LATEST NEWS FROM TXMPA
TXMPA is pleased to announce the "Rules" for the Texas Moving Image Incentive Law. As we have discussed during our pursuit of enhanced incentives, HB 873 provides a flexible tool that we can use to create a competitive program now and in the future. Our intent has always been to create a program that provides competitive incentives for all aspects of the Moving Image Industry while fitting within the fiscal structure of the State’s budget. We believe the structure of the Rules created by the Texas Film Commission governing the incentive program will be a win for Texas.
Early in the process TXMPA lobbied for a program based on total Texas spend in order to better encourage the utilization of our members that provide non-labor resources to moving image productions. Some State officials and some production companies wanted the incentive to be labor based only. This was to simplify and speed up the process of auditing the production expenses and issuing checks. Unfortunately the audit process has been a major problem and bottleneck for the State during the first phase of our incentive program. We are happy to announce that the Governor’s office has addressed this issue by authorizing the hiring of additional staff to deal with the problem. The permanent staffing process is currently underway and additional contract personnel are in place to help the Texas Film Commission deal with the current backlog and maintain an efficient program going into the future.
Back to the actual Rules that have been put in place. As we pointed out, TXMPA has argued for a total Texas spend incentive to encourage production companies to rent equipment, post their productions, and utilize as many other Texas vendor services as possible rather than utilize out of State companies for these services. Many of our largest supporters are suppliers to the Film industry, and we want an incentive that encourages their use. With input from TXMPA, other industry organizations and Producers, the Texas Film Commission came up with a compromise that addresses both concerns.The Producers of Features and Episodic Fiction TV Series will have the option to choose the basis of their incentive. If they choose the total Texas spend basis, they will receive the full benefit of the incentive, but the process of getting their check will require a more detailed audit. If the choose a "labor only" incentive, the audit process is simplified and they will get their check faster. However, based on the differences between the incentive amounts for the two options a Producer should receive a higher grant back from the State should they utilize the total spend option. Based on the sample budgets we and others have run, so far the total spend option has consistently produced a larger grant. Should a Producer choose the labor only option, they will be looking to fill as many positions as possible with Texans in order to maximize their grant. We feel that by putting Texans in key positions we will see an encouragement to utilize other Texas vendors as well. A by-product of creating a labor only option is that it provides a significantly higher “marketing” number for our incentive program with the maximum percentage capping at 29.25% with all enhancements included. Again, the option of choosing between total spend or labor only applies only to Features and Episodic Fiction TV Series. The remaining industry segments are covered under total spend only. Overall TXMPA feels a very competitive and beneficial program has been put in place. To see the posted rules, click on this link.
http://governor.state.tx.us/film/incentives/miiip/
SB1929
by Ken Rector
This bill is so great I can't put into words of how I feel right now. But, I will say this, this is something that has been on our target list since 2002 while prepping for the 2003 session. We were told then that the State was in a budget deficit and that we'd be lucky if we didn't loose our Tax Exemption status during the 79th session, and thankfully through our efforts back then, we didn't.
The 2007 session presented different issues, but NOW we did it and we had Senator Ogden's support! It was nice seeing the House work with the Senate to get this bill passed for us. Great thanks is owed to many, but especially Senators Watson and Wilson along with Representative Anchia and to those on the Committees who moved our bills to the chamber floors! It is my opinion that the passage of this bill brings more value to the additional $40 million we are asking to be allocated to the recent passage of our incentive bill.
What does SB 1929 do? Well in brief is allows for Film Production Facility Tax Credit(the Legislative summary description title). While there was a small amendment made today, in brief, it allows for production Zones to be created by cities and or counties with metropolitan area with a population of 250,000 or more. Since the final wording of the bill hasn't been posted yet due to the last minute amendment, I must wait on a detailed description due to how it may effect the rules which will regulate how many in any one part region of the state with a maximum of 10 in our entire state.
In essence this bill is designed to stimulate production facilities in different parts of the state, like Houston, San Antonio, and El Paso along with many others. Everyone should be excited about this great moment. While the Texas Film Commissions had great news during the recent Location Expo event out in Los Angeles, we will have even more to bring table at our next event! The Film Commission already reports that they Studios are pleased with our progress, and with SAG (knock on wood) about to ratify their two year agreement with the AMPTP, we seem to be in a good position for bringing back Texas production work.
Very soon, we should be having announcements of productions verifying that their intentions to shoot in Texas are funded and opening offices.
Long Live Texas Film making!
Respectfully yours,
Ken Rector
Early in the process TXMPA lobbied for a program based on total Texas spend in order to better encourage the utilization of our members that provide non-labor resources to moving image productions. Some State officials and some production companies wanted the incentive to be labor based only. This was to simplify and speed up the process of auditing the production expenses and issuing checks. Unfortunately the audit process has been a major problem and bottleneck for the State during the first phase of our incentive program. We are happy to announce that the Governor’s office has addressed this issue by authorizing the hiring of additional staff to deal with the problem. The permanent staffing process is currently underway and additional contract personnel are in place to help the Texas Film Commission deal with the current backlog and maintain an efficient program going into the future.
Back to the actual Rules that have been put in place. As we pointed out, TXMPA has argued for a total Texas spend incentive to encourage production companies to rent equipment, post their productions, and utilize as many other Texas vendor services as possible rather than utilize out of State companies for these services. Many of our largest supporters are suppliers to the Film industry, and we want an incentive that encourages their use. With input from TXMPA, other industry organizations and Producers, the Texas Film Commission came up with a compromise that addresses both concerns.The Producers of Features and Episodic Fiction TV Series will have the option to choose the basis of their incentive. If they choose the total Texas spend basis, they will receive the full benefit of the incentive, but the process of getting their check will require a more detailed audit. If the choose a "labor only" incentive, the audit process is simplified and they will get their check faster. However, based on the differences between the incentive amounts for the two options a Producer should receive a higher grant back from the State should they utilize the total spend option. Based on the sample budgets we and others have run, so far the total spend option has consistently produced a larger grant. Should a Producer choose the labor only option, they will be looking to fill as many positions as possible with Texans in order to maximize their grant. We feel that by putting Texans in key positions we will see an encouragement to utilize other Texas vendors as well. A by-product of creating a labor only option is that it provides a significantly higher “marketing” number for our incentive program with the maximum percentage capping at 29.25% with all enhancements included. Again, the option of choosing between total spend or labor only applies only to Features and Episodic Fiction TV Series. The remaining industry segments are covered under total spend only. Overall TXMPA feels a very competitive and beneficial program has been put in place. To see the posted rules, click on this link.
http://governor.state.tx.us/film/incentives/miiip/
SB1929
by Ken Rector
This bill is so great I can't put into words of how I feel right now. But, I will say this, this is something that has been on our target list since 2002 while prepping for the 2003 session. We were told then that the State was in a budget deficit and that we'd be lucky if we didn't loose our Tax Exemption status during the 79th session, and thankfully through our efforts back then, we didn't.
The 2007 session presented different issues, but NOW we did it and we had Senator Ogden's support! It was nice seeing the House work with the Senate to get this bill passed for us. Great thanks is owed to many, but especially Senators Watson and Wilson along with Representative Anchia and to those on the Committees who moved our bills to the chamber floors! It is my opinion that the passage of this bill brings more value to the additional $40 million we are asking to be allocated to the recent passage of our incentive bill.
What does SB 1929 do? Well in brief is allows for Film Production Facility Tax Credit(the Legislative summary description title). While there was a small amendment made today, in brief, it allows for production Zones to be created by cities and or counties with metropolitan area with a population of 250,000 or more. Since the final wording of the bill hasn't been posted yet due to the last minute amendment, I must wait on a detailed description due to how it may effect the rules which will regulate how many in any one part region of the state with a maximum of 10 in our entire state.
In essence this bill is designed to stimulate production facilities in different parts of the state, like Houston, San Antonio, and El Paso along with many others. Everyone should be excited about this great moment. While the Texas Film Commissions had great news during the recent Location Expo event out in Los Angeles, we will have even more to bring table at our next event! The Film Commission already reports that they Studios are pleased with our progress, and with SAG (knock on wood) about to ratify their two year agreement with the AMPTP, we seem to be in a good position for bringing back Texas production work.
Very soon, we should be having announcements of productions verifying that their intentions to shoot in Texas are funded and opening offices.
Long Live Texas Film making!
Respectfully yours,
Ken Rector
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