ENACTED LEGISLATION (Signed by the Governor)

IOWA
The bill precluding the Iowa Department of Economic Development from registering any new film projects until July 1, 2013 was signed into law by the Governor.

MINNESOTA
The incentive remains "up to" either a 15% or 20% rebate, however, the "up to" 15% incentive is now awarded to productions that spend $5 million or less in a metropolitan area. The "up to" 20% rebate now applies to productions that spend more than $5 million in a metropolitan area or locate the production outside the metropolitan area with no minimum spend requirement.

UTAH
The enacted bill provides that the Governor's Office of Economic Development shall administer the incentive fund; requires that production company reports be reviewed by an independent certified public accountant; and, allows the Governor's Office to issue the cash rebate directly rather than having to submit their request to the Division of Finance.

VIRGINIA
For taxable years beginning on or after 1/1/2011, a production company may earn a refundable tax credit equal to 15% (20% if filmed in an economically distressed area of Virginia) of qualifying expenses when at least $250,000 is spent in Virginia.  A statewide cap of $2.5 million will apply to the 2010-2012 biennium, increasing to $5 million for any biennium thereafter. Qualifying expenses include goods and services leased or purchased as well as the first million dollars of compensation and wages per individual including loan outs.  A production company may earn an additional 10% of resident labor when the total production costs in Virginia are at least $250,000 but less than $1 million.  This additional credit is increased to 20% of resident labor if total production costs exceed $1 million in Virginia.

ON THE GOVERNOR'S DESK (Awaiting Signature)

COLORADO
The bill, in addition to allowing television commercials to apply for an incentive, removes the requirement that a production company must spend at least 75% of its production expenditures on qualified local expenditures.  Also, the minimum spend for a production originating out-of-state is reduced from $1 million to $250,000.  Currently, the actual qualified local expenditures have to equal or exceed the projected qualified local expenditures on a project to be eligible for the incentive. The new bill would only require the actual qualified local expenditures to equal or exceed the minimum spend requirements.

FLORIDA
Today, the Florida legislature passed a comprehensive jobs bill containing enhancements to the film incentive program and it is now headed to the Governor for signature.  This incentive is administered on a first-come first-served basis.  A production company may earn a transferable tax credit equal to 20% of qualified expenditures plus an additional 5% for productions that film 75% or more of its principle photography days from June 1 through November 30 (off-season).  An additional 5% of qualified spend may be earned if the script is "family friendly" (suitable for viewing by children 5 and older and does not exhibit or imply any act of smoking, sex, nudity, or vulgar or profane language).  There is a per project cap of $8 million.  (One season of a television series is considered one production.)  Requirements include spending more than $625,000 for a motion picture or a high impact television series (per eps for TV), being certified before the first day of principal photography, start principal photography within 180 days of submitting application, and seeing that 50% or more of the positions that make up the cast and below-the-line production crew be Florida residents (this requirement increases to 60% beginning in the 2013 - 2014 fiscal year).  The first $400,000 of each resident's wage and other instate spend incurred with Florida vendors will qualify for the incentive. Credits may be used against sales and use tax liabilities and corporate income tax liabilities, however, the credits may not be claimed for any tax period beginning before July 1, 2011, regardless of when the credits are applied for or awarded.  Beginning July 1, 2011, the production company or any transferee may relinquish the credit to the Department of Revenue for 90% of the face value of the credit.  The annual cap for each fiscal year is as follows: $53.5 million for 2010-2011; $74.5 million for 2011- 2012; $38 million for 2012-2013, 2013-2014 and 2014-20015.  Tax credits purchased in good faith are not subject to forfeiture.  Guidelines and applications will be available May 21 at www.filminflorida.com and the anticipated date for accepting new applications is at noon on June 7, 2010.  This program is scheduled to sunset on July 1, 2015. 

MICHIGAN
The bill which was introduced would remove the refundability aspect of the current incentive.  For agreements entered into on or after April 16, 2010, if the tax credit allowed exceeds the tax liability of the company for the tax year, the excess will no longer be refunded.