The Economic Impact of the UK Film Industry - BFI - British Film ...

NAME OF
SCHEME
SOUTH AFRICA Large-budget film
and television
production rebate
scheme.
US FEDERAL Section 181 (of
the American jobs
Creation Act).
CONNECTICUT Connecticut
Digital Media &
Motion Picture
Tax Credit.
Economic Contribution of the UK Film Industry
TYPE OF TAX
SYSTEM
WHAT IT
SUPPORTS
July 2007
HOW DOES IT WORK?
Tax rebate. Production. South African films and coproduction
treaty films get a 25%
rebate and foreign films get 15%
rebate of what they spend in
South Africa if half of the principal
photography is done in the
territory over a minimum of four
weeks. Producers can bundle
together three productions within
a continuous 12-month period to
meet the minimum spend of
$3.4m (R25m).
The producer has to apply for a
provisional rebate certificate from
the Department of Trade and
Industry (DTI) by supplying
details of budgeted expenditure.
A final application has to be
submitted within three months of
completing the film, with an
audited expenditure statement
and sample footage and the
money should be paid out.
Tax allowance. Production only. Film and TV productions costing
$15m or less ($20m or less if
made in “distressed” areas of the
country) and spending at least
75% of that amount on services
performed in the US can
immediately write off their entire
production costs for tax purposes.
Deductions can in some
circumstances be taken by
institutional or individual investors
in projects. Money is raised by
producer or financial middleman.
Nonrefundable
transferable
tax credit.
Pre-production,
production and
post-production.
Qualified productions spending in
excess of $50,000 in Connecticut
on pre-production, production or
post-production receive tax
credits of up to 30% of qualified
Connecticut spending on goods,
services and labour. Productions
must apply for eligibility certificate
no later than 90 days after first
qualified production expense and
for tax credit certificate no later
than 90 days after last qualified
production expense.
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