Film Tax Incentives – Payback to the State Can Be Huge
May 11, 2013 Leave a comment
I cam across an article in the Hollywood Reporter about the new U.K. TV, Animation Tax Credits on Track for April Launch, and there is one quote from Adrian Wootton, chief executive of the British Film Commission and Film London said public support for the creative industries “has a successful legacy in the U.K. with the current film tax relief delivering a return of $18 (£12) for every $1.57 (£1) invested by Government.”
My suggestion to every nay-sayer of film tax incentives is: DO YOUR HOMEWORK! Invest $1.57 and get back $18.00! I invite you look at your taxes paid – where does it go? Well, take $2 bucks out and know that the State has made back 9 times that in spin-off benefits. Hmmmm… Who is advising our States that film incentives aren’t working? Let’s take a close look at that person’s motivation.
The U.K.’s current film tax credit system is in place until the end of 2015. It allows producers to apply for a tax credit of 20 percent of expenditures incurred in the U.K. up to a maximum of 80 percent of the total production budget.
Cheers / John