THE INCENTIVES PROGRAM - TIP

On May 23, 2022, the Broward County Board of County Commissioners (“Board”) adopted Resolution No. 2021-518, establishing film, television, and entertainment production project incentive programs offering monetary rebates for qualified productions in two tiers, as follows:

Main Tier:

• Establishes a rebate of 15 percent of qualified Broward County expenditures;
• Limits the incentive amount that may be issued to a single production to $175,000;
• Limits qualifying salary to the 1^st $100,000 paid to each resident worker;
• Requirements:
  • Start principal photography within 120 days of application submission;
  • Incur a minimum spend of $400,000 in Broward County on qualifying payroll and qualifying expenses, inclusive of qualifying ancillary expenditures;
  • Must film 60 percent of the entire production days in Broward County;
  • Must hire main cast and crew, as defined, with a minimum of 25 percent of Broward County residents, and 25 percent of either Miami Dade County or Broward County residents for the majority of the Production Project;
    • The required percentage of Broward residents will increase 10 percent yearly starting in Fiscal Year 2023;
  • 50 percent of expenditures must be Broward County businesses and 35 percent of those Broward County businesses must be from small businesses, enterprises or county businesses enterprises, as defined;
  • Must hire one qualified college student or qualified college graduate; and,
  • Include official specialty Broward County “identifier” in end credits.

Alternative Tier:

• Establishes a rebate of 10 percent of qualifying Broward County expenditures;
• Limits the incentive amount that may be issued to a single production to $100,000;
• Limits qualifying salary to the 1^st $100,000 paid to each resident worker;
• Requirements:
  • Start principal photography within 120 days of application submission;
  • Incur a minimum spend of $500,000 in Broward County;
  • Must film 50 percent of the entire production in Broward County;
    • Of the production days filmed in Broward County, 25 percent of the main cast and crew must be Broward County residents and 25 percent of either Miami Dade County or Broward County residents;
    • The required percentage of Broward residents will increase 10 percent yearly starting in Fiscal year 2023;
  • 50 percent of expenditures must be Broward County businesses and 35 percent of those Broward County businesses must be from small businesses, enterprises or county businesses enterprises; as defined;
  • Must hire one qualified college student or qualified college graduate; and,
  • Include official specialty Broward County “identifier” in end credits.

This Administrative Code Resolution is effective upon adoption.

House Bill 465 proposes to create the Delaware Entertainment Investment Tax Credit program as follows:

• Establishes a transferable tax credit equal to 30 percent of qualified expenditures, as defined;
• Allows resident and nonresident labor to qualify;
• Establishes an annual funding cap of $25 million per fiscal year (7/1 – 6/30);
• Requirements:
  • Must incur more than $5000,000 in qualified expenditures during the tax year;
  • Provide internship opportunities to Delaware residents;
  • Withhold Delaware income tax at the rate of 6 percent on all payments to loan-out companies for services performed in Delaware; and,
  • Must have a full audit by Department of Finance or an independent third-party, certified by the Department.

If enacted, this act shall take effect January 1, 2023.

House Bill 7123 proposes to modify the Rhode Island motion picture production company tax credit and musical and theatrical production tax credits programs as follow:

 

Motion picture production company tax credit

• Increases the yearly funding cap to $40 million per year for tax year 2023 and tax year 2024;

 

Musical and theatrical production tax credit

• Amends the definition of “Pre-Broadway production” for purposes of musical and theatrical production tax credits to include live stage productions performed in qualified production facilities having a presentation scheduled for Broadway’s theater district in New York City within thirty-six (36) months after its Rhode Island presentation rather than the previous period of twelve (12) months.