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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
SB 871 has been signed into law by the Governor. The bill made several modifications to the state’s film tax credit program, which include:

  • Extends the sunset date from June 30, 2020 to June 30, 2025
  • Creates a pilot program for training residents from under-served communities for careers in skilled craft occupations in motion picture and TV productions. The program is funded by a fee accessed on approved applications
  • Reduces the allocation of credits for Relocating TV from 20% to 17%
  • Increases the allocation of credits for Independent Films from 5% to 8%
  • Splits the Independent Film allocation into two categories – budgets under $10M and budgets over $10M
  • Allows an additional 5% on wages paid to individuals who live and work on qualified productions outside of the LA 30-mile zone
  • Requires approved applicants to provide and maintain a written policy against unlawful harassment, which includes procedures for reporting and investigating harassment claims, and a statement that the company will not retaliate against an individual who reports harassment
  • Requires applicants to provide a copy of their initiatives and programs to increase the representation of minorities and women in job classifications that are excluded from qualified wages (directors, producers, writers, actors)
  • Requires applicants to provide statistics on the gender, racial, and ethnic status of individuals whose wages are not qualified (directors, producers, writers, actors)
  • Eliminates “facility” (sound stage) from bonus point consideration
  • Eliminates the additional 5% credit for music scoring wages
  • Includes music wages as a bonus point factor
  • Extends the date by which principal photography must begin from 180 days, to 240 days for projects with budgets containing over $100M in qualified spend

The California Film Commission will be developing regulations, program guidelines, and other procedures to administer the new program.

NORTH CAROLINA
SB 99, which was vetoed by the Governor, has been enacted after the veto was overridden by both the House and Senate. The bill makes the following changes to the state’s film incentive:

  • Lowers the minimum spend for feature-length films from $5M to $3M
  • Increases the maximum payout for feature-length films from $5M to $7M
  • Increases the maximum payout to a TV series from $9M to $12M per season
  • Establishes a new category within the feature-length film section of “made-for-television movie,” with a minimum spend of $1M

NEW JERSEY
SB 122 is eligible for the Governor’s signature, which provides a tax credit for certain expenses incurred for production of certain film, TV, and digital media content beginning July 1, 2018. Elements of the incentive include:

  • 30% transferable tax credit for film and TV productions (35% in certain economically destressed counties)
  • 20% transferable tax credit for digital media content (25% in certain economically destressed counties)
  • Compensation cap of $500K
  • 6.37% mandatory withholding on loan-outs
  • Sunset date of June 30, 2023
  • Annual cap of $75M

The bill was previously conditionally vetoed by the Governor, in order to be amended to include Reality TV as a qualifying production, if the production company commits to owning or leasing a production facility in an “Urban Enterprise Zone.”

NEW YORK
AB 11096 was introduced, which would provide a credit for TV writers’ and directors’ fees, provided that the eligible writer or director is a minority group member or a woman, and are not a profit participant in the qualified production.

The New York State Film Tax Credit Program now requires applicants to submit a form confirming the applicant maintains a written code of conduct.

PUERTO RICO
HB 1663 has been introduced, which would extend the sunset date of the Film Incentive Law from June 30, 2018 to December 31, 2018.

SB 1013 has been introduced, which would repeal Law 27 and include the Film Industry Incentives in a new Puerto Rico Tax Incentives Code.

RHODE ISLAND
HB 7200 has been enacted, which makes the following changes to the state’s film tax credit:

  • Increases the credit amount from 25% to 30%
  • Increases the project cap from $5M to $7M
  • Removes Reality TV from qualified productions

International Updates

For more information on incentives around the world, visit our website and click on the country of interest.

ROMANIA
The Romanian Government approved a rebate package and set aside a fund to distribute up to €50M ($58M) annually to attract new film business. The incentive, which will be a 35% cash rebate on production spend of at least €100K ($116K), will be available for feature and short films, TV series, direct-to-video productions, internet films, documentaries, and animated projects. In cases where the production is “explicitly promoting Romania” and spending 20% of the total budget in the country, producers can receive an extra 10% cash back, for a total rebate of 45%. (See DevDiscourse)

SVSLOVENIA
The Slovenian Film Centre has published a “Public Call” for the encouragement of audiovisual production investment on its website. Productions can receive a cash rebate of up to 25% of the total qualified expenses spent in the Republic of Slovenia. Applicants shall submit their applications at least 45 days before the start of shooting in the country. (See Slovenian Film Centre)

TKTURKEY
The Istanbul Chamber of Commerce (ITO) is establishing a film platform, Filming in Turkey, to promote the filming of future blockbusters in Turkey. The platform will be realized in cooperation with the Culture and Tourism Ministry and will support a 30% incentive mechanism launched by the ministry, as part of the latest draft law. (See Daily Sabah)


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.

GEORGIA
Thanks to generous tax breaks, robust infrastructure, and experienced crews, the state of Georgia has grown into the third-largest production hub in the U.S. Features, TV series, animation, music videos, commercials, and games all qualify for credits of up to 30%. There are no limits or caps on Georgia spend and the program has no sunset clause.

At its base, the program allows for a 20% transferable tax credit for companies that spend $500K or more on production or post-production in Georgia, either on a single production or on multiple projects. An additional 10% is available if the finished production includes a promotional logo provided by the state.

MALTA
The Republic of Malta – a small, Mediterranean island and major tourist destination – lures filmmakers with its yacht-strewn azure coastlines and historically significant structures such as medieval churches, baroque palaces, and ancient fortifications. Producers will also find value in the country’s hefty cash rebate.

Specifically, the rebate ranges from 20% to 25% for qualified expenditures. A 2% bonus is available for productions that feature Malta and its culture, bringing the total incentive up to a total maximum of 27%.

MINNESOTA
The state of Minnesota abounds with diverse shooting locations, from the modern urban skyscrapers of Minneapolis, to the small-town feel of Saint Paul, to a countryside dotted with thousands of lakes, to a rugged wilderness stretching to the Canadian border. Also available: a rebate of 20% or 25% on qualified spend, in addition to multiple local incentives.

Often dubbed “Snowbate” because of its northern location, Minnesota’s rebate program includes a 20% rebate for productions spending a minimum of $100K and a 25% rebate for productions spending a minimum of $1M.


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.