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

Legislative update - media coverage
March 12, 2008

Since our bill was introduced last Friday, March 7, 2008, and we announced it in our last E-Newsletter, we have received some great news coverage! We have posted links to stories in the Colorado Springs Gazette, Denver's CBS4 and 9News as well as links to video coverage of the film incentive legislation
Ø  More

Bill introduced to bring moviemakers to Colorado
March 11, 2008

Today, State Rep. Tom Massey (R- Poncha Springs) and State Rep. Cheri Jahn (D-Wheat Ridge) announced the introduction of House Bill 1355 (HB 1355) that creates a $25 million tax credit program designed to help stimulate the economy and create jobs by bringing film and video productions to Colorado.
Ø  More

Important Links
ØDownload the Colorado Film Commission's Legislative Summary
ØDownload Bill HB1355
ØGo to the Colorado General Assembly home page
ØLive video and audio streams from the Colorado General Assembly

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