THE INCENTIVES PROGRAM - TIP

On May 28, 2024, Governor Jared Polis signed House Bill 1358 into law, thereby amending the existing Colorado film incentive program as follows:

• Amends the tax credit language to read that a qualified production may not earn more than 22% of qualified local expenditures, if the production company:
  • Spends at least $100,000 in qualified local expenditures; and,
  • Employs a workforce for any in-state activity that is made up of at least 50% Colorado residents;
• Allows the 1^st $1 million of payments per calendar year per loan out company to qualify provided the production company files an information return pursuant to section 39-22-604 (21);
• Allows $5 million in tax credits to be reserved for each calendar year thru 2031;
• Requirements:
  • Submit an application to the office for a tax credit reservation before commencing production activities in the state; and
  • Submit an independent certified public accountant’s report.

On July 2, 2024, Governor Josh Green signed Senate Bill 795 into law, thereby amending the Motion Picture, Digital Media, and Film Production Tax Credit program as follows:

• Allows a production to provide evidence of reasonable efforts to comply with all applicable requirements under title 14; and,
• Requires that a taxpayer be given notice of and an opportunity to cure any failure to meet certain requirements within 30 days of receipt of the notice.

This act takes effect on January 1, 2025.

On June 26, 2024, Governor JB Pritzker signed House Bill 5005 into law, thereby amending the Film Production Services Tax Credit Act, as follows:

• Modifies the definition of Illinois production spending to exclude any monetary prize or the cost of any non-monetary prize awarded pursuant to a production in respect of a game, questionnaire, or contest;
• Allows the following to be considered an “accredited production”:
  • Talk shows produced for a national audience;
  • Contest-based shows; and
  • Game shows
• Beginning July 1, 2024, requires taxpayers to pay a fee equal to:
  • 2.5% of the credit amount awarded to the taxpayer that is attributable to wages paid to certain nonresidents; and,
  • An additional fee equal to 0.25% of the amount generated by subtracting the credit amount awarded to the taxpayer that is attributable to wages paid to certain nonresidents from the total credit amount awarded to the taxpayer.

This act takes effect upon becoming law.

On May 24, 2024, Governor Tim Walz signed Senate Bill 5289 into law, thereby amending Minnesota’s Film Production Tax Credit program as follows:

• Exempts television commercials from the requirement of including a “Promotion of Minnesota” in the end credits; and,
• Eliminates the requirement that the “Promotion of Minnesota” be approximately five seconds long and be placed in the end credits before the below-the-line crew crawl.

On June 17, 2024, Governor Dan McKee signed House Bill 7225 into law, thereby amending the Rhode Island Motion Picture Production Tax Credit program as well as the Musical and Theatrical Production Tax Credit program by extending the sunset date to June 30, 2029.

On June 24, 2024, Governor Dan McKee signed House Bill 8180 and Senate Bill 3004 into law, thereby amending the Rhode Island Motion Picture Production Tax Credit program as follows:

• Clarifies that “state-certified production cost” means any pre-production, production, and postproduction cost incurred and paid by a motion picture production company for the performance of services and use of property in Rhode Island for the production of a film, without limitation as to the person or business providing the goods or services, as long as services are performed in Rhode Island, tangible personal property is used in Rhode Island, and real property used by the motion picture production company is located in Rhode Island;
  • Except as specifically required for music, legal or accounting services;
• Stipulates that a motion picture production company’s state-certified production costs may not be disqualified if a vendor providing the goods and services in Rhode Island:
  • Fails to register with the office of the secretary of state, if required; or
  • Does not maintain a place of business in Rhode Island.

This act takes effect upon passage.