March 14, 2022

New Law Adds Incentives for Indiana Media Productions

(insideindianabusiness.com)

INDIANAPOLIS – A bill heading to Governor Eric Holcomb’s desk includes a provision that has been years in the making. Senate Enrolled Act 361 was authored to modernize the toolkit used by the Indiana Economic Development Corp. and includes tax incentives for film and media productions in the state. Eligible productions, which could include film, television, music, or digital media, could receive tax credits for up to 30% of their production expenses.

In an interview with Inside INdiana Business, State Representative Bob Morris (R-Fort Wayne) talked about the importance of having a 30% tax credit.

“It puts us right up there with the other top four states in the country as far as welcoming businesses that want to shoot film here in Indiana. It’s the likes of New Mexico, Georgia, North Carolina and Kentucky as well,” said Morris.

Previous bills to create an incentive program for film and media productions have failed in the past. Morris said he worked to convince his colleagues at the Statehouse that this type of program only makes sense for the state.

“One thing that really inspired a number of members in the General Assembly was when I questioned them why we were offering film classes and media classes in our universities when 98% of these students left the great state of Indiana and went to another state to work,” he said. “I really grabbed on them on that.”

Greg Sorvig, artistic director for Heartland Film in Indianapolis, says having these incentives in place is the missing piece that many people in the film industry have been hoping for.

“We put together Oscar-qualified film festivals here in Indiana…and we host filmmakers who are on the independent, hyper-local level up to huge, Oscar-contending titles with the big studios. People come to Indiana and they’re impressed; they want to do business here. But, I’ve been told face-to-face, ‘I can go over a bridge to Louisville. I can go over to Ohio and I want to make things here. I just can’t. It doesn’t make financial sense.’”

Sorvig says having film incentives in place is all about economic development, but could bring additional benefits such as increased tourism.

Tony Samuel, president of Samuel Solutions Group, helped with the film incentives effort and says while the program has been approved, there is still work to do to get everything up and running.

“It may take a little bit of time to put together the structure of the program, not just the application process, but to determine what makes a production qualify for the tax credit, what expenditures can apply for the tax credit, which won’t, do you hire a film commissioner, what kind of staff?” said Samuel. “We’re starting discussions already with the IEDC. They’re excited. They wanted this program. So, over the next few months, you’ll learn more.”

SEA 361 was one of Governor Holcomb’s key agenda items and allows the IEDC to expand its ability to attract new businesses to the state. It provides a $300 million cap on the amount of tax credits the IEDC can provide per year and also establishes Innovation Development Districts in which the state can capture property, income and sales tax for economic development needs.

Once signed by the governor, the new law will go into effect on July 1.

By: Alex Brown

Continue Reading at insideindianabusiness.com

Moneyball Moviemaking is Killing Creativity, Crypto is the Cure

(nasdaq.com)

After another incredible display of vibrant and distinctive voices at this year’s SXSW, all eyes are on the studios as they open their wallets to swoop in and hitch their wagon to the next Moonlight. Cashing in on creative success without rolling the dice on that upfront financial risk. Of course, I don’t blame anyone for wanting to make money. That’s the way this industry works. As we go deeper into the streaming era, financing options no longer have to follow the traditional binary: cobbling together independent financing to follow your vision and hope someone picks it up on the back end, or submitting to the “platformization” of film and television production that has fallen victim to a continued reliance on opaque algorithms, metrics and aversion to risk. New options are emerging underpinned by blockchain technology that allow for entirely new models of ownership and development in the film industry. 

I spent years at a talent agency focusing on finding ways to capture new revenue streams for artists from big brands and corporations to afford them the ability to create things on their own. This unfortunately always came with strings attached, hitting and reporting on brand KPIs, product placement, branded content tie-ins, all distractions from the art. Whether it’s Google or Netflix, these are businesses at the end of the day. They’re not looking through a lens of how this project might shift culture and introduce inclusive, diverse narratives that help us see the world; they’re looking out for their bottom line. 

On the flip side, filmmakers have been selling their comic book collections or launching Indiegogo campaigns to raise money, propose fixed or flexible budgets, and/or use reward-based fundraising for years. There have always been viable, although challenging, ways around the traditional studio system. Crowdfunding – or raising money from the project’s most loyal fans and friends – was a key part of financing movies such as Veronica Mars and The Babadook. Equity crowdfunding, introduced in title III of the JOBS Act in 2016, took this concept to the next level and gave non-accredited investors the opportunity to invest in early stage startups and companies. Platforms like WeFunder and StartEngine are giving fans the opportunity to become producers and earn returns on their investments in new creative work. This industry hasn’t generated major traction yet, but it has been an inspiration for another movement that has the potential to take the industry by storm. 

By: Alexandra Hooven

Continue Reading at nasdaq.com