The California Film Commission released its annual Progress Report, which includes new data on the state’s Film & TV Credit Program 2.0. During FY 2018-19 (the fourth year of the program), $347M was allocated to 46 film and TV projects, out of 180 projects that applied.
With a total in-state spend of $2.4B, these productions employed 5,600 cast and 8,000 crew members to generate $889M in qualified spending for wages. Non-wage/vendor expenditures totaled $775M, with an additional $801M in non-qualified in-state spend.
In August 2018, the legislature enacted the third iteration of the California Film & TV Tax Credit Program. Dubbed Program 3.0, it is a five-year incentive that will go into effect July 2020, when Program 2.0 expires.
AB 5580 has passed the state’s Assembly Appropriations Committee. The bill, which was introduced in June of this year, proposes to raise the annual cap of the New Jersey Film & Digital Media Tax Credit Program from $75M to $100M and extend the programs sunset date from July 1, 2023 to July 1, 2028.
If enacted, the bill would take effect immediately.
SB 578, which was sent to the Governor in early November, was vetoed. The bill proposes to lower the minimum spend on theatrical features from $3M to $1.5M, and on TV movies and series (per episode) from $1M to $500K. The bill would also raise the project cap on a TV series (single season) from $12M to $15M.
Currently the bill is pending an override by the state Senate, who will return to session in mid-January.
The government of the Czech Republic approved additional funding for the Czech Film Fund’s 2019 production incentives budget. With an additional CZK500M (approx. $21.5M), the total 2019 operating budget is now CZK 1.3B (approx. $56M).
The incentive offers a 20% rebate on qualifying Czech spend and up to 10% on qualifying international spend. There are no per-project caps.
The South African Department of Trade and Industry (DTI) has released its annual incentives report. Through the Film and Television Production incentive (page 78), in 2018 – 19 the DTI approved 102 projects overall, with over R670M (approx. $45.2M) provided to foreign film productions shooting in South Africa. The 31 foreign films approved for the incentive had a projected R3.3B (approx. $222M) in Qualified South African Production Expenditures and created over 4,000 full time jobs.
These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and therefore this information may have been revised. Please contact your legal or tax advisors to confirm any laws or the effect of incentives on your project. For updates and more information, please visit our website at productionincentives.com.
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