Spring 2012 issue of Horizons

Other State Facts States like North Carolina have seen an increase in revenue directly related to film productions. In 2011, the NC film office reported $220 million in production spending. Some governors are attempting to use censorship when issuing the tax credits. For example, the Governor of New Jersey requested a stop payment on the rebate check issued to the producers of “Jersey Shore.” The Governor does not think that taxpayer money should be used for films of this content. States that either do not have film tax credit programs or have ended their programs include: Arizona, Idaho, Iowa, Indiana, Nebraska, Nevada, New Hampshire, North Dakota, South Dakota, and Washington.

It consists of a 35% transferrable tax credit of qualified expenditures. The tax credit has an annual cap of $4.5 million, none of which is currently funded. The Missouri Department of Economic Development is now handling the film tax credits. Similar to the Kansas film tax credit, the film budget must be at least $50,000 for films that are less than 30 minutes and $100,000 for films that are longer than 30 minutes. Missouri film tax credits may be carried forward 5 years and are transferrable and sellable. The key part of the program is that the department will give approval based on whether or not they think the film will be a good fit and provide a positive economic impact. Senate Bill 1209 has been introduced to eliminate the film tax credit program effective December 31, 2012. Even though this is just the first step in the legislative process, this Bill has a good chance of passing and being signed into law by mid-May 2012. Missouri has all but abandoned attempts to attract film ventures into its state any more.

RubinBrown’s Media & Entertainment Services Group We serve individuals and organizations of all sizes throughout the broadcast, cable, publishing and entertainment industries.

Larry Rubin, CPA - St. Louis Partner-In-Charge Media & Entertainment Services Group larry.rubin@rubinbrown.com 314.290.3338

Greg Osborn, CPA - Denver Managing Partner, Denver Office greg.osborn@rubinbrown.com 303.952.1250

Todd Pleimann, CPA - Kansas City Managing Partner, Kansas City Office todd.pleimann@rubinbrown.com 913.499.4411

Jessica Sackman, CPA - St. Louis Manager Media & Entertainment Services Group jessica.sackman@rubinbrown.com 314.290.3308

www.rubinbrown.com

18