THE INCENTIVES PROGRAM - TIP

On April 20, 2021, Governor Asa Hutchinson signed House Bill 1743, which amends the Digital Product and Motion Picture Industry Development Act as follows:

• Creates a transferrable tax credit program, in addition to the existing rebate program, equal to 20% of qualified production and postproduction expenditures;
• Allows for additional credits, up to a maximum aggregate credit of 30%, as follows:
  • 10 percent of below-the-line resident labor;
  • 10 percent of wages and salaries paid to a veteran, as defined;
  • 10 percent of qualified expenditures paid to a veteran-owned small business, as defined;
• Establishes a funding cap of $4 million per fiscal year (July 1 – June 30) for the transferable tax credit program only;
• Maintains the rebate program with unlimited funding; and,
• Extends the sunset date from June 30, 2029 to June 30, 2032.

The tax credit program takes effect on July 1, 2021.

On May 14, 2021, Governor Greg Gianforte signed House Hill 340, which amends the Montana Film Tax Incentive program by increasing the annual funding cap from $10 million to $12 million per calendar year thru December 31, 2024. If no other legislative action is taken between now and December 31, 2024, the annual funding reverts to $10 million.

On April 26, 2021, Governor Pete Ricketts signed Legislative Bill 380. This bill allocates $1 million to the Nebraska Film Office Fund to provide grants to Nebraska-based films, for the 2022 fiscal year (7/1 – 6/30).

On April 26, 2021, Governor Pete Ricketts signed Legislative Bill 384, thereby establishing the Nebraska Film Office Fund grant program. Details of the program are as follows:

• Creates a grant equal to not more than 25 percent of total projected production costs;
• Requirements:
  • Application must be submitted prior to beginning production;
  • Film is to be produced in Nebraska;
  • Film must tell a Nebraska story; and,
  • At least 50 percent of workforce for film production must be composed of residents for the duration of the production;
    • The department may lower the 50 percent requirement but may not waive the requirement.

On April 7, 2021, Governor Ralph Northam signed House Bill 1800 and Senate Bill 1100. These bills appropriate $3 million for the fiscal year ending June 30, 2021 and $4 million for the fiscal year ending June 30, 2022 to the Governor’s Motion Picture Opportunity Fund which is to be used at the discretion of the Governor to attract film industry production activity to the Commonwealth.

House Bill 2842 and Senate Bill 1983 propose to amend the Massachusetts Film Tax Credit program by eliminating the sunset date, previously the program was set to expire on 12/31/2022.