| CAST & CREW ENTERTAINMENT SERVICES |
WEDNESDAY, MARCH 16, 2016
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In this Issue  |
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ENACTED LEGISLATION
Signed by the Governor |
On February 25, 2016, Mayor James signed Ordinance No. 160093 which creates a two tier rebate program for production expenditures. Highlights of the program are as follows:
- Creates a Tier 1 rebate equal to 3.5% of qualified Kansas City, Missouri (KCMO) expenditures with a minimum KCMO spend in the following categories:
- $300,000 Feature Film with budget over $1 million;
- $100,000 Feature Film with budget under $1 million;
- $50,000 TV Show per episode (scripted or unscripted);
- $200,000 TV series or Commercial bundle;
- $75,000 National Commercial;
- $25,000 for regional commercial or corporate video;
- $10,000 short film or music video;
- Creates a Tier 2 rebate equal to 7% of qualified KCMO expenditures if the project meets the criteria for Tier 1, the community benefit requirement, plus one of the following:
- 250+ KCMO room nights; or,
- Film for four or more consecutive weeks in KCMO; or,
- 25 Crew (local, regional, and expatriate)/Principal Cast (at least 25% must reside within the six Council Districts);
- Defines qualified spend as including but not limited to: costs for labor, services, materials, equipment rentals, lodging, food, location fees, and property rentals located in the city;
- Provides two additional bonus rebates of .25% each for meeting certain requirements;
- Sets out the following requirements to qualify for the program:
- 25% of the principal photography days must be filmed in the City as clearly outlined in the production schedule;
- Hire a minimum of five local crew and/or local principal cast employees with only a maximum of one Production Assistant being applied toward the minimum hire;
- An applicant must meet one of the three criteria listed below to qualify;
- Minimum number of hotel nights based on production type; or,
- Executive Producer or Director is a City resident; or,
- Production office/headquarters is within the city;
- Any film or television production receiving a rebate under this ordinance shall place a credit on each film or television episode; and,
- Sets an annual funding cap of $75,000.
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Oregon (SB 1507)
On March 10, 2016, Mayor Brown signed Senate Bill 1507 which amended the film production incentive program as follows:
- Raises the state funding cap for the 2017 fiscal year (June 30 - July 1) from $10 million to $12 million;
- Raises the state funding cap for each fiscal year (June 30 - July 1) beginning on or after July 1, 2017 from $12 million to $14 million;
- Allows, in conjunction with the 20% spend and 10% wage rebate, a film maker to earn one of the following:
- A travel and living expense rebate of $200 per employee per day, for any day shot entirely outside of the Portland metropolitan zone (defined as any area within a 30-mile radius of the center of the Burnside Bridge in Portland) not to exceed $10,000 per day or up to $50,000 per film; or,
- A 10% increase, for a grand total of 30% in spend or 20% in wage, if for at least six days and at least one day more than half of its total shoot days in Oregon the film is shot entirely outside the Portland metropolitan area;
- Expands the qualified productions eligible for the film tax credit by adding local media production services companies;
- Establishes a per project cap equal to 50% of funding; and,
- Provides for an effective date of June 3, 2016.
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PROPOSED LEGISLATION
Still in the House or Senate |
Connecticut (H 5491)
House Bill 5491 proposes to amend the film production incentive program. Highlights of the bill are as follows:
- Expand the qualified productions eligible for the film tax credit for the 2015, 2016, and 2017 fiscal years if they meet the following criteria;
- At least half of the entertainment content is produced in the state;
- At least half of the personal are residents of the state; and,
- The total cost of production is less than $2 million.
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Georgia (H 956)
House Bill 956 proposes to establish the Georgia Musical Recording and Synchronization Act. The highlights are as follows: - Creates a transferable tax credit equal to 20% of qualified production expenditures for activities related to the incorporation of a recorded musical performance into a state certified production;
- Allows for an additional tax credit, the amount of which has not been disclosed, based on qualified production expenditures if the production company includes a qualified Georgia promotion;
- Qualifies costs such as writing, composing, arranging, recording, mixing, mastering, synching, license fees, tuning, renting of facilities, equipment, and editing;
- Limits the qualifying salary of each employee to $500,000;
- Requires a minimum spend of $300,000;
- Limits music producer fees to not be greater than 20% of total qualified production expenditures;
- Requires withholding of 5% on payments to loan outs; and,
- Establishes that qualified production expenditures cannot be incurred before July 1, 2016.
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Rhode Island (S 2291) Senate Bill 2291 proposes to amend the film production incentive program. Highlights of the bill are as follows: - Reduces the per project incentive cap from $5 million to $2 million;
- Decreases the annual funding cap from $15 million to $5 million; and,
- Takes effect upon passage.
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Production Incentives
 Joe BessaciniVice President, Film & TV Production Incentives
818-480-4427
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 Deirdre OwensVice President, Production Incentive Financing
818-972-3201
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ALBUQUERQUE ATLANTA BATON ROUGE BURBANK DETROIT NEW ORLEANS NEW YORK
WILMINGTON TORONTO VANCOUVER |
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