Producers – 4 Phases of Financing With State Tax Credits

April 24, 2013

There are 42 States currently offering some kind of film tax incentive. Different States have different types of incentives. The most common are Transferable Tax Credits. There are also Refundable Tax Credits, Grants and Rebates.

Producers don’t like to be merged with Accountants; however, a Producer who doesn’t understand the financing terminology of various States and Provinces film incentives is going to find himself/herself in the soup.

This is the best place that I have found to find out about the various types of film incentives: http://easeentertainment.com/production-incentives/incentives-map/

Just place your cursor over the various States and you’ll see on the right a short summary of the type of tax credit and the percentages of “Qualifying Expenses”.

There are four phases of every Film Incentive:

1. Application

2.Production

3.Final Certification

4.Apply for the Funds

The trick is to be able to monetize it as part of your cash-inflow during the Prep/Shoot/Wrap/Post stages.

I will be writing more blogs for Producers to monetize their tax credits – some of the ways I have seen and been a part of, as well as some that I know about.

Understanding State Film Tax Incentives, and the Federal Film Incentive (Section 181), isn’t something to be left to the “accountants”. It should be part of every Producer’s arsenal.

I have written quite about about it for Accountants – which Producers can learn about as well. Check out this web site and have a look at some of the 3 minute videos.

I’m off to Scotland for a short holiday with my family – leaving tonight (April 24th). See you in 10 days.

Cheers / John