5/7/07:
MISSOURI may soon have an enhanced incentive; legislation has passed
to eliminate the $1 million cap per picture, increase the total available
credits to $10.5 million, and reduce the 50% incentive to 35%. House and
Senate versions must be reconciled, and the governor needs to sign; action
is expected very soon.
from Axium Payroll Co.'s "Incentives Guide" - Download yours at http://tinyurl.com/z6kxj
Missouri offers an assignable state tax credit equal to 50% of qualified
expenses. The
maximum tax credits per project are $1,000,000, and the total available
is $1.5
million per year on a “first come ? first served basis.” If funds are
not available in
one year, the credit can be carried to the next year. It is necessary
to pre-apply for the
credit; if funds are available, the approved amount will be reserved
for the applicant.
Qualified expenses are those funds spent in Missouri that are necessary
for the
production of the film including but not limited to; labor, services,
materials,
equipment rentals, lodging, food and location fees.
Page 18
In order to qualify for the incentive, the production must spend $300,000
or more in
the state. However, it is, essential to apply for the credits prior
to opening a local
office, as the incentives are only available prior to selecting Missouri
for the
production. Specifics are available at mofilm.org/html/incentives.htm.
There are
brokers who will purchase credits from non-Missouri based production
companies.
Missouri has a substantial production base, including crew and equipment,
both in St.
Louis and Kansas City. There is also a small production group in Branson.
The
website includes an online Production Guide Database.
• Missouri Film Commission
Jerry Jones, Director
o Phone ? (573) 751-9050
o Website ? www.mofilm.org
• Kansas City Film Commission
o Toll Free ? (800) 767-7700 #3872
o Website ? www.kcfilm.com/.
Incentive Information - The Missouri Department of Economic Development (DED) may issue a film production company state income tax credits equaling up to 50% of the company's expenditures in Missouri necessary for the making of a film, not to exceed $1 million in tax credits per project.
Note that Missouri will only grant $1 million in these tax credits per year. Companies must therefore apply as early in production as possible, and must apply before they have selected Missouri as the project’s location.
Film
commission
Missouri Film Commission
University of Missouri
165 McReynolds Hall
Columbia, MO 65211
Jerry Jones, Director
Andrea Sporcic, Asst. Director
Email: mofilm@ded.state.mo.us
Incentives:
Qualified film production companies can receive a state income
tax credit of up to 50% of the company’s expenditures in Missouri necessary
for the making of a film, not to exceed $500,000 in tax credits per project.
The tax credit is fully assignable, that is, the entity earning the credits
may apply them against state income taxes or corporate franchise taxes,
or they can be sold or transferred to another state taxpayer who may then
apply them to their Missouri income tax liability. The credits can be applied
when earned or carried forward for up to five additional tax periods.
To qualify, the production company must spend $300,000 or more in state on expenditures necessary for the production of the film. Qualifying expenses include costs for labor, services, materials, equipment rental, lodging, food, location fees and property rental.
Note that Missouri will only grant $1 million in these tax credits per year. Companies must therefore apply as early in production as possible, and must apply before they have selected Missouri as the project’s location.
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A Missouri panel assembled by Gov. Matt Blunt to review tax incentives has recommended nixing the state's current film incentive program, saying that the trade-off isn't worth it. MO granted $322,079 in tax credits in fiscal 2005, down from $423,900 in 2004 for 3 films that generated a total of $2.1M in expenditures. The panel acknowledged that films to generate substantive public interest and notoriety, but offer a very short-term benefit. But not everyone agrees with the panel's findings, saying it did not count film crews' secondary spending at stores, restaurants, gas stations and hotels. One pro-incentive MO legislator did his own study on the 2003 filming of "The Game of Their Lives," estimating that the production spent $12 million in St. Louis and got back $500K in tax credits.
See: Tax incentives on the chopping block for film crews shooting in Missouri - http://www.semissourian.com/story/1128779.html
Region ready for its close-up -
Backers tout Missouri’s film-industry promise.-
http://archive.showmenews.com/2005/dec/20051213busi003.asp
Missouri
Tax Incentive Programs
TAX INCENTIVES - brief summaries of the competitive Tax Incentive programs offered by the state of Missouri.