Tax Incentive Update

Alaska's new incentive legislation is under active consideration by the Alaska Senate, with final action expected soon. Dama Chasle of the Incentives Office has been testifying before the Alaska senate in support of SB230 by telephone at each session. This will provide a 30% credit for all salaries, a 30% credit for goods and services purchased from an Alaska vendor, and 40% for cast & crew who are Alaska residents.

Colorado's incentives program was not approved when it came up for vote in March. Illinois has not reinstated its new program, which expired on 12/31/07. Legislation was approved by the Illinois house, but did not pass the Senate in March. It will be reconsidered later this month.

Mississippi has increased its rebate for out-of-state crew from 10% to 20%, non-resident cast are capped at $1 million per hire, and projects are capped at $8 million. Loan-outs will be charged a flat 2%. (This has not yet been passed, but is in conference).

Michigan's legislature is completing work on the 16 bills that comprise their new incentives package. Approval by the Senate and the Governor is expected. The legislation provides for a 40% rebate for all above-the-line. Michigan labor; out-of-state crew is 30%. There is a $2 million cap per hire. Goods and services purchased from local vendors get a 40% rebate. Applications, which must be approved prior to the start of production, should be available late next week.

Rhode Island is considering a bill that will put a $15 million yearly cap on production (there is currently no cap). If passed, the legislation will be retroactive, and apply to any films starting after January 1, 2008, including films already in production.

Information courtesy of FilmUSA.org.