Post on 22-Jan-2018
Great States 2016for AdvertisingProduction Incentives
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State Production Incentives for Advertisers
States have expanded their Film Production Incentive Programs to entice commercial advertisers to shoot in their state. Production incentives come in the form of cash rebates or tax credits that can be converted into dollars.
LGdirect’s Incentive Division was created to give advertisers access to these funds. Our team, headed by Howie Markowitz, works with your agencies, cost consultants, and production companies to create a strategic plan for cost savings without sacrificing creativity.
Each state has unique requirements for filing the application, qualifying expenditures, and distributing funds. These requirements are nuanced and require strategic interpretation and application. LGdirect navigates this complex process for you and maximizes production dollars back to your brand.
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Contact Howie Markowitzh.markowitz@lgdirectco.com (323) 353-1900 d i rect(866) 696-5034 o f f ice
The 12 Best State Incentive Programs for Advertisers in 2016
LGdirect has identified the following state programs as being the most beneficial to Advertisers’ needs. The following serves as a guide to the top line benefits from each of these twelve states followed by a detailed side-by-side comparison chart.
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ColoradoConnecticutGeorgiaHawaiiIllinoisLouisianaMassachusettsMinnesotaOhioPuerto RicoTexasWashington
Colorado Sample Production CreditsThe Hateful 8
Furious 7 Identity Theft
The Lone Ranger
• 20% rebate on local Colorado expenditures andpayroll expenditures for work performed in Colorado,for both in state and out of state residents.
• Minimum spend for commercials is $250,000. If usinga Colorado based production company, the minimumspend is $100,000.
• Applications must be submitted prior to principalphotography.
• 50% of workforce must be Colorado residents.
20%Colorado Office of Film,Telev i s ion , & Mediawww.coloradofilm.org
• 10-30% on qualified expenditures.
• Minimum spend for commercials: $100,000.
• Applications can be filed after the start ofproduction.
• 50% of production days, or 50% of productionspend must occur in Connecticut.
• Celebrity wages are capped at $20 million.
• Production equipment purchased or rented out ofstate (i.e., New York) can qualify for the incentive.
• Both resident and nonresident crew and talentqualify.
• Incentive program is very favorable to celebritytalent.
30%Connecticut Office of Film, Television, and Digital Media
www.ctfilm.com
Connecticut Sample Production CreditsThe Opposite Sex
The TownThe Office
Georgia
20%Sample Production Credits
The Walking DeadThe Hunger Games
QuanticoAnt Man
ConstantineMagic Mike XXL
Georg ia F i lm , Mus ic , & Digital Entertainment Office
www.georgia.org/fmde
• Offering 20% on qualified expenditures and workperformed in Georgia.
• The minimum spend for commercials is $500,000.
• Crew and talent wages qualify for both in state andout of state residents qualify.
Hawaii
• Offering 20% on qualified expenditures on theisland of Oahu.
• Offering 25% on neighbor Hawaiian islands.
• Minimum spend for commercials is $200,000.
• Qualifying expenditures include cast and crewwages.
• Both Hawaiian residents and out of state residentsqualify.
• All production equipment and supplies purchased orrented in Hawaii will qualify.
• Travel that originates or ends in Hawaii will qualify.
Sample Production CreditsHawaii 5-0 (series)
AlohaThe Spongebob Movie: Sponge Out of Water
Pirates of the CaribbeanThe Descendants
Hawai i F i lm Of f i cewww.filmoffice.hawaii.gov
25%
I l l ino is
• Offering 30% on qualified production expenditures.
• IL resident crew wages qualify.
• IL resident talent sessions and residuals qualify.
• IL based production and post production expendituresqualify.
• The minimum spend for commercials is $50,000.
• Application must be filed a minimum of 24 hoursprior to filming.
Sample Production CreditsSpiderman 2Bridesmaids
Gone GirlTransformers
Batman Begins
30%Il l inois Film Officewww.illinoisfilm.biz
Louisiana
• Offering 30% on qualified expenditures, crew andtalent wages.
• Resident and Non-Resident crew and talent qualify.
• Offering 40% on crew and talent who are Louisianaresidents.
• The minimum spend for commercials is $300,000.
• Applicant must be a registered Louisiana company.
• Incentive program is very favorable to celebritytalent.
30%Sample Production Credits
Dawn of the Planet of the ApesMr. Right
Jurassic WorldAmerican Horror Story Freak Show
Astronaut Wives ClubPitch Perfect 2
NCIS New Orleans
www.louisianaentertainment.gov
Massachusetts
• Offering 25% on qualified expenditures.
• Minimum spend for commercials is $50,000.
• 50% of production spend, or 50% of principalphotography must take place in Massachusetts.
• Qualified expenditures include all productionsexpenses incurred in Massachusetts.
• Both in and out-of-state crew and talent wages qualify.
• Incentive program is very favorable to celebrity talent.
Sample Production CreditsTed 2
Olive KitteridgeThe Judge
American Hustle
25%Massachusetts Film Office
www.mafi lm.org
• “Snowbate” features a 20 to 25% cash rebate on qualifying production expenditures.
• Applications must be submitted prior to shoot.
• The minimum spend for commercials is $100,000.
• Out of state crew does not qualify.
• Out of state, above the line talent qualifies with a cap of $100,000.
• Airfares qualify for the incentive if booked through a Minnesota travel agent or a Minnesota based airline is used.
Minnesota
25%Sample Production Credits
FactotumDear White People
A Serious ManThe Big C
Minnesota Film and TV www.mnfi lmtv.org
The “Snowbate”
www.ohiofi lmoff ice.com
25%• Offering 25% on qualified in-state expenditures and
non-resident wages.
• 35% for Ohio resident wages.
• The minimum spend for commercials is $300,000.
• Qualified expenditures includes equipment, travel, and post production.
Ohio Fun Fact: Ohio is 41% less expensive than the
Los Angeles region, and over 50% less expensive than Manhattan.
40%Puerto Rico
• Offering 40% on payments to Puerto Rican residents, crew and production companies.
• Offering 20% on payments to non-resident crew.
• The minimum spend for commercials is $100,000.
• Applicants must obtain a Pre-Application Conference Letter prior to production.
• Must submit an application prior to the completion of shoot.
• $50 million annual program cap. www.puertoricofilm.com
Sample Production CreditsMarvel Agents of Shield
Our Brand is CrisisRoyal Pains (series)
22 Jump StreetFast and Furious
www.gov.texas.gov/film
5%Texas
• Texas features a grant program of 5%-10%:
5% for commercials with qualified spend under a $1 million;
10% for productions with qualified spend over $1 million.
• Additional 2.5% for productions shooting in “underutilized or economically distressed areas”
• Funding is based on a 2 year budget. Must check for available funding prior to production.
• The minimum spend for commercials is $100,000.
• Must submit applications art least 5 days prior to start of production.
• 70% of combined crew and cast must be Texas residents.
• 60% of principal photography must take place in Texas.
Sample Production Credits Boyhood
No Country for Old MenSpy Kids
Cast Away
washingtonfilmworks.org
• Offering a 25% rebate on qualified Washington expenditures.
• Minimum spend for commercials is $150,000.
• Applications must submit prior to production.
• If production employs 85% of Washington resident labor wages, 15% of non-resident labor wages will qualify.
• Annual program cap of $3.5 million.
Washington
25%Sample Production Credits “Z” Nation
LaggiesTwilight Saga “Eclipse”
Shop Girl
Colorado Connecticut Georgia Hawaii Illinois Louisiana
Incentive Applied topayroll and expenses 20% 10% - 15% - 30% 20% 20%, 25% 30% 30%
Per Project Cap None None None $15,000,000 None $30,000,000*
Annual State Allocation $5,000,000 None $12,500,000 None None $180,000,000*
Minimum Spend$100,000 CO company,
$250,000 all others $100,000.-$1,000,000. $500,000 $200,000 $50,000 $300,000
Qualified EmployeesResidents and non-
residentsResidents and non-
residentsResidents and non-
residentsResidents and non-
residents Residents onlyResidents and non-
residents
Salary Cap $1,000,000 $20M aggregate$500,000 for W2; No cap
1099 none $100,000$3,000,000; No cap for
loan-outs
Can Loan Out Qualify? Yes Yes Yes Yes Yes Yes
CPA Audit Required? Yes Yes No, but recommended Yes Yes Yes
Special requirements andrestrictions to receive
incentive:
50% of workforce must beCO residents
Spend min. of 50% ofproduction days in CT
Airfare will qualify ifpurchased through aGeorgia based travel
agency.
A “reasonable” effortmust be made to hirelocal crew and talent.
Must provide evidence offinancial, educational, or
workforce development inHawaiian film industry
Production mustdemonstrate an effort to
hire “diverse” crew.Production must provide a
“competitive needs”statement demonstratingwhy the Illinois Film Tax
Credit is essential inchoosing Illinois as
location.
Louisiana requiresplacement of state logo
on production, orproductions website orsocial media profile (i.e.
facebook, instagram,twitter, youtube)
URL/Website www.coloradofilm.org www.ctfilm.com www.georgia.org/fmde www.filmoffice.hawaii.gov www.illinoisfilm.biz www.louisianaentertainment.gov
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State Production Incentive Details
Massachusetts Minnesota Ohio Puerto Rico Texas Washington
Incentive Applied topayroll and expenses 25% 20%, 25% 25%, 35%
40%, 20% non residentcast& crew 5%, 10%, 12.5% 15%-25%
Per Project Cap None $5,000,000 $5,000,000 None Unlimited Unlimited
Annual State Allocation None $10,000,000 $20,000,000 $50,000,000 $32,000,000 biennial $3,500,000
Minimum Spend $50,000$100,000 (minusProduction Fee) $300,000 $100,000 $100,000 $150,000
Qualified EmployeesResidents and non-
residentsResidents and non-
residentsResidents and non-
residentsResident and non-
residents Resident only
Resident and non-resident (if resident labor
is 85%+)
Salary Cap $1,000,000Non-resident ATL talent
100K in credit No None $1,000,000 Non-Residents $50,000+
Can Loan Out Qualify? Yes Yes Yes Yes Yes Yes
CPA Audit Required? YesOn production over
$1,000,000 CPA required Yes YesIf receiving more than
$300,000 No
Special requirements andrestrictions to receive
incentive:
50% of production spend,or 50% of principal
photography must takeplace in Massachusetts
At completion projectsmust complete the
“Snowbate ExpenditureReport.”
The application fee is .5%of the estimated taxcredit with a cap of
$10,000. Applicationsmust include budget,
storyboards, "taxdisclosure" form, and
documentation offinancial ability to
complete the project.
50% of principalphotography must take
place in Puerto Rico
60% of principalphotography must takeplace in TX. 70% of cast
and crew must be TXresident.
Completion Package mustbe filed within 45 days ofcompletion of production
URL/Website www.mafilm.org www.mnfilmtv.org www.ohiofilmoffice.com www.puertoricofilm.org www.texas.gov/film www.washingtonfilmworks.org
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State Production Incentive Details
Contact Howie Markowitzh.markowitz@lgdirectco.com (323) 353-1900 d i rect(866) 696-5034 o f f ice
directCurrently, there are 32 states with production incentive programs. States are constantly enacting new legislation, unlocking new opportunities for commercial production across the nation. We work with states on tailoring their legislation in order to fit the needs of advertisers and their agencies.
The twelve states featured in this guide were selectedtaking into account not only the monetary return, but also on the depth of crew, availability of equipment, studios, and talent pool. These twelve states are home to some of the largest production assets in the nation.
Contact LGdirect for a rebate quote on your next production.