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CAST & CREW
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APRIL 3, 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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ENACTED
Signed by the Governor
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On March 29, 2019, Governor Grisham signed Senate Bill 2
which amends the New Mexico film production tax credit program as follows:
- Increases the annual funding cap to $110 million per fiscal year (July 1 through June 30);
- Provides for two payments (one before July 1, 2019 and another after July 1, 2019 but before July 1, 2020) to be made to pay down the backlog of approved claims;
- Revises the calculation related to how many "nonresident below-the-line crew" may qualify by limiting the amount of qualifying below-the-line nonresident wages to 15% (20% if qualified below-the-line residents are not available) of the production's total New Mexico budget for below-the-line crew wages;
- Maintains the incentive rate of 15% for qualifying nonresident below-the-line wages; and,
- Eliminates the restrictions related to which nonresident job descriptions may qualify;
- Continues to allow a standalone pilot or series (six or more episodes) to earn an additional 5% of direct production expenditures;
- Allows for an additional 5% (may be stacked with pilot or series' additional 5%) to be earned on direct production expenditures and post production costs on services and items provided on location for a production that is located in New Mexico but at least 60 miles from certain counties; and,
- Requires a three-second static or animated state logo to be placed in the end credits, before the below-the-line crew crawl, for the life of a film.
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New York (A 2009-C) and (S 1509-C)
Empire State Production and Postproduction Credit:
- Extends the sunset date to December 31, 2024, previously December 31, 2022.
Empire State Commercial Production Credit:
- For taxable years beginning on or after January 1, 2019:
- Eliminates the 20% "growth credit";
- Amends the "upstate" credit as follows:
- Increases the "upstate" incentive rate to 30%, previously 5%; and,
- Eliminates the $100,000 minimum spend requirement;
- Amends the "downstate" credit as follows:
- Increases the annual calendar year allocation to $4 million, previously $3 million; and,
- Increases the incentive rate to 20%, previously 5%;
- Allows commercials of any length to qualify, previously required a minimum run-time of two minutes; and,
- Allows commercials that will be distributed on the internet to qualify.
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ON THE GOVERNOR'S DESK
Awaiting Signature
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Senate Bill 2603 proposes to amend 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.
If signed, these changes shall take effect July 1, 2019.
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Now offering 1% cash back for every dollar spent.*
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PROPOSED LEGISLATION
Still in House or Senate
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Senate Bill 1394 proposes to re-establish the Florida Entertainment Industry Financial Incentive Program. The program details are as follows:
- Creates a transferable tax credit (against income/franchise/sales tax) between 20% and 35% of total qualified expenditures (20% for music videos/commercials and 30% for low-budget indie/emerging media projects). Additional credits may be earned as follows:
- 5% on total qualified expenditures when a feature film, independent film, TV series, or pilot films at least 75% of principal photography days during the off-season - June 1 through November 30 - however, this additional 5% shall not cause the total aggregate credit earned to exceed 35%;
- 45% of wages and salaries paid to students enrolled full-time in an in-state entertainment course of study or recent graduates-not to exceed a combined total of 35% of all qualified expenditures;
- 5% of expenses incurred at a qualified production facility when at least 50% or more principal photography days occur at such facility-not to exceed a combined total of 35% of all qualified expenditures; and,
- Excludes music videos and commercials from earning additional credits;
- Allows an additional 5% on total qualified expenditures when a qualifying theatrical or direct-to-video motion picture is determined to be family-friendly;
- Establishes an annual funding cap of $36 million per fiscal year (July 1 through June 30);
- Creates a per project cap of $8 million;
- Qualifies the first $400,000 in wages and salaries for each resident;
- Requires the production company to see that for the first two years of the program at least 50%, and thereafter, at least 60%, of cast and crew are Florida residents;
- Requires a minimum spend of:
- $625,000 in qualified expenditures for projects in the general queue;
- $100,000 per production in qualified expenditures for music videos and/or commercials and meet a minimum of $500,000 in aggregate qualified expenditures across multiple productions during a single fiscal year-
- total credit earned by a single production company for music videos and/or commercials shall not exceed $500,000; and,
- $20,000 but not more than $625,000 in qualified expenditures for independent films or emerging media productions;
- Requires "Filmed in Florida" logo or statement in the end credits and a list of the cities, towns, and counties where filming occurred;
- Requires an independent CPA to audit all qualified expenditures; and,
- Establishes a sunset date of June 30, 2024.
If passed, the Act shall take effect July 1, 2019.
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Senate Bill 1750 proposes to re-establish the Florida Entertainment Industry Financial Incentive Program. The program details are as follows:
- Creates a transferable tax credit (against income/franchise/sales tax) equal to 20% of total qualified expenditures (labor and spend). Additional credits may be earned as follows, however, the credit is limited to 30% in aggregate:
- 5% on total qualified expenditures when at least 67% of principal photography days occur within an underutilized region;
- 5% on total qualified expenditures when a feature film, independent film, TV series, or pilot films at least 75% of principal photography days during the off-season - June 1 through November 30;
- 15% of wages and salaries paid to students enrolled full-time in an in-state entertainment course of study or recent graduates;
- 5% of expenses incurred at a qualified production facility when at least 50% or more principal photography days occur at such facility; and,
- Excludes music videos and commercials from earning additional credits;
- Allows an additional 5% on total qualified expenditures when a qualifying theatrical or direct-to-video motion picture is determined to be family-friendly;
- Establishes an annual funding cap of $42 million per fiscal year (July 1 through June 30);
- Creates a per project cap of $8 million;
- Qualifies the first $400,000 in wages and salaries for each resident;
- Requires the production company to see that for the first two years of the program at least 50%, and thereafter, at least 60%, of cast and crew are Florida residents;
- Requires a minimum spend of:
- $625,000 in qualified expenditures for projects in the general queue;
- $100,000 per production in qualified expenditures for music videos and/or commercials and meet a minimum of $500,000 in aggregate qualified expenditures across multiple productions during a single fiscal year-
- total credit earned by a single production company for music videos and/or commercials shall not exceed $500,000; and,
- $100,000 to $625,000 in qualified expenditures for independent films or emerging media productions;
- Requires "Filmed in Florida" logo or statement in the end credits;
- Requires an independent CPA to audit all qualified expenditures; and,
- Imposes no sunset date.
If passed, the Act shall take effect July 1, 2019.
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Senate Bill 33 proposes to amend the Hawaii Motion Picture, Digital Media, and Film Production tax credit as follows:
- Increases the funding cap to $55 million per calendar year, previously $35 million; and,
- Extends the sunset date from December 31, 2025 to December 31, 2032.
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Minnesota (H 2208) and (S 2611)
House Bill 2208 and
Senate Bill 2611 propose to allocate $500,000 per fiscal year (July 1 through June 30) to the Minnesota Film and TV Board's Film Production Jobs Program for the biennium ending June 30, 2021.
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House Bill 162 proposes to amend the Ohio motion picture tax credit by increasing the annual funding cap to $50 million, previously $40 million, per fiscal year (July 1 through June 30) for the biennium ending June 30, 2021.
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Senate Bill 185 proposes to amend the Pennsylvania Entertainment Production tax credit by increasing the annual funding cap to $125 million, previously $65 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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