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.
HB 6369 has been introduced, which would amend the Internal Revenue Code of 1986 (Section 181) to extend the sunset date of the credit through December 31, 2018.
The California Film Commission will soon be accepting applications for Independent and Non-Independent films looking to take advantage of the state’s film tax credit program. The upcoming application window will run from January 2-13, 2017. Projects that rank in the top 200% will be notified to submit phase II documents on January 17. Credit Allocation Letters will be issued on February 13.
• A public meeting regarding rule changes to the state’s Screenplay Credit and the Louisiana Filmmaker Credit will be held on November 30 in Baton Rouge. The Screenplay Credit would allow a state certified production company to be eligible for an additional 15% tax credit when it demonstrates that it owns or has optioned to own a Louisiana screenplay that has been created by a Louisiana resident, or was purchased, optioned, licensed, or otherwise acquired from a Louisiana publisher. The Louisiana Filmmaker Credit lowers the required minimum spend for a production to qualify for the state’s tax credit from $300k to $50k when 90% of the total production jobs have been filled by Louisiana residents.
• Earlier this month the Task Force on Structural Change in Budget and Tax Policy in Louisiana released a report with recommendations regarding the Motion Picture Investor Tax Credit Program. The Task Force recommends the MPIC be retained, but with the back-end cap replaced by a front-end cap to mitigate the state’s exposure to tax credits going forward. (pg 16)
• East Baton Rouge now has its own film tax incentive program. The Metro Council approved a new 2-cent tax rebate on every dollar of purchases related to movie production. Councilman Ryan Heck, who authored the ordinance, said it will cover things like lumber purchased in the parish to build sets but not things like payroll or lodgings. (See The Advocate)
• The Governor has signed S6987, legislation to increase the number of counties in which services can be performed to qualify for the empire state film production credit. The 40 percent credit is already available in 84 percent of upstate counties. Ulster, Dutchess, Orange, Sullivan, Greene and seven other counties, however, had been limited to offering tax credits of 30% to filmmakers prior to the legislation being signed earlier this month. (See Daily Freeman)
• The New York Governor’s Office of Motion Picture & Television Development has approved Utica’s Stanley Theater as a qualified film-production facility. State Assemblyman Anthony Brindisi (D-Utica) says the state designation means that filmmakers and television-show producers using the theater for filming can apply for the Empire State film-production tax-credit program. (See CNY Business Journal)
An article from Desert News showcases Utah’s Motion Picture Incentive Program’s return on investment, stating that productions have spent over $110M in the state. After paying out incentives, that amounts to about $86M in economic benefits for Utah. (See Deseret News)
For more information on incentives around the world, visit our website and click on the country of interest.
Incentive-friendly Vancouver, while enjoying a Hollywood production boom, is setting its sights east, to China. “We are very focused on what’s happening in Asia,” newly installed Vancouver film commissioner David Shepheard, the former London Film Commission head named last month as Vancouver’s first-ever film commissioner, told The Hollywood Reporter. (See The Hollywood Reporter)
China’s top legislature has passed the first law governing the country’s fast-growing film industry. Provisions include harsh penalties for box-office fraud and film piracy, as well as guidelines restricting collaboration with overseas studios or individuals that are deemed to have “damaged China’s national dignity.” (See The Hollywood Reporter)
The Standing Committee of the National People’s Congress (NPC) approved the law in order to create a more official framework to govern China’s expanding film industry. Implementation of the law will still be done by the State Administration of Press, Publications, Radio, Film and Television (SAPPRFT). The law will take effect on March 1, 2017. (See China Film Insider)
A proposal was submitted to Parliament on Nov. 15 that would introduce significant changes to the current tax rebate system. The increase of the available budget of the collection account (from HUF 14B to HUF 25B) would allow further development of the Hungarian film industry. Eligibility of foreign actor and crew costs would be restricted (with a one-year transitional period), while taxation simplification would become available for foreign crew. Changes are suggested to the system of film industry training contribution introduced this year, based on the operational experiences of the past months. (See OrienTax Press)
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.
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