Updates by Jurisdiction

U.S. Updates

For more information on incentives in each state, visit the Production Incentives map on our website and click on the state of interest.

HB 1461 was introduced, which would amend the state’s Digital Product and Motion Picture Industry Development Act to specify that rebates are under the discretion of the Executive Director of the Arkansas Economic Development Commission. The bill would also extend the rebate program’s sunset date from June 30, 2019 to June 30, 2029.

HB 6267 was introduced, which would reinstate feature films as an eligible production type.

SB 526 was introduced, which would create the Film, Television, and Digital Media Targeted Grant Program with the Department of Economic Opportunity, under the supervision of the Commissioner of Film and Entertainment. A qualified project would be eligible to receive up to a 23% grant on qualified expenditures, with a project cap of $2M.

SB 33 was introduced, which would repeal the annual $35M rolling cap for the Motion Picture, Digital Media, and Film Production Income Tax Credit. If passed, the bill would apply to taxable years after December 31, 2018.

SB 1595 was introduced, which would amend the Film Production Services Tax Credit to allow Illinois labor expenses to include the first $200K of out-of-state wages paid or incurred by a production company or loan out corporation, subject to withholding payments. If passed, the bill would be effective immediately.

HB 961 and SB 419 were introduced, which would allow a refundable tax credit of 25% on qualified film production and post-production expenditures made in Minnesota.

SB 487 was introduced, which would repeal the state’s Snowbate program.

HB 923 and SB 366 were introduced, which would establish the Show Missouri Film and Digital Media Act. The program would allow qualified productions to receive a tax credit of up to 25% on qualified in-state expenses and 15% on qualified out-of-state expenses. If passed, the tax credit would be available for tax years on or after January 1, 2020.

HB 293 was introduced, which would create the Montana Economic Development Industry Advancement Act. A qualified production would be eligible to receive up to a 35% transferable tax credit on qualified expenditures. If passed, the bill would be effective immediately.

SB 57 was introduced, which would reenact the state’s refundable film tax credit. If passed, the new sunset date would be January 1, 2023, and the act would be effective for taxable years beginning on or after January 1, 2019.

HB 527 was introduced, which would authorize the payment of all approved film tax credits.

SB 2 was introduced, which would amend elements of the state’s film production tax credit. If passed, the bill would eliminate the aggregate cap of $50M, as well as certain increases to the tax credit.

AB 3883 was introduced, which would define “film zone” and exclude film zone from the additional empire state film production credit.

AB 5185 was introduced, which would add any production that depicts or refers to any tobacco product or non-pharmaceutical delivery device, or its use, associated paraphernalia, or related trademarks or promotion material, to the list of non-qualified productions.

AB 5277 was introduced, which would add animated short films, broadcast series, and/or features to the list of qualified productions.

SB 37 was introduced, which would extend the motion picture tax credit to include Broadway theatrical production.

SB 200 was introduced, which would increase the annual cap on the state’s film rebate program from $4M to $8M, as well as extend the sunset date from July 1, 2024, to July 1, 2027.

HB 5161 was introduced, which would remove the $7M project cap and raise the annual cap from $15M to $25M.

HB 2941 was introduced, which would reinstate the film investment tax credit.

International Updates

For more information on incentives around the world, visit our website and click on the country of interest.

CANADA – Manitoba
The Manitoba government is making its tax credit for film and video productions permanent by eliminating the sunset clause. The credit allows producers to get 45% to 65% of a project’s labor cost. The latter percentage is reached when including bonuses for frequent filming, shooting in rural or northern locations, and by co-producing with a Manitoba producer. As an option, Producers can apply for the ‘Spend’ tax credit instead, which is 30% of qualifying labor and other production costs.

EP Locations Spotlight

Entertainment Partners is a primary contributor to Variety‘s “Artisans” Feature, spotlighting various filming locations around the world. Here are the locations we have covered in recent weeks.

Producers seeking a location that blends the traditional with the modern, offers mountains and coastlines, boasts historic structures and contemporary architecture, should consider South Korea, a country with a thriving local film industry, well developed production infrastructure, experienced crews, and a wide choice of accommodations and restaurants. In addition, South Korea provides a cash rebate of up to 25% on qualified spend.

The cash rebate is 20% for three minimum shooting days and a minimum spend of 100M won (approximately US$88K).

For producers seeking a location that possesses both natural beauty and a bustling urban landscape, the Czech Republic fits the bill. The country has a long and illustrious film industry (think Milos Forman) and is the site of the Karlovy Vary International Film Festival every summer, which gathers indie filmmakers and studios alike in an idyllic setting in the Carpathian Mountains. Plus, the country delivers a 20% rebate on qualifying spend.

The 20% spend applies to qualifying spend in the Czech Republic. There is also a 66% rebate on withholding tax paid in the Czech Republic by international cast and crew. Additionally, there is no cap on per-project grants, and there is no sunset date on the program — a big plus for producers seeking stability.

DISCLAIMER: 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.

Providing links to other sites shall not be construed as an endorsement by Entertainment Partners of the linked websites or the opinions expressed on such websites.

Loans made by GEPF, LLC and EP Financial Solutions, LLC, made or arranged pursuant to a California Finance Lenders Law license.