  Tools for 2008 Updates by Jurisdiction What's New at EP? Maximize Your Incentives with EP |
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   The Essential Guide to U.S. & International Production Incentives, 2008, 2nd Edition, edited by Joseph Chianese, Marco Cordova, and Barbara Rosenfeld. Distribution will be at various events (see Happenings). Monthly Production Incentives Email Updates Archive of previous newsletters is now available. To sign up for our newsletter, please send your request to the EP Production Incentives Group. Recent Updates as of June 18th to the website, including the "Basic Overview of U.S. and International Production Incentives" PDF. back to top |
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 NOTE THAT SEVERAL OTHER STATES ARE EXPECTED TO INTRODUCE NEW FILM INCENTIVE LEGISLATION. For more information on proposed legislation and additional incentives updates, visit the Recent Updates section. U.S. Updates ALABAMA The proposed incentive legislation died in the House. ALASKA The Governor signed the incentive legislation on June 4, 2008. Please visit the U.S. Overview for additional information. MICHIGAN The state has income tax reciprocity agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. That means that a Michigan employer will not withhold Michigan income tax from residents of these states who work in Michigan, as required by the Michigan production incentive (MCL 208.1455) for the 30% qualified personnel expenditure tax credit. EP is working with the State to address this issue. The state requires a 4.35% income tax withholding on payments to loan-outs for performing artists and crew members for such payments to qualify for the production tax credit. Michigan law does not clearly authorize production companies or their payroll service company to withhold on such loan-out payments. However, EP will withhold the 4.35% if a loan-out authorizes the withholding. EP accepts redacted copies of deal-memos indicating a loan-out authorizes the 4.35% withholding. EP also has a standard withholding authorization form for Michigan. Please contact us for a copy of the Michigan withholding authorization form or if you need further clarification regarding Michigan's withholding requirements to qualify for the state's tax credits. NEBRASKA The proposed incentive legislation has been indefinitely postponed on April 17, 2008. NORTH CAROLINA The Department of Revenue provided recent clarification that 4.00% income tax must be withheld by the production company, its payroll service company, or the loan-out for compensation and wages to be considered qualifying expenses for purposes of the film production tax credit. However, a production company is not authorized to withhold 4.00% from a loan-out if the loan-out company obtains a North Carolina Certificate of Authority from the Secretary of State. Such dual withholding requirements may result in loan-out payments not qualifying for the state's production tax credit. However, EP will soon provide clients a summary sheet regarding North Carolina's withholding and registration rules, rates, and consequences for the tax credit. NOTE: a similar summary sheet will also be available to EP clients for other states. As a reminder, Connecticut (requires registration), Hawaii (requires registration and payment of gross excise tax), Massachusetts (performer withholding is required unless standard withholding applies to the loan-out), Michigan (see above), and New Jersey (requires registration) have registration and/or withholding rules on loan-out payments that impact your production tax credits. Please contact the EP Production Incentives Group if you need further clarification regarding any state's withholding requirements to qualify for applicable tax credits. PENNSYLVANIA Pennsylvania legislators and Governor Ed Rendell agree on the 2008 budget, and the state's production incentive funding remains unchanged at $75 million for fiscal year 2008 - 2009. WYOMING The state appropriated another $1,000,000 for the state's cash rebate program effective for Fiscal Year beginning July 1, 2008. International Updates CZECH REPUBLIC The Czech government has rejected a proposal to create a 20% tax rebate on local spend for filmmaking. ISRAEL A Law for Encouragement of the Film Industry has been proposed which includes a 20% "cost reduction" for films in which expenses in Israel are at least NIS 8,000,000 (roughly US$2.2 million). A 15% "cost reduction" would be available for co-productions in which foreign investment is at least NIS 6,000,000 (roughly US$1.7 million). The law is subject to approval by the Israeli parliament (Knesset). NOTE THAT SEVERAL OTHER STATES ARE EXPECTED TO INTRODUCE NEW FILM INCENTIVE LEGISLATION. For more information on proposed legislation and additional incentives updates, visit the Recent Updates section. back to top |
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 EP Louisiana has a new office located in Jefferson Parish. EP New Mexico now has several payroll staff to help with productions in New Mexico. Entertainment Partners also purchased Workers' Compensation policies from local brokers throughout the U.S. to help maximize your production incentives! See the following list of production incentive states where EP has a local policy: Florida Hawaii Illinois Louisiana New Mexico Pennsylvania South Carolina *NEW* Texas More policies to be announced soon! back to top |
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  Entertainment Partners has an office in each of the following states to help maximize your production incentives (more to open soon!):California Connecticut Florida Illinois Louisiana * Massachusetts New Mexico ** New York Pennsylvania South Carolina Utah |
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| * Entertainment Partners has a full-time account representative in the State to help maximize your production incentives. ** EP relocated one of its most experienced paymasters to its office in Albuquerque to service its New Mexico clients. ** EP New Mexico Production Incentives Packet available. For more information contact our EP Production Incentives Group. back to top |
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DISCLAIMER: These newsletter materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and therefore this information may have been revised. Please contact your legal or tax advisors to confirm any laws or the effect of incentives on your project. For updates and more information, please visit the Overview section of our website. |