$3,000,000,000 (Yes Billion) MOVIE MONEY! Apply. Get Some. (6 States, 2 Provinces & China)
by Dov S-S Simens on May 11, 2017
MOVIE MONEY: RUNAWAY PRODUCTIONS
In 1997 Canada, specifically the city of Toronto (which doubles for USA cities), opted to compete for Hollywood shoots (aka: money) by offering 25% rebates/refunds to all productions that were about to-be-shot in cities like New York, or Boston, or Philadelphia, or Baltimore or any East Coast USA city but decided to shoot in Toronto, take the 25% rebate, bring 2 American actors, shoot 99% of the scenes in Toronto, call it an American movie, but hire Canadiens, rent Canadien equipment, eat Canadien food, etc., and with only a 2nd Unit, shoot all establishing shots in New York, Boston, Baltimore or Phillie.
(“Even Eastwood utilizes Runaway Production dollars to finance his movies such as “Gran Torino” in Michigan.”)
A $10,000,000 Feature, that takes place in Philadelphia, but shot 99% in Toronto gets a $2,500,000 rebate and needs a 2nd Unit to go to Philadelphia to get 15-20 Establishing Shots (Rocky jogging the steps in victory) that costs maybe $25,000.
Hmm?
Shoot in Philadelphia and the movie costs $10,000,000 to make.
Shoot in Toronto, call it Philadelphia, spend $25,000 to save $2,500,000 and the movie now costs $7,525,000 to make.
Hmm? Very interesting.
No Brainer. Hollywood goes to Toronto.
Thus, started runaway productions.
MOVIE MONEY: REBATES, REFUNDS, GRANTS & TAX CREDITS
Runaway Productions started with Toronto and has expanded to Vancouver (Looks like West Coast USA cities), Calgary/Alberta/Edmonton (Looks like Middle America cities), Halifax (Looks like New England States), etc. and then Australia, Hungary, New Zealand, Mexico, Brazil, Malaysia, etc…. and now, thanks to Wanda in Qingdao with 40% rebates, even China.
Hollywood is still Hollywood, that is the corporations, but the actual shoots have left Hollywood for the corresponding nation, states or territories that-looks-like-America and offers a 25-40% Rebate, Refund, Grant or Tax Credit.
(90% of Hollywood movies are funded via rebates, refunds, grants & tax credits from states and nations.”)
Voilla! Runaway Productions.
However, around the year 2005, once Runaway Productions became norm, the corresponding cities or states in America that lost these shoots to those nations or territories, started competing with their own 25-40% Rebates, Refunds, Grants & Tax Credits to regain the shoots.
Hollywood, the corporations (Warners, Paramount, 20th, HBO, Showtime, etc.), loves this for they now have American states competing with nations, with financial incentives, via Rebates, Refunds, Grants & Tax Credits for their shoots.
Today, rebates, refunds and tax credits have replaced lost DVD Revenues and decresed Pre-Sells at Cannes for financing medium-budget feature films and with respect to China (see below) it is about to be another golden era.
(“Our “DVD FILM SCHOOL” shows all the rebate, refund and tax credit programs, how to apply and how to obtain… at www.WebFilmSchool.com”)
It’s literally a golden era in funding for entrepreneurs (aka: Producers) who know how to combine this Canadien Province program (Exteriors), with that American program (Interiors), with this Foreign program (Post-Production, VFX), etc and upon combining they have figured out how to get 60-85% of a movie’s budget from cities, states, provinces and nations.
Now, how about you?
MOVIE MONEY: TOP 8 FILM FUNDING PROGRAMS
Of the 50 States in America, the 10 Canadien Provinces and approximately 30 Nations the best 8 film funding programs are…
(1) NEW YORK: $420,000,000 per year.
Offers 30% of a movie budget’s costs. 189 films were approved.
DETAILS: http://www.nylovesfilm.com/tax-incentives.php
(2) CALIFORNIA: $330,000,000 per year
Attracted 11 out-of-state projects and, of course, funded Hollywood in Hollywood.
DETAILS: http://film.ca.gov/tax-credit/
(3) LOUISIANA: $210,000,000 per year
Offers a great Tax Credit of 30%, plus bonus 10% for resident payroll.
DETAILS: https://louisianaentertainment.gov/film/motion-picture-investor-tax-credit
https://louisianaentertainment.gov/film/motion-picture-investor-tax-credit
(4) ILLINOIS: $499,000,000 per year
Offers a 30% Tax Credit, plus 15% bonus if shoot is within a high unemployment area.
DETAILS: https://www.illinois.gov/dceo/whyillinois/Film/FilmTaxCredit/Pages/default.aspx
(“Our “STREAMING FILM SCHOOL”, at only $89, is the most affordable way to learn about all the government funding programs.”)
(5) GEORGIA: $320,000,000 per year
20% Tax Credits plus 10% bonus if a 3-second shot of State’s logo, Georgia Peach, is shown.
DETAILS: http://www.georgia.org/industries/entertainment/georgia-film-tv-production/production-incentives/
(6) NEW MEXICO: $397,000,000 per year
Offers 25% Tax Credit for features and 30% Tax Credit for tv.
DETAILS: http://www.nmfilm.com/Incentives.aspx
(7) TORONTO-ONTARIO: Almost unlimited
Offers 35% and more. Wow!
DETAILS: http://www.omdc.on.ca/film_and_tv/tax_credits/ofttc.htm
(8) VANCOUVER-BRITISH COLUMBIA: Almost unlimited
“Hollywood North” Offers 33% and has 2 million square feet of studio space.
DETAILS: http://www.creativebc.com/programs/tax-credits/film-incentive-bc/
HERE COMES CHINA FILM INCENTIVES
(9) QINGDAO: $750,000,000 per year
The biggest development in the international incentives arena (Australia, Canada, Hungary, Mexico, Brazil, etc.) is about to come from China where in the city of Qingdao, China’s wealthiest real estate baron, Wang Jianlin, has built one of the world’s largest movie studios with 15 massive soundstages and been bakrolled by the regional government to attract shoots to it’s studios with a 40% rebate.
FOOD FOR THOUGHT: If Qingdao offers 40%, what do you think Beijing, Shanghai, Shenzhen and China’s other regions (34 Provinces, 4 Municipalities & 5 Autonomous Regions) are going to offer to compete with Wanda in Qingdao.
The China movie gold rush is about to get bigger.
Coming to a theater near you… “PANDA CHOPSTICK MASSACRE: Part 6”
Happy Filmmaking,
Dov Simens / Dean / Hollywood Film Institute
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*** NO-BULL ***
the libtard politicians need to realise that tax credits are NOT a subsidy.
they are the way you have to compete to get business when they are free to go anywhere to get their best deal.
some revenue is better than no revenue. and there are other benefits to movies made in a given location that help other businesses. baltimore lost great advertising by being hyped on a tv series when the state chased out the development company.
politicians seem to think they can taxes as high as they want and it wont change how businesses operate. those that own buildings and are large may take longer to leave but high taxes always chase away biz. maryland lost half their millionaires when they singled them out for higher income tax. businesses are harder to pick up and move but at some point they will move for a better deal elsewhere.
If one does in fact shoot and produce their movie in anyone of these places, will they in fact receive the credit or just be eligible to possibly receive one after some other qualification process? Thanks.
A bit ago, I talked to the director of the economic whatever inivhigan which handled tax incentives. I was told that only after a production has some funding in place and secured would they look at an incentive proposal! True if most states?
That was in Michigan..
It’s all about the incentives !
Qingquao: $750,000,000 per year!!!!