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EP Financial Solutions is a sponsor at this year’s Entertainment Finance Forum/L.A. presented by Winston Baker.

Joe Chianese of EPFS will moderate the panel “Indie Ventures: Finding Golden Opportunities in Independent Films”

The panel is Thursday March 2, 10:50am – 11:50am

Register for the conference

Updates by Jurisdiction

U.S. Updates
For more information on incentives in each state, visit the Production Incentives map on our website and click on the state of interest.

CALIFORNIA
• The state released a list of 22 film projects accepted into the Film & TV Tax Credit Program 2.0. Based on the data provided with each application, the selected projects are on track to spend a total of $800M in-state, including $300M in qualified wages to more than 4,000 crew and cast members. (See The Hollywood Reporter)
• The Santa Clarita City Council has extended the city’s Film Incentive Program through June 30, 2018. The FIP is aimed at retaining and increasing feature and TV production in the city of Santa Clarita and the Santa Clarita Valley by subsidizing permit fees, in addition to reducing costs of safety personnel as possible. (See SCVTV)

CONNECTICUT
SB 787 was introduced, which would extend the suspension of feature films as qualified productions indefinitely. Currently feature films are suspended as qualifying productions through June 30, 2017.

GEORGIA
HB 147 has been introduced, which would give a production company a 5% bonus tax credit on the salaries of GA resident veterans. There would be a $100K compensation cap on the salary of each veteran hired.
HB 155 has been introduced. If passed, the legislation could facilitate a substantial boost to the state’s music industry by stimulating growth in areas of recording music; scoring music for film, TV, and video games; and in attracting more large-scale music and theatrical productions. The bill offers:
o 20-25% tax credit for projects recorded or scored in GA
o A minimum spend of $300K for live performances and $70K for recorded performances
o An additional 5% for using a GA logo

HAWAII
The state has introduced the following bills:
HB 423 and SB 1060:
o Offers 35% of qualified production costs incurred in any county with a population of 700K or less; provided that at least 55% of the production’s crew be local to that county. Does not include ATL wages
o Extends the sunset date to January 1, 2024
HB 590:
o Repeals the Hawaii Television and Film Development Board along with the grant and venture capital programs to be implemented by the Board
o Establishes the Hawaii State Film Commission while retaining the Film Industry Branch of DBEDT
o Renames the Hawaii Television and Film Development Special Fund as the Creative Media and Film Infrastructure Special Fund
HB 1038 and SB 904:
o Extends the sunset date until January 1, 2026
o Requires taxpayers claiming the tax credit to submit an independent certification of the qualified production costs
HB 1328 and SB 1253:
o Extends the sunset date to January 1, 2024
HB 1039 and SB 905:
o Expands funding sources to support creative industries development within the Department of Business, Economic Development, and Tourism
HB 1041:
o Extends sunset to January 1, 2024
o Requires that productions claiming the tax credit provide evidence of consideration of cultural and environmental sensitivities in HI and hire or contract for the services of cultural, historical, or language experts
SB 1086:
o Sets an annual cap at $50M
o Clarifies that qualified expenditures must be spent within the state
o Extends sunset date to January 1, 2024
SB 1191:
o Extends sunset date to January 1, 2019
o Requires productions claiming the tax credit to contribute to creative media programs within the University of Hawaii

ILLINOIS
HB 2642 was introduced, which would allow the state’s film production tax credits to sunset on January 1, 2027.

MARYLAND
SB 723 was introduced, which would:
• Allow a local small or independent film entity to qualify as a film production entity under specific circumstances
• Alter a specified audit requirement to apply only to an entity with total costs exceeding $500K
• Alter the amount of specified tax credit certificates that the Secretary of Commerce may issue under specified circumstances

MINNESOTA
HB 789 and SB 266 were introduced, which would appropriate $13M to the Snowbate program for fiscal year 2018.

MISSISSIPPI
HB 1309, which proposes to sunset the Mississippi Motion Picture Incentive Act on July 1, 2017, has failed.

MISSOURI
HB 788 has been introduced, which would bring back the state’s film tax credit program. If enacted, the bill would allow all qualified productions a tax credit of 20-25% on qualifying expenses. The state’s previous program was allowed to sunset in 2013.

NEVADA
AB 137 was introduced, which would increase funding for the state’s film tax incentive program. Currently funding for the program has been completely allocated. If passed, additional funds would be available July 1, 2017.

NEW HAMPSHIRE
HB 581 was introduced, which would establish a credit against business profits taxes for media production expenditures in New Hampshire.
HB 398 was introduced, which would establish a commission to study and evaluate providing financial incentives for professional media production activity in the state.

NEW MEXICO
HB 192 was introduced, which would increase the aggregate amount of credits allowed in a fiscal year based on the Consumer Price Index, as calculated by the U.S. Bureau of Economics.
SB 332 was introduced, would suspend payments of the refundable portion of the film production tax credit due to any taxpayer claiming a credit until the aggregate amount of payments suspended equals $20M. If enacted, the bill would be effective through June 30, 2017.

NEW YORK
AB 2042 and SB 2852 were introduced, which would authorize documentary films to qualify for the Empire State Film Production Tax Credit.
AB 5386 was introduced, which would allow animated short films, broadcast series, and features to qualify for the Empire State Film Production Tax Credit.
• Governor Cuomo has included an extension of the state’s highly successful film production and post-production tax credits in his 2017-18 executive budget. The proposed extension runs through the end of 2022 at the current $420M per year. (See NY Loves Film)
• An economic study funded by the Post New York Alliance showed that post-production work for film and TV generates $128M a year in state tax revenue and is responsible for 23,310 jobs. (See Crains)

OKLAHOMA
HB 1654 and SB 567 have been introduced, which would terminate the Oklahoma Film Enhancement Rebate Program, effective July 1, 2017.
SB 41 was introduced, which would terminate the Oklahoma Film Enhancement Rebate Program, effective January 1, 2018.
HB 1848 was introduced, which would terminate the Oklahoma Film Enhancement Rebate Program, effective once enacted. Exemptions include:
o Unpaid claims from a prior fiscal year
o Applications approved prior to the effective date, provided such related expenditures occurs prior to January 1, 2017

PENNSYLVANIA
HB 393 was introduced, which would:
• Allow “digital interactive media” to qualify for the state’s incentive
• Remove the film incentive program’s $65M annual cap

RHODE ISLAND
SB 135 has been introduced, which would make the following changes to the current Motion Picture Production Tax Credit program. Effective upon passage, the bill would:
• Utilize rebates instead of tax credits
• Increase the annual sum from $15M to $25M
• Provide an additional 5% for Rhode Island resident payroll
• Remove “Video Games” from eligible productions

VIRGINIA
As we reported in January, the state introduced HB 1665, which would extend the sunset date of their motion picture production tax credit from January 1, 2019 to January 1, 2022. On February 14, 2017, this bill passed both chambers and is eligible to be sent to the governor for signature.

WASHINGTON
HB 1527, SB 5502, and HB 2062 have been introduced, which would extend the sunset date for the state’s Motion Picture Competitiveness Program until July 1, 2027. Currently the program would sunset on July 1, 2017. The bills also allow for a one-time allocation of up to $3M for a major motion picture production with a total budget of at least $20M that portrays a significant historical event in Washington.


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.