Scarinci Hollenbeck, LLC
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201-896-4100 info@sh-law.comProducers look beyond major cities for TAX INCENTIVES FOR FILMING
Author: Scarinci Hollenbeck, LLC|March 21, 2016
Welcome to the final part in our series on tax incentives for filming, packed with a plot twist that will have you on the edge of your seat!
Producers look beyond major cities for TAX INCENTIVES FOR FILMING
Welcome to the final part in our series on tax incentives for filming, packed with a plot twist that will have you on the edge of your seat!
We’re back again with more on state-by-state tax incentives for filming and this time we’re stepping out of the box a bit with the locations. Filmmakers that aren’t interested in places such as New York and California may want to consider other states that offer advantageous tax breaks. If this sort of location is appealing, read on for more about states offering film credits outside of the obvious choices:
4.Louisiana
Matthew McConaughey joked with Garden & Gun that he loved New Orleans because of the film credits and while he may have been laughing when he said it, the statement rings true – Louisiana has plenty to offer productions. Here is more on those Louisiana film credits the actor loves:
| A 30 percent transferable credit for in-state expenditures with the potential to increase to 45 percent if the production screenplay is owned by or optioned to qualifying Louisiana companies 12 months prior to the start of production. |
| A per-project cap of $30 million for credits. |
| Above-the-line resident and non-resident labor costs count toward the credits. |
| Additional 10 percent credit for the first $1 million of each Louisiana resident’s payroll. |
| An additional 15 percent credit for qualifying musical expenditures. |
| A $300,000 minimum budget. |
| The credits can be used to offset corporate or individual Louisiana tax liability. |
| The credits can be redeemed with Louisiana at 85 percent face value, though transferees cannot redeem. |
5.Georgia
WGeorgia may be known for its peaches and sports teams named for birds, but it also offers beneficial film credits. Filmmakers consider Georgia for their productions because of tax breaks such as those below:
| A 20 percent transferable tax credit. |
| An additional 10 percent if the production includes the Georgia promotional logo in credits, or other negotiated placements. |
| A $500,000 project minimum. |
| Compensation for non-residents included. |
The new Ghostbusters car passes through downtown Boston this morning to the movie set on Tremont. pic.twitter.com/fTRy1gwvez
Only In Boston (@OnlyInBOS) July 8, 2015
6.Massachusetts
Production teams continue to make their way to the Bay State for films such as the upcoming “Ghostbusters” movie. Part of the reason is the generous tax credits:
| A 25 percent credit that may be used to offset tax liability and redeemed with the state up to 90 percent. |
| A minimum spend of $50,000. |
| Non-resident labor qualifies, though with certain requirements – withholding taxes should be paid on qualifying wages. |
| No annual or production cap. |
| Only the first 27 episodes of a television series qualify each year. |
| A sales tax exemption for production expenditures. |
For Level 2 films the qualifications are:
| Shoot on a set built specifically for the film at a QPF. |
| At least 75 percent of all work-related expenses must be connected to work completed at the aforementioned QPF. |
| At least 75 percent of shots outside the QPF must be within New York State or… |
| …The production should spend at least $3 million on work at the QPF. |
Location is a huge factor in the production process. Which state a filmmaking team chooses can alter final expenses significantly.
If you have questions about film credits in the states listed in this blog series, or any others, contact an entertainment law attorney for advice.
To read part one from the “tax incentives for filming” series, please follow the link below:
Filmmakers Need To Consider Shoot Location Tax Incentives
Great Places To Find Shoot Location Tax Incentives For Filming
Producers look beyond major cities for TAX INCENTIVES FOR FILMING
Author: Scarinci Hollenbeck, LLC
We’re back again with more on state-by-state tax incentives for filming and this time we’re stepping out of the box a bit with the locations. Filmmakers that aren’t interested in places such as New York and California may want to consider other states that offer advantageous tax breaks. If this sort of location is appealing, read on for more about states offering film credits outside of the obvious choices:
4.Louisiana
Matthew McConaughey joked with Garden & Gun that he loved New Orleans because of the film credits and while he may have been laughing when he said it, the statement rings true – Louisiana has plenty to offer productions. Here is more on those Louisiana film credits the actor loves:
| A 30 percent transferable credit for in-state expenditures with the potential to increase to 45 percent if the production screenplay is owned by or optioned to qualifying Louisiana companies 12 months prior to the start of production. |
| A per-project cap of $30 million for credits. |
| Above-the-line resident and non-resident labor costs count toward the credits. |
| Additional 10 percent credit for the first $1 million of each Louisiana resident’s payroll. |
| An additional 15 percent credit for qualifying musical expenditures. |
| A $300,000 minimum budget. |
| The credits can be used to offset corporate or individual Louisiana tax liability. |
| The credits can be redeemed with Louisiana at 85 percent face value, though transferees cannot redeem. |
5.Georgia
WGeorgia may be known for its peaches and sports teams named for birds, but it also offers beneficial film credits. Filmmakers consider Georgia for their productions because of tax breaks such as those below:
| A 20 percent transferable tax credit. |
| An additional 10 percent if the production includes the Georgia promotional logo in credits, or other negotiated placements. |
| A $500,000 project minimum. |
| Compensation for non-residents included. |
The new Ghostbusters car passes through downtown Boston this morning to the movie set on Tremont. pic.twitter.com/fTRy1gwvez
Only In Boston (@OnlyInBOS) July 8, 2015
6.Massachusetts
Production teams continue to make their way to the Bay State for films such as the upcoming “Ghostbusters” movie. Part of the reason is the generous tax credits:
| A 25 percent credit that may be used to offset tax liability and redeemed with the state up to 90 percent. |
| A minimum spend of $50,000. |
| Non-resident labor qualifies, though with certain requirements – withholding taxes should be paid on qualifying wages. |
| No annual or production cap. |
| Only the first 27 episodes of a television series qualify each year. |
| A sales tax exemption for production expenditures. |
For Level 2 films the qualifications are:
| Shoot on a set built specifically for the film at a QPF. |
| At least 75 percent of all work-related expenses must be connected to work completed at the aforementioned QPF. |
| At least 75 percent of shots outside the QPF must be within New York State or… |
| …The production should spend at least $3 million on work at the QPF. |
Location is a huge factor in the production process. Which state a filmmaking team chooses can alter final expenses significantly.
If you have questions about film credits in the states listed in this blog series, or any others, contact an entertainment law attorney for advice.
To read part one from the “tax incentives for filming” series, please follow the link below:
Filmmakers Need To Consider Shoot Location Tax Incentives
Great Places To Find Shoot Location Tax Incentives For Filming
