Ten Critical Questions When Considering Production Incentives (Part 1)
It's about more than question #4!
Producers diving into incentives for the first time remind me of young kids at the beach.
Some run enthusiastically toward the water. Others tiptoe in tentatively.
Either way, watch when that first terrifying wave comes crashing in.
More often than not, the kiddos turn tail and race back to the safety of the shore.
The same goes for producers and incentives.
At first they’re intrigued…but as the inevitable wave of rules and requirements descends, many get scared off.
I get it.
There are lots of details to consider with incentives, and every program is different.
It can all get pretty overwhelming.
But ten simple questions can help you determine if an incentive is right for your project from the outset—and keep you from wasting valuable time if it isn’t.
Here are my first five:
Does my content qualify?
This one seems obvious, but it’s tricker than you might think.
First, there’s content type. Scripted often qualifies (okay, not adult films).
But with unscripted, the rules get granular. Documentaries might qualify, but not reality TV. And even if it appears that unscripted doesn’t qualify, dramatic or historical recreations might, even if they’re part of an unscripted series. Sometimes, unscripted incentives are up to the discretion of a local commissioner or panel.
Post, animation, and SFX qualify for incentives in some jurisdictions, regardless of whether you’re doing any actual filming there.
Most places have minimum local spending requirements. Some may require a minimum number of filming days in the jurisdiction, too, and/or a minimum number (or percentage) of local hires.
So as a first step, check to see whether your content qualifies.
How far in advance do I have to apply?
Deadlines are all over the place and depend on the jurisdiction.
For example, Ohio has just two application windows a year. The 2024 application period for the Yukon opens on March 18; they’ll continue to accept applications and distribute funds until they hit their yearly funding cap. If that happens before you apply, you could be shut out of funds for the year.
Many places require applications 60 to 90 days before principal photography, while others may accept applications even after filming has begun.
If you’re interested in an incentives program, make sure you look into application deadlines or you could miss out.
What expenses actually qualify?
Generally speaking, a cost has to be incurred within the jurisdiction to qualify. So renting equipment from a local vendor could save you a tidy sum over renting it outside the jurisdiction and bringing it in.
Travel costs qualify in some places (especially if booked through a local agent), but not others. Same with out-of-state/foreign labor: depending on the program, those costs could qualify for the full incentive, at a lower rate, or not at all.
Most jurisdictions have a detailed list of what qualifies, like this one for the state of Georgia. Careful planning can help you maximize savings – and keep you from counting on receiving money back on expenses that don’t qualify.
When will I see the money?
The timeline depends on the type of incentive (check out our earlier post on the subject here). Rebates and grants often pay out fastest, followed by transferable tax incentives if you’re selling them. But you could be waiting over a year (or more) to see money from a refundable tax incentive.
Are there any costs I’m overlooking?
Some jurisdictions will have an application fee, and many require an audit, which isn’t cheap.
Make sure you’re considering all costs to determine whether an incentive is worth pursuing.
Helpful? We’ve got five more questions to go in Part Two!
Hit the button below and you won’t miss out:
Have questions of your own about incentives?
Drop me a line at carrie@globalcontentstrategies.com.
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