Arnold Rodriguez’s Post

ACT 27 FILM INDUSTRY ECONOMIC INCENTIVES On March 4, 2011, Puerto Rico enacted Act No. 27 of 2011, as amended, known as the “Puerto Rico Film Industry Economic Incentives Act” (the “Act”) to solidify its position as one of the leading jurisdictions for the production of film, television, and other media projects. The Act provides tax exemptions and tax credits to businesses engaged in film production in Puerto Rico. To avail of such benefits, a business needs to become an exempt business by applying for a tax concession and obtaining a tax exemption decree. Since 1999, close to 90 productions have taken advantage of Puerto Rico’s film and media incentive programs, including most recently: Fox/New Regency’s “Runner, Runner,” Disney’s “Pirates of the Caribbean 4,” Universal Picture’s “Fast 5,” Warner Brothers’ “The Losers,” ABC’s “The River” and “Off the Map,” USA Network’s “White Collar” and “Royal Pains,” HBO Film’s “Eastbound and Down” and Showtime’s “The Big C”. As a result of this depth of experience, Puerto Rico has developed the necessary technical expertise to film projects in Puerto Rico, from location scouting to permit clearances to credit financing. This includes four U.S.-trained, bilingual crews working year-round and specially dedicated infrastructure provided by the Government of Puerto Rico to guide investors, studios, production companies, and independent producers through everything necessary to film in Puerto Rico. ELIGIBILITY Eligible media projects and related requirements are as follows: Feature films; short films; documentaries; television programs; series in episodes; mini-series; music videos; commercials, both international and national; video games; recorded live performances; and original soundtrack recordings and dubbing; $100,000 minimum spend requirement per project ($50,000 for short films); No principal photography requirement: full development, partial development, pre-production, and post-production are eligible activities; and No per project or individual wage caps. Recognizing the importance of complementing a low-cost structure with a state-of-the-art infrastructure specially dedicated to the industry, the Act also provides incentives for eligible infrastructure projects, which include: the development, construction, and operation of studios, laboratories, post-production, animation, and special effects facilities, transmission facilities and related infrastructure. Have any questions? Feel free to ask. we can connect you to trusted local experts in any area of the island & of course if you need help with anything that’s Real Estate related we are always here at your disposal. 787-243-3121

Texas's film industry is growing, with new studios and projects in development - with deep South Texas preparing to get into the hunt. Austin The city's unique mix of urban and natural settings has made it a thriving center for commercial film production. The city's economic development department expects a film production to contribute millions of dollars and hundreds of jobs to the area. Bastrop A new film studio and entertainment district called Bastrop 552 is expected to be fully built by the end of 2025. The studio is expected to produce $1.9 billion in 10 years. Houston Some say that Houston lags behind other states in film production because it hasn't offered competitive incentive packages to movie productions. However, Houston knows what it needs to do to obtain the economic benefits other Texas cities are realizing. With the help of major investors, such as 50 cents, Houston is taking the steps to get into the game. Texas as a whole The Motion Picture Association says that the state's economic development policies will continue to grow the film industry, creating new jobs and opportunities for small businesses. Deep South Texas The Rio Grande Valley has the potential to not only obtain its own regional film studio (StudioVillage), but to match and even exceed the success other Texas cities are realizing. Why? The Rio Grande Valley has natural advantages over other Texas regions. For example, the cost of doing business is far less, there is talent that by staying home can promote the RGV as a reservoir of deep talent and skilled people available to provide what film productions need, a proximity to and existing relationships with Mexico that has the potential of forming joint ventures between U.S. film companies and Mexican film production (the ground work has already been laid by the new Mexican president), varying landscapes including South Padre Island, and communities that will welcome the opportunity to showcase their culture, their capabilities, and an exceptional "can do" attitude.

IS THERE A POTENTIAL FILM PRODUCTION HUB BETWEEN SAN ANTONIO AND AUSTIN, TEXAS? Yes, there is potential for a film production hub between San Antonio and Austin, Texas: Hill Country Studios A $267 million production hub is being built in San Marcos, between San Antonio and Austin. Construction began in April 2023 and is expected to be completed by 2025. Bastrop 552 film studio The first phase of this studio is expected to be ready before the end of 2024, with the full project expected to be finished in late 2025. Austin Austin is already a hub for creatives in the entertainment industry, with over 1,000 crew members, 25 production houses, and 18 production facilities. Texas film industry Industry leaders are optimistic about the future of the film industry in Texas, which they say is now a viable production hub for film, television, and digital media. Collaboration with Mexico There is potential for collaboration with Mexican film production, with Brownsville, Texas, being considered as the ideal center of a Texas/Mexico film production hub. Some other production companies in San Antonio include: Streetlight Entertainment RLT, SouthCoast Theatre and Film, and Arrowhead Films. Additionally, the City of New Braunfels has expressed interest in a film studio within its boundaries, even possibly providing land and incentives. The reason, to take advantage of the growing film industry and film education in San Antonio and Austin and be part of a future production hub.

Louisiana Film and Entertainment Association President Trey Burvant explained that the industry spends around $900 million annually in the state with $350 million of that going directly to wages for workers. In Louisiana alone, the motion picture and television industry is directly responsible for over 8,500 jobs and more than $650 million in wages. For northern Louisiana, the big issue comes in the form of making sure there are enough workers that are qualified to help with incoming projects. According to officials from the economic development department, the economic impact outside of the direct return of taxes to Louisiana is $6 for every $1 spent by the productions. They also estimated that the industry supports around 10,000 jobs. "It's really this kind of chicken in the egg scenario," said actor Garret Kruithof. "We need a crew base back, but we need movies and tv series to come to have a crew base. We need crew and we can't get crew without movies, and we can't get movies without crews." "You need support from the local community, you want them to buy into the business as much and realize that it's great for the economy," continued Kruithof. "They pour so much money into the local infrastructure so everything that they buy, you know, is being bought locally and so it's great for the community." "I think for Shreveport, for this region, to really embrace the film industry, we have to encourage film literacy," continued Riley. "We have to teach people how to look at a film in a much deeper level, but we also need to make them understand that the film industry is sort of an iceberg. It's the thing that everybody sees and understands, but then there's so much that goes into it." https://lnkd.in/gHzZD4rW

Keeping Texas talent in Texas - By providing training, education and funding opportunities for creatives throughout Texas, we can also help fuel economic growth in a robust filmmaking hub like Austin.” A major focus of AFS’s report is the impact of AFS Creative Careers, a workforce development program started in 2021 in collaboration with the City of Austin and the GTOPs (Grant for Technology Opportunities Program) grant. The goal of this program is to create training and professional opportunities for Austinites, in particular those who may have been traditionally underrepresented in the film, TV and creative media industries.

FILM PRODUCTION AND TRADE OPPORTUNITIES WITH THE U.S. Film production has become a type of trade between the United States and Mexico, with Mexico offering incentives to foreign film companies and the US expanding its operations in Mexico's film industry: Tax incentives In 2011, Mexico launched a tax incentive program for foreign film production that offered tax rebates and write-offs. The program is managed by the Mexican film financing agency Imcine and the Mexican trade and investment body ProMexico. Growing market The demand for content, technological advancements, and government policies are creating a favorable environment for business growth in Mexico's film industry. Attractive destination Mexico has become an attractive destination for film and television production due to high inflation in the US, geographic proximity, and award-winning Mexican talent. Foreign direct investment Foreign direct investment in Mexico's film and video industry increased from $23 million in 2020 to $5.3 billion in 2021. Super Bowl commercials In the last two years, ten commercials for the Super Bowl have been produced in Mexico. US companies US companies with expertise in film production, broadcasting, media technology, and workforce development could benefit from the opportunities in Mexico's film industry. A growing new trade market Lower costs and proximity to the US have helped make Mexico City Latin America’s top destination for audiovisual production, with the city’s film commission reporting a 23% increase in shoots in 2022 from the previous year, officials told reporters at an event in Mexico City. Investments — mostly salaries — rose to $656 million from $564 million, according to the Mexican film commission. Mexico is becoming a top choice for US filmmakers as other production hubs lose appeal due to high costs. Five of the commercials shown during this year’s Super Bowl were film in Mexico because of the costs.

For years, California has been fighting to lure back "runaway productions" in the face of enticing tax credits in other parts of the country. Now, Gov. Gavin Newsom has proposed doubling the state's film tax credit program, to $750 million a year. It's fascinating to see how this space evolves alongside an always-changing TV and film industry. This week's news took me back to a piece I wrote in 2021, which is still one of my personal favorites, on California's efforts to not only expand filmmaking in Los Angles, but also in other parts of the state like San Francisco. "In recent years, California's once seemingly unshakeable grasp on the movie industry has been undermined by cities including Atlanta, New Orleans and Vancouver, which boast lower production costs and often higher financial incentives for films and TV shows that shoot there....For California, keeping that money in-state is not only a matter of rolling out incentives, but also building up infrastructure in places outside of LA, like the San Francisco Bay Area, so studios have the resources they need to film there." The full (throwback) story: https://lnkd.in/eGcvq6-b

NEWS AND INFORMATION CALIFORNIA VS. THE WORLD: THE RACE TO NAB FILM AND TV PRODUCTIONS (By Winston Cho) Locales from Atlanta to Tokyo are steadily beefing up their tax relief programs in bids to attract Hollywood money. Last year, New York dispersed about $124 million in tax credits to various entities belonging to Paramount Global as a reward for 10 projects that were shot in the state. Those productions…invested nearly $425 million in the region through labor and other costs. California, meanwhile, saw just $71 million in spending from Paramount Global for titles that were granted credits in 2023 to film in the area. The figure was a far cry from the $295 million the company spent for projects that were awarded incentives just three years earlier. It’s the latest in a trend of productions turning away from the Golden State and toward other jurisdictions that are steadily beefing up their tax relief programs in bids to attract Hollywood money. [A] report from FilmLA...found an anemic return to filming in Los Angeles after production was decimated by the work stoppages. The main reason for the sluggish rebound: a double-digit drop in TV shoots in the three-month period from January to March. Filming in the category…trailed its five-year average by more than 32 percent. A subsequent report from the film office found that overall production from April to June declined roughly 12 percent compared to the same period last year and more than 33 percent compared with the five-year average, even accounting for low activity during the strikes. Tax incentives play a key role in the erosion of California’s share of production. The state’s film commission…offers a 20 percent base credit to feature films and TV series — lower than most other jurisdictions vying for Hollywood dollars, including New York, New Mexico and the U.K. — and has a $330 million cap on the program. In comparison, Georgia, which has the same base incentive as California’s but offers a 10 percent uplift for displaying the state logo in the project, distributed $2.6 billion in credits to 273 productions in the 2024 fiscal year. Its program doesn’t have a cap on the amount in tax breaks it gives to productions annually. Kelsey Moore, executive director for the Georgia Screen Entertainment Coalition, stresses that the state…is now “competing handily” with Los Angeles and New York. [Y]et, despite efforts by other locales to lure movies and TV shows, California remains the heartland of production. [Lawyer, Ian] Brereton notes, “It’s still the place where the magic is made.” To read the entire article, click on the below link: https://lnkd.in/gDY5idDN — #entertainmentnews #entertainmentindustry #filmmaking #tvproduction #filmproduction

It’s a long journey.

CAN LOCAL FILM PRODUCTION GROW A COMMUNITY? Film production can help grow communities in a number of ways, including: Economic impact Film production can create jobs, new businesses, and increase economic activity in the local area. For example, filming a movie can bring an average of $200,000 per day to a city. Tourism Film production can attract visitors to a community, which can boost tourism and sales. For example, the filming of Sideways in Santa Barbara led to a travel boom, with increased wine sales and the creation of new wine tours. Community investment Film production can provide support for community events, local businesses, and community organizations. For example, film productions can contribute to park and street restorations. Infrastructure Film production can lead to the development of new infrastructure, such as film studios and lodging. For example, Georgia has 4 million square feet of stage space and is building new facilities to meet demand. Some communities that have benefited from film production include: Georgia Cities and towns in Georgia have benefited from the filming of The Vampire Diaries, The Walking Dead, and Spider-Man: No Way Home. The Town of Trilith is entire community built around a film studio. Oklahoma Cities and towns in Oklahoma have benefited from the filming of Twister, The Grapes of Wrath, August: Osage County, and Rain Man. California Cities and towns in California have benefited from the filming of Memoirs of a Geisha and Sideways. Colorado Denver became home to the Art-O-Graf Film Company. Kansas City, Missouri Walt Disney's early Laugh-O-Gram Studio is based in Kansas City. Jacksonville, Florida More than 30 silent film companies established studios in Jacksonville. Albuquerque, New Mexico From a town seeking growth to now a major headquarters for Netflix, Albuquerque has become a major national production hub with shows such as the Avengers, The Lone Ranger, Breaking Bad, and Better Call Saul. Motion picture productions (feature films, television, commercials) generate state sales tax revenue in two ways. First, the production itself pays sales and use tax on everything from the purchase of materials for set construction to equipment rental. Second, direct and indirect workers supported by the production pay sales tax when they spend their wages. The productions also generate state income tax, paid by the direct and indirect workers. Such a film created ecosystem is proving how the local film production can drive a community from desired growth to highly accelerated growth resulting in a range of benefits for citizens mostly provided from outside money.