MONTHLY TIP UPDATE - SEPTEMBER 2009

CONNECTICUT – Connecticut has made modifications to its program which were previously reported in the Connecticut update (September 4, 2009) click here for details.

HAWAII – On September 17, 2009 the Hawaii Department of Taxation issued Tax Information Release (TIR) No. 2009-05.  The proposed administrative rule sets forth (amongst other items) a safe harbor for production companies utilizing loan-out companies.  Previously, in order for a payment to a loan–out company to qualify, the general excise tax must have been paid on the gross receipts of the loan–out company.  Under the proposed TIR, the payment to the loan-out company will qualify if the production company:  1) provides each loan out with a “tax advisory”, informing the loan-out company of their Hawaii tax obligations, not later than thirty business days after the engagement is consummated; 2) obtains an acknowledgement from the loan-out company that they have received the “tax advisory”;  3) submits to the department of taxation a report , signed by the taxpayer which includes the name, address, FEIN, and amount of gross income paid o the loan-out; and, 4)  provides any other information requested by the department, prior to filing a tax return claiming the credit. A taxpayer that has complied with these terms shall not have the related production cost challenged as being disqualified because the general excise tax was unpaid by the person providing the services.  The TIR contains a sample of the “tax advisory” and a template for the schedule of payments.

IOWA – The state auditor’s report on the film incentive program is expected to be released this Friday.  Click here to access our Iowa update issued on September 21, 2009.

FUNDS STILL AVAILABLE ? Here is the current status as reported to us today:
Alabama - $7.5M available
Alaska – Most of the $100M available
Arizona - $62M available
Arkansas - $5M available
California – Substantial funds available
California – San Francisco - no cap
Colorado – Just under $1M available
Connecticut – No cap
District of Columbia – No funds available
Florida – No funds available
Georgia – No cap
Hawaii – No cap
Idaho - No funds available
Illinois – No cap
Indiana - $2.5M available
Iowa – Program suspended
Kansas – Program suspended until 1/1/2011
Kentucky – No cap
Louisiana – No cap
Maryland - $1M available
Massachusetts – No cap
Michigan – No cap
Minnesota - $980k available
Mississippi - $20M available
Montana – No cap
New Mexico – No cap
New York State – Just under half of the $350M is available
New York City – No funds available
North Carolina – No cap
Pennsylvania – Still has money available
Puerto Rico - $15M available
Rhode Island – Just under $15M available
South Carolina - $15M available
Tennessee - $10M available in 17% program
Texas - $20M available
Utah – Just under $12M available
Washington - $8M available
West Virginia - $9M available
Wyoming - $585k available

WANT TO RECEIVE MONTHLY UPDATES VIA E-MAIL?

To receive the latest motion picture and television production incentive updates, send an email to productionincentives@castandcrew.com with the word ”UPDATES” in the subject field. Please include:

• Your Full Name
• Your Company Name
• All Relevant Contact Information    
  

For more information please contact:

Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
jbessacini@castandcrew.com

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