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.
The Governor announced earlier this month that film and TV production contributed more than half a billion dollars to New Mexico’s economy last year, shattering the previous record by more than $115M. (See Los Alamos Daily Post)
Leaders of New York’s film and TV production community and local legislators are calling on the Governor to sign the TV diversity tax credit bill that would earmark $5M in state incentives in an effort to open doors for more women and people of color as writers and directors. (See Variety)
New guidelines were issued earlier this month for the state’s Film Production Tax Credit. Changes within the new guidelines include a new post-production credit, an affidavit for a qualified post production facility, and new application forms. However, although the Governor agreed on a $32B state budget in July, the state still has not finalized a revenue plan to pay for it.(See The Reading Eagle)
Puerto Rico’s new Tax Incentive Committee has issued two new resolutions, which impose major limits of film tax credits going forward.
Resolution 2017-08 applies to all tax credit applications which are not covered by prior resolutions (new credit applications) and must adhere to the following rules:
- if the projected credit amount is less than $1M, then applicant needs to submit a 5 year income projection;
- if the projected credit amount is more than $1M, then applicant needs to submit an economic impact study prepared by an independent party;
- the Film Commission will evaluate applications and give the Committee a recommendation, based on the following criteria:
- whether approval is in best social and economic interest to PR;
- jobs created;
- investments applicant would make in PR;
- taxes to be collected as a result of the project;
- any other factor warranting special consideration.
- Certain other documents must be submitted with the application (listed on page 5 of the resolution) showing that applicant is in good standing with regards to tax liabilities;
- Committee will decide final approval and also consider whether approving may adversely affect compliance with PR’s Certified Fiscal and Liquidity Plan for the General Fund of PR. Once application is with the Committee, neither the Committee nor any of its members may communicate with the Applicant or any person acting on behalf of the Applicant.
- Once issued, tax credits will be subject to new use limitation of 25% of the holder’s tax liability and the carryforward limited to 4 years (with a possible 3 year extension).
- The Committee may establish a cap on maximum amount of credits (for all credit programs) to issue each fiscal year well as impose an annual cap for each specific credit program.
Resolution 2017-09 applies to any tax credit application submitted on or before March 7, 2017.
- Applications will be reviewed by the Film Commission and then by the PR Treasury which, if approved, will send to the Committee for final approval. Once application is with the Committee, neither the Committee nor any of its members may communicate with the Applicant or any person acting on behalf of the Applicant;
- Once issued, tax credits will be subject to new use limitation of 25% of the holder’s tax liability and the carryforward limited to 4 years beginning in 2017 (with a possible 3 year extension).
For more information on incentives around the world, visit our website and click on the country of interest.
The Colombian film rebate will have another $3.3M available for qualified productions in the second half of the year. So far in 2017, three projects have been approved, with two of them already wrapping production.
A plan to set up financial incentives to attract more international filmmakers to Morocco was unveiled in Rabat with the aim of tripling investments by foreign producers in the Kingdom. (See North Africa Post)
EPFS Locations Spotlight
EP Financial Solutions is a primary contributor to Variety‘s “Artisans” Feature, spotlighting various filing locations around the world. Here are the locations we have covered in recent weeks.
A bustling metropolis rising from desert sands. A city cradled by the warm, blue waters of the Persian Gulf. An economic powerhouse of great wealth. Jaw-dropping architecture at every turn. This is Abu Dhabi, second-largest city of the United Arab Emirates and its capital – as well as capital of the Emirate of Dubai. Tourists and businesspeople have many reasons for going there; filmmakers are attracted by its rebate of up to 30% on qualified spend.
For filmmakers seeking a location that possesses both natural beauty and a bustling urban landscape, the Czech Republic offers many ideal landscapes and cityscapes. In addition, producers can take advantage of the country’s multiple incentives, including a 20% rebate on qualifying spend. The program has no cap on per-project grants. Also, because it lacks a sunset date, studios consider it reliable.
The neighboring cities of St. Petersburg and Clearwater, part of the Tampa metro area on Florida’s Gulf Coast, offer 35 miles of white sand beaches and a variety of sun-baked locations for film and TV projects that require a tropical feel. Even more significant for producers, the two cities also make available a cash grant of 10% to 20%.
Las Vegas, that landmark of the American imagination, is known throughout the world as a destination for gambling and entertainment. But there’s more to the state of Nevada than Sin City – including abandoned mining towns, forgotten motels, stunning rock formations and sweeping desert landscapes. For filmmakers, the state offers a 15% transferable tax credit for all qualified production costs, as well as bonuses for qualifying productions.
Earlier this month, Joe Chianese of EPFS participated in a panel titled, “The Business of Production Companies” at the New Mexico Film & Media Industry Conference. The panel focused on what a production company needs to start a business in New Mexico. Follow us on Facebook to see more.
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.