Production Incentives Update: November 2023
US Jurisdiction Updates
Connecticut
HB 6941, signed by the Governor and passed by the state legislature, amends the Digital Media and Motion Picture Tax Credit. Commencing on January 1, 2024, but prior to January 1, 2026, the production company claiming the credit against sales and use tax can claim 92% of the amount entered on the production tax credit voucher. The amount that may be claimed will revert to 78% after December 31, 2025.
Connecticut offers a transferable tax credit on qualified productions.
Minnesota
Applications for the Minnesota Film Production Tax Credit are currently being accepted, and as of November 1, 2023, $29.4M in credits remain to be allocated.
Non-resident below-the-line crew wages paid after December 1, 2023, qualify at 15% for projects with a minimum spend of $5M.
Minnesota offers both a transferable tax credit and a rebate on qualified productions.
New York
The Governor has signed SB 7562, passed earlier this year by the state legislature, amending the New York State Film Tax Credit Program. The bill clarifies that those applicants who apply to the program prior to April 1, 2023, are eligible to access the additional funding allocated in the 2023-2024 budget. Applicants who applied to the program prior to April 1, 2023, would still have to file tax returns for the year after the allocation year. Increased funding would expedite the process for applicants to claim their credit, enabling them to do so in the tax credit allocation year rather than the following year. This act is effective immediately.
New York offers a refundable tax credit on qualified expenditures for production filmed in the state.
International Jurisdiction Updates
Japan
The Visual Industry Promotion Organization and Japan Film Commission under the Ministry of Economy, Trade and Industry's jurisdiction have announced a new location production scheme to attract more production to the island. The scheme is available to large-scale international TV and film production, shot primarily in Japan, and offers a reimbursement of up to 50%.
Eligible projects must either exceed the direct production cost of JPY 500M or have a total production cost exceeding JPY 1B with the direct production cost of JPY 200M.If a project is scheduled to be released in more than ten countries, then their direct production cost in Japan should exceed JPY 200M. Still, projects contributing significantly to the Japanese economy and domestic film industry could be eligible for the location scheme, even if they don't meet the specified requirements.
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