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Georgia Scraps Bill To Cap Its $900 Million Film Incentives & Barring Sale Of Tax Credits

(deadline.com)

UPDATED, 5:59 PM: Proposed changes to Georgia’s best-in-the-country film incentives program have been scrapped. The proposed changes, which would have capped tax credits at $900 million a year and banned film companies from selling the credits to third parties, had been backed by Georgia’s Senate Finance Committee but got no further in the legislative process.

PREVIOUSLY, March 29: A bill pending in the Georgia legislature would put a cap of $900 million on the amount of tax incentives the state gives to filmmakers each year, which has turned Georgia into one of the nation’s top filming destinations. That $900 million, which is about what the state pays out now each year, is more than any other film rebate in the country, and more than double California’s current $440 million in tax credits.

The proposed cap, which is backed by Georgia’s Senate Finance Committee, would also prohibit film companies from selling their tax credits – a common practice under the state’s existing rules among companies that aren’t based in Georgia.

California has a hybrid mix of transferability: Tax credits given to independent films are transferable – meaning they can be sold to third parties – but tax credits for relocating TV series and non-independent feature films are non-transferable.

Proponents of the proposed changes in Georgia say that an overhaul of the state’s film subsidies is long overdue. Opponents, however, note that the tax breaks support 75,000 jobs in the state, and that changing the rebate system could seriously undermine that.

“Why should Georgia be on the hook for up to 30% of the expenses for film & TV productions?” tweeted Danny Kanso, senior tax policy analyst for the Georgia Budget and Policy Institute and a supporter of the overhaul. “Permanently subsidizing a huge portion of costs for an entire industry is not justifiable. This is made worse by the current lack of caps, disclosures, or basic safeguards. Georgians who want to see less of their tax dollars sent to subsidize out-of-state corporations and non-resident workers should support the important provision included by the Senate Finance Committee in HB 1437 to eliminate transferability to the sale of film tax credits.”

Georgia state Senator Nan Orrock, a Democrat, urged caution. “I would feel very cautious about whacking this tax credit,” she told the Atlanta Journal-Constitution.

By: David Robb

Continue Reading at deadline.com

Kevin Smith Named Interim CEO of Denver Film

(westword.com)

Kevin Smith — no, not that Kevin Smith — was only planning to stay in Denver a year when he moved here about seven years ago. But as of this week, he’s the new Interim CEO for Denver Film.

Founded in 1978, Denver Film is the nonprofit cultural institution that produces film events throughout the year with a vision to cultivate community and transform lives through film. Its permanent home, the Sie FilmCenter, is Denver’s only year-round cinematheque, presenting a weekly changing calendar of first-run exclusives and arthouse revivals both domestic and foreign, narrative and documentary — over 600 per year, all shown in their original language and format. Denver Film programs annually reach more than 200,000 film lovers and film lovers in training.

One of those film lovers is Smith, who was the natural choice upon the sudden departure of former CEO James Mejia, a parting that all parties are defining as “amicable.” Smith, who served as staff director and chief marketing officer at the nonprofit for several years, was given the nod.

“I’m really grateful for the opportunity,” Smith says. “I’ve really enjoyed my time getting to work with James. I hope that in my time in this position, I can help to build off that foundation. It’s been something of a whirlwind in the last two weeks, but we’re moving forward, and we have a lot of great opportunities ahead of us as an organization.”

By: Teague Bohlen

Continue Reading at westword.com

California Film Commission Announces Upcoming Application Dates for Film and TV Tax Credit Program 3.0

(news.bloombergtax.com)

 The California Film Commission March 1 announced upcoming application dates for the Film and TV Tax Credit Program 3.0 for corporate income, individual income, and sales and use tax purposes. The application periods are: 1) June 13 through June 15 for new TV series, mini-series, pilots, and recurring and relocating television series, with Phase II from June 16 through June 20; and 2) July 18 through July 20 for independent and non-independent feature films, with Phase II from July 21 through July 25. The approval dates are July 18 for new TV series, mini-series, pilots, and recurring and relocating television.

By: Bloomber Tax

Continue Reading at news.bloombergtax.com

California’s Film & TV Tax Credit Program 2.0 has Generated $21.9bn

(kftv.com)

California’s film & TV tax credit program 2.0 has generated a total of $21.9bn in economic output and $961.5m in state and local tax revenue over its five-year run, according to the California Film Commission.

A new study by the California Film Commission, Los Angeles Economic Development Corporation (LAEDC) and Motion Picture Association (MPA) shows that for every $1 allocated, the state benefitted from at least $24.40 in economic output.

Governor Newsom expanded the program last year by an additional $330m per year in tax credits to fight ‘runaway production’ and boost film/TV production employment and spending across the state. Newsom claims the expansion has also helped support over 110,000 jobs.

“Our uniquely targeted tax credit program enables us to level the playing field, fight runaway production and deliver a significant value to taxpayers,” said California Film Commission executive director Colleen Bell. “Our program welcomes big-budget films, small-budget indies and everything in between. It has also been very successful with TV production, incentivizing new and recurring projects while prompting dozens of series to relocate here from other states and nations.”

“The success of this program is not only the jobs created and retained, but the economic engine it provides to other businesses throughout the region and the state,” added Dee Dee Myers, senior advisor to the governor and director of the Office of Business and Economic Development.

By: Melissa Kasule

Continue Reading at kftv.com