Uncategorized

Justice Signs $4.6 Billion West Virginia Budget, Appropriations Bills

(kpvi.com)

 

(The Center Square) – West Virginia Gov. Jim Justice signed a $4.635 billion budget bill with one line-item veto, along with several supplemental appropriations bills passed by the General Assembly.

The budget includes a 5% pay raise for teachers and other state employees. The budget also provides additional funding for West Virginia University and reinstates a film tax subsidy, which had previously been suspended. The film tax subsidy will receive $10 million in funding, which is double what the fund had in previous years.

About 44% of the budget will be spent on public education, 26% will be spent on social services and 10% will go to higher education.

Justice vetoed a line of the budget that would have transferred $265 million worth of surplus funding to the Department of Revenue for the general revenue fund. The governor said in a letter explaining his veto there is no reason to set aside surplus revenue to an agency without any general law purpose. He said the general revenue fund does not need the additional money because the legislature never passed the proposed income tax reduction.

“As a good steward of taxpayer dollars, I want to be as transparent as possible when it comes to how we are spending the taxpayers’ money, let alone the surpluses we have been blessed with by making the right, thoughtful moves,” Justice said.

Garrett Ballengee, the executive director of the free-market Cardinal Institute told The Center Square the budget is responsible, but it should have also included tax relief.

“For the last half decade, West Virginia has passed fiscally responsible budgets, and this most recent budget, luckily, continues that trend,” Ballengee said. “That said, West Virginia continues to pile up budget surpluses for [a] wide variety of reasons, so I am hoping that substantive discussions will be had on how best to use the surplus money, particularly through “pay-down” mechanisms for reductions in the income tax. It’s important to remember that every dollar sloshing around in the state budget is a dollar not in someone’s wallet, and while surpluses are nice, they should be used to prompt serious discussions on reducing the burden of taxation.”

The House of Delegates passed legislation that would have reduced income taxes by 10% for every income bracket and offset some of the costs with the state’s surplus funding. However, the legislation never passed the Senate and was not included in the final budget.

This is the second straight year that state lawmakers have tried to pass legislation to reduce the income tax burden on residents. Last year, the governor and both chambers introduced bills that would have reduced or eliminated the income tax, but the three sides failed to reach an agreement.

By: Tyler Arnold

Continue Reading at kpvi.com

Canada, Georgia Benefit Most From California Runaway Productions

(hollywoodreporter.com)

 

Roughly half of the projects that applied for but didn’t receive tax credits to shoot in California from 2015 to 2020 chose to film elsewhere, costing the state $7.7 billion in economic activity, 28,000 jobs and over $350 million in state and local taxes.

According to a new study commissioned by the Motion Picture Association, a trade body for the major studios, runaway productions generated over $3 billion in spending in areas the projects went to. The most popular destinations were Canada, Georgia, and New Mexico.

“If these productions had stayed in the state, California would have reaped the economic benefits,” reads the report conducted by the Los Angeles County Economic Development Corporation (LAEDC).

The findings are meant to boost support for film and TV tax credits given out by California. Under the program, the state provides productions $330 million annually by allowing filmmakers to get back 20 to 25 percent of their spending on qualified expenditures, such as paying crew and constructions costs. It does not include salaries for actors, licensing fees and distribution expenses.

In July, Gov. Gavin Newsom signed a bill (SB144) adding another $330 million in tax credits to the program, which is set to expire in 2025, to incentivize shooting in the state amid concerns that California was losing its foothold as the country’s major film hub. Another bill expected to be signed by Newsom will extend the credits through 2030.

“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,” said Dee Dee Myers, director of the Office of Business and Economic Development, in a statement. “This LAEDC Report reveals how much that means to California’s economy – and why we’re so committed to this critical industry here in our state.”

The program contributed from 2015 to 2020 $22 billion in economic output and 110,300 jobs, the study estimated. This increase in economic activity returned to state and local governments roughly $962 million in tax revenue.

The study evaluated 169 productions that were given tax breaks. These projects were given $915 million in credits and generated $7.4 billion in direct spending.

The report also followed 157 projects that were denied tax credits to shoot in California. The study’s authors said that about half of the productions that weren’t selected ended up leaving the state altogether for another jurisdiction.

By: Winston Cho

Continue Reading at hollywoodreporter.com

Mathew Knowles To Head $275M Film And TV Fund Following Sale Of Music World Entertainment

(finance.yahoo.com)

 

Veteran music exec and father to superstars Beyoncé and Solange, Mathew Knowles is ready to take the next leap in his career.

After selling his famed Music World Entertainment to investment firm APX Capital Group, the former Destiny’s Child manager will now head the company’s film and TV division, responsible for a $275 million fund for productions between the U.S. and Italy, reports Deadline.

As part of the deal with the investment fund, Knowles is getting ready for his own biopic à la King Richard, about his role behind the scenes in building both his daughters’ stardom and his hand in not only their solo careers, but Michelle Williams and Kelly Rowland’s as well.

The Mathew Knowles Story will reportedly be executive produced by the Knowles patriarch, alongside venture capitalists and entrepreneurs Noam Baram, Yona Wiesenthal, and Augusto Pelliccia, among others.

APX Capital Group will own over 10,000 hours of never-before-seen footage, images, and music of the Knowles family in their rise to fame, per the outlet.

“The decision to partner with APX Capital Group is well made and corresponds to Music World Entertainment Group’s intent to expand its film and television portfolio,” Knowles stated. “Through this unique collaboration and as head of this new division under APX I’ll be able to share the story of my life by combining compelling storytelling with access to exceptional talent and music that will both entertain and emphasize a cultural awareness that’s necessary now more than ever. This is the story of my life, and I am honored to be able to transmit it even further through this alliance.”

The co-CEO of the real estate investment firm was also ecstatic to have Knowles join APX’s board.

“We are beyond thrilled to reach this groundbreaking agreement with Mathew and his team to develop impactful content told through the voice of one of the most successful and insightful entrepreneurs in entertainment today,” said Wiesenthal.

Knowles will additionally develop, fund, and produce content that includes documentaries, feature films, and scripted series. The $275 million film and TV fund will be run through APX’s Italian subsidiary, MMF Global Italia.

By: Wendy Medina

Continue Reading at finance.yahoo.com

California Lost $8 Billion From Runaway Productions, Report Estimates

(latimes.com)

California lost out on nearly $8 billion in economic activity, 28,000 jobs and over $350 million in revenue for state and local coffers from film and TV projects that chose to film elsewhere in recent years.

That’s one of the takeaways in a new report by the Los Angeles County Economic Development Corporation (LAEDC) for the Motion Picture Assn., a trade body for the major studios.

The eye-popping estimate was based on a review of 157 out of 312 projects that applied for but did not receive a California tax credit and took their productions elsewhere between 2015 and 2020.

“If these productions had stayed in the state, California would have reaped the economic benefits. Instead, the loss of this spending in California cost the state $7.7 billion in generated economic activity,” the study’s authors said.

The findings — intended to bolster support for California’s film and TV tax credit program that provides $330 million annually to film and TV productions — were highlighted at an event held Friday on the set of HBO’s “Perry Mason” at the Warner Bros. Ranch in Burbank.

“These programs are investing in local workers and small businesses here in California,” said Lt. Gov. Eleni Kounalakis in a statement. “This program also has an immeasurable impact on tourism in this state, by inspiring people to visit and explore California.”

The current state program, which sunsets in 2025, allows filmmakers to recoup 20% to 25% of spending on qualified costs, such as money spent building sets and hiring crews. Producers use the credits to offset state taxes.

“The tax credits are an investment in keeping the film and TV industry in California, potentially reversing a loss and retaining a critical mass that will generate future tax receipts,” the report said.

The authors estimated that during the five-year period the program contributed $22 billion in economic output and 110,300 jobs, including 64,600 in direct employment. This returned $962 million in tax revenue to the state and local governments.

A total of 169 productions got tax credits between 2015 and 2020, receiving $915 million in incentives, they said. Those projects generated $7.37 billion in spending.

For each tax credit dollar allocated, the initial tax revenue returned to local and state governments was $1.07, according to the report.

“The study confirms what we believe,” Sen. Anthony Portantino (D-La Cañada Flintridge) said at the Warner Bros. Ranch. “Tax credits work. They create middle-class union jobs.”

The LAEDC report recommended that California extend the period of the program to encourage additional investment in infrastructure and consider adding a tax credit program for visual effects to prevent further loss from Hollywood’s post-production industry. California is the only major production hub without a stand-alone visual effects (VFX) tax credit.

State lawmakers last summer extended and expanded the program, adding a $150 million credit for the construction of soundstages.

California faces continued competition from New Mexico, New York and other states that offer lucrative tax incentives to attract film and TV crews.

Streaming productions from Netflix have been among the biggest beneficiaries of the program. Jerry Seinfeld’s movie about the creation of the Pop-Tart was among 30 movies in line to receive state tax credits last month.

By: Anousha Sakoui

Continue Reading at latimes.com

Three media funds launched by Hong Kong’s New Asia Ferrell Asset Management

(screendaily.com)

At Filmart Online today, Hong Kong-based New Asia Ferrell Asset Management has unveiled three new media funds to go into gap financing for streaming platform content creators.

Set to be launched on March 18, the three funds will be dedicated to action, sci-fi and “Hollywood IP”, covering a range of countries and budgets.

New Asia Ferrell’s incoming chief investment officer Adam Guy Orlebar Garrett, who officially takes up the role on March 18, said of the funds: “For most content creators, the major streaming platforms still typically cap the budgets, and still only pay for movies and TV shows when a project is completed which gives investors the opportunity to come in with gap financing.”

He cited “the stellar credit-worthiness of major streaming platforms” and their “willingness to sign big cheques immediately upon project completion, which greatly reduces the time to only 2-3 years before investors receive both their initial investments and all earned profits back.”

The action genre fund will target films and TV series such as Manila-based BlackOps Studios Asia’s genre slate, which is collaborating with leading Philippines media and entertainment group ABS-CBN on prison crime drama Sellblock. Jason Lin’s Story Arch Pictures and Garrett’s Hong Kong production company Agog Film Productions are also co-production partners on this slate.

The sci-fi genre fund includes a slate of high-concept film adaptations including Sagramanda by Alan Dean Foster, author of Hollywood movie novelizations such as Star Wars: The Force Awakens; fantasy artist and author Patrick J Jones’ Sentinels; and futurist author T.H.H. Adrien’s young adult trilogy, When Immortals Walk The Earth.

The Hollywood IP fund is an “opportunistic, event-driven” one for tentpole features and related projects that cross New Asia Ferrell’s path. It is currently focusing on a video game project, with further details yet to be announced.

Producers Lin and Bizhan Tong, both former financiers, are acting as external advisors to the funds. Tong’s upcoming production, Chungking Mansions, announced further casting at Filmart this week.

New Asia Ferrell has two other funds in the works – a Japanese IP fund focusing on manga and anime adaptations into features and other media, and an indie film fund for media projects to be co-branded with “a major online movie marketplace” yet to be decided.

All New Asia Ferrell funds will be based in the Cayman Islands.

By: Jean Noh

Continue Reading at screendaily.com