Great news! On July 22, Governor Newsom signed a bill that provides $330 million “booster shot” for the film and TV tax credit program, far in excess of Governor Newsom’s initial proposal of $30 million.
Production INcentive Updates
Key Takeaways — August 2021
Effective for 2022, applicants for the Oregon Film Incentive Fund must have a written diversity, equity, and inclusion policy and make good faith efforts to hire those from underrepresented groups.
Washington has dropped the Funding Assistance requirements that a Washington resident must hold the position of director, producer, or screenwriter; that 75% of the paid labor force be Washington residents; and that 85% of all production days must take place in Washington State.
The Minnesota House and Senate have reached a deal to create a new $5 million per year tax credit for film and TV production in the state and the bill has been signed by the Governor.
Oklahoma has passed a new film enhancement rebate program that replaced the previous $8 million annual cap with an increased annual cap of $30 million. Read the FAQs here.
Louisiana, the state that set off the explosion of domestic film incentives, has declined to extend their incentive program. It will expire on June 30, 2025. Hopefully, it will be saved!
Lots happening! Last week the Georgia DOR posted the new Agreed Upon Procedures. It is also important to note that qualifying costs related to a shut down due to COVID will expire on August 1, 2021.
Beginning January 1, 2022, the tax credit will become refundable so no taxable income is needed to earn the tax credit. Annual funding under this program will be $75 million per year. Good news for the industry!
Once again, efforts to increase the Pennsylvania film tax credit’s annual cap have failed. The current cap is $70 million and the proposal was for $125 million. We’ll keep our hopes high for next year!
After initially being targeted for reduction, the Massachusetts film tax credit has, once again, escaped reductions. The only substantive change is an increase in the minimum spend from 50% to 75% of the production budget.
The full $38 million in tax credits available for Fiscal 22 to just four productions, before the start of the year on July 1. The situation has surprised local industry executives and drawn the attention of the Puerto Rico Senate.
A bill to increase Maine’s film incentive has been postponed until the Legislature’s next session. We will keep our fingers crossed!