FREE Webinar presented from Sundance
Sundance may be over, but you can still experience a bit of the festival with this free webinar presented by Entertainment Partners and moderated by Joe Chianese. The webinar features interviews with some of this year’s breakout filmmakers, and explores how the new U.S. tax rebate will affect both studio blockbusters and independent film.
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 new tax bill includes some benefits for Hollywood, including the ability to deduct 100% of the cost of most new and used “qualified property” with no limit.
AB 1734 was introduced, which is a “placeholder bill” that would extend the allocation of motion picture credits through an unspecified fiscal year, and limit the aggregate amount of those credits allocated in each fiscal year to an unspecified amount.
SB1502a has been signed by the Governor, which permanently extends the moratorium on feature films, defined as films for theatrical release. Films made for TV and streaming services are still eligible. Theatrically distributed feature films can still potentially qualify if 25% or more of the principal photography shooting days are at a facility that receives not less than $25M in private investment and opened for business on or after July 1, 2013.
HB 341 was introduced, which would establish the Florida Motion Picture Capital Corporation to encourage the use of Florida as a site for scripted productions by providing financing for those productions.
The first production to gain funding under Miami-Dade County’s new film incentive program is a 20-episode series. The incentive was put in place to help fill the gap left when Florida allowed its own incentive program to sunset in 2016. County commissioners acting on a committee’s recommendation approved the maximum incentive of $100K for the series. (See Miami Today News)
HB 1409 was introduced, which would authorize the Indiana Economic Development Corporation to approve and issue a film and media production expenditure rebate to a qualified applicant that proposes to make a qualified production expenditure of at least $500K in the state.
SB 20 was introduced, which would authorize a small or independent film entity to qualify as a film production entity under certain circumstances, alters a certain audit requirement to apply only to an entity with total direct costs that exceed $500K, and alters the amount of certain tax credit certificates that the Secretary of Commerce may issue under certain circumstances.
SB 2350 was introduced, which would add a sunset date of July 1, 2021 to the Mississippi Motion Picture Incentive Act.
HB 1132 was introduced, which would revise certain aspects of Mississippi’s Motion Picture Incentive Act. Revisions would be made to certain definitions, certain provisions, the amount of certain expense, and would allow the rebate to be assigned to a third party, provided that the third party is a state entity. Such revisions would allow a non-resident motion picture production company, that spends at least $100K in the state, to qualify for the rebate, as well as a 20% rebate for non-resident employees, with a compensation cap of $3M.
HB 1661 was introduced, which would reauthorize and modify the Missouri tax credit for film projects. The new incentive would allow a tax credit of 20% for qualifying in-state and out-of-state expenses. An additional 5% may be earned if at least 50% of the qualified project if filmed in Missouri.
AB 1038 was introduced, which would provide a corporation business tax and gross income tax credit for certain expenses incurred for production of certain films and digital media content, designated as the Garden State Film and Digital Media Jobs Act.
HB 113 was introduced, which would remove the annual aggregate cap for the film and TV tax credit.
The Governor vetoed SB 4999 last month, which would have linked the state’s film incentives to diversity hiring in the state’s TV industry. The bill would have allocated up to $5M for companies that hire female and minority TV writers and directors. (See Deadline)
SB 955 was introduced, which modifies the sunset date of Oklahoma’s film tax rebate from July 1, 2024, to December 31, 2018.
SB 1560 was introduced, which would extend the Tennessee Film, Entertainment, and Music Commission for four years, until June 30, 2022.
SB 263 has been signed by the Governor, which eliminates West Virginia’s film tax credit, effective July 1, 2018.
SB 32 was introduced, which would create a grant fund to encourage film and entertainment production within West Virginia.
For more information on incentives around the world, visit our website and click on the country of interest.
Cumulative local expenditure for international productions that applied for incentives in 2017, was almost €25.4M. The amount if more than double compared to 2016 and more than in the record year 2015. (See Film New Europe)
Thailand hosted a record number of international feature film productions in 2017. The country attracted 80 projects, a significant increase on last year’s number of 50. The previous record was 67 in 2013. (See Screen Daily)
Ten projects, including Slovak/Czech co-productions, registered for the 20% cash rebate as the Slovak Audiovisual Fund in 2017. The eased requirements, implemented in 2017 attracted more international projects than in 2016, when only four projects applied for incentives. (See Film New Europe)
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.
New Zealand’s huge footprint in the international film business is way out of proportion to the small size of the island nation, which has served both as a location and effects resource for such gigantic franchises as “Lord of the Rings,” “The Hobbit,” “Planet of the Apes,” and “Avatar.” Spectacular scenery and vfx expertise are bolstered by a 25% cash grant program.
New Mexico has long attracted film and TV production from Hollywood with its classic western landscapes, state-of-the-art soundstages in both Albuquerque and Santa Fe, strong professional local crew base as well as a large population of resident actors who enjoy its mild climate and laid-back lifestyle. The state also offers filmmakers a comprehensive location database and boasts a 25% to 30% refundable tax credit on qualified spend.
France has been at the center of the film world ever since the Lumiere brothers invented moving pictures that could be viewed by an audience in the 1890s. The country’s celebrated cinema output over the years and its Cannes Film Festival have cemented that role. Today, France’s 30% Tax Rebate for International Production, or TRIP, makes it a filmmaking major destination.
With more than a century of film production under its belt, mostly owing to its tropical location and American pedigree, Hawaii continues to offer unmatched landscapes and beaches alongside all the advantages of a solid filmmaking infrastructure and experienced U.S. crews. All this comes with a 20% tax credit for filming on Oahu and 25% on other islands – for both above- and below-the-line work.
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.