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Production Tax Incentives, such as New Mexico's 25% rebate to productions, are at the heart of today's film industry. Michigan has the most aggressive incentive program in the country, but its likely not sustainable, as the article below will demonstrate.
We're proud that New Mexico's incentives are designed to be sustainable and increasingly transparent, and while other states may come and go on the film landscape, we're a core part of the industry for some time to come. - crewnewmexico.com
The tax credit bringing many Hollywood studios to Michigan could soon see some major changes.
Senate Bill 404, a bipartisan proposal that would top the film tax credit off at $50 million and reduce the available refunds by 7 percent, is being discussed.
The refundable film tax credits would be cut to 35 percent from their current rate of 42 percent.
The bill was introduced on March 25 and is sponsored by State Sens. Nancy Cassis, R-Novi; Jud Gilbert, R-Algonac; Tom George, R-Kalamazoo; and Mickey Switalski, R-Roseville.
“We recognize that Michigan has a significant, large deficit of $2.8 billion, and part of what’s contributing to that is the giveaway money to Hollywood producers,” Cassis said.
The bill would be keeping the film tax credit at $50 million, which would scale back a little on overly generous giveaway money, she said.
“These movie producers are currently not paying taxes in Michigan, but are still getting money,” Cassis said.
The bill would just restore funds to other areas of the state, such as police, fire and Medicare, she said.
Cassis said the bill also would support commercial ads and more jobs.
“We would be able to provide credit for commercials to be done here, and we would hire 90 percent of Michigan workers first,” she said.
In the long run, Cassis said, Bill 404 would recognize all the refundable credits that are not necessarily vital and giving relief to other businesses.
State Sen. Jud Gilbert said even though the majority is not in favor of the bill, it is still necessary.
“The bill is necessary because films last for a short duration, which means the money will run out before anyone gets the subsidy,” Gilbert said.
He said the bill would divert money into a tax relief.
“If the bill passes, people will see gradual employment increases in small businesses with longer durations,” Gilbert said.
To read the full article, click here.


from the Digital Media Law blog by Jonathan Handel.
Thursday’s SAG election was a victory for the moderate coalition. Yet, strangely enough, the leaders of the losing hardline faction will all find seats on the national board, and will continue to be a shadow government within the union’s Hollywood board—a board on which none of the key moderate leaders will be voting members.
Yes, the moderates (Unite for Strength (UFS) / USAN / RBD / independents) won the national offices – President and Secretary-Treasurer – and picked up additional national board seats and many on the
In fact, paradoxically, 1st VP and failed Membership First presidential candidate Anne-Marie Johnson will probably continue as 1st VP, ex-president Alan Rosenberg will almost certainly be back on the national board in a matter of days despite winning only an alternate seat, MF leader David Joliffe will probably be on the Hollywood board and effectively on the national board, and MF leader Kent McCord continues on the national and Hollywood boards.
Meanwhile, none of the key moderate leaders will be on the
To read the full post, click here.


In a Troy office building where advertising executives once courted Motor City automakers, film production workers discuss which stretch of downtown Detroit would offer the best sense of urban decay. Down the hall, in a warehouse that has been converted to a makeshift studio, dozens of prop builders are fashioning blocks of foam and stacks of plywood to build a set for a rocky mine shaft.

The veteran actor faced stiff competition for the honor: Dexter's Michael C. Hall, House's Hugh Laurie, In Treatment's Gabriel Byrne, The Mentalist's Simon Baker and AMC's own Jon Hamm of Mad Men. (Click here to read more about Mad Men's Emmy wins.)
The award was Breaking Bad's second of the year, the first of which went to Lynne Willingham, who picked up the best editing trophy -- her second consecutive as well -- at the Creative Arts Emmys last week.
AMCtv.com congratulates Breaking Bad and Mad Men for all their successes.
On Camera Auditioning: Fall Class at Healing Gate

Invitation to a "Marty Party"
Drop by and meet the Mayor of Albuquerque. Ask him questions, voice your opinions. (Not a fundraiser - leave your checkbooks at home). Mayor Chavez has been a big supporter of the film industry. Come thank him.
Join Melinda Potcher, Kelly & Kyle Cole, Keith Johnson
Tuesday, September 22, 2009
5:30 pm – 8:00 pm
3400 Anderson Avenue SE
Press Release
SANTA FE – Governor Bill Richardson today announced that the New Mexico Film Office will implement a procedure to make public specific financial information related to the state’s film tax credit program. New Mexico offers productions a 25% credit for qualified New Mexico expenses, including salaries for local crew, facilities, lodging, construction materials, equipment rentals, and a number of other categories. In addition, the New Mexico Taxation and Revenue Department is in the process of creating a specialized unit to review and process film tax credit submissions.
“The tax credit program has helped establish New Mexico as a leader in film and television production and has brought the state thousands of jobs and billions of dollars in revenue,” said Governor Richardson. “The data provided under this new policy will give taxpayers a detailed look at what film companies spend to qualify for the credits.”
Since 2003, 127 major film and television productions have been made in New Mexico with a resulting economic impact of approximately $3 billion. In the state there are an estimated 10,000 direct and indirect jobs related to the film industry, and over 200 local film-specific businesses and services.
Production companies that request a tax credit will be required to provide the New Mexico Film Office with detailed information regarding the expenses submitted to qualify for the credit. Previously this data had only been provided to the New Mexico Taxation and Revenue Department where by law it must be kept confidential. Under the new policy, the film office will provide aggregate totals in specific categories for all film and television productions on a fiscal year basis.
“As a government entity, we have a responsibility to provide to our legislature and taxpayers information which substantiates our belief in the film industry as a major economic driver, and which meaningfully relates to the citizens and businesses of the state the benefits received in return for offering production incentives,” said Eric Witt, Governor Richardson’s Deputy Chief of Staff and Film Policy Advisor. “We believe this policy will protect truly proprietary industry information while fulfilling our fundamental responsibility to the people of New Mexico to provide meaningful, accurate data regarding these programs.”
The new film unit at the state Taxation and Revenue Department will consist of four auditors and a supervisor and is expected to be operating within the next month. The department is recognized throughout the film industry for its competence and professionalism. To continue to meet the agency’s high standards, the new staff will received specialized training in film production practices.
“Our auditors will talk the industry language, visit the sets and understand the complexity of the film and digital media business,” said Rick Homans, Secretary of the New Mexico Taxation and Revenue Department. “The goal is to be open and friendly to the film industry and, at the same time, maintain accountability and a clear set of rules and expectations.”
New Mexico’s success with its film incentives has received national acclaim and attention-now 42 other states offer some form of film incentives, many of which are at higher rates than New Mexico.
“The competition is growing, but New Mexico is still at the top of the list when productions look for locations,” added Eric Witt. “The fact is, we have one of the most trusted and respected film programs in the world. And most other states can’t compete with our talented crew base, world-class facilities, and spectacular, diverse locations.”

A moderate Labor Day weekend generated a total of $124.7 million, led by the soph sesh of Warner/New Line's "The Final Destination" with $15.3 million. The holiday frame total was less than $1 million ahead of the 2008 Labor Day.
Year-to-date domestic biz remains well above 2008 at $7.4 billion, or 8.1% ahead of the same point last year.
Even without the additional weekend, the 2009 summer would have still set a domestic record since it topped 2007's record on Aug. 30 and then padded that total for eight more days.
The presence of a trio of 3-D pics -- Disney's "Up" and "G-Force" and Fox's "Ice Age: Dawn of the Dinosaurs" -- helped put the 2009 summer into the record book as each generated about half their revenues from 3-D venues, which charged premium ticket prices.
And the holiday frame capped a stellar summer for Warners, which edged just past $1 billion for a 23.1% market share with 15 titles. The sixth Harry Potter and "The Hangover" brought in 59% of the studio's summer grosses.
To see the full article in Variety, click here.

FILM 205, CRN 21068, Making a Documentary – Dates: 9/12 – 9/20; Times: Saturday/Sunday 9:00 am – 6:00 pm; 2 credits. Instructor: TBA
Award winning filmmaker Erin Hudson will be teaching what it takes to make a documentary film. Two intensive weekends in September. Learn about building a project, shooting and distributing a documentary film! Hands-on training in HDV equipment!
Space is limited so sign up now!
You must be a registered credit student (not continuing education) at SFCC which can be done with no application fee at www.sfccnm.edu (just follow the new student links)