California and New York incentive updates, courtesy GPP’s Craig Miller
The California Legislature approved tax credits for film and television productions (see ABX3 3) as part of an economic stimulus provision of the new state budget on February 19, 2009. The following summarizes the key points of the California production tax credit: For taxable years beginning on or after January 1, 2011, qualified taxpayers are allowed a credit against income and/or sales and use taxes, based on qualified expenditures multiplied by:
To be eligible, a “qualified motion picture” must meet the following conditions:
“Qualified expenditures” are amounts paid or incurred for the purchase or lease of tangible personal property and payments, including “qualified wages,” for services performed in California. Qualified wages must meet California wage reporting requirements and explicitly exclude certain expenses, such as:
The California Film Commission may allocate tax credits after July 1, 2009, through July 1, 2014. Applications will not be accepted before July 1, 2009, and are considered on a first-come, first-served basis. Funding is allocated as follows:
Qualified taxpayers may carryover tax credits for 5 years and transfer tax credits to an affiliate. Only tax credits issued to an independent film may be transferred or sold to an unrelated party. |
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New York State |
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Funds for the New York State Film Production Tax Credit have been exhausted. The New York State Film Office is still accepting applications in case eligible projects fall through or more funding becomes available. Funding is still available for the Commercial Production Tax Credit. |
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