CAST & CREW ENTERTAINMENT SERVICES
FRIDAY, JANUARY 22, 2016
In this Issue Backtotop
ENACTED
LEGISLATION 
New Jersey (S 779)
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ENACTED LEGISLATION
Signed by the Governor
District of Columbia (B 206)DC206
On January 12, 2016, Mayor Bowser signed Bill B 206 which amended the film production incentive program (subject to congressional approval) as follows:
  • Provides for a 35% rebate on qualified production expenditures that are subject to taxation in the District;
  • Provides for a 21% rebate on qualified production expenditures that are not subject to taxation in the District;
  • Allows resident labor to qualify for a 30% rebate;
  • Allows nonresident labor to qualify for a 10% rebate;
  • Eliminates the inclusion of development costs in the calculation of the $250,000 minimum spend in the District;
  • Creates a $500,000 aggregate salary cap for wages or other compensation for above-the-line employees;
  • Creates an end credit and promotional requirement; and,
  • Removes the inclusion of marketing and distribution as qualified postproduction expenditures.
VETOED LEGISLATION
New Jersey (S 779)NJ
On January 11, 2016, Senate Bill 779, which proposed to re-establish the film production tax credit program, was vetoed by Governor Christie.
  

PROPOSED LEGISLATION
Still in the House or Senate
Illinois (H 4440)IL4440
House Bill 4440 proposes to eliminate the film production incentive program effective immediately.
  
Kentucky (H 224)KY224
House Bill 224 proposes to amend the production incentive program to include digital interactive media productions. Highlights of the program are as follows:
  • Creates a refundable tax credit equal to 30% for qualified expenditures;
  • Creates a refundable tax credit equal to 30% for payroll expenditures paid to nonresident employees or contract laborers;
  • Creates a refundable tax credit equal to 35% for the payroll expenditures paid to resident employees or contract laborers;
  • Allows a refundable tax credit equal to 35% of the qualified expenditures, including resident and nonresident payroll, incurred in an enhanced county;
  • Creates a minimum spend requirement of:
    • $100k for Kentucky-based companies; or,
    • $200k for non-Kentucky-based companies;
  • Requires the inclusion of a Kentucky screen credit and logo; and,
  • Creates a sunset date of December 31, 2021.
New York (S 1297)NY1297
Senate Bill 1297 proposes to adjust the state annual cap of $420 million for inflation each year after 2016, but in no event shall the annual cap be less than $420 million.
  
New York (S 2518)NY2518
Senate Bill 2518 proposes to amend the film production incentive program as follows:
  • Allows writers' fees and salaries of $50k or less to qualify per writer, per qualified film if:
    • The writer is subject to taxation by the state; and,
    • The fees and salaries are not based on deferred, leveraged, or profit participation costs;
  • Establishes a funding cap of $5 million to be awarded each year for writer's fees and salaries; and,
  • Requires at least one writer to be a member of a minority group, or a woman, if more than three writers are hired or retained by the production and credit is requested for their fees and salaries.

Oklahoma (S 1025)OK1025
Senate Bill 1025 proposes to temporarily suspend the film production incentive program from July 1, 2016 through June 30, 2018.
  
Rhode Island (H 7192)RI7192
House Bill 7192 proposes to amend the film production incentive program as follows:
  • Reduce the per project cap from $5 million to $2 million; and,
  • Reduce the program cap from $15 million to $5 million per calendar year.
Utah (H 162)UT162
House Bill 162 proposes to amend the film production incentive program as follows:
  • Creates a sunset date of June 30,2017 for funding of the program; and,
  • Creates a sunset date of June 30, 2020 for the program in the event that unused funds from previous years are rolled forward and available.
Washington (H 2542)WA2542
House Bill 2542 proposes to amend the film production incentive program as follows:
  • Increases the annual funding cap gradually beginning January 1, 2017 per the progression below:
    • Increases the cap to $5.25 million in calendar year 2017;
    • Increases the cap to $7 million in calendar year 2018;
    • Increases the cap to $8.5 million in calendar year 2019;
    • Increases the cap to $10 million in calendar year 2020 and subsequent years; and,
  • Extends the sunset date from June 30, 2017 to December 31, 2023.
Washington (S 6288)WA6288
Senate Bill 6288 proposes to amend the film production incentive program by extending the sunset date from June 30, 2017 to June 30, 2019.
  
IN THE NEWS
Production Incentives
Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427

Incentive Financing

Deirdre Owens
Vice President, Production Incentive Financing
818-972-3201

 

 
  

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