March 31, 2022

Georgia Senate Drops Proposal to Cap Film Credit at $900 Million

(variety.com)

The Georgia state Senate has dropped a proposal to cap the state’s film and TV tax credit, after facing industry pushback and opposition from the state House of Representatives.

The Senate Finance Committee passed a measure on Monday that would have capped the credit at $900 million per year. The bill would also have made the credit non-transferable, meaning that studios could not sell their credits to other taxpayers.

The bill was initially scheduled for a vote on the Senate floor on Wednesday, but was withdrawn. At a hearing of the Senate Rules Committee on Thursday, the provisions relating to the film credit were removed from the legislation.

“All references to the film industry have been eliminated from this bill,” said Sen. Jeff Mullis, the chair of the Rules Committee.

The film credit soared to a record $1.2 billion in 2021, making it by far the largest film credit in the country. Sen. Chuck Hufstetler, the chair of the Finance Committee, argued at Monday’s hearing that the credit “needs limitations.”

“It just keeps growing,” Hufstetler said.

The state auditor’s office estimated that capping the credit at $900 million would save the state about $1.7 billion over the next five years. Making the credit non-transferable likely would have reduced the amount of the credit even further, though the auditor’s office was unable to estimate the effect.

House Speaker David Ralston defended the credit at a press conference on Wednesday.

“I’m not prepared to run that industry out of Georgia,” he said.

The debate over the film credit came as part of a broader proposal to slash the state’s income tax.

The House passed a measure earlier this month to establish a flat income tax of 5.25% — down from a top rate of 5.75% — and eliminate many deductions. The Senate Finance Committee proposed retaining the deductions, and lowering the rate to 4.99%, though the rate reductions would be phased in over several years, and would be dependent on revenue triggers. The Senate version also added an earned income tax credit for low-income Georgians.

Without the savings from the cap on the film credit, the Senate version of the bill becomes significantly costlier, and it is not clear how the two versions of the bill will be reconciled.

By: Gene Maddaus

Continue Reading at variety.com

Blue Fox EnteRange Media, FilmNation Ink Film Co-Production Pact

(hollywoodreporter.com)

The management and brand development shop and the indie studio behind ‘Promising Young Woman’ will collaborate on four to six movies a year.

Range Media Partners and Glen Basner’s FilmNation Entertainment have inked a wide-ranging film co-production and co-financing pact.

The agreement will enable talent at Range Media, a management and brand development shop launched in 2020, to get their films made via FilmNation’s production and sales arms. The partners will aim to produce four to six films a year, with more titles to come out of the collaboration if needed.

And that output across a range of genres and budget sizes will be shopped to an array of international buyers. “We at FilmNation are always looking for inventive ways to give the world’s most talented creators an avenue to use our powerful production, sales and finance platform, particularly as a tool to make their creative visions come to life. In partnership with the incredible and entrepreneurial team at Range, we have another great way to achieve this goal,” FilmNation CEO Glen Basner said in a statement.

There’s no word on projects to come from the film pact, but the first ones are expected to be greenlit shortly. While the indie film sector looks to find its box office footing as the pandemic wanes, industry players are searching for creative ways and partnerships to make movies.

Founded by Basner in 2008, FilmNation is known for films like Promising Young Woman, Arrival and The Big Sick, specializing in producing, financing and distributing independent films. “We are delighted to be joining forces with FilmNation as we ramp up our production capabilities. This partnership enables Range and FilmNation to independently greenlight feature films, providing our clients with a viable alternate route to studio financing,” added Oliver Riddle of Range Media Partners.

Range Media represents talent across film, TV, music and other platforms and is backed by strategic partnerships with investors Point72 Ventures and A+E Networks. FilmNation has just released Pablo Larraín’s Spencer, starring Kristen Stewart; Pedro Almodóvar’s Madres Paralelas, starring Penélope Cruz; and Graham Moore’s The Outfit, toplined by Mark Rylance.

By: Etan Vlessing

Continue Reading at hollywoodreporter.com