| |
BELGIUM |
GERMANY |
FRANCE |
HUNGARY |
ICELAND |
IRELAND |
LUXEMBOURG |
MALTA |
SPAIN |
UK |
|
US FEFERAL |
CONNECTICUT |
LOUISIANA |
MASSACHUSETTS |
MICHIGAN |
NEW MEXICO |
NEW YORK |
RHODE ISLAND |
|
CANADA FEDERAL |
ALBERTA |
BRITISH COLUMBIA |
MANITOBA |
NOVA SCOTIA |
ONTARIO |
QUEBEC |
SASKATCHEWAN |
|
AUSTRALIA |
NEW ZEALAND |
SOUTH AFRICA |
TAIWAN |
| |
Belgium Tax Shelter |
German Federal Film Fund (DFFF) |
Credit d'impot, advance in receipts, SOFICAS |
Hungarian Motion Picture Act |
Iceland Film Making Reimbursement |
Section 481 |
Audiovisual Investment Certificate programme (CIAV+) |
Financial incentive for the audiovisual industry |
Film Law |
UK film tax relief |
|
Section 181 (American Jobs Creation Act) |
Connecticut Digital Media & Motion Picture Tax
Credit |
Louisiana Motion Picture Incentive Program |
Massachusetts Motion Picture Tax Incentive |
Michigan Film production incentive |
Film Production Tax Rebate |
Empire State Film Production Credit |
Motion Production Tax Credit |
|
Canadian Production Tax Credit (CPTC); Production
Services tax Credit (PSTC) |
Alberta Film Development Program (AFDP) |
Film Incentive BC (FIBC); Production Services Tax
Credit (PSTC) |
Manitoba Film and Video Production Tax Credit |
Nova Scotia Film industry Tax Credit |
Ontario Film and TV Tax Credit (OFTTC); Ontario
Production Services Tax Credit (OPSTC) |
Quebec Refundable Tax Credit (QRTC); Quebec
Production Services Tax Credit (QPSTC) |
Saskatchewan Film Employment Tax Credit (SFETC) |
|
Location offset and post, digital and visual effects
(PDV) offset for non-Australian films; producer offset for Australian films
and official co-productions |
Large budget screen production (LBSP) grant; post,
digital and visual effects (PDV) grant |
Location Film and Television Production Scheme;
South African Film and Television Production & Co-Production Scheme |
Directions for Funding Motion Picture Production
Enterprises to Produce Motion Pictures in Taiwan |
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| Scheme rules |
Producers can raise up to 50% of a production budget
through tax shelter investment in the form of a loan or equity investment. Of
the 50% of production budget eligible to be raised in this way, no more than
40% of any investment can be in the form of a loan. Producers must ensure
150% of total equity investment is spent in Belgium. |
Producers receive 20 cents for every euro of German
spend up to a maximum of 80% of a film's total production costs. A €4m
(US$6.2M) cap per film can be increased to €10m (US$15.4m) if the German
spend amounts to at least 35% of a film's total production costs --- or if
two-thirds of the points of the cultural test are attained. |
For producers who qualify for the CNC's automatic
aid, the credit d'impot provides either a cash rebate or a rebate against
corporation tax for up to 20% below-the-line costs. The advance on receipts
gives producers a reimbursable advance against first-dollar gross.
Individuals and companies invest in one of 15 SOFICAS to access tax
deductions. Producers can apply to access to the funds and the SOFICAS will
take a negotiated recoupment. |
Producers can claim back up to 20% of their
Hungarian expenditure. |
A 14% reimbursement for production costs incurred in
Ireland; only production companies registered in Iceland can officially apply
for support (but that is easily set up when production begins). When more
than 80% of the total production cost of a project is incurred in Iceland,
the reimbursement is calculated on the basis of the total production cost
incurred within the European Economic Area. |
Projects can derive a benefit, net of all fees, of
up to 20% of their qualifying expenditure. This includes the cost of EU cast
and crew working in Ireland, and goods and services purchased in Ireland, up
to a maximum of 80% of the total spend as long as this is not more than €50m
(US$76.9m). This gives a maximum €10m (US$15.4m) net benefit to the producer. |
Producers can access up to 25% of their budget by
applying for government-issued Audiovisual Investment Certificates that
provide tax credits for the end user. Certificates are issued by the
government on the advice of the Luxembourg Film Fund. |
A cash rebate of up to 22% for qualifying
productions on their eligible EU expenditure in Malta. |
EU producers with a Spanish office of films that
gross over €300,000 (US$447,000) theatrically in Spain can access subsidies
from a fund worth an annual US$125m. |
Producers receive a tax credit on the UK spend of a
project. Expenditure must be at least 25% of the total budget. Low-budget
films up to GBP20m (US$39m) receive a net 20%; higher budgeted films of
GBP20m (US$39m) and above get 16%. For the low budget films, the enhanced
deduction is 100% of qualifying expenditure and the payable cash element is
25$ of surrendered losses; for all other qualifying films, the figures are
80% and 20% respectively. |
|
Film and TV productions costing US$15m --- including
participations and residuals --- or less (US$20m or less if made in
'distressed' areas of the country) and spending at least 75% of that amount
on services performed in the US can immediately write off their entire
production cost for tax purposes (as opposed to amortizing the cost over 10
years). |
A transferable tax credit equal to 30% of
pre-production, production and post-production expenses incurred in
Connecticut by qualified productions, as long as qualified costs exceed
US$50,000. Salaries for resident and non-resident cast and crew are eligible
--- up to a ceiling of US$15m per person --- as long as they do some work in
the state. Certain costs incurred outside Connecticut --- such as equipment
purchase or rental, if equipment is used in-state --- are also eligible. |
State-certified productions spending at least
US$300,000 in Louisiana get a 25% transferable tax credit on their total
in-state expenditures. An additional 10% tax credit applies to payroll costs
for Louisiana residents (with individual payments over US$1m excluded). A 40%
tax credit is available on expenditures related to building infrastructure
that supports and services the film industry. |
Companies incurring at least US$50,000 of production
costs in Massachusetts are eligible for tax credits equal to 25% of the total
state payroll for the production, excluding salaries of US$1m or higher.
Companies with Massachusetts production expenses above 50% of the total
production cost, or that spend at least 50% of principal photography days
shooting in the state, receive a tax credit of 25% of the total state
production expense. The entire amount of salaries of US$1m or higher can be
included in calculating the production expense credit. |
A 40% tax rebate on qualified film or digital media
pre-production, production and post-production costs incurred in Michigan,
with an extra 2% for projects shot in 'core communities' (more than 100
designated areas of the state. Minimum spend of US$50,000 required. The
rebate decreases to 30% on pay to non-resident below-the-line crew. |
A 25% tax rebate on all direct film, TV, documentary
and video game production and post-production expenditures -- including New
Mexico labor --- that are subject to taxation by the state. Payments to
out-of-state actors qualify under a separate tax structure if the actors are
paid by a secondary company. The state also offers loans of up to US$15m per
project --- with back-end participation in lieu of interests --- to
productions 85% shot in New Mexico and spending 60% of below the line payroll
on some residents. |
The Empire State scheme provides a refundable 30%
tax credit on qualified expenditures (most below-the-line costs) made by
features and TV movies or series that shoot for at least one day and for at
least 75% of their total studio time, at a qualified state production
facility. The Made in New York scheme provides additional 5% tax credit for
productions shooting within the five boroughs of New York City. |
A 25% transferable tax credit for all Rhode Island
spending by film, TV, commercial and videogame productions that have a
minimum budget of US$300,000 and spend at least 51% of their principal
photography days in the state. Salaries for resident and non-resident cast
and crew working in Rhode Island qualify. No production or annual cap. |
|
Eligible international co-prods can get 25% of
Canadian labor costs returned, up to 15% of budget; others can get 16% via
PSTC. |
Co-productions can get up to 23% of total local
spend; Foreign productions 14%. Maximum grant of US$1.5m. |
Co-productions get up to 35% of labor spend; Others
can get 25%. |
Productions can receive a 45% tax credit on their
local labor spend. |
Producers can claim 35% of labor spend up to 17.5%
of budget. |
Co-productions get up to 35% of labor spend; others
can get 25%. |
Co-productions get 30% of labor spend; others can
get 20%. |
45% of labor spend not exceeding 50% of the budget. |
|
Under the location offset, producers spending more
than AU$15m (US$14.2m) on goods, services and location fees in Australia can
claim back 15%. If less than US$50m (US$47.2m) is spent, the Australian
expenditure must represent at least 70% of the worldwide production
expenditure. The post, digital and visual effects (PDV) offset requires AU$3m
(US$2.8m) to be spent. Films do not have to do principal photography in
Australia. On films that qualify as Australian, producers spending more than
AU$1m (US$0.9m) on goods, services and location fees in Australia making a
film can claim back 40% under the producer offset. |
Producers spending more than NZ$15m (US$11.8m) on
goods, services and location fees in New Zealand can claim back 15% of their
expenditure under the LBSP grant. A bundle of films made by related companies
can also qualify providing more than NZ$3m (US$2.4m) is spent on each and
expenditure exceeds NZ$30m (US$23.5m) over two years. The PDV grant requires
NZ$3m (US$2.4m) to be spent on post, digital and visual effects, although
principal photography doe not have to be done in New Zealand. |
A two-tiered tax rebate available to foreign
projects with a minimum South African spend of R12m (US$1.5m), providing a
15% rebate on expenditure. Additionally, films which qualify as official
South Africa co-productions (South Africa has four international treaties:
UK, Germany, Canada and Italy), with minimum budgets of R2.5m (US$305,000)
can access a 35% rebate on the first R6m (US$762,000) spent in South Africa
and 25% for additional expenditure beyond that. Both rebates are capped at
R10m (US$1.27m). |
Foreign productions spending over US$100,000 in
Taiwan can be reimbursed 20% of local cast salaries, 15% of local crew
salaries and 5% of transport and accommodation expenses. Additionally, 15% of
local production and post-production costs can be reimbursed. |
| Can the producer receive the money
upfront? |
Yes. 150% of sums invested are tax-exempt on the
condition the tax exempt amount is not greater than 50% of production budget.
Exemption is capped at €750,000 (US$1.2m) and cannot exceed 50% of the
investor's taxable profits for a given period. Investors must be either
Belgian companies or Belgian operations of non-resident companies. Several
companies can benefit for investment in the same film and in the same period
as long as no more than 50% of the total production budget is raised in this
way. |
No. 75% of the project's financing must be in place
when making an application to the German Federal Film Board (OFFA) which
manages the DFFF. The grant is disbursed on completion of production, audit
of the final cost statement and evidence that all DFFF requirements have been
met. |
Only the SOFICAS give any money upfront. Not so with
the credit d'impot. Projects must be at least principally shot in French in
France. The application must be made before the start of principal
photography and response is given within six months. Nor with the advance on
receipts, although it can be accessed before a film's completion. An advance
after completion can be requested but it needs proof of a contract for
theatrical distribution. |
Yes. Producers can receive 90%-95% of the offset
upfront in the form of cash-flow financing. A non-Hungarian producer must
enter a service or co-production agreement with a local producer which is
registered with the Film Office Directorate (FOD). Once the FOD issues a tax
certificate, a local financier can disburse the face value of the certificate
and reduce its corporate tax to be paid at year's end. Above-the-line costs
may only be covered if the individual pays personal income tax in Hungary. |
No. Applications must be submitted before a project
starts production but the money comes through after shooting in Iceland is
finished. |
Yes. On the first day of principal photography. |
Producers must apply to the Film fund at least six
weeks before production begins. A certificate offers a tax benefit of 30% of
the face value of the certificate, up to €8.5m (US$13.1m) per project.
Producers do not usually redeem the tax credit themselves --- they benefit by
selling them on to Luxembourg-based banks and corporations. relief can only
be accessed once production is complete and audited accounts have been
presented. |
No. It is a rebate once shooting has taken place. |
No. It is equivalent to 15% of gross box office
receipts during the first year's screening in Spain, up to $1.5m, not
exceeding 50% of the producer's investment. International producers must
partner with a local production company and at least 70% of the cast and crew
have to be from the EU. Local producer must contribute 10% of the budget to
be eligible for the 15% of box office and 20% for an additional 33% of
producer investment aid. |
Yes. Producers apply directly to Revenue + Customs
and can claim part of the way through the film --- they do not need to wait
until they have a completed film. |
|
No. Most production companies pass the deduction to
investors, using it to attract upfront investment in a project. If a
production company uses the deduction itself the gain comes when the company
files its first tax return after starting production. |
No. Productions must submit an eligibility
application no more than 90 days after making their first eligible
expenditure and apply for a production tax credit voucher no more than 90 days after the last expense is
incurred in the state. Once expenses are verified, a tax credit voucher will
be issued. Credit can be sold, assigned or transferred. |
No. Once a project itself is pre-certified,
expenditures can be certified during production and the resulting tax credits
can be sold to a third party or the state. |
No. A production company files an application at the
end of its qualified spend and after reviewing the application the
Massachusetts Department of Revenue issues the credit. The credit is filed
with the production company's tax return and a rebate is issued in the amount
of 90% of the value of the credit, less any taxes owed. Credits can also be
carried forward for up to five years or sold at market rate to another
corporate taxpayer. |
No. After completion, the project is audited and if
no state taxes are owed a rebate check is issued in 30 to 90 days. After
September 2008, production companies will be able to receive 80% of the value
of the tax credits in the form of a loan. |
No. Applications are made after production is
completed. The production company files an income tax return and excess
credit not applied to any tax liability is refunded in 60-75 days. |
No. Credits are applied against New York State taxes
after completion of the project. If no state taxes are owed, the value of the
credit is refunded and 100% payable with the tax return filed for the year
the project is completed. |
No. A certified production submits a final
application after production in Rhode Island is completed and after reviewing
the application in the state Film & TV Office issues the credits in 30-60
days. The credits can be applied to a state tax liability or transferred or
sold to another state tax payer. |
|
No. |
No. |
No. |
No. |
No. |
No. |
No. |
No. |
|
No. Applications are submitted with the applicant's
tax return when the film is finished. |
No. Applications are submitted each time expenditure
reaches NZ50m (US$39.2m), or once the film is completed. They must be
received within 90 days of completion and the New Zealand Film Commission
aims to pay within three months providing all is in order. |
No. Producers have to apply before commencement of
principal photography but it is an expenditure incentive so the rebate is
disbursed on completion date of the production. |
No. Foreign producers must first provide the
government with a certificate of legal establishment, plot outline, scene
breakdown and proof of their collaboration with a local company. On
completion of the film, extensive paperwork must be provided before
reimbursement, including work logs, cast and crew lists, audit reports and
original receipts. |
| Is there a cultural test? |
No, but production companies must be Belgian (but
cannot be a broadcasting company or linked either Belgian or foreign
broadcasting companies). What is more, 150% of the sum invested (other than
by loan) must be spent in Belgium. |
Yes. The cultural test comprises two categories:
'cultural content and creative talents' and 'production'. |
Yes. Films must qualify as French for all three as
defined by the CNC. |
No. |
No. |
No. |
No. Eligibility has been extended to all EU
projects. But the certificate value takes into account cultural and artistic
criteria, with points given to the use of 'local' crew (including neighboring
parts of France, Germany and Belgium) and Luxembourg locations, If a film has
100 points out of 210, the certificate will amount to 25% of the total budget
up to €8.5m (US$13.1m) per film; if a film has only 50 points, it will amount
to 12.5% of the budget. |
Yes. The test is in three parts --- cultural
content, creative contribution and the use of Malta's cultural resources,
focusing on European, Maltese and Mediterranean cultural aspects. An extra 2%
is awards to productions that feature Malta as Malta. |
No. |
Yes. It is made up of four sections: cultural
content, cultural contribution, cultural hubs and cultural practitioners. |
|
N/A. |
N/A. |
N/A. |
N/A. |
N/A. |
N/A. |
N/A. |
N/A. |
|
CPTC requires Canadian content points: 1 for
director, 1 for script, 1 for lead actor. |
No. |
FIBC is aimed at local BC projects and international
co-prods with a BC producer. |
No. |
No. |
OFTTC is aimed at Ontario projects and international
co-prods with an Ontario producer. |
QRTC is aimed at Quebec projects and international
co-prods with a Quebec producer. |
No. |
|
Not for the location and PDV offsets but to access
the producer offset, the film must have significant Australian content.
Factors include origin, subject matter, location of filming, nationalities
and places of residence of key creators. |
No. |
No. |
No. |
| Is the scheme easy to combine with other
incentives? |
Yes. |
Yes and no. It works well with Germany's regional
funding programmes and the German federal film Board (OFFA). No from an
international point of view, due to the cultural test requirements. |
No. The credit d'impot and advance on receipts
require most of the elements of qualifying projects to be French. SOFICAS can
only invest in qualifying French or European films with a French co-producer.
If not French, shooting language must be that of majority European producer. |
Yes. |
Yes. |
Yes. |
Yes. Now it has been extended to the entire EU. |
Yes. |
Yes. |
No, due to the cultural test requirements, which
incentivise a project to shoot in the UK. The tax credit does not make the UK
attractive as a co-production partner in the way that Section 48 and 42 tax
relief once did. |
|
Yes. There are no restrictions on combining
deductions with US state incentives. Theoretically, it can be combined with
international incentives, though the 75% US spending requirement could make
that difficult in practice. |
Yes. |
Yes. |
Yes. |
Yes. |
Yes. Within New Mexico, the tax rebate can be
combined with the state's film investment lot. |
Yes. |
Yes. |
|
Yes. There are no strings attached to the PSTC. |
Yes. |
Yes. Plus BC has regional incentives (12.5% for
local productions, 6% for foreign) and FX incentives (15%). |
Yes. Regional incentives (5%) and frequent filming
bonus (5%). |
Yes. Regional incentives (5%) and frequent filming
bonus (5%). |
Yes. 10% region bonus. 20% local FX bonus. |
Yes. |
Yes. 5% regional bonus. 5% key position bonus. |
|
Yes, the location and PDV offsets are both based on
local spend. |
Yes, although local films cannot claim any other
local incentives. |
Yes. |
Yes, but not the local production subsidies. |
| Is the scheme locked in? |
Yes. The government has even discussed raising the
cap on eligible investment. Concerns over the amount of investment diverted
from production to structuring costs have largely been addressed by a regulation of the markets with
banks such as ING and Fortis now offering tax shelter products. |
Yes, the DFF has a budget of €180m (US$277m) over
three years from 2007 to 2009. |
The government is considering extending the credit
d'impot to foreign films that shoot in France with a ceiling of €4m
(US$6.2m). Projects will still be required to have some French elements. The
SOFICAS are reviewed by the government every two years. |
No. Ongoing negotiations between the Hungarian
ministry of culture and the European Commission may result in the
introduction of either a cultural test for Hungarian elements or a broader
test for European cultural elements. A deal is expected in June. The present
no-test scheme remains in effect until the end of the 2008 and possibly
beyond. |
The increased 14% reimbursement was introduced in
late 2006 and is expected to be stable until at least 2011. Local film
industry experts are hoping to eventually lobby the government for an even
more lucrative tax break. |
Yes. The scheme has been renewed until 2012. the
government is considering the introduction of a direct subsidy fund to
initially run in parallel with Section 481, but as an alternative scheme
intended to deliver a higher return to the production budget at no additional
cost to the Irish exchequer. |
Yes. It was revised in June 2007 and is set to run until 2015. |
Yes. It is slated to run at least until the end of
2009 in its present form. |
Yes. The total amount available is set to rise to an
annual US$147m by 2011. |
No. |
|
No. Current legislation expires at the end of 2008
and extension could depend on the outcome of a broader tax debate in the US
Congress. |
Yes, there is no sunset clause. However, from
January 1, 2009 only 50% of eligible costs incurred outside Connecticut will
qualify and from January 1, 2012 no costs incurred outside the state will
qualify, regardless of where the goods and services are used. |
Yes. |
Yes. Sunset is not until 2023. |
Yes. |
Yes. |
Yes. Funding has been approved for the next six
years, rising from US$65m for 2008 to US$110m for 2013. If the ceiling is
reached in one year, funds can be rolled over from the next year. |
Not at the moment. A bill to be debated by the end
of June would impose an annual cap of US$10m on total credits awarded by the
state. |
|
Yes. |
Yes. |
Yes. |
Yes. |
Yes. |
Yes. |
Yes. |
Yes. |
|
Yes, the location and PDV offsets are. But the
producer offset is not yet as the guidelines on eligibility are still being
developed and the scheme has not been tested. |
Yes. New Zealand wants to be competitive. The PDV
grant was recently introduced, and the LBSP grant increased from 12.5% to 15%
in mid-2007. |
Introduced in February 2008, both schemes are set to
run until 2014 although the rebate will be constantly under review and open
to adjustments. |
Yes and it is becoming more liberal over time. |
| What producers like about the scheme |
They can combine the tax shelter with further local
incentives provided by the Vlaams Audiovisueel Fonds, Wallimage and French
Community. |
Easy for producers to calculate the amount they will
receive in advance. Producers are free to shoot anywhere in Germany and are
not bound by the "economic effect" rules of regional funds. |
The credit d'impot and advance on receipts are
transparent and easily accessed by majority French productions. French
producers like the SOFICAS because it is often the last money needed to
mobilize a film. Foreign producers like it because there is very little legal
paperwork or cost involved. |
The scheme is straightforward, easy to access and
works well for international co-productions. |
It is straightforward, simple to access with minimal
red tape and paperwork. The incentive has also been road-tested by a number
of big productions. |
It pays on the first day of shooting --- reducing
banking costs. And the scheme is available for large-scale television
production. |
That all EU productions can now qualify. |
It is straightforward and paid swiftly. All
below-the-line EU expenditure in Malta (apart from head of department
salaries and camera equipment) qualifies. Malta offers rebates on, for
example, salaries, accommodation and per diems of Romanian or Italian
technicians working there. The first €50,000 (US$70,000) of above-the-line
and HoD costs are refunded. |
As long as there is an independent audit of
production costs, the minister of culture is happy and the application
process does not take that long. |
The speed with which Revenue & Customers turns
the tax credit round, which is around 30 to 40 days from application to fund
receipt. Banks are now happy to cash-flow the tax credits. |
|
The deduction can be used to attract investors and
is most valuable to producers of TV series and feature companies with a
steady flow of production. It can be combined with US state and city
incentives. |
The US$15m wage caps allows salaries of bigger
stars, and other above-the-line personnel, to qualify. There is no
per-production or annual cap and no minimum number of in-state filming days
are required. |
The Louisiana programme is now easier to use than it
was at first and there is a well-established infrastructure for monetizing
credits. The state itself will buy credits for 72 cents on the dollar and
some local banks will advance funds against credits. The production
incentives have no per-production or annual cap. |
No pre-authorization or certification is required
and because the credits can effectively be sold to the state for 90 cents on
the dollar there is no need to deal with brokers. The absence of a salary cap
means even major start salaries qualify for credits. |
In percentage terms this is the biggest of all US
incentives. There is no per-project or annual cap and the absence of
expiration date makes planning easier. |
Though technically a refundable tax credit, the
long-established incentive works like a rebate with no brokers required.
Actor salaries are eligible --- up to a total, for all the out-of-state
actors on a project, of US$20m --- and there are caps or minimum spend /
shoot requirements. |
The incentive has just gone up from 10% and refunds,
previously paid over two years, are now 100% payable in the year the project
is completed. |
The current absence of per-production and annual
caps makes planning easier. The inclusion of above-the-line salaries (as long
as some work is done in the state) maximizes the value of the credit. |
|
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
|
The locations and PDV offsets are very
straightforward while the 40% producer offset is considered very generous. |
The simplicity and speed. Unlike Australia, it is a
grant, and not offset against the applicant's tax. |
For international producers, the rebate threshold
has more than halved from US$3.2m (R25m), while for co-productions, the
rebate boost made it more attractive for low-budget projects. |
That the government has reduced foreign companies'
minimum investment in Taiwan from US$1m to US$100,000. |
| What they don't |
It is a fairly complex law that can deter investors
not familiar with the industry; government guidance, for example, runs to 70
pages. Also the maximum investment is regarded as being low and not
attractive to large corporations. |
The requirements of a binding and unconditional
German distribution agreement be in place for a theatrical release of at
least 30 prints. This goes down to 15 prints when the incentive granted is
less than €320,000 (US$492m) |
International co-productions without weighty French
elements find accessing the advance on receipts onerous. As an equity
investor, the board of each SOFICA will pay special attention to their
investment. |
Accessing the offset requires extra services and
additional money. |
Iceland is still known as an expensive shooting
location and would have a stronger chance of attracting more shoots with a
larger rebate. |
Since the money an individual investor can invest
has remained the same since 1993 while budgets have climbed, it requires a
significant number of individual investors to reach the maximum take from the
incentive of €10m (US$15.5m). |
Too early to say. |
The money comes at the back end. However, even
though at present there are no financiers in Malta to cash-flow the incentive
prior to shooting, there are overseas private business that are prepared to
offer this service. |
The criteria for accessing the incentives is not
considered straightforward, with complicated application procedures and
closing dates. |
The "used or consumed in the UK" rules. UK
artists and technicians working abroad don't count toward the tax credit
whereas US stars working in the UK do. |
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The budget cap and the inclusion of participations
and residuals in the definition of production costs make it difficult to use
the incentive with budgets greater than US$10m. There are a limited number of
middlemen and investors handling the deduction and deals are complex and slow
to close. |
There are not as many buyers for tax credits in
Connecticut as there are in some other states. |
Wages paid to non-residents do not count towards the
payroll credit, nor do salary payments above the US$1m cap, so payouts to
major stars are unlikely to qualify. |
Restrictive union environment. |
Wage costs that can qualify for the rebate are
capped at US$2m per person per production, so the majority of the major
star's salary would not qualify. Producers are not yet sure how this new
programmes will work in practice --- there are concerns, for example, that
the popularity of the incentive would lead to a shortage of local crews. |
The rebate does not apply to out-of-state
above-the-line talent other than actors and stunt performers, so payments to
non-local directors and producers do not qualify. |
Above-the-line costs, including wages for writers,
directors, producers and actors do not qualify for the credit. Tapping the
incentive can be a cumbersome process because of quirks in state tax law. |
The relatively small tax base of this tiny state
means a smaller market for the sale of credits. The threatened annual cap
would make it difficult for all but budget features to use the incentive. |
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The definition of 'significant Australian content'
to access the producer offset is discretionary and thus highly controversial. |
it is not enough. Local producers would like an
incentive on a par with Australia's in order to remain competitive as an
international co-production partner. |
Foreign productions have to shoot for a minimum of
four weeks in South Africa to be eligible. The cap limits its appeal as well:
South African producers lobbied to have it removed altogether or, failing
that, at least doubled. |
The extensive paperwork with Chinese translation. |
| Studio facilities |
No. |
Plenty. Studio Babelsberg, just outside Berlin, is
one of Europe's leading studios, recently housing 'Valkyrie' and 'Speed
Racer'. |
Luc Besson's Cinema City will be a 65,000 sq m
complex to be based just outside Paris. Set to open in 2010, Tarak Ben Ammar
has pledged to move all France's post facilities to this site. |
The studio business in and around Budapest is
booming with facilities such as the new Korda Studios and Stem Studios
recently attracted 'Hellboy II: The Golden Army' and 'Good'. |
No. |
Ardmore Studios has housed productions such as 'King
Arthur' and TV series, 'The Tudors'. |
Yes. The Deluxe studios offer large studio
facilities and a sound stage. The development of former steel industry
warehouse into film studios in the south of Luxembourg is under discussion. |
Gladiator' shot at the Malta Film Studios, which has
one of the world's biggest water tanks. |
Alicante's City of Light studios has catapulted
Spain into Europe's major leagues. A new facility has been mooted for Madrid.
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The world's biggest production hub outside North
America, with huge facilities at Pinewood, Shepperton and Leavesden. |
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