Film in FLA is back. Ya heard?
House bill 697 – Aka The Entertainment Industry Economic Development Bill.
This bill, brought to the floor by Steve “The Situation” Precourt** and “Fightin” Mike Haridopolos**, whom I’m ashamed to admit I just heard of today, is the boldest attempt to save us from the 24 frame-per-second car wreck that is/was the Florida film industry. In case you are blissfully ignorant of the legal ramblings of film/TV tax incentives like I am, here is the MTV generation bullet points in a non-bulleted list.
Currently, hipper states like New York, New Mexico, Louisiana, Connecticut, Massachusetts and Illinois have Film/TV industry tax incentives that give tax credits for production companies who work within the state or will be working within the state. They do this because they know that our industry brings bucco bucks wherever it lands, if nothing but for the craft services. So, smart states incentivize the industry and attract productions with their duty free ways. All investment must occur within the state and there is absolutely no tax dollars used in this bill. Reduced tax revenue yes, but let’s be honest, they were going elsewhere anyway.
The credits will come off of corporate taxes and sales and use taxes. Smaller LLC’s like mine, won’t see the corporate tax incentives because LLC’s don’t pay corporate tax, and we already utilize the sales tax exemption the state offers.
Who knows if this will pass. We’ll keep you posted, but if it does, at least Florida will become a more attractive place to produce media. Even if you don’t participate directly in major studio productions, a rising tide lifts all boats, and a bustling entertainment community will help all of us producers get access to better gear and better local talent.
Here’s the gist of it via Film in Florida.
**Those are not their nicknames.
3 Responses
Hi Joe ,
I love your site and have been reading it for a few months now. I am E.V.P. of the Space Coast chapter of The Florida Motion Picture & T.V. Association. The Association has been instrumental in promoting the legislation that you mentioned on the website. We have monthly meetings where we have local and area professional content creators come and talk about what they’re doing and anything else they want as long as it pertains to production in the state of Florida. You could promote your website as well. We would love to have you come and talk to us at a meeting in the near future if you’re interested. Email me at esquared14@gmail.com if you’re interested. We will reimburse all travel expenses as well. Keep up the great work, love the site! Your Comments
Hey Joe,
The film incentive has been around for about 7 years now and it was cut back on us well going on 2 years now. The one thing that we have over New Mexico, Louisiana and a few others is a full support base ie crew stages etc… Feature Films have been on the rise for the past 4 years now here in Orlando alone and out bred and butter has always been Commercials. The one thing that everyone wants to bring back is TV but the state has their head up their butt and not thinking. TV Shows are not a 3 month shoot it is more like a year or more and they state will profit from it big time if they have a set credit for 3 years.
Corey,
Excellent points. The FFP coalition link in the article mentions your funding cuts to previous incentives. I too think TV coming back would be more beneficial to my company and yours as well. This bill would include television companies that incorporated here in the credit, as long as they are a C corp. The main difference between previous incentives and this proposed incentive, as I understand it, is that this will be a credit not a rebate. Previous years, we blew through our $10 million rebate very quickly, and it was risky for outside companies to chance it. This credit has a max of $75 million, so it’s 7.5 times bigger and if it’s reached, will be passed on to the next tax year for the company. Even if this legislation isn’t perfect, it stands to be an improvement.
I’m new to this information, but Eric Emerick, the previous commenter, will have the most accurate take on the legislation. Perhaps he can shed some more light on it? Thanks for commenting Corey.