Could somebody please explain to me, what are film incentives? I understand that it is some form of reward for filming a movie in the specific state, but what type of rewards? Tax write offs?
confused! Please help
confused! Please help
Film Incentives?
- Thread starter dlevanchuk
- Start date
You understand correctly. Many states offer tax breaks and
cheaper or no permit and location fees to producers who bring
a production to their state. They offer lower labor rates and
less "red tape" in an effort to get producers to spend money
in their state.
cheaper or no permit and location fees to producers who bring
a production to their state. They offer lower labor rates and
less "red tape" in an effort to get producers to spend money
in their state.
Every state has something different.
For example I just shot a feature in MA, our investors get up to 25% back in re-sellable tax credits. Also our production was state tax exempt.
All states have different rules for size of project and what you plan to use it for etc.
I suggest reading up heavily and then contacting your states film bureau before doing anything.
There was just a case in MA where one guy took a little too much liberty with his credits.
http://bostonglobe.com/business/2011/12/10/filmmaker-faces-tax-fraud-charges/mSpLYWE9SJppD7XJCTCxJK/story.html
For example I just shot a feature in MA, our investors get up to 25% back in re-sellable tax credits. Also our production was state tax exempt.
All states have different rules for size of project and what you plan to use it for etc.
I suggest reading up heavily and then contacting your states film bureau before doing anything.
There was just a case in MA where one guy took a little too much liberty with his credits.
http://bostonglobe.com/business/2011/12/10/filmmaker-faces-tax-fraud-charges/mSpLYWE9SJppD7XJCTCxJK/story.html
There's also tax breaks many times where people wouldn't expect. Some States waive hotel taxes for example (which can be 1/3-1/2 the price of a room) when your booking places for your cast and crew to stay.
All the big incentives I've read about are for bigger budget productions though. If you're bringing in a crew on a $1 mil or more feature then you can find some nice incentives in states that don't normally get as much film work compared to shooting in Los Angeles for example. I'm sure there are incentives for lower budgets to be found, I haven't spent a lot of time looking personally, but I haven't seen many.
All the big incentives I've read about are for bigger budget productions though. If you're bringing in a crew on a $1 mil or more feature then you can find some nice incentives in states that don't normally get as much film work compared to shooting in Los Angeles for example. I'm sure there are incentives for lower budgets to be found, I haven't spent a lot of time looking personally, but I haven't seen many.
In Tennessee I think it's $150K spent in state to qualify. I think that's probably a pretty typical number.
Does nothing for the micro budget world. Most state film commissions will barely talk to you unless you are spending $250K.
Does nothing for the micro budget world. Most state film commissions will barely talk to you unless you are spending $250K.