We all know the cost of making a film or television show continues to rise every year and that incentives are one way for a state to remain competitive and to help attract film production to their state. The Colorado Legislature passed the state's first ever film incentive in 2006. These film incentives offer filmmakers who qualify for the program a cash rebate instead of a tax credit.

The Colorado Film Incentive program rebates 10% of the below the line cost of producing a film, documentary or television program when that project is produced and filmed in Colorado; the production company spends 75% of it's below the line budget with Colorado businesses; and hires 75% of their crew locally.

All production companies seeking to participate in the Film Incentive Program must complete and submit a Statement of Intent Application to the Colorado Film Commission, which will review applications for the Colorado Economic Development Commission. In addition, the production company must be notified, in writing, that their Statement of Intent Application has been approved by the Colorado Film Commission and the Colorado Economic Development Commission prior to commencing principal photography.

Statement of Intent Application, all relevant Procedures and Definitions and Colorado Film Incentive Program Legal Clarifications can be found at the links below:

Ø  Film Incentive Rebate Statement of Intent to Film in Colorado Application
Ø  Film Incentive Program Procedures & Definitions
Ø  Film Incentive Bill - Signed Into Law June 5, 2006
Ø  Film Incentive Declaration of Residency
Ø  Film Incentive Proof of Performance

Amended HB 1010's Progress
May 2009

The amended HB 1010 was recently approved by the Senate Appropriations Committee and has been referred to the full Senate for final approval. When approved by the Senate it will go back to the House of Representatives for their approval of changes made to the bill in the Senate and then it will move to Governor Ritter for his signature.

When Governor Ritter signs the legislation the Film Commission will become part of the Office of Economic Development & International Trade, on or around July 1, 2009. When the Film Commission becomes part of the state it will also get a new name - it will become the Office of Film, Television & Media.

Bill Introduced to Bring Moviemakers to Colorado
January 2009

On January 7, 2009 Representative Tom Massey (R-Poncha Springs) introduced House Bill 1010 to expand Colorado's film incentive program to assist in growing the film, television and video game industry in Colorado.

The bill establishes a 10% tax credit for productions that spend at least $250,000 in Colorado. The fund is capped at $10 million in credits per year. The legislation has been designed to be "revenue neutral" to the state's budget. Production companies filming in Colorado are required to pay sales taxes on all of their expenditures in the state and payroll taxes on all wages regardless of where the employee resides. Those tax collections are expected to fully offset the credit offered the productions at the end of the year.

Over 40 states currently offer some type of film incentive program and Colorado's current incentive is one of the smallest and most difficult to access. This new legislation will make it easier for productions to qualify for the incentive and gives them a reason to consider Colorado as a potential location for there productions. It is anticipated that if passed, this legislation could assist in growing approximately 500 new jobs in the state in the next twelve months.

In addition, the legislation proposes moving the Colorado Film Commission, currently operating as a non-profit agency, back into the states Office of Economic Development and International Trade.

The other key sponsors of the legislation are Anne McGihon (D-Denver) Senator Dan Gibbs (D-Silverthorne) and Nancy Spence (R-Centennial). Additional co-sponsors are expected to be named shortly.

Important Links
Ø Download Bill HB1010
Ø Download the Amendment to Bill HB1010
Ø Download Key Talking Points about Colorado Job Growth through Film Incentives
Ø Go to the Colorado General Assembly Home Page
Ø Live Video and Audio Streams from the Colorado General Assembly

Legislative Update - Media Coverage
January 2009

Since our bill was introduced in early January 2009 and our rally on the 14th, we have received some great news coverage! Below are links to stories in the local press.
Ø  KCNC TV - CBS4 News
Ø  Rocky Mountain News

On a national level, filmmakers should be aware of The American Jobs Creation Act passed by Congress and taken effect on October 22, 2004. This Act is the closest thing to a federal tax rebate as possible. Designed to curb the trend of run-away production in the US, this Act is the closest thing to a federal tax rebate as possible. These provisions of the Internal Revenue Service code can be applied to film and television productions in addition to any state incentive plan.

• The incentives are for all taxpayers, including companies, as long as they pay taxes.
• Section 181 - any taxpayer, individual or company that invests in a qualifying film receives 100% loss in the year or years the money is spent.
• The limit is up to $15 million per film and $15 million per episode for TV with a maximum of 44 episodes. The incentive, unless extended, expires at the end of 2008.
• Section 199 applies to film, music, video and all other manufacturing companies. As to music, it would apply only to those who compose, manufacture and receive income from the sale of their music. The same holds true for film and video. The deduction is 3% until 2007, 6% from 2007 to 2010 and then 9% from 2010 on.

For more information on this legislation, please check out the link below:
Ø  Legal Clarification - Courtesy of Funkhouser Vegosen Liebman & Dunn Ltd