Where Will They Help You With $$$ For Your Film In The USA?

Entertainment Partners publishes a regular newsletter on the state of the film tax incentives both here and abroad.  If you don't get it, you should.  But if you don't, this super helpful grid was included in the last newsletter:

State by State Funds Available
as of October 1, 2012


Alabama $15,000,000 through September 30, 2013
Alaska $22,000,000 available through June 30, 2013
Arkansas Funds are available, check with the film office for details
California No funds available through June 30, 2013
Colorado $3,500,000 available through June 30, 2013
Connecticut No cap
District of Columbia Program is not funded
Florida Funds are available, check with the film office for queue details
Georgia No cap
Hawaii No cap
Illinois No cap
Kansas $1,800,000 available through December 31, 2012
Kentucky No cap
Louisiana No cap
Maine No cap
Maryland No funds available through June 30, 2013
Massachusetts No cap
Michigan $58,000,000 available through September 30, 2013
Minnesota $42,442 available through June 30, 2013
Mississippi $18,800,000 available through June 30, 2013
Missouri $4,500,000 available through December 31, 2012
Montana No cap for the tax credit program; $850,000 available for the grant program through June 30, 2013
New Jersey No funds available through June 30, 2013
New Mexico Funds are available, check with the film office for details
New York Funds are available, check with the film office for details
North Carolina No cap
Ohio $19,000,000 available through June 30, 2013
Oklahoma No funds available through June 30, 2014
Oregon No funds available through June 30, 2013
Pennsylvania No funds available through June 30, 2013
Puerto Rico $38,000,000 available through June 30, 2013
Rhode Island $12,000,000 available through December 31, 2012
South Carolina $11,000,000 available through June 30, 2013
Tennessee $1,200,000 available through June 30, 2013
Texas Funds are available, check with the film office for details
Utah No funds available for the rebate; $11,400,000 available for the tax credit program through June 30, 2013
Virginia Funds are available, check with the film office for details
Washington No funds available through December 31, 2012; $3,500,000 becomes available on January 1, 2013
West Virginia $9,000,000 available through June 30, 2013
Wisconsin $500,000 available through June 30, 2013
Wyoming $1,800,000 available through June 30, 2013


Of course you still have to follow the proper procedures, and the incentives vary from state by state, but it is helpful to know where the money is.

Film Tax Incentives Need To Focus On Low Budget Production Too!

It is frustrating from an indie producer perspective that all film-centered tax incentives, both here in the US and abroad, are geared towards the higher budgeted films. It is totally understandable though, as the Hollywood & big budget fare bring in the most revenue and the most jobs. This sort of bias however, also limits the growth of local creative talent -- in fact you could argue that the bias to high priced production in tax incentives drives out the local talent and thus prevents creative communities from developing in the regions in which the incentives are supposed to help. Unless such tax incentive programs also focus on the sustainability of the creative community -- in addition to maximizing tax revenues and employment -- it will always be carpetbaggers who benefit from policy and not the local community. It is great when the local work force is all fully employed (remember those days?), and it is great when the local vendors have deal upon deal so they grow their biz and improve the infrastructure, but why limit our ambition to such basic needs as employment and monetary profit?

When the goal of policy is 100% profit & revenue motivated,  IMHO  it is generally a barrier to the creation of  the best work and consequently the sustainability of the individuals who make it. Supporting lower budget work through such policy benefits local community and the artists who are vested in the locale as a whole (not just in terms of how they save & make $$).

Why is it so important for government policy to focus on low budget media production as well as the biggest revenue & job generators in this sector?

  • Media artists create work inspired by where they live, the places & people they love and are intrigued by.  If the up & comings can't afford to shoot in a place, fewer films will be centered in local communities, and thus unfortunately as a result create a more generic impression of our country worldwide.  We need to help provide an understanding of our worlds that are not just motivated by the "sell" and mass market.  How will we build bridges to other communities throughout the world when all of our output is about reaching into people's wallet and the characters we portray aim to satisfy everyone?
  • Every film shot is a promotional tool to make it's setting a desired destination for all.  Movies are promotional tools for the tourist industry of the state.  We enrich the area where we set our work financially as well as culturally.
  • No one sets out to work on projects that are only profitable or employ huge crews.  It is a need to participate in work (and culture) that you are proud of, that speaks to you personally -- it is this quality that makes people chose to work for lower rates on our projects (I am told).  To keep a strong crew base, communities need a diversity of production to sustain individuals both creatively and financially.
  • Low budget films provide a way for crew members to advance their skill set by working at higher responsibility than they would elsewhere . Since depth of talent base is a decisive factor where a film shoots, larger films are incentivized to come to a location where they can find a crew and actor base with the required experience -- and as a result in benefits a community to make sure that crews can advance their skill set and not just get stuck at the lower end of a hiring heirachy.
  • Low budget films take more chances on collaborators in all categories, creating new "stars" and adding "value" in the process, and eventually attracting & generating new projects consequently.  If communities rely only on projects only generated outside their community, their prime tool to attract productions will be increasing the size of their incentives and thus limiting their revenues in the process; we all need home grown projects or else each incentive will be incentivized to exceed each other (and destroy the local benefits as a result).
  • Quality of life improves for all when we don't just do well, but also do good.  Incentivizing low budget production and nurturing home grown talent can be a source of civic pride -- which is part of the glue that drives and sustains any infrastructure.
  • Large budget productions must maintain the status quo.  Large budgets are justified by the tastes at the time they are made.  Large budgets are about the already proven.  If we believe in the necessity of a diverse culture, an inclusive culture, a culture of opportunity, we need to find ways to make sure we support low budget production.
  • And let's be real: from a business and recoupment perspective, it is hard to justify middle budget production (which these days I would define as $500K - $45M!) under the current revenue models.  New talent won't develop, new ideas and methods won't be sourced, unless we have a middle ground where transitional artist can experiment and grow. If we want to have a healthy film and media industry, we need to help stimulate low budget production.

Nonetheless, State Tax Film Incentives and other policies generally favor larger budgeted films.  In NY State we would not have a tax incentive if it wasn't for the coalition of studio owners who lobbied for the initial law, but not surprisingly they looked out (then, and continue to look out so now) for their own interest and required that every film have a day of work on a "certified" stage to qualify for the incentive -- up until the tax incentives passed, not one of my sixty films had ever shot on a real stage.  It also has been said that the approval process in many states is far more rigorous for low budget films than higher ones, and I imagine that there will eventually reach a court case in some state or another where a filmmaker proves this.  Granted, tax incentives are just one aspect of the bias to large budget films nation wide, but they are one that we can do something about.  The first step is convincing our communities that low budget work matters (which means we must advance beyond just financial analysis in determining our policy).

There are numerous policies that could be built into local film tax incentives that would help create sustainable film communities in those very same states or locales:

  1. Every state these days owns or controls various buildings and real estate that could be made available at reduced rates for low budget home-grown production.
  2. Similarly, film permit fees (like the ones NYC recently inacted) could be waived if a budget is below a certain threshold; ditto on requisite practices like NY State's tax incentive studio requirement.
  3. And why not reserve a portion of each state's rebate for local low-budget production and keep the carpetbaggers from siphoning off the whole kaboodle?

Frankly, it would be great if States and municipalities even focused on some non-funding activities to help their local film communities.

  1. Wouldn't it be great if film board websites actually promoted local filmmakers and technicians?  Local film schools could be recruited to shoot, edit, and post promotional videos championing home grown talent.
  2. Is there anything wrong with States playing matchmaker and introducing financiers and other entrepreneurs to the best and the brightest?  Many states now have incubators and other "proof of concept" matchmaking enterprises and wouldn't everyone feel indebted if the angels met the aspirants?
  3. And why stop at tax breaks, promotion, and matchmaking?  Whatever happened to subsidized housing and work space for artists?  Don't the creative class give rise to a higher quality of life for the rest of the community?  Why not require low cost housing for artists be part of any redevelopment plan?
  4. Why not help fund a teaching/lecture program that artists can participate in to not only help them survive but to also give back to the community at the same time?

I am sure that you can add to these lists.  Let's figure this out and build it better together.

Where are the governments that show they actually believe that culture is a valuable (even necessary) component to life?  Tell us, so we can begin the mass-migration now!

Section 181 Update

Today's update is a guest post from Raz Cunningham. On Dec. 31, 2009, Section 181 of the American Jobs Creation Act expired. It is going to be renewed in 1 of 2 possible forms. Either in the Tax Extenders Act of 2009 (the House Bill) or the American Worker State and Business Relief Act (the Senate Bill). The language is the same as it was for Section 181, the same tax breaks/benefits still apply. In the Tax Extenders Act of 2009, the language can be found in Section 117 of the Bill; in the American Worker State and Business Relief Act it can be found in Section 145. The language of these two sections is EXACTLY the same. The Senate Bill has already passed in the Senate and is on its way to the House.

What's important to note is that one of these two Bills, either or, is overwhelmingly expected to pass. Neither Section of either Bill has been the source of any controversy or contesting and is strongly supported by both Parties. Once either Bill is passed, any qualifying film made from Jan 1st, 2010 to Dec. 31st 2010 will be able to take advantage of the tax breaks.

Raz Cunningham is a filmmaker based out of New York & Rhode Island, about to start Pre-Production on his first full length feature film "Our Last Days As Children" this summer.

Government Subsidies For The Arts

I was on a panel awhile back bemoaning the loss of the NEA back in the 80's, and how short sighted I thought it was not to have government funding for the arts, particularly film.

John Sloss responded that the government subsided film productions via the local state tax incentives -- and that's true, but not the whole picture.  Don't get me wrong, I love the state tax incentives.  They are good for the film businsess and great for the states' economies.  They create jobs and drive a lot of money into the states.  They have helped stem the flow of entertainment jobs out of the country.  But they don't create a more diverse culture.
When we had a tiny tiny portion of our tax dollars going to artists to develop new work, we had the possibility of new forms of representation.  The local state tax subsidies are for production, not development; they lead to more of the same work.  We all benefit when creative voices help us look at the world differently.  Without financial support how is anyone supposed to develop for anything other than the existing market?
I always use Julie Taymor as the poster child for government subsidies for the arts.  Back in the day she received such funding and was able to develop a truly unique craft.  She was later tapped by Disney to bring The Lion King to Broadway and thereby generated tremendous wealth for many.  Without the support of her development, we all would have been deprived of such a voice.
All that said, if you have finished that script and are looking to move towards production, those state incentives are pretty sweet.  The Incentives Office has a swell state-to-state guide that is free to download.  And through friday you can download here with just one push of a button and no need to fill out any forms.  Check it out.