States Tax Incentives

[snowleopard]

I don't have a big enough project that requires this, but I was looking at various states tax rebate/credit programs, and wondering which state may be best for filmmakers. Also, what states may be having problems, and prone to problems, like this link here states.

For example, my state of Oregon has a program that offers 10% tax-free rebate to investors for film. Hence, you put $100k into a film, they'll cut you a check for $10k. A lot of people have complained about this leading to abuse, but the law passed anyway. More complaints though have been that we cater too much to Hollywood, and are enamored about Hollywood coming up here and providing "jobs" while ignoring local productions. And no tax help unless you spend at least $75k. But I was reading New Mexico's plan, and they offer a rebate too - 25%, but seem to encourage local residents in their plan with no bottom limit, as long as you fill out the paperwork and qualify. My neighbor state of Washington has up to 30%, but only on productions over $500k. Iowa have a program that gives up to a whopping 50%, but it was announced this week about abuse and corruption of it.

What does your state offer? Which states offer good programs? Poor programs? Good stories? Horror stories?

 

[MichaelP]

MA and RI both have 25%. There is usually a entry level amount to ensure that there is spending in the local area. Some are looking at capping tax credits on cast - for example a 3M dollar buget that spends 2M on stars leaves no more money to the local economy when shooting than a 1M dollar movie yet still get the tax rebate on the full amount.

You also need to make sure the state has the money to pay for the tax credit or it oculd end up like NY where they ran out. Some states have a bad reputation in paying at all and takes forever to get a check.

If the state can properly manage it all, a steady stream of "Hollywood" production is a benefit to the state economy in all the jobs that relate to such businesses - even the laundromat. There are production companies in MA that have been very succesful in their use of the tax cedits to fund additional development and new programs expanding their business and hiring more and more into the production and postproduction industry.

Michael

 

[Azmyth]

Georgia's

The Georgia Entertainment Industry Investment Act offers an across the board flat tax credit of 20% based on a minimum investment of $500,000 on qualified productions in Georgia. An additional 10% Georgia Entertainment Promotion (GEP) uplift can be earned by including an imbedded animated Georgia logo on approved projects.

of course this is useless for all but the most high end low budget studios. I'll be lucky if my film costs 10k to make.

I think the catch here, is that states are looking at "jobs".. most low budget films aren't creating any sort of jobs for these people, since most work for free or for very little pay.

I think they should look at incentives for local productions, in a different view than they do hollywood..

for example, while they may not be providing alot of jobs... for example.. my film will have a few actors cast out of state.. who will have to stay here, and function here. Which means, they will do business at the local hotels, restaurants, etc. when not on set. Its not alot.. but its something. They should look at the tourist impact filmmaking has on the location as well. For example our city has REQUESTED.. that we use our veterans park to shoot part of the film at. Right now, there is not enough people paying to go there and use the park (lake, boating, camping, museums, resort etc.) and if more people don't start doing so.. the park may close. They believe that being able to tout a movie was shot there.. any movie.. that will increase its worth and attract more people to want to check it out. In this case its a horror movie, so this adds more mysticism to the whole idea since people will then come just to try to find the spots where it was filmed.

Our town is a resting point for tourists, as they travel to their next destination. so, the more reason we can give people to stop here.. the more money the town gets.. which in my opinion is just as important as how many jobs we create.