The team at Aloe Entertainment asked producer Mary Aloe about using tax credits and incentives. “Yes, excellent question,” Mary began. “Almost every state in the union, including the District of Columbia and many areas of Canada, including Toronto and Vancouver, have very generous tax credits and incentives to include pre or post production and filming in their territory. Aloe Entertainment has used these beneifts for the betterment of our projects.”
“Georgia and Louisiana are the most generous right now”, says Mary Aloe. Georgia’s incentives include: 20% transferable tax credit + 10% if production includes Georgia promotional logo in credits, or other negotiated placements, $500,000 minimum spend through single or multi-projects in single year, compensation included for non-residents, $500,000 cap; however, PSC, loan out or 1099 contractor not subject to cap. Recent filming in Georgia is the new Tom Cruise film, MENA; the new Tina Fey comedy; and the TV show, THE WALKING DEAD. One of the Aloe Entertainment team piped up, noticing, “Louisiana had FANTASTIC FOUR and the new JURASSIC PARK movies, plus a Clooney movie and THE BIG SHORT with Pitt, Gosling, and Bale.” The Louisiana credits and incentives include: 30% transferable credit for in-state expenditures (Louisiana vendor), above-the-line resident and non-resident labor costs qualify, additional 5% credit for the first $1 million of each Louisiana resident’s payroll, $300,000 minimum spend, no annual or per production cap, tax credits can be certified and eligible for transfer after $300,000 spend, but before production ends, tax credits can be certified and eligible for transfer twice for free, then $250 for each additional certification, credits can be redeemed with the State at 85% face value, and credits can be used to offset corporate or individual Louisiana tax liability. The Aloe Entertainment team and Mary Aloe think tax credits are vital to an independent film budget or any film budget.