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http://www.nylovesfilm.com/new.asp?fPressID=19 Empire State Film Production Credit Monday, September 27, 2004 EMPIRE STATE FILM PRODUCTION CREDIT Legislation establishing the Empire State Film Production Credit was signed into law on August 20, 2004 by Governor George Pataki. Designed to bring new film and television production into New York State, the program provides a fully-refundable tax credit equal to 10% of qualified expenditures to qualifying film and television productions. The program will be administered by the New York State Governor’s Office for Motion Picture & Television Development. The program applies to qualified expenditures incurred on or after August 20, 2004 (regardless of whether the production commenced before the legislation was signed into law), and is currently scheduled to expire in 2008. WHO IS ELIGIBLE TO APPLY? A taxpayer which is a qualified film production company or a sole proprietor of a qualified film production company that begins principal photography on a qualified film no more than one hundred eighty (180) days after submitting an initial application to the Governors Office of Motion Picture and Television Development. WHAT ARE THE PROGRAM’S ELIGIBILITY REQUIREMENTS? In order to be eligible to participate in the program, an applicant must be a qualified film production company or sole proprietor thereof which shoots on a set or sets on a stage at a qualified production facility. WHAT IS THE BENEFIT? Generally, the program provides a tax credit equal to 10% of “qualified production costs” incurred by producing “qualified films”. “Qualified production costs” are expenditures that generally include most below-the-line items including costs of technical and crew production, expenditures for facilities, props, makeup, wardrobe, set construction, background talent, etc., and generally exclude costs of stories and scripts, and wages for writers, directors, producers and performers (other than extras without spoken lines). “Qualified films” are feature length films, television films, television pilots or television series. Certain categories of productions are excluded from the program, including but not limited to documentaries, news or current affairs programs, interview or talk shows, instructional videos, sport shows or events, daytime soap operas, reality programs, commercials, music videos. HOW IS THE BENEFIT CALCULATED? In Order to Qualify for a Benefit a Production Facility Threshold Must be Met. “Qualified film production facilities” are facilities in the State of New York in which television shows and films are or are intended to be regularly produced, and which contain at least one sound stage of at least 7,000 SF. In order to be eligible to participate in the program, some portion of a production must be shot on sets on a stage at a Qualified Film Production Facility. If the production uses any production facility other than a Qualified Film Production Facility—e.g. if it uses a film production facility outside of New York State—then at least 75% of the expenditures related to production facility work (i.e., 75% of the expenditures spent at a production facility anywhere) must be incurred at the Qualified Film Production Facility. (Note that the 75% threshold refers here to the percent of total production facility expenditures only, not to the percent of total production expenditures.) If the production meets this test—i.e., spends 75% or more of its total facility related expenditures at a Qualified Film Production Facility—then qualified costs related to expenditures at the Qualified facility will be eligible for the credit. If the production does not use a Qualified Film Production Facility, or if it spends less than 75% of its total facility related expenditures at a qualified facility, then regardless of all other factors, it does not qualify for any credit. In order to qualify for the maximum benefit, a production may have to meet a Location Day Threshold. If a production has met the 75% test for production facility expenditures as described above, it may also qualify for the tax credit based upon qualified expenditures outside the qualified facility that are related to pre-production, location production and post production in New York in one of two possible ways: a) if the qualified NY expenditures related to the qualified production facility total $3 million or more, then all qualified expenditures related to pre-production, location and post production in New York State qualify for the credit; b) if expenditures on the qualified production facility days are less than $3 million, then the production must shoot at least 75% of all its Location Days in New York State in order to include expenditures incurred in New York State outside the qualified production facility on pre-production, production and post production. Again, similar to the production facility threshold, the 75% threshold here applies to a percent of the total location days only, not to the total shoot days. Shooting days spent at facilities are not used to calculate this threshold, only the ratio of shooting days spent on locations anywhere in New York State compared to shooting days on locations outside of New York State are used. For example assuming the eligibility criteria is met, the qualified film production company may qualify for no benefit, a partial benefit or a full benefit based on the following threshold formulas: Full Benefit: There are two circumstances in which a production will qualify for the Full Benefit: 1. If 75% or more of the total production facility expenditures occur at a qualified New York facility, AND the production spends at least $3 million during production of the qualified film at that qualified facility, then the production will qualify for a full benefit, which is a 10% tax credit for all qualified production expenditures for work done both on and off the qualified facility in pre production, production and post production. 2. If 75% or more of the total production facility expenditures occur at a qualified facility but the production spends less than $3 million at the qualified facility, AND shoots at least 75% of its location days in New York, then the production will qualify for a full benefit for all qualified production expenditures, for work done both on and off the qualified facility. Partial Benefit: 3. If 75% or more of the production`s total facility expenditures occur at a qualified facility, but the production spends less than $3 million at the qualified facility AND less than 75% of total location days are in New York, then the production will qualify for the 10% tax credit for qualified expenditures at the qualified facility only. No Benefit: 4. A qualified film is ineligible for any benefit under the program if less than 75% of the total production facility expenditures do not occur at a qualified New York facility. HOW DOES A PRODUCTION APPLY FOR THE CREDIT? In order to become eligible for the film production tax credit, a qualified film production company will need to file an application with the New York State Governor’s Office for Motion Picture & Television Development. The credit is allocated to taxpayers based on priority of filing the application. If the amount of allocated credits applied for in a particular year exceeds the aggregate amount allowed for that year, then the excess amount will be treated as having been applied for in the subsequent year. At this preliminary point, it is envisioned that the application process will consist of two steps: an initial application and a final application submitted after the production is completed. Initial Application –applicants will provide data and projected expenditures which will help determine if a given production is eligible and qualifies for participation in some aspect of the tax incentive program. Projected expenditures provided are expected to include: estimated total budget, estimates of expenditures at a Qualifying Production Facility, estimates of shooting days and expenditures in New York, and estimates of shooting days and expenditures outside of New York, etc. After review of the information provided in the Initial Application, the Governor’s Office of Motion Picture and TV Development will make an initial determination if the applicant is certified for conditional eligibility in the program. Final Application—after the production is complete, the applicant will submit a form provided by MP/TV detailing actual expenditures both within and outside of New York demonstrating that the required thresholds were met. Additional supporting data may be requested. Based on a review of these documents, MP/TV will determine the amount of the incentive available to the applicant, and will provide the applicant with a tax credit certificate specifying the amount of the tax credit allocated to the applicant. The final amount allocated to an applicant will not be established until after the production of the film is determined to be completed. The applicant will then give this certificate to the NY State Dept. of Taxation and Finance upon filing of its tax return for the year in which the credit is allowed. The credit is allowed for the taxable year in which the production of the qualified film is completed. HOW IS THE CREDIT RECEIVED? Credits earned under the program may be applied against the New York State taxes of the applicant that owns or controls the applicable qualified film. Under the program, if the applicant is not able to use a credit during the year in which the credit is earned, 50% of the unused portion of the credit is refundable to the applicant. The remaining 50% of the unused portion of the credit can then be carried forward to the subsequent year and if the remainder of the credit cannot be used in that year, it will become fully refundable. The aggregate amount of state tax credit that may be allocated for all taxpayers under the program is $25 million per year, beginning in 2004. However as a year’s allocation is depleted, the next applicants in line will draw their credit from the following year’s allocation. Regulations, forms and applications further describing the program are being developed. For more information contact the New York State Governor’s Office of Motion Picture and Television Development at nyfilm@empire.state.ny.us or call (212) 803-2330. The preceding information is for informational purposes only, should not be relied upon and is subject to change. The New York State Department of Economic Development shall not be liable for any errors in this information or responsible for any acts taken in reliance thereof. The Department is currently drafting regulations governing the administration of this program. For a copy of the legislation, click here Regulations, forms and applications should be ready for distribution by Oct. 31, 2004 |
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| aus der Diskussion: | filmförderung in: EU, LA(arnieland),FRA;DE;Balkanstaaten... |
| Autor (Datum des Eintrages): | FlexWheeler (21.08.05 13:58:04) |
| Beitrag: | 16 von 18 (ID:17631837) |
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