Continuing a trend from 2006, this past year has seen a significant number of film commisions throughout the United States either establish incentives or sweeten already existing programs to attract commercial production. While generally these overall motion picture/TV initiatives often include spots, there have been some programs specifically designed to cater to the commercialmaking sector, most notably the package that took effect in New York State in ’07. Here’s a sampling of the states that maintain incentives that apply to spot lensing:
Arizona Film Commission
A 20 percent tax credit based on expenses in Arizona can be qualified for if the production costs are $250,000 to $1 million annually (either for an individual spot or cumulative spots during the course of a year). In cases where the qualifying production costs are more than $1 million, the tax credit goes up to 30 percent.
www.azcommerce.com
Connecticut Film Division, Connecticut Commission on Culture and Tourism
30 percent Digital Media & Motion Picture Tax Credit. Spend in excess of $50,000 in Connecticut for pre-production, production or postproduction expenses on a qualified production and receive tax credits up to 30 percent of qualified Connecticut spending for goods, services and labor. No annual cap and no per-production cap.
www.ctfilm.com
Florida Governor’s Office of Film & Entertainment
Florida’s new $25 million Film, TV and Digital Media incentive, effective July 1st, 2007, has a number of progressive improvements. It is a cash rebate of 20% during the off-season (6/1 to 11/30) for most productions, and 15% the rest of the year. Commercials and music videos have a low threshold of $100,000 per production, to reach a combined threshold of $500,000 to qualify for the incentive.
Florida also offers a state sales tax exemption of 6 percent valid on certain production purchases and rentals.
www.filminflorida.com
Georgia Film, Video & Music Office
Incentive Program: Comprehensive tax credit effective now. Additionally, Georgia offers a point of purchase sales tax exemption for qualifying productions.
www.filmgeorgia.org
www.georgia.org/Business/FilmVideoMusic/Incentives
Hawaii Film Office
There are two different tax credits that may be applied to television and film production in Hawaii. One is the High Technology Business Investment Tax Credit, which is applicable to a television or film production company that establishes a long-term presence in Hawaii. The other, the Motion Picture and Film Production Income Tax Credit, is a refundable tax credit that gives a rebate on expenditures made in Hawaii by a television or film production.
www.hawaiifilmoffice.com
www.hawaiifilmoffice.com/incentives-tax-credits
Illinois Film Office
20 percent Illinois Film Tax Credit on all local project related expenditures: labor, rentals, leases, purchases, services, housing, etc.
Program is apllicable to all phases (pre-production, production and post-production) of feature film, movies for television, television series and commercials.
www.cityofchicago.org/filmoffice
www.illinoisbiz.biz/dceo/Bureaus/Film/new+credit
Louisiana Governor’s Office of Film and Television Development
25 percent Motion Picture Investor Tax Credit; 10 percent Louisiana Employment Tax Credit; 15% Digital Media Tax Credit; 40 percent Infrastructure Tax Credit
www.lafilm.org
www.lafilm.org/incentives/investor_tax_credit.cfm
Maine Film Office
The Maine Attraction Film Incentive program includes two components.
1. A wage reimbursement program for certified media productions. Generally, companies are reimbursed 10 percent of the amount paid as wages for non-Maine residents and 12 percent of the amount paid as wages for Maine residents.
2. An income tax credit program for investment in certified media productions. A certified media production company may qualify for a non-refundable Maine income tax credit equal to the Maine income tax otherwise due on taxable income related to the certified media production.
Programs eligible for the Maine Attraction Film Incentive include single-medium or multimedia feature films, television shows or series’, videos, commercials, photographic projects, interactive computer or video games or other programs intended for a national audience.
www.filminmaine.com
Maryland Film Office
The Maryland Film Production Rebate Fund program allows a qualified production company to claim a rebate in an amount up to 25 percent of the total direct costs incurred in the state while filming on-location for qualifying film and television productions. Employees earning $1 million or more are excluded. The rebate is distributed in the form of a grant. To qualify, the production must incur at least $500,000 in total direct costs in the state and at least 50 percent of the production’s filming must occur in Maryland . In addition, the production must have nationwide distribution.
Additionally an exemption from the 5 percent state sales tax is available to qualified feature, television, cable, commercial, documentary, music video, etc, projects.
www.marylandfilm.org
www.marylandfilm.org/incentive.htm
Michigan Film Office
Michigan offers a cash incentive on a sliding scale for film, television and commercials. The MI spending threshold is $200,000. From $200,000-$1 million, a 12 percent refund; $1 mil-$5 mil, a 16 percent refund; $5 mil-$10 mil, a 20 percent refund. The film office has $7 million to rebate annually for the next four years.
www.michigan.gov/filmoffice
Minnesota Film & TV Board
Snowbate, Minnesota’s production incentive, is a 15 percent rebate of your Minnesota expenditures available to feature films, national TV series, commercials, music videos and documentaries.
Additionally, Minnesota expenditures for TV commercial production and post-production are exempt from Minnesota sales tax. www.mnfilmtv.org
Montana Film Office
Rebates. 14% rebate based on hired Montana labor; applied to the first $50,000 worth of wages paid per Montana resident. 9 percent rebate based on production expenditures in Montana.
www.montanafilm.com
www.montanafilm.com/incentives1.htm
New Mexico Film Office
25 percent tax rebate on all production expenditures, including New Mexico labor, that are subject to taxation by the State of New Mexico. This is a refund, not a credit! There is no minimum spend required and no cap.
A 50 percent wage reimbursement for on-the-job training of New Mexico residents in advanced below-the-line crew positions.
And no state sales tax (not to be used in conjunction with the 25 percent tax rebate) An NTTC certificate is presented at the point of sale, and no gross receipts tax (sales tax) is charged. Used primarily for commercials and PSAs
www.nmfilm.com
www.nmfilm.com/filming/incentives/
New York State Governor’s Office for Motion Picture & TV Development
A three-pronged incentives program specifically designed for commercials is now up and running. For details on the Empire State Commercial Production program, contact:
www.nylovesfilm.com
www.nylovesfilm.com/tax.asp
North Carolina Film Office
Legislation provides for a 15 percent tax credit on productions over $250,000.
www.ncfilm.com
Oklahoma Film & Music Office
The Oklahoma Film Enhancement Rebate Program offers qualified productions a cash back rebate of up to 15 percent of documented expenditures made in Oklahoma directly attributable to film, television or commercial production. To be eligible for a rebate payment, the budget for the project(s) must be at least $500K (or cumulatively meet this threshold) with a minimum of $300K in Oklahoma expenditures. The rebate is currently capped at $5M per year and is payable the fiscal year following year when expenditures occur.
–OR–
Qualified productions can apply for the Oklahoma Sales Tax Exemption, a point-of-purchase exemption on sales taxes paid for property or services to be used in productions. There is no minimum budget or expenditure requirement to take advantage of this incentive.
www.oklahomafilm.org
Texas Film Commission
Texas’ Moving Image Industry Incentive Program offers grants equal to 5 percent of in-state spending. Projects made in underused areas of Texas are eligible for grants equal to 6.25 percent of local spending. Grants are available for film, television, commercials and video games.
Texas also offers up-front sales tax exemptions on most items rented or purchased for direct use in production;
www.governor.state.tx.us/divisions/film
Washington State Film Office
Incentive program offers up to 20 percent rebate on in-state spending
www.washingtonfilmworks.org.
www.filmwashington.com
www.washingtonfilmworks.org
West Virginia Film Office
Sales tax exemption for purchases (including rentals) of tangible personal property or services directly used in film industry projects (no cap imposed; no minimum spend required).
www.wvfilm.com
www.wvfilm.com/incentives.htm
