newsletter-header January 23, 2020
Cast & Crew Financial Services (CCFS) offers both U.S. and Canadian production incentive management services from setup to audit, as well as completion bond services and production incentive financing.

PROPOSED LEGISLATION

Still in the House or Senate

Indiana (H 1234) and (S 262)

House Bill 1234 and Senate Bill 262 propose to establish the Indiana Film and Media Production Rebate program. Details of the program are as follows:
  • Creates a rebate on the 1st $5 million of qualified expenditures equal to:
    • 30% of total qualified wages, salaries, and benefits for resident and nonresident labor;
    • 20% of total qualified in-state expenditures;
    • 35% of total qualified wages and salaries of trainees who are Indiana residents and student interns currently enrolled in a state educational institution;
  • Requires:
    • a minimum spend of $500,000 in qualifying expenses ($100,000 for animation and music productions);
    • that at least 50% of the total incurred expenses for production are incurred in Indiana;
    • an initial and final application fee;
    • a screen credit with a statement indicating “filmed in Indiana” and additional promotional material;
  • Establishes an annual funding cap of $5 million per fiscal year (7/1 – 6/30); and,
  • Establishes a sunset date of December 31, 2027.

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Missouri (H 2027)

House Bill 2027 proposes to establish a film production incentive program as follows:
  • Allows for a transferable tax credit to be earned that is equal to:
    • 20% of qualified instate spend and resident labor;
      • Qualified resident labor does not include any amounts paid to an individual earning in excess of $250,000;
    • 10% of qualified nonresident labor;
      • Qualified nonresident labor does not include any amounts paid to an individual earning in excess of $250,000; and,
    • Requires a minimum in-state expenditure budget of more than $50,000 or $100,000 for projects with a runtime of less than 30 minutes or more than 30 minutes, respectively;
    • Requires an approved end credit statement and logo; and,
    • Establishes a sunset date of December 31, 2026.
If enacted, the Act shall take effect for tax years beginning on or after January 1, 2021.

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Virginia (H 1318)

House Bill 1318 proposes to amend the Virginia motion picture production tax credit program as follows:
  • Allows unallocated funds to rollover to the following fiscal year (7/1–6/30); and,
  • Extends the sunset date to December 31, 2026, previously December 31, 2022.

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Virginia (H 1533) and (S 923)

House Bill 1533 and Senate Bill 923 propose to amend the Virginia motion picture production tax credit program as follows:
  • Increases the annual funding cap from $6.5 million to $13 million for the fiscal year ending June 30, 2020 and each fiscal year thereafter, with the following limitation:
    • $6.5 million of the annual funding cap will be allocated to taxpayers for productions filmed in an economically distressed area.

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West Virginia (H 2941)

House Bill 2941 proposes to amend the West Virginia Film Industry Investment Act as follows:
  • Reinstates the West Virginia transferable film tax credit equal to 27% of qualified in-state spend and resident and nonresident labor, subject to West Virginia income tax;
    • Allows an additional credit equal to 4% on all qualified expenditures when a qualified production hires at least ten West Virginia residents in full-time or apprentice positions, including talent and above-the-line and below-the-line crew, during principal photography;
  • Requires a minimum spend of $50,000 in qualified expenditures;
  • Establishes an annual funding cap of $20 million per fiscal year (7/1 – 6/30), however, the development office may allocate a greater amount of credit for any feature length film produced with “West Virginia” in the title or if the subject of the film is clearly identified as West Virginia; and,
  • Requires an audit performed by an independent certified public accountant.

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Production Incentives

Joe Bessacini
Vice President,
Film & TV Production Incentives

818.480.4427 joe.bessacini@castandcrew.com

Incentive Financing

Deirdre Owens
Vice President,
Production Incentive Financing

818.972.3201 deirdre.owens@castandcrew.com

Cast & Crew | www.castandcrew.com

Production Incentives

Joe Bessacini
Vice President,
Film & TV Production Incentives

818.480.4427 joe.bessacini@castandcrew.com

Incentive Financing

Deirdre Owens
Vice President,
Production Incentive Financing

818.972.3201 deirdre.owens@castandcrew.com

Cast & Crew | www.castandcrew.com