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July 7, 2020
Demystify film tax incentives with experts Amy Lemisch and Joe Chianese! Learn the difference between rebates and credits, how location impacts financing, how to avoid hidden costs, and how to choose the right production jurisdiction. Demystify film tax incentives with experts Amy Lemisch and Joe Chianese! Learn the difference between rebates and credits, how location impacts financing, how to avoid hidden costs, and how to choose the right production jurisdiction. In this insightful episode, host Julie Harris Walker welcomes film industry veterans Amy Lemisch and Joey Chianese to discuss the often complex world of film tax incentives. As the conversation unfolds, listeners gain a deeper understanding of how these incentives can significantly impact production budgeting and location decisions in the entertainment industry.Key Takeaways:1. Understanding Film Incentives: Amy Lemisch provides an overview of what film incentives are, describing them as a means for productions to stretch their budgets, using terms like "soft money" and "immediate financing sources." These incentives can come in the form of tax rebates, refundable credits, or transferable credits, which then play a crucial role in a film's financial structure.2. Hot Production Spots: The discussion highlights key states offering competitive incentives, including California, Georgia, New York, and Louisiana. Lemisch notes that while California's incentive structure is valuable, Georgia's bustling production scene often attracts filmmakers due to its generous rebate structure. "There's always the right jurisdiction for the right project," she emphasizes.3. The Economics of Incentives: Both guests stress the importance of meticulously calculating the financial implications of filming in various states. This includes understanding how much of the budget qualifies for incentives and the potential "discounts" associated with selling tax credits. As Chianese aptly points out, "You should probably budget it at 85%," to avoid surprises when calculating returns.4. Navigating the Legislative Landscape: Lemisch and Joey also delve into how local legislative changes can affect where productions decide to film. The conversation touches on North Carolina and the recent controversies surrounding legislation that may deter filmmakers. They caution that, "a production company's primary focus is not only tax incentives, but also the social climate of a location," reflecting a shift towards a more socially conscious industry.5. The Growing Importance of Diversity: The session also briefly addresses the evolving conversation around diversity in hiring practices within incentive programs. While some states are beginning to collect data on diversity, there's still a long way to go in terms of making impactful legislative changes in this arena.6. Resources for Producers: As the episode wraps up, Chianese advocates for using professional resources, such as film commissions and production accounting services, to navigate the intricacies of tax incentives. Their website, productionincentives.com, is touted as a valuable tool for filmmakers to track and compare incentives across jurisdictions.Significant Moments: - Amy's poignant remark, "It wasn't until films like Ugly Betty left California that we realized the depth of the issue," underscores how significant productions influence legislative action.- Joaquin's informative comment on Section 181 further sheds light on how film tax laws differ in struct Click to https://chatmosa.com/live/summary/82LNW8GLC3JSX2JZ3Z9GCEID15049 to learn more about this episode and see the visuals being shared on the jumbotron.
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