State Incentives for Motion Pictures

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I just read an article today about how the Michigan Film Office is trying to get bigger incentives so that more movies can be shot in the state. They are asking for about 40% in rebates for the companies that film here.

LOC has talked about how the state of Florida has very little incentive for filmmakers in his state. I was wondering if anyone else knows what the incentives for film are in their states?


-- spinner :cool:
 
Hey Spinner,

The competition for Film Production dollars is indeed hotter than ever and that's good news for us filmmakers!

Michigan Film Production

http://www.michiganfilmproduction.com has information on the upcoming Michigan Film Incentive

which aims to be the best in the nation. Based upon what's proposed it looks to be heading that way. With up to 42% film incentive, film investment funds, digital filmmaking funding, educational grants for displaced workers, it is an incredible boost to the state and the national incentive movement to keep filmmaking home. With the added value of the decreasing dollar, homegrown USA filmmaking looks to enjoy a terrific new era. Also informative is:

Michigan Film Incentives

http://www.filmbudget.com/michigan_film_incentives/


This will surpass New Mexico, Louisiana, MA and CT.
 
MI film Incentives

Yes Michigan is in this horse race. Our State is waiting for the Governor to sign the bills that will provide companies either tax rebates or cash rebates of 40-42%. Additionally training and loan bills are being passed. At present, these are top of the U.S.
Beyond incentives, Michigan crews have a strong work ethic, we have been making films for decades and have the infrastructure and knowledge to start growing!
The Michigan Production Alliance www.mpami.org is a trade group with the goal and mission to connect people to resources. In addition to the assistance offered by the Michigan Film and Detroit Film Office, we work in the trenches so to speak with crew and we understand what the needs of filmmakers are.

As soon as the bills are signed, there will be instructions and application forms for these incentives at michigan.gov/filmoffice...or one may phone 800.477.3456 with questions.

MPA may be reached at info@mpami.org - 313.447.0566
 
Incentives

Also, to get the idea of just how competitive these incentive programs are, check the AFCI.org site which shows links to worldwide incentives.
 
Incentives in Cleveland

Well, I know that in Ohio (Cleveland) the film commission has dropped the price to obstruct the public right-of-way to $10 (per day I think) for the duration of your shoot.

They also offer the 375,000 square foot convention center as a free production facility. (Can be sound stage, shoot, set build, etc.)

Unfortunately, No real local vendors in terms of prosumer video around.

Oh, and if your interested, this page has alot more stuff about Cleveland's incentives here:

http://www.clevelandfilm.com/incentives.html

Some interesting stuff on there...
 
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Yeah the proposed bill for MI is great. Here in Idaho, we just got our first percentage rebate package of 20% passed, now we need to get appropriations to approve a 1 million fund.

The difference between ID and most other states, and then MI is that MI sets their threshold at 50k, whereas most states set theirs at 200k plus. I've been telling Idaho that we need to set up a 10k threshold to spur local industry and little indies and short films, but they don't care.

Good for MI, I'm sure this will mean jobs.
 
Here's a brief breakdown of how the Michigan Film Incentives are looking:

Michigan film incentives
How they work:
•Application and $100 fee submitted to Michigan Film Office.

•Approval comes from film office and state treasurer.

•Must spend at least $50,000 in Michigan.

•40 percent cash rebate on Michigan expenditures.
* An extra 2 percent rebate if the company films in one of the 103
"Core Communities," which include Detroit and many local suburbs.

•Labor and crew: 40 percent to 42 percent rebate on salaries for
Michigan residents, 30 percent for nonresident salaries.

•A cap of a maximum $2 million salary per employee.

•There is no other cap and no sunset.

•The new film laws also establish a low-interest loan program
($500,000 to $15 million per production) and an infrastructure tax
credit (25 percent of base investment) as well as a workforce
development tax credit (50 percent of training expenses) for hiring
and training current Michigan crew members.


-- spinner :cool:
 
The film board addressed the MN State government a week or two ago, I didn't hear what the outcome of that was, but I believe they were working on getting better incentives. Hmm... wonder what happened with that.
 
So much misinformation out there...

I'm always amazed at how many people still fall for the misleading information "state incentives" offer...Most 'seasoned' producers ONLY travel to various states if the script and story call for it...Few do it for the incentives because they know the real truth behind the incentives...As a producer with over 20 years in the business, i'm going to show anyone who reads this, the real situations going on not just with Michigan, but with all states, including Louisianna and New Mexico (the top 2 offering the most popular incentives)...

My example is based on a random $5 million feature budget with an average 20% state incentive...

Every single state has a contract that is signed when you apply for tax incentives...many vary from state to state, however, every single one has two words in the contract that most "unseasoned" producers don't pay attention to...the two words are "...applicable costs..."

As this phrase is often well hidden in the contract, it's easy to see how it's missed, however, this is the phrase that kills every film's expectations and results in nearly all producers never returning to that particular state, unless the script or story requires it...

Many of the unseasoned producers out there are given the impression that the 20% tax rebate is based on their entire $5 million budget...This couldn't be further from the truth, and most state film commissions hide this fact...In reality, "applicable costs" refers to a variety of things, however, in most cases, the following line items in your budget are EXCLUDED from the total calculations the state uses...Director's fee, producer's fees, script fee, Talent fee's (unless local talent is hired), contingency, bond fee, insurance fee, any crew member's rate if not hired locally, airline tickets, development fees, Music fees and all Post (if not done in the state)...Some states include a couple of the above fees, but most do not...In other words, roughly up to 50% of your budget is NOT INCLUDED IN THE STATE'S CALCULATIONS for your rebate!

Using this example, now your budget calculations have dropped to roughly $2.5 million (using the above example of a $5 million budget)...So, initially you might have thought and been purposely misled by the state's film commission, that your 20% rebate on the total budget of $5 million was going to be $1 million
(20% of $5 million)...Now, with all the exclusions, your rebate is now based on $2.5 million, thus dropping your potential rebate to $500,000...Now keep in mind, this is all averages, in many cases, your rebate will be far less, but for the sake of this argument, we'll keep it at $500k...

The next issue to be aware of is that the rebate doesn't kick in until 90 days after the film has been completed...So, you're going to have to initially spend your full budget in order to see the rebate 3 months down the road...

Now let's take into the most dramatic issue that is rarely, if ever, mentioned by any state...In order to utilize the tax incentives, you have to travel there...In nearly all states, this means ALL your lead and supporting lead cast will need to travel (either out of LA or NYC), your director, your producers, your key crew members such as DP, Production Designer, Wardrobe, etc., along with several others...On average, a $5 million film will bring 40 people from LA and/or NYC to whatever city or state you're shooting (if you have a large cast, this number will rise)...This takes into account that you will find local talent to be day players and local crew members to fill in the holes...

$5 million films average 35 to 45 shooting days, which is 7 to 9 weeks of shooting, 5 day weeks...However, you are actually having to pay for 7 day weeks (crew and cast don't go home every weekend, thus the hotels etc. are based on 7 day weeks, not 5 day weeks)...

When you factor in Air Travel (1st class for all actors and some crew), hotel at an average of 60 days (for an 8 week shoot), car rental (you can't bring all these people for that long and expect them to walk everywhere) and per diem ($75/day/person @ 7 days/week not 5), you can see how your travel and living expenses rise...On average, travel and living for a $5 million film shot on location, runs anywhere from $400,000 to $650,000...Keep in mind, your adjusted tax rebate, at best, will be $500,000...So in reality, you're either breaking even or you're actually losing money by going somewhere for the rebates...

All the info presented here is easily researched and proven and can be added up by you with a simple calculator...States see huge amounts money when a film comes to their area, thus, they will do anything, including misleading unseasoned producers, in order to get you there...In most cases, this info isn't realized until it's too late...

Tax incentives? Unless the script and story call for it, shoot the whole thing in LA or NYC using local talent and crews...Do your research and realize the truth...
 
There's no need to be amazed, Filmboss.

One reason why many people still fall for misleading information
is very few people posting on messageboards are "seasoned"
producers. And even the pros and semi-pros posting here on indietalk
are always open to discussion and to learn more.

Welcome! It's always nice to have someone with experience helping
out. I hope you come back often and offer advice.

I'm currently doing the budget for a feature in the $300,000 range
and am considering shooting outside of California based on what I've
been reading about State incentives. So this is very helpful.

I kinda figured that one of the reasons for States to offer these incentives
is to put more of their people to work. If I can hire most of the crew and
all but the "name" talent locally, it might be worth it.
 
Forgive me, Filmboss, but MOST states spell out in detail what their requirements are to obtain their in-state incentives, right on their website, and generally speaking every state I've looked at defines it as "in-state expenses", I don't understand how you could misconstrue that? Nobody is leading ANYBODY astray here, and if you are a mobile producer able to crew up and cast all below-the-line and do post in a state with an incentive package, and rent all your gear from that state, I don't see what the problem is? For instance, I am going to be shooting my first feature in Seattle. While several of my above-the-liners will be out of state, most everything else will be done in state. I don't live there but Seattle, where the film is being shot, has just as much to offer as far as facilities as most major cities do - crew, cast, rentals, and post wise. The same is now true for New Mexico, New Orleans, and will soon be so in many other cities and states.

I appreciate the "warning" for those who may misunderstand, but it seems very clear to me when I spend two minutes reading anyone's requirements for state incentives.
 
Just so we all can be clear here, I am referring to: http://www.washingtonfilmworks.org/guidelines.html

For my Seattle film. Which lists plainly and in regular size type:

IN-STATE PRODUCTION COSTS ELIGIBILE FOR FUNDING ASSISTANCE
1. The following in-state Qualified Expenditures are eligible for funding assistance if purchased from a Washington State based business:
a. Set construction and operations
b. Wardrobe, accessories and make-up
c. Location fees and related services
d. Photography, sound synchronization, film processing and dailies, lighting and related services
e. Rental of facilities and equipment
f. Renting or leasing of vehicles
i. For additional incentives see sales tax exemption for production vehicle rental
g. Only airfare on Washington based airline carriers for travel on regularly scheduled commercial flights or Washington based airline carriers for chartered airline travel within the state
h. Any travel expenses, lodging or rental cars if it is for travel within the state of Washington
i. Insurance coverage and bonding
j. Per diem spent in the state of Washington only
i. Per diem may not exceed the IRS rate or the minimum per diem amounts as outlined in applicable collective bargaining agreements
k. Food and lodging if purchased from a Washington state-based company
For additional incentives see Hotel Motel Tax Exemptions
l. Marketing expenses associated with the production and incurred prior to the filing of the
completion package
m. Post-production expenditures directly attributable to the qualified production
n. Other direct costs spent in Washington state directly related to the qualified production in accordance with generally accepted entertainment industry practices

In addition to the expenses that do not qualify and all other guidelines. It seems to be black and white to me, and most states, whether I have to request it or its right on their website, have gotten to me within 24 hours all of their complete rules and guidelines for their incentives.
 
I'm just sayin'...

Mr. Wideshot, you're posting of the Washington State rebate requirements confirms absolutely everything I've stated in my previous posting...Yes, Seattle has an excellent crew base and many talented actors, however, as your project is small, you're able to utilize more services than the typical larger feature...However, more than likely, you're still going to pay more in order to shoot there than you're going to get back, unless you go with an entire local crew and cast...However, be aware, one of the key elements of distribution is cast...Few to any "name" talent live in the Seattle area, which means if you want the golden ticket to decent distribution, more than likely you're gonna need a name (if you can afford it at your budget)...There's exceptions to every rule, however, to 90% of productions that go out of state for incentives, you've just hammered home all my points...And final contracts with each state can vary dramatically from their websites, this is standard knowledge...Website postings are half a page at best and even the pdf files they show as examples of their contracts are NOT the final contracts used...My main point is don't go blindly into a place simply because of tax incentives and expecting a huge rebate...Break out your calculator and/or have a line producer/upm (someone with experience doing numerous budgets) do a preliminary budget for you that INCLUDES the REAL costs of travel and living...Don't assume you can fully crew up all major and minor positions in Seattle...More than likely, numerous people are gonna come out of LA...There's something to be said for experience...Again, if your project is under $500k, then it probably doesn't matter who you hire, however, if you're bigger than that, everything I said, backed up by your posting of the washington state requirements, is 100% accurate...Either way, good luck on your shoot and I hope all of you out there never give up the dream...
 
It doesn't appear Nevada has any kind of incentive, not according to their website, anyway. Only a few hours to drive to New Mexico or California.
 
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