The Illinois Film Production Tax Credit Act offers producers a credit of 30% of all qualified expenditures. I often get asked if production

insurance qualifies for this tax credit. The technical answer is yes, but the practical answer is a little more complicated.

The relevant portion of the program rules states, "The purchase of financial services (including insurance and the borrowing of funds)

from a lender or insurer whose Commercial Domicile is in this State". In plain English, insurance costs can be applied to the tax credit if the insurance company is based in Illinois.

Here's the practical problem: to my knowledge there are not

any insurers based in Illinois that are willing to sell film production

insurance. However, there is still an option that will allow producers to apply a portion of their insurance costs to the tax credit. The key is to work with an Illinois-based insurance broker.

Brokers typically receive a commission from the insurer

based on the cost of the insurance purchased. The 'cost' of that Illinois-based broker commission can be applied to the tax credit. The basic calculation would be Total Insurance Cost * Broker Commission Rate * 30% Illinois Tax Credit Rate. While this may not amount to huge savings for small productions, for larger productions it can definitely have an impact.

Please contact us if you have any additional questions about insurance and the Illinois tax credit.

A New York federal judge has dismissed a copyright lawsuit that claimed 20th Century Fox and the Walt Disney Co. lifted material from a series of young-adult books for their Percy Jackson series. The novels in question tell the story of Percy John Allen, a modern-day teenager descended from Perseus who is summoned to fight ancient battles in order to save the world. The Fox/ Disney films tell a similar story of Percy Jackson.

The judge acknowledged some similarities, starting with the fact that both characters share the same first name. But since that name derives from the hero Perseus of Greek mythology, there's a simple explanation. Plus, other noted similarities such as characters who have to cope with missing parents and display their strength in battles with otherworldly forces were deemed to be commonplace in the young male hero genre.

-Hollywood Reporter, September 23, 2011

This case is an example of a potential Errors & Omissions (E&O) insurance claim. Even though the studios won this case, they still had legal costs. E&O can include legal defense cost coverage.  

Tips for the Fall/ Holiday Party Season

I'm on the board of a small non-profit in Chicago and we just had a discussion about our annual holiday party. So I guess it's not too early to post these party planning tips.

If you're planning a holiday party that might include alcohol, here are some suggestions to reduce your risk:

1. Familiarize yourself with your state's host liquor laws.

2. Consider hosting your party at a restaurant or bar that has a liquor license, rather than in your home of office.

3. Limit your guest list to people that you know.

4. Provide filling food for guests and alternative non-alcoholic beverages.

5. Schedule entertainment or activities that do not involve alcohol.

6. Arrange transportation or overnight accommodations for those who should not drive.

7. Stop serving alcohol at least one hour before the party is scheduled to end.

8. Do not serve guests who are visibly intoxicated.

-Independent Agent Magazine, August 1, 2011