TUESDAY, JULY 18, 2017
Cast & Crew Financial Services  offers both U.S. and Canadian production incentive management services from setup to audit, as well as production incentive financing. Top
In this Issue




Louisiana (H 508) 

On June 14, 2017, Governor John Bel Edwards signed House Bill 508 which increases the motion picture credit transfer fee from $200 per transferee to 2% of the tax credit transfer value.
The new motion picture credit transfer fee is applicable to all projects applying on or after July 1, 2017.

Louisiana (S 177) L2

On June 23, 2017, Louisiana Governor John Bell Edwards signed Senate Bill 177 into law. For purposes of eligibility as a production expenditure, the law requires the payor to withhold Louisiana state income tax on taxable payments made for the performance of services in Louisiana, based on the rate determined in accordance with an employee's withholding allowance certificate, L-4, or the highest individual rate in effect at the time if no employee withholding certificate is provided.
This law becomes effective July 1, 2017. 

Louisiana (S 254) L3

On June 15, 2017, Louisiana Governor John Bel Edwards signed legislation that makes significant revisions to the motion picture production tax credit program. Highlights of the changes are as follows:
  • Caps the dollar amount of tax credit claims and transfers to the state to an aggregate of $180 million per fiscal year;
  • Caps the amount of tax credits issued for all applications received on or after July 1, 2017 to $150 million per fiscal year;
    • Reserves $7.5 million, $7.5 million, and $15 million of the issuance cap for Qualified Entertainment Companies, Louisiana screenplay productions, and independent film productions, respectively;
    • Provides that the unused portion of the remaining $120 million does not roll over to the following fiscal year;
  • For projects that apply on or after July 1, 2017:
    • Allows for a base investment credit of 25%;
    • Allows for an additional 5% on the base investment after meeting certain requirements for out-of-zone filming;
    • Allows for an additional 10% on the base investment for productions based on a screenplay written by a Louisiana resident with expenditures of at least $50,000 but not greater than $5 million;
    • Allows for an additional 5% on VFX spend after meeting certain criteria;
    • Allows for an additional 15% on the first $3 million of each Louisiana resident's payroll expenditures. (Payments to a loan out company do not qualify for the additional 15%);
    • Limits a production's total tax credit to a maximum of 40% of the base investment;
    • Limits the maximum amount of qualifying payroll per individual or loan out to $3 million;
    • Increases the buy-back rate by the state to 90% (previously 85%), however, eliminates the ability to sell or transfer the tax credits to another taxpayer;
    • Creates a per project cap of $20 million per production which may be structured over two or more years, however, scripted episodic content may be granted up to $25 million per season;
    • Defines eligibility requirements for procurement companies (purchases and rentals made thru Cast & Crew OnSet meet the requirements of the new law);
    • Allows expenditures to qualify if made 12 months prior to the application date and 24 months after the initial certification date, except:
      • Scripted episodic content guaranteeing at least $10 million in qualified expenditures for at least five years may make qualifying expenditures until 60 months after the date of initial certification; and,
    • Sunsets the tax credit for applications received on or after July 1, 2025. 

North Carolina (S 257) NC2

On June 28, 2017, the North Carolina House voted 76-43 to override Governor Roy Cooper's veto of the Republican-led budget plan, thereby passing the Senate Bill 257 into law. The budget allocates $15 million to the Film and Entertainment Grant Fund for the 2018 fiscal year (July 1 - June 30) and $31 million to each fiscal year thereafter.

Washington (S 5977)  W

On July 7, 2017, Washington state Governor Jay Inslee signed portions of Senate Bill 5977 into law; thereby extending the sunset date of the motion picture competitiveness program until June 30, 2027.

Illinois (S 47) 

Senate Bill 47 proposes to extend the sunset date of the Film Production Services Tax Credit from May 6, 2021 to December 31, 2026. 

New York (S 4999) 

Senate Bill 4999 proposes to amend the empire state film production credit to allow television writer and director fees as eligible costs, subject to the following provisions:
  • Limits fees to:
    • $50,000 per episode for each writer or director who receives an on-air screen credit;
    • $75,000 per series of episodes for each writer not receiving on-air credit; and,
    • $150,000 per series per season for each eligible writer or director;
    • Allows fees for only those writers who report to work regularly in a writers room located in the state;
    • Requires a writer or director to be a member of a minority group or a woman in order for his or her fees to qualify; and,
    • Establishes an annual cap of $5 million in credits per tax year for costs associated with writer and director fees.
If approved, the amendment would take effect on the one hundred twentieth day after becoming law and apply to the tax year in which it takes effect and all subsequent tax years until the end of fiscal year 2019 (April 1-March 31). 

New York (A 8002) 

Assembly Bill 8002 proposes to amend the empire state film production credit by excluding from the definition of a "qualified film" any production that depicts or refers to any tobacco product or non-pharmaceutical nicotine delivery device, associated paraphernalia, etc. 

New York (A 8463) 

Assembly Bill 8463 proposes to amend the Empire State Film Production Credit Program by excluding labor costs incurred in the film zone, defined as the area within a 25-mile radius of Columbus Circle in the borough of Manhattan, from qualifying for the additional 10% tax credit. 

Pennsylvania (H 1519) 

House Bill 1519 proposes to amend the film incentive program as follows:
  • Establishes the Multimedia Tax Credit Fund into which all monies allocated for purposes of a tax credit under this section shall be deposited;
    • 80% of the money in the fund shall be used for the film production tax credit; 10% for concert rehearsal and tour tax credit; and, 10% for video game production;
    • Any funds not fully used by one or two of the tax credits may be used for the remaining tax credits; and,
Establishes an additional 10% tax credit for production companies which demonstrate that it owned or optioned to own a Pennsylvania screenplay, which has been held by a qualified Pennsylvania production company.


Production Incentives
Joe Bessacini
Vice President, Film & TV Production Incentives
818 480 4427

Incentive Financing

Deirdre Owens
Vice President, Production Incentive Financing
818 972 3201

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