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CAST & CREW ENTERTAINMENT SERVICES
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THURSDAY, MARCH 1, 2018
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Cast & Crew Financial Services
offers both U.S. and Canadian production incentive management services from setup to audit, as well as production incentive financing.
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LOOKING FOR
AN OLD NEWSLETTER?
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Why is Massachusetts a hidden gem for productions? See Cast & Crew's State of the Month to learn more.
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Assembly Bill 2936 proposes to amend the California motion picture incentive program by extending the sunset date from June 30, 2020 to June 30, 2025.
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House Bill 1409 proposes to establish a film and media production rebate program for qualified applicants that incur qualified production expenditures on or after July 1, 2019. The details and requirements of the program are as follows:
- Allows for a rebate equal to:
- 20% of qualified preproduction, production, and postproduction expenses;
- 30% of wages, salaries, and benefits to qualified residents, as defined; and,
- 35% of in-state training expenditures and payments made to resident trainees;
- Limits the total amount of rebates issued under the program to $15 million;
- Requires at least 50% of the total production expenditures to be qualified and incurred in-state;
- Requires principal photography to begin within 120 days after the applicant receives a letter of intent for financing of the film or television series (45 days for commercials);
- Meets the minimum spend requirement of at least $500,000 in qualified production expenditures; and,
- Establishes a sunset date of December 31, 2024.
This program is not administered on a first-come, first-served basis. Priority for the use of the funds will be given to productions that are economically viable and will increase economic growth and job creation within the state.
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Maryland (H 1449) and (S 1154)
- Increases the annual funding cap to $30 million for each fiscal year beginning 2019 through 2021 (July 1-June 30);
- Creates a per project incentive cap of $10 million;
- Stipulates that salaries, wages, and fees for writers, directors, or producers are not qualified costs;
- Lowers the in-state minimum spend requirement to more than $250,000; and,
- Eliminates the Maryland Film Production Activity Tax Credit Reserve Fund.
If approved, the Act shall take effect July 1, 2018 and be applicable for taxable years beginning after December 31, 2017.
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Mississippi (H 1132) and (S 2748)
- Beginning on or after July 1, 2018:
- Allows for a rebate of 20% on the first $3 million (including fringes) paid for any nonresident employee;
- Increases the rebate to 35% on the first $3 million (including fringes) paid for any resident employee;
- Expands the definition of fringes to include payments to industry guilds and unions;
- Amends the definition of base investment to include expenditures made by an employee of a motion picture company;
- Limits the eligible costs attributable to producers, directors, and/or cast to 45% of the base investment;
- Increases the minimum spend requirement for "non-Mississippi-based" production companies to $100,000 in qualified expenditures; and,
- Allows the rebate to be assigned to a Mississippi based entity.
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Assembly Bill 3083 proposes to create the New Jersey Film and Television and Employment Incentive Program. Details of the program are as follows:
- Creates a refundable tax credit equal to 25% on qualified film and television project costs (excludes costs for principal actors, producers, writers, or director) provided the project meets the following requirements:
- Spends a minimum of $1 million per project or season; and,
- Incurs at least 50% of creditable costs at an in-state studio;
- Establishes a funding cap of $30 million per fiscal year (July 1-June 30);
- Requires at least one- third of the amount of credits available each fiscal year to be reserved for projects based in the following counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, and Salem; and,
- Permits allowable credits to be applied to taxpayer liability for the second tax year beginning after the project commences.
The program will apply to tax years beginning on or after the date of enactment.
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House Bill 525 proposes to amend the motion picture tax credit program as follows:
- Increases the annual funding cap from $40 million to $100 million per fiscal year (July 1-June 30);
- Requires the director of development services to rank applications on the basis of positive economic impact to the state;
- Institutes a two-round application process per fiscal year as follows:
- First round of applications will be reviewed and approved no later than July 31;
- Second round of applications will be reviewed and approved no later than January 31 of the following calendar year;
- If the amount of credits approved in the first round exceeds the maximum credits allowed per fiscal year, the second round will not be opened for new applications;
- Requires that a project begin production within 6 months after the date it is certified as a tax credit-eligible production; and,
- Includes certain live stage theater productions as tax credit eligible productions.
If approved, the Act shall apply to fiscal years beginning on or after July 1, 2018.
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Senate Bill 2384 proposes to amend both the Motion Picture and Musical and Theatrical production incentive programs as follows:
- Increases the incentive from 25% to 30% of costs directly attributable to activity within the state;
- Eliminates the $5 million per project incentive cap;
- Extends the $15 million annual funding cap to each year beginning after December 31, 2018;
- Allows a production to earn an incentive in the form of a tax credit or a rebate;
- Adds "reality television shows" to the list of non-qualifying productions; and,
- Eliminates the sunset clause for issuing incentives under the Motion Picture and Musical and Theatrical Production programs.
If approved, the Act shall take effect upon passage.
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Tennessee (H 1911) and (S 2537)
House Bill 1911
and
Senate Bill 2537
proposes to amend the Visual Content Act of 2006 to become the Visual Content Development and Training Act which will modify the film grant program as follows:
- Expands the purpose of the grant to include in-state programs that encourage the expansion of job and business ownership opportunities for Tennesseans in industries related to motion pictures, television, video-gaming, and digital media;
- Defines "state-certified projects and vocational programs" as:
- Programs in industries related to the motion picture, television, video-gaming, or digital media industries that meet the criteria established by the commission to receive a grant; and,
- Allows grants to eligible non-profit, for-profit, and/or educational entities.
If approved, the Act will take effect July 1, 2018.
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Senate Bill 185 proposes to amend the Motion Picture Incentive program as follows:
- Increases the annual funding cap from $6.79 million to $11.8 million per fiscal year (July 1-June 30);
- Eliminates the $500,000 per project incentive cap on productions applying for the cash rebate; and,
- Allows a production engaging in post-production work in-state to receive an additional 5% on all dollars left in the state, for a maximum incentive of 25%.
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House Bill 4541 proposes to reinstate the film tax credit program which was eliminated by the recent enactment of Senate Bill 263.
If approved, the Act shall apply to all taxable years beginning after December 31, 2018.
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House Bill 4608 proposes to create a sales and use tax exemption for feature films, children's programs, documentaries, or television programs designed to fit a 30-minute or longer time slot provided, the total budget exceeds $500,000.
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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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Deirdre Owens
Vice President,
Production Incentive Financing
818.972.3201
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