land of captivating beauty and exotic locations that filmmakers can use to add production value to their shoots. It’s also a country with narrow and dicey alleyways, street food vendors, and crowded marketplaces that can deliver a message of menacing grittiness – making it an ideal destination for noir-like stories and steamy situations.
North Carolina has a lot to offer producers, including mild temperatures, sandy coastlines, and a stretch of Appalachian Mountains. Those looking to shoot in an urban setting can head to Raleigh, the state capital, or bustling Charlotte. The city of Wilmington is a major production center and boasts seasoned film crews and the second-largest stage space east of California. And wherever filmmaking takes place, it can take advantage of a 25% rebate and a recently increased project cap.
Specifically, the rebate is set at 25% for all qualified expenditures. The minimum spend required per film is $3M, and the minimum per TV episode is $1M. Projects caps are set at $7M per film and $12M per TV season. There’s also a $250K project cap for commercials.
The country offers a 16.5% rebate on qualifying Australian production expenditure. To be accepted into the program, a feature film must spend a minimum of AUS$15M (approximately US$11.5M). TV shows need to spend an average minimum of AUS$1.5M (about US$766K) per hour of programming.
In addition to the above location offsets, Australia offers a producer offset consisting of a 40% rebate for theatrically released feature films including documentaries, animation projects, and IMAX movies; and 20% for single-episode dramas and documentaries (including features released only on DVD or online), TV drama or documentary series/seasons, and short-form animation.
DISCLAIMER: 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. 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 our website at epfinancialsolutions.com.
Providing links to other sites shall not be construed as an endorsement by Entertainment Partners of the linked websites or the opinions expressed on such websites.