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MONTHLY TIP UPDATE - November 2011
ENACTED LEGISLATION (Signed by the Governor)
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MICHIGAN (SB 569)
Governor Snyder signed SB 569 giving the Michigan Film Office the authority to award rebates to eligible productions. To be eligible, a production must: apply to the Michigan Film Office on forms prescribed; submit an application fee equal to 0.2% of the funding requested but not less than $200 and not more than $5,000; meet the minimum in-state spending requirement of $100,000 or more in direct production expenditures and/or Michigan personnel expenditures (resident above-the-line and below-the-line); enter into an agreement; start work in the state within 90 days of approval; and, be a qualified production. The Film Office must process applications within 21 days after the application is complete as determined by the office.
Direct production expenditures will earn 27%. The first $2 million of compensation/benefits paid to: each Michigan resident (above-the-line and below-the-line) will earn 32% thru December 31, 2014 and 27% thereafter; each nonresident above-the-line will earn 27% thru December 31, 2014 and 12% thereafter; and, each nonresident below-the-line will earn 25% thru December 31, 2012 (20% for 2013, 15% for 2014 and, 10% after December 31, 2014). Commercials are not eligible for the rebate.
This program is not first-come, first-served. The Film Office has discretion to approve a project based on a number of factors. Initially, the program is funded at $25 million for the fiscal year ending September 30, 2012. The sunset date is September 30, 2017.
The application for this new program will be available on the Michigan Film Office website by the close of business on Tuesday, January 3 and applications will be accepted starting Monday, January 9. Be sure to read the UPDATED FAQ document that is included with the online application. |
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PROPOSED LEGISLATION (Still in the House or Senate)
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MISSOURI (S 472 & H 1101)
S 472 proposes that no film credits be authorized after August 28, 2012. H 1101 proposes to end all state tax credits including the film tax credit program on December 31, 2012. Also, any credits issued prior to January 1, 2013 will have to be redeemed before January 1, 2015.
NEW HAMPSHIRE (H 1274)
This legislation proposes to establish a film and television commission within the Department of Resources and Economic Development on July 1, 2012. The purpose of the commission, in part, is to: identify opportunities for activities related to film and television; promote the development of the film and television industry; and, recommend both long-range and short-term programs that will result in economic gain for the state.
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MISCELLANEOUS
GEORGIA
Effective January 1, 2012, the Georgia Department of Revenue will begin implementing a voluntary program for Film Credit verification. Verification reviews will be done on a first-come, first-served basis and will provide producers with a review and verification of the production transactions that are eligible for the Georgia Film Credit. An application along with a deposit must be submitted to the Department of Revenue. The initial deposit is determined by the total production costs in Georgia, as follows:
- Production costs of $500,000 to $1 million $5,000 Deposit
- Production costs of $1 million to $5 million $10,000 Deposit
- Production costs of $5 million to $10 million $15,000 Deposit
- Production costs in excess of $10 million $20,000 Deposit
An hourly fee of $55 per hour, per auditor and any out of pocket expenses incurred by the Department will be charged to the production requesting the verification. Any portion of the deposit that is not used will be returned. If the costs incurred exceed the amount of the deposit, the requester will be required to remit the additional amount.
The Department of Revenue will contact the production company to coordinate the verification upon receipt of both the application and deposit.
For further information contact Anita M. DeGumbia at 404-417-6436. |
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WANT TO RECEIVE MONTHLY UPDATES VIA E-MAIL?
To receive the latest motion picture and television production incentive updates, send an email to productionincentives@castandcrew.com with the word ”UPDATES” in the subject field. Please include:
- Your Full Name
- Your Company Name
- All Relevant Contact Information
For more information please contact:
Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
jbessacini@castandcrew.com
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