Cast & Crew's The Incentive Program (TIP) April 16, 2019 Update

CAST & CREW

APRIL 16, 2019

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.

IN THIS ISSUE

ENACTED

Mississippi (S 2603)

PROPOSED

Louisiana (H 472)

North Carolina (S 586)

New York (A 6498)

New York (S 5033)

IN THE NEWS

Montana

Nebraska

Lithuania

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STATE OF THE MONTH

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!

QUICK LINKS

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TIP Guide

ENACTED

Signed by the Governor

Mississippi (S 2603)

On April 8, 2019, Gov. Phil Bryant signed Senate Bill 2603 , which amends the existing Mississippi film incentive program as follows:

Re-establishes a rebate equal to 25% of salaries and wages for nonresident employees, up to $5 million of salaries in the aggregate-provided:
- The production company, or its owner, principal, member, production partner, independent contractor, director, or producer or subsidiary company:
  - Is designated and pre-qualified by the Mississippi Development Authority as Mississippi-based or a resident of Mississippi;
  - Has filed Mississippi income taxes during each of the three previous years; and,
  - Has engaged in activities related to the production of at least two motion pictures in Mississippi during the past ten years.

These changes shall take effect July 1, 2019.

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PROPOSED LEGISLATION

Still in House or Senate

Louisiana (H 472)

House Bill 472 proposes to amend the Motion Picture Tax Credit Program as follows:

Provides for an additional 5% increase in the base investment tax credit for expenditures incurred at a facility that was a state-certified motion picture infrastructure project, provided, the production also meets the out-of-zone filming requirements; and,
Increases the maximum aggregate base investment tax credit that may be earned to 45%, previously 40%.

If passed, the Act shall take effect July 1, 2019.

North Carolina (S 586)

Senate Bill 586 proposes to amend the Film and Entertainment Grant Fund as follows:

Increases the incentive to be earned on qualifying expenses by 5%, for a total aggregate credit of 30%, if the majority of the production is filmed in a development tier one or tier two area.
Lowers the minimum spend threshold to:

$500,000 for feature-length films; and,
$500,000 per episode for television series, previously $1 million.

New York (A 6498)

Assembly Bill 6498 proposes to amend the Empire State film production tax credit to allow feature film or television writers' fees as eligible costs, subject to the following provisions:

Allows for a tax credit equal to 30% of costs for writers' and directors' fees and salaries on a qualified project, excluding fees or salaries paid to any writer or director who is a profit participant;
Requires that each writer or director be a woman or a minority group member, as defined;
Limits the amount of qualified salaries or fees paid to each writer or director based on certain criteria; and,
Limits the aggregate amount of credits allowed for writers and directors to $5 million per calendar year.

If passed, the Act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.

New York (S 5033)

Senate Bill 5033 proposes to amend the Empire State Production and Postproduction Credit by adding the counties of Nassau and Suffolk to the list of counties that qualify for an additional 10% credit on qualified labor expenses.

If passed, the Act shall take effect immediately.