Joseph Bell’s Post

Navigating the Landscape of Film Tax Incentives: A Guide for Industry Professionals

Which state has the best tax incentive opportunity for your production? GreenSlate's Michele Miller, VP of Production Tax Incentives, breaks down which states are potentially worth considering based on four buckets: ✅ States that offer diverse landscapes ✅ Good states to consider if location is not a priority ✅ States to consider if turnaround time on your tax credit isn’t critical to production ✅ The states that should be at the top of your list if you're looking for rebates

Film production tax offset denied.   In its death throws (*) the Administrative Appeals Tribunal has handed down a thrilling decision in respect of the entitlement of the producer of the horror film “Fragmentary” to a refundable tax offset for the “qualifying Australian Production expenditure” incurred by the producer (copy attached).   This is the first decision to consider in detail the scope of the eligibility requirement that the producer be responsible for all activities involved in “making the film”.   The production company, which was incorporated only after scriptwriting and principal photography were completed but prior to formal agreements being put in place as to services and distribution, argued that a film only commenced to be made after formal legal arrangements were put in place.   The Tribunal rejected that argument and affirmed Screen Australia’s decision to refuse to certify the producer’s eligibility for the refundable tax offset.   The decision demonstrates the need for those in the film industry, particularly producers and film financiers, to ensure that all conditions of eligibility for the producer offset are satisfied.   Christopher Peadon, led by Richard Lancaster SC, and instructed by Mr Adam Moxon Simpson and Mr Sebastian Tonkin of Simpsons appeared for Screen Australia.   Chris regularly advises participants in creative industries in relation to eligibility for refundable tax offsets (including film and digital game offsets), as well as taxpayers in relation to R&D offsets.   All queries in relation to Chris’ availability and rates should be directed to our clerk, Ms Angela Noakes.     (*) The AAT ceases to exist from 14 October 2024, when it transmogrifies “Teen Wolf-style” into the Administrative Review Tribunal. #tax #film #taxoffsets

The UK enjoys advantages in movie production and cultural activities, which have been further bolstered in the UK Spring Budget 24. Regarding film tax reliefs, efforts are underway to modernize and simplify the audio-visual creative tax relief system, encompassing Film Tax Relief (FTR), High-End TV Tax Relief (HETV), Animation Tax Relief (ATR), Children’s TV Tax Relief (CTR), and Video Games Tax Relief (VGTR). Plans involve replacing FTR, HETV, ATR, and CTR with a new Audio-Visual Expenditure Credit (AVEC) regime, and VGTR with a new Video Games Expenditure Credit (VGEC), though transitional rules will be necessary for a smooth transition. Notably, independent films that meet specific criteria will be eligible for an Independent Film Tax Credit (IFTC) of 53%, effective from April 1, 2024, for films beginning principal photography on or after that date, with claims possible from April 1, 2025. Qualification for IFTC involves passing a new test administered by the British Film Institute and having key talent from the UK or being an international co-production. Similarly, the UK budget provides relief for cultural activities. Companies engaged in qualifying cultural activities can benefit from tax relief, enhancing their qualifying expenditure for tax purposes, thereby reducing taxable profits. The rates of enhanced expenditure for Theatre Tax Relief, Orchestra Tax Relief, and Museums & Galleries Exhibition Tax Relief have been permanently set at 40% and 45% from April 1, 2025, representing a reduction from the current enhancements but still a significant support for cultural artists. #UKFilm #Taxrelief #culturalartists

Are you current on the latest legislative changes to Georgia's Film Tax Credits? "Georgia legislative leaders’ pledge to rein in some of the state’s generous tax breaks to industry is starting with the most expensive on the books: the film tax credit." Read all about it in the article below. https://ow.ly/ZsP550QIoRS #taxcredits #filmtaxcredits #georgiafilm #georgiataxcredits #cabrettacapital

As other states and countries offer outsized tax incentives for productions, California and Los Angeles are being pummeled in the battle for film and TV shoots as Hollywood’s studio lots go deserted. Why it matters: Los Angeles’ status as the home of the entertainment industry draws tourists and gives the city a level of prestige, but far more important than that are the financial implications of being the film and TV capital of the world. Every dollar allocated in the California Film Commission generates $24.40 in economic activity. With productions looking to other states, as well as international locales, the upheaval for the industry’s workers in L.A. is a significant issue. How bad is it: Though films have been shooting away from L.A. for some time now, TV productions have ramped up their filming outside of Hollywood, too. During last summer’s strikes, many productions moved abroad and stayed there. For example, three big series — Wednesday, The Night Agent and Apples Never Fall — have moved to Ireland, Vancouver and Australia, respectively. The fight back: Los Angeles Mayor Karen Bass has assembled an Entertainment Industry Cabinet dedicated to supporting Hollywood and to combat “production leakage." She’s also putting together a task force of film liaisons from various city departments that will meet quarterly. But many in the industry worry about the optics of L.A. raising its tax incentive funding, out of fear it’d signal a benefit to corporations and their wealthy executives, not workers. For more... read the full story on The Ankler. This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry. 🔗 https://ow.ly/PC6q50TgZWs ✍️ Matthew Frank | The Ankler 📸 Valerie Macon/AFP via Getty Images

Are you an Aussie filmmaker? Here's a term you should know: Producer Tax Offset. 🔸 This is a refundable tax offset supporting Australian productions, meaning it can help generate a tax refund where no tax has been paid. 🔸 It's a funding source for qualifying projects, which can be used as upfront financing. 🔸 Depending on your Qualifying Australian Production Expenditure (QAPE), it could be worth 40% of your total QAPE on a feature film or 30% on non-feature films. Learn more in our latest blog post, where we explain what the Producer Tax Offset means for your production. https://lnkd.in/gv8nHxMN

Are you an Aussie filmmaker? Here's a term you should know: Producer Tax Offset. 🔸 This is a refundable tax offset supporting Australian productions, meaning it can help generate a tax refund where no tax has been paid. 🔸 It's a funding source for qualifying projects, which can be used as upfront financing. 🔸 Depending on your Qualifying Australian Production Expenditure (QAPE), it could be worth 40% of your total QAPE on a feature film or 30% on non-feature films. Learn more in our latest blog post, where we explain what the Producer Tax Offset means for your production. https://lnkd.in/gv8nHxMN

Today, the Chancellor of the Exchequer used the Government’s first Autumn Budget to confirm an increase in the UK’s tax incentive for spending on Visual Effects (VFX) in the UK. The Chancellor confirmed proposals, first raised in the March 2024 Budget, that from 1st April 2025, VFX costs in the UK will attract an increase in the rate of relief to 39% (29.25% after tax). This represents an increase from the previous rate of 25.5% - and would be exempt from the overall Audio-Visual Expenditure Credit’s 80% cap on spending eligible for film and TV tax relief. Adrian Wootton OBE, Chief Executive of Film London, said:    “UK film and TV is globally admired, and a key sector driving economic growth. Our VFX sector is one of the jewels in the UK industry’s crown, with a depth of creative and technical expertise, and the accolades to match: British teams have won the Oscar for Best VFX 11 times in the last 14 years.And London is home to an impressive roster of these award-winning VFX companies.   “But these are competitive times. Productions are looking globally for the best talent and incentives to guide their investment decisions. Any new measures must address intensifying global competition and help us put our best foot forward. Today’s confirmation of the VFX tax credit increase doubles down on London and the UK’s strengths, and will drive up investment. It is not only welcome, but essential to support our sector and wider UK growth.” The Chancellor confirmed proposals, first raised in the March 2024 Budget, that from 1st April 2025, VFX costs in the UK will attract an increase in the rate of relief to 39% (29.25% after tax). This represents an increase from the previous rate of 25% - and would be exempt from the overall Audio-Visual Expenditure Credit’s 80% cap on spending eligible for film and TV tax relief.

Unleashing Potential: How Hungary's 30% Tax Rebate Elevates International Filmmaking » ORIGO REPORTS: Hungary's 30% tax rebate scheme transforms the nation into a premier destination for cost-effective and high-quality filmmaking in Europe. Read our article about Tax incentive