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U.S. Production Incentives Update February, 2008
ALASKA -- The new incentives bill SB230 has been submitted to the legislature. The current version provides for
a 30% tax credit for all labor (cast and crew) and local purchases, plus 10% more for local labor, with a 2% uplift for
rural and 2% uplift for off-season filming. This will be a transferable credit; transferable to Alaskan tax-paying
corporations.
ARIZONA - The $50 million fund available for 2008 has been fully allocated. However, backup applications are still
being accepted and processed. . Music Videos and Commercials now qualify for the incentive; 5% of the yearly
tax credit cap is reserved for this use. There is also a new 15% infrastructure credit available.
CONNECTICUT -- There is still no film commissioner in this state. Brokers are reporting problems with placing the
film credits, although recent changes in the law, which expands the base of eligible buyers, should help.
Meanwhile, the DOR has taken the position that any Connecticut application filed before July 1, 2007, regardless
of when the actual certificate will be issued, will be subject to recapture
ILLINOIS -- The state did not renew its incentive program, which expired on 12/31/2007. The new bill to extend the
program through 1/1/2009 has passed the House and is in the Senate. The Film Commissioner hopes that the new
program will be in place as soon as the state's budget issues are resolved.
INDIANA -- The proposed bill provides for a refundable tax credit of 15% for expenditures less than $6 million. For
qualified productions with expenses in excess of $6 million the credit percentage is discretionary but not more
than 15%.
MARYLAND -- Approximately $3 million is now available in this year's program, as a large film was pushed back.
Please contact Jack Gerbes, the Film Commissioner, for further details.
MICHIGAN -- New legislation is being prepared that will offer a 40% cash rebate, plus an additional 2% for shooting
in certain cities; no caps, except a $2 million max per employee. The minimum spend is $50,000. Also being
considered are a tax credit for Michigan residents who invest in films, a low-interest production loan, and a
workforce development initiative. Out-of-state residents will qualify. The Governor is very much behind this
legislation; more details will follow shortly.
MISSISSIPPI -- Ward Emling, the Film Commissioner, and Dama Chasle are working on a proposal for increased
incentives.
NEW JERSEY -- The increase to $30 million per year, which was approved last year but not signed by the
governor, has again been presented to a legislative committee. Currently the wait in the queue for New Jersey
tax credits is nearly 2 years. Governor Corzine signed the amended version of S2526 which approved an
additional $5 million set-aside for digital media.
NEW MEXICO -- The language in the proposed bill requires the performing artist's entity to deduct and remit
income taxes in order for payments to the entity to qualify for the tax credit.
SOUTH CAROLINA - The proposed bill increases the annual state fund for the 20% payroll rebate from $10 million
to $15 million and allows the unused funds for both the payroll rebate and expenditure rebate to be carried
forward.
VIRGINIA - Under the new proposal, it may be possible to get a refundable tax credit of 15% on expenditures and
up to 30% of the total VA resident payroll. There is a $7.5 million cap per picture.
WISCONSIN -- Effective January 1, 2008, Wisconsin offers a 25% refundable tax credit for qualified spend (not
including payroll). There is also a 25% nonrefundable tax credit on the first $25,000 of resident wages, excluding
the two highest paid employees. Scott Robbe, the Film Commissioner, expects a number of productions to start
shortly.
COLORADO, IDAHO, and WEST VIRGINIA are working on major changes to their programs.
UTAH, FLORIDA, NEW JERSEY and MISSOURI are out of funds for the current fiscal year, but interested producers
should contact the Film Commissioners, as funds sometimes become available.
ALASKA -- The new incentives bill SB230 has been submitted to the legislature. The current version provides for
a 30% tax credit for all labor (cast and crew) and local purchases, plus 10% more for local labor, with a 2% uplift for
rural and 2% uplift for off-season filming. This will be a transferable credit; transferable to Alaskan tax-paying
corporations.
ARIZONA - The $50 million fund available for 2008 has been fully allocated. However, backup applications are still
being accepted and processed. . Music Videos and Commercials now qualify for the incentive; 5% of the yearly
tax credit cap is reserved for this use. There is also a new 15% infrastructure credit available.
CONNECTICUT -- There is still no film commissioner in this state. Brokers are reporting problems with placing the
film credits, although recent changes in the law, which expands the base of eligible buyers, should help.
Meanwhile, the DOR has taken the position that any Connecticut application filed before July 1, 2007, regardless
of when the actual certificate will be issued, will be subject to recapture
ILLINOIS -- The state did not renew its incentive program, which expired on 12/31/2007. The new bill to extend the
program through 1/1/2009 has passed the House and is in the Senate. The Film Commissioner hopes that the new
program will be in place as soon as the state's budget issues are resolved.
INDIANA -- The proposed bill provides for a refundable tax credit of 15% for expenditures less than $6 million. For
qualified productions with expenses in excess of $6 million the credit percentage is discretionary but not more
than 15%.
MARYLAND -- Approximately $3 million is now available in this year's program, as a large film was pushed back.
Please contact Jack Gerbes, the Film Commissioner, for further details.
MICHIGAN -- New legislation is being prepared that will offer a 40% cash rebate, plus an additional 2% for shooting
in certain cities; no caps, except a $2 million max per employee. The minimum spend is $50,000. Also being
considered are a tax credit for Michigan residents who invest in films, a low-interest production loan, and a
workforce development initiative. Out-of-state residents will qualify. The Governor is very much behind this
legislation; more details will follow shortly.
MISSISSIPPI -- Ward Emling, the Film Commissioner, and Dama Chasle are working on a proposal for increased
incentives.
NEW JERSEY -- The increase to $30 million per year, which was approved last year but not signed by the
governor, has again been presented to a legislative committee. Currently the wait in the queue for New Jersey
tax credits is nearly 2 years. Governor Corzine signed the amended version of S2526 which approved an
additional $5 million set-aside for digital media.
NEW MEXICO -- The language in the proposed bill requires the performing artist's entity to deduct and remit
income taxes in order for payments to the entity to qualify for the tax credit.
SOUTH CAROLINA - The proposed bill increases the annual state fund for the 20% payroll rebate from $10 million
to $15 million and allows the unused funds for both the payroll rebate and expenditure rebate to be carried
forward.
VIRGINIA - Under the new proposal, it may be possible to get a refundable tax credit of 15% on expenditures and
up to 30% of the total VA resident payroll. There is a $7.5 million cap per picture.
WISCONSIN -- Effective January 1, 2008, Wisconsin offers a 25% refundable tax credit for qualified spend (not
including payroll). There is also a 25% nonrefundable tax credit on the first $25,000 of resident wages, excluding
the two highest paid employees. Scott Robbe, the Film Commissioner, expects a number of productions to start
shortly.
COLORADO, IDAHO, and WEST VIRGINIA are working on major changes to their programs.
UTAH, FLORIDA, NEW JERSEY and MISSOURI are out of funds for the current fiscal year, but interested producers
should contact the Film Commissioners, as funds sometimes become available.