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CAST & CREW
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FEBRUARY 27, 2019
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Cast & Crew Financial Services (CCFS)
offers both U.S. and Canadian production incentive management services from setup to audit, as well as completion bond services and production incentive financing.
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LOOKING FOR
AN OLD NEWSLETTER?
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The Garden State's long-anticipated film incentive program returns by offering a tax credit of up to 37 percent. View Cast & Crew's State of the Month on New Jersey to learn more!
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PROPOSED LEGISLATION
Still in House or Senate
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Senate Bill 726 proposes to authorize Florida counties to share the tax revenues generated from the tourist development tax to promote or incentivize film or television production. The production utilizing this incentive is required to include a "Created in Florida" or "Filmed in Florida" statement in the project's end credits.
If passed, the Act shall take effect July 1, 2019.
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Senate Bill 360
proposes to establish the Theatrical Production Tax Credit program related to the development, production, performance, or operation of a for-profit live theatrical touring production performing in a qualified theatrical facility beginning January 1, 2019. Details of the program are as follows:
- Creates a refundable tax credit equal to 25% of "total direct costs" including the salaries and wages of resident and nonresident employees (salaries and wages related to personal services of an individual receiving more than $200,000 per week are disqualified);
- Requires a minimum spend of more than $100,000 in "total direct costs";
- Establishes an annual funding cap of $10 million per fiscal year (7/1-6/30); and,
- Establishes a per project incentive cap of $2 million.
If enacted, the Act shall take effect July 1, 2019.
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Missouri (H 923) and (S 366)
House Bill 923 and Senate Bill 366
propose to establish the Show Missouri Film and Digital Media Act for qualified expenses incurred in the production of certain projects beginning on or after January 1, 2020. The program details are as follows:
- Creates a transferable tax credit equal to 20% of "qualifying in-state expenses" including compensation and wages for each resident earning $250,000 or less (10% of salaries and wages for each nonresident earning $250,000 or less) on which such compensation and wages are withheld upon according to chapter 143 of Missouri's income tax law;
- Allows for an additional tax credit of 5% to be earned on "qualifying in-state expenses" and qualifying nonresident salaries and wages when at least 50% of principal photography is filmed in Missouri;
- Requires an expected in-state expenditure budget in excess of $50,000 for projects with a run-time of less than 30 minutes ($100,000 for projects with a run-time of more than 30 minutes);
- Establishes an annual funding cap of $4.5 million per fiscal year (7/1−6/30)--there is no per project incentive cap; and,
- Establishes a sunset date on December 31 six years after the effective date of this Act.
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House Bill 1128 proposes to amend the existing Mississippi Film Incentive Program by establishing a rebate equal to 25% of the 1st $5 million of salaries and wages paid to each qualifying nonresident employee. The incentive earned on nonresident payroll will expire on June 30, 2024.
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Senate Bill 2312 proposes to amend the existing Mississippi film incentive program as follows:
- Modifies the rebate earned on payroll and fringes for residents by increasing the rate from 30% to 35% of the first $3 million (down from the first $5 million);
- Stipulates the portion of the base investment attributable to costs for producers, directors, and/or cast eligible for the rebate cannot exceed 45% of the total base investment;
- Allows for a rebate (without a sunset date) on nonresident payroll and fringes equal to 20% of the first $3 million paid for each nonresident whose wages are subject to MS Income Tax Withholding Law;
- Modifies the minimum spend thresholds as follows:
- Mississippi-based production companies must spend at least $50,000 in base investment; and,
- Out-of-state production companies must spend at least $100,000 in base investment;
- Requires an audit from an approved list of third-party auditors or by the Department of Revenue (DOR);
- Requires production companies to submit a rebate request no later than 90 days after the completion of the project;
- Requires the DOR to issue a rebate within 45 business days if a third-party auditor is used or if the audit is performed by the DOR-DOR must deliver the first review of the submission within 90 business days; and,
- Allows rebates to be assigned to a third-party if the third-party is a Mississippi entity.
If enacted, these changes will take effect July 1, 2019.
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Together with
Media Guarantors, CCFS now offers full completion bond services and counsel. B
ringing unmatched experience, flexibility, security and responsiveness to filmmakers and productions.
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House Bill 293
proposes to establish the Montana Media Production and Postproduction tax credit programs. The details of the programs are as follows:
Media Production Tax Credit:
- Creates a transferable tax credit equal to:
- 20% of qualified production expenditures (excluding compensation) incurred during preproduction, production, and postproduction;
- 25% of payments made to each below-the-line resident (15% for a below-the-line nonresident) up to $150,000 in credits per person;
- 25% of the 1st $10 million paid to each actor, director, producer, or writer; and,
- 30% of payments made to student workers who are enrolled in a Montana college or university and who works on the production for college credit-up to $50,000 in credits per person;
- Allows the following additional credits in addition to those above but only up to a maximum aggregate credit of 35%:
- 10% of payments made to a Montana college or university for stage rentals, equipment rentals, or location fees for filming on campus;
- 10% of all in-studio facility and equipment rental expenditures for a production that rents a studio for 20 days or more;
- 5% of production expenditures incurred in underserved areas; and,
- 10% of the base investment when production includes a Montana screen credit;
- Requirements:
- Apply and pay a $500 application fee before the start of principal photography;
- Plan to spend a minimum base investment of $350,000 for film and television projects or $50,000 for certain low-budget projects (e.g. commercials, music videos, etc.);
- Withhold 6.9% on all payments to a loan out company;
- Costs submitted for the incentive must be audited by an independent certified public accountant; and,
- Claim the full amount of the credit against the production company's liability or transfer in whole or in part at a rate of no less than $0.88 of the dollar value of the tax credit.
Postproduction Tax Credit (for postproduction companies only):
- Provides for a nontransferable tax credit equal to 25% of qualified postproduction expenditures;
- Earn an additional 5% of postproduction costs incurred in an underserved area;
- Requirements:
- Apply and be approved to claim the credit;
- See that the majority of the total postproduction work is performed and paid for in-state;
- See that a majority of equipment purchases and rentals, based on value, are made in-state; and,
- Postproduction companies may not claim a credit on any production expenditures already claimed through the Media Production Tax Credit.
If signed, the Act shall take effect upon passage and approval.
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House Bill 594
proposes to allow a claimant that is owed payment for a credit that has been authorized to submit a bid (prior to August 1, 2019) to the taxation and revenue department with an offer to accept a discount on the amount owed. On or before August 19, 2019, the taxation and revenue department shall prioritize the bids from highest discount to lowest discount. Bids would be approved until the total of payment rebates reaches $100 million. Checks will be issued to approved claimants on or before September 1, 2019.
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Assembly Bill 2136 proposes to amend the Empire State film production tax credit by adding documentary films to the definition of a "qualified film".
If enacted, this change will take effect January 1, 2019.
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Assembly Bill 3883 proposes to amend the Empire State film production tax credit as follows:
- Defines "film zone" to mean an area within a 20-mile radius of Columbus Circle in the borough of Manhattan; and,
- Excludes the salaries and wages for services performed in any area within the counties of Rockland or Westchester that are within the "film zone" from qualifying for the additional 10% uplift.
If enacted, this change will take effect January 1, 2019.
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Assembly Bill 5185 proposes to amend the Empire State film production tax credit by disallowing any production that depicts or refers to any tobacco product or non-pharmaceutical nicotine delivery device or its use, associated paraphernalia or related trademarks or promotional material.
If enacted, this change will take effect January 1, 2019.
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Assembly Bill 5277 proposes to amend the Empire State film production tax credit by adding animated short films, broadcast series and/or features to the definition a "qualified film".
If enacted, this change will take effect January 1, 2020.
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- Eliminates the $7 million per project incentive cap;
- Increases the annual funding cap from $15 million to $25 million per calendar year; and,
- Eliminates the Motion Picture Production Tax Credit sunset date.
This bill also proposes to eliminate the sunset date for the Musical and Theatrical Production Tax Credit Program.
If enacted, these changes will take effect upon passage.
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Rhode Island (H 5381) and (S 203)
- Increases the transferable tax credit rate from 25% to 30% of total qualified production expenditures; and,
- Extends the sunset date from June 30, 2019 to June 30, 2024.
If enacted, these changes will take effect upon passage.
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House Bill 2941 proposes to reinstate the West Virginia Film Investment tax credit and amend the program with the following changes:
- Increases the in-state qualified minimum spend threshold to $50,000, previously $25,000; and,
- Increases the annual funding cap to $20 million; previously $5 million.
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IN THE NEWS
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Joe Bessacini
Vice President,
Film & TV Production Incentives
818.480.4427
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Fred Milstein
Chief Executive Officer,
Media Guarantors
424.307.1888
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Deirdre Owens
Vice President,
Production Incentive Financing
818.972.3201
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Scott Nicolaides
Senior Vice President,
Media Guarantors
424.307.1888
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