While Illinois’ political culture is taking it on the chin with federal corruption charges levied last week against Gov. Rod Blagojevich (D-Ill.), the state nonetheless has its share of progressive reform as reflected in the legislature’s recent passage of a new filming incentives measure (see separate news story in this issue of SHOOT). The initiative represents a significant increase in the tax credit–from 20 percent to an approved 30 percent–on total production spending in Illinois for qualified features, TV programs, commercials and ad-related projects.
At press time it was debatable whether or not Gov. Blagojevich’s legal difficulties would allow him to sign the incentives measure into law as had been originally planned.
However, even without his signature, the measure is veto proof, having passed the Illinois House and Senate by overwhelming margins. This means that without a gubernatorial signature, the incentives initiative still becomes law 60 days after passed by the legislature.
This would make January 20, 2009 at the latest the date that the incentives would go into effect.
Illinois felt compelled to up the filming incentives ante in order to help level the competitive playing field as other states and for that matter countries look to do whatever it takes to lure filmmaking and its profoundly positive economic impact.
Some of the escalated competition for production business is coming from neighboring states. For example, Michigan has a 40 percent tax credit for features and TV (not commercials) while Wisconsin has a 25 percent credit in place spanning features, TV and spots.
PSA campaign Meanwhile New York State–which has substantive incentive packages in place for features, TV and commercials–has seen the Mayor’s Office of Film, Theatre and Broadcasting in New York City recently launch an ambitious public service campaign featuring New Yorkers who work in the production industry, explaining their roles and responsibilities as well as why NYC is such a great place to lens.
The campaign thanks local residents for hosting film and TV production in their neighborhoods. And the eight :30s–which are running on local TV stations, in local theaters, and soon in the backseats of city taxi cabs–also seek to educate New Yorkers about the importance of the production industry and the residents whose livelihoods depend on working behind the scenes in film and TV.
Those appearing in the spots and putting a human face on NYC’s film industry are such Brooklyn residents as shop craftsman Stephen, make-up artist Cindy, location manager Pat, electrician Iris, assistant director Jono and second assistant cameraperson Rebecca. Also each in a :30 are editor Deborah who lives in Manhattan and locations assistant Hugo who is a Queens resident.
“Over 100,000 New Yorkers are employed by the film and television industry,” said NYC film commissioner Katherine Oliver. “This PSA campaign will help remind residents that when they see a crew filming on their block what they’re really seeing are local New Yorkers earning a living.
“It’s important to remember the vital role film and television plays in our economy, contributing $5 billion to the City’s economy each year,” continued Oliver.. “We’re so grateful for everyone’s dedication and the hard work that went in to making this campaign a success.”
With a tagline of “Reel Jobs. Reel Proud. Real New Yorkers,” the campaign–produced by bicoastal commercial production house The Artists Company–comes at a time when NYC is experiencing an increase in production throughout the five boroughs.
Spot rundown In the latest installment of SHOOT’s ongoing coverage of attractive lensing incentives, this time around our sampling is in the U.S. where assorted states register on the film-friendly barometer, including for commercials and ad-related content. The following rundown contains summaries of incentive programs and film commission website addresses where additional info can be accessed:
Incentives On The Spot
Connecticut Film Division,
Connecticut Commission on Culture and Tourism
Thirty 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.
Connecticut hotel tax is waived for days beyond 30.
www.ctfilm.com
Georgia Film, Music &
Digital Entertainment
Incentive Program: 30 percent tax credit effective now. 20 percent tax credit with a $500,000 minimum spend on qualified production and postproduction expenditures (this can be done via a single project or multiple projects during the course of a year). Provides an additional 10 percent tax credit for inclusion of Georgia promotional logo. Additionally, Georgia offers a point of purchase sales tax exemption for qualifying productions.
www.georgia.org/Business/FilmVideoMusic/Incentives…
www.gafilm.org
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 (commonly known as “Act 221,” Session Laws of Hawaii 2001, or “Act 215,” Session Laws of Hawaii 2004), 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. Commercials are eligible. Minimum qualifying threshold is $200,000 in eligible expenditures.
The tax credit amounts to 15 percent of qualifying production-related expenditures (including such costs as related airfare) for lensing on Oahu. And that goes up to 20 percent for activity on any of the other neighboring islands (The Big Island of Hawaii, Kauai, Lanai, Maui, Molokai).
www.hawaiifilmoffice.com
www.filmhonolulu.com
Illinois Film Office
20 percent (going up to 30 percent in January ’09) Illinois Film Tax Credit on all local project related expenditures: labor, rentals, leases, purchases, services, housing, etc.
Program is applicable to all phases (pre-production, production and post-production) of feature film, movies for television, TV series and commercials.
www.illinoisbiz.biz/dceo/Bureaus/Film/
Louisiana Governor’s
Office of Film and Television Development
25 percent Motion Picture Investor Tax Credit
10 percent Louisiana Employment Tax Credit
15 percent Sound Recording Tax Credit
15 percent Digital Media Tax Credit
40 percent Infrastructure Tax Credit
www.lafilm.org
www.lafilm.org/incentives/investor_tax_credit.cfm
Massachusetts Film Office
A production company may be entitled to a payroll expense credit equal to 20 percent of its total qualifying aggregate payroll and may also be entitled to a production expense credit equal to 25 percent of its qualifying Massachusetts production expenses. The minimum expenditure threshold required to be met in a 12-month period has been lowered from $250,000 to $50,000.
www.mafilm.org/
Montana Film Office
1. Refundable tax credits.
14 percent refundable tax credit based on hired Montana labor; applied to the first $50,000 worth of wages paid per Montana resident. 9 percent refundable tax credit based on qualified production expenditures in Montana. There is no minimum spend or cap.
2. No sales tax.
3. Free production office furniture and traffic control signage.
4. Vehicle Licensing Exemptions. Out-of-state commercial vehicles used exclusively in the production of motion pictures, television, or commercials are exempt from licensing requirements for 180 consecutive days.
5. Migratory Equipment Tax Exemption. Out-of-state equipment used exclusively in the production of motion pictures, television, or commercials is exempt from property tax for 180 consecutive days.
6. No room tax if staying longer than 30 days.
www.montanafilm.com
www.montanafilm.com/incentives1.htm
New Mexico Film Office
25 percent Film Production 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.
Film Crew Advancement Program (FCAP)
A 50 percent wage reimbursement for on-the-job training of New Mexico residents in advanced below-the-line crew positions.
No state sales tax (Not to be used in conjunction with the 25percent 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
New York State Governor’s
Office for Motion Picture & TV Development
Commercial Production Tax Credits
Refundable tax credits available for qualified commercials with added incentives for companies increasing volume of work in New York
A three-pronged incentives program specifically designed for commercials. For details on the Empire State Commercial Production program, log onto
www.nylovesfilm.com
North Carolina Film Office
Legislation that took effect in summer of 2006 provides for a full 15 percent tax credit on productions $250,000 and over, and not exceeding a credit per-project of $7.5 million. Also, filmmakers pay only one percent sales and use tax on all production-related items purchased.
www.ncfilm.com
www.ncfilm.com/incentives-benefits.html
Film Wisconsin
25 percent Film Tax Credit program with two types of credits; a refundable credit of 25 percent of qualified in-state production expenses including non-resident wages and salaries for services provided directly for the production in the state and paid by another entity (e.g., a payroll company) subject to certain restrictions; and a non-transferable (and non-refundable) tax credit of 25 percent of the first $100,000 of wages paid to Wisconsin residents, excluding the two highest paid employees. The state also provides a non-transferable and non-refundable credit equal to the sales use tax paid for purchases and services which can be carried forward for up to 15 years.
15 percent Film Production Company Investment credit for residents interested in investing in a film or multi-media project. This credit is also non-transferable.
www.filmwisconsin.net
filmwisconsin.net/Incentives/
