Where to Film; meltdown = opportunity in new markets?

Alex Ellerman · December 4, 2008

Hey guys - just curious, given the economic meltdown, where would you be looking to produce your movie in the current climate?

for me, there are a couple answers to get started. First off, the dollar has enjoyed a resurgence recently, so it makes sense to look outside the US. A place like Australia has a pretty diverse list of film locations, a good film history = good crew hopefully, and their currency has recently tanked, giving me the max for my money, and they are English speaking, so it's easy to get around/crew up/ and even get some actors.

If I were to stay in the states, I would be looking for somewhere with incredible incentives currently, like Louisiana or Michigan. For me, Michigan would make the most sense.

Any other hotspots you would be considering right now? it's kind of a fantasy for me b/c i'm not yet ready to film, but i'm curious.

Jesus Sifuentes · December 4, 2008

Hey guys - just curious, given the economic meltdown, where would you be looking to produce your movie in the current climate?

for me, there are a couple answers to get started. First off, the dollar has enjoyed a resurgence recently, so it makes sense to look outside the US. A place like Australia has a pretty diverse list of film locations, a good film history = good crew hopefully, and their currency has recently tanked, giving me the max for my money, and they are English speaking, so it's easy to get around/crew up/ and even get some actors.

If I were to stay in the states, I would be looking for somewhere with incredible incentives currently, like Louisiana or Michigan. For me, Michigan would make the most sense.

Any other hotspots you would be considering right now? it's kind of a fantasy for me b/c i'm not yet ready to film, but i'm curious.

You know I was doing some research on the same topic for a future production outside of the US. I found that the country of Turkey has some amazing incentives and the landscape is so diverse and stunning. http://www.turkishfilmcouncil.com/aboutus.php

Edited December 4, 2008 by Jesús Sifuentes

Michael Collier · December 4, 2008

Alaska is going to be THE hotspot (no irony intended) in the coming years. It has already started, our production rate has jumped 10 fold this year over last year.

We just passed a film incentive deal:

35% general credit for every dollar spent in state.

10% credit for local hires

1% for shooting off season (fall-spring)

1% for shooting in rural areas (not sure what counts as rural, but I think some communities on the road system do count.)

Those credits are in addition to the fact that there is NO TAX for films anyway. Your credits come in the form of tradable paper, that you can sell to an oil company who does have to pay taxes.

Add to that we have the most gorgeous state in the union, and can fake for several locations, both US and foreign (makes a perfect double for Canada)

We also have lots of industry in our state, so if you need a warehouse to double as a studio, look to palmer/wasilla. We have transpo down (we ship large oil rigs all over the damn place, rail, air, truck, barge, etc) The economy is doing well and prices in town are good (a bit more expensive than LA, but once you factor in the absence of a sales tax its about the same.)

(and do we speak english? You Betcha!)

Mike Lary · December 5, 2008

I can think of many reasons productions might want to come to Michigan besides the incentives.

- Great locations, including beautiful, abandoned architecture that looks almost post-apocalyptic.

- Plenty of massive warehouse space for sets.

- Lots of restored, vintage American-made cars for period films.

- More great eateries than you can shake a fist at, many that would love to feed your crew.

- Local crew with strong work ethic and skills, most of whom are not union.

- Local business owners and residents who are excited about filmmaking and generally very co-operative, unlike big film cities where locals have been abused, become pissed off and hardened by the industry.

- Four seasons.

- Great craft brew.

Paul Bruening · December 5, 2008

May I promote Mississippi? We have tobacco chewing. Drinking beer. Shooting guns into the air. Reproductive acts with family members. Some, here, can even read.

Saul Rodgar · December 5, 2008

New Mexico is still going strong, I am working on the latest George Clooney film and there appears to be no end in sight for filming in the state. If only we could build a homegrown industry for when the out of town productions finally leave . . .

Edited December 5, 2008 by Saul Rodgar

December 6, 2008

Well sorry to all of the above but you are not going to beat Saskatchewan Canada.

Not only will your US dollar equal $1.25 Canadian, but you can also get a 45% tax credit even on labour brought in from outside of the province! Have a look:

http://www.saskfilm.com/?s=taxcredit

So regardless of what US states offer I doubt they'll take Canadian money :D

So why not shoot in Saskatchewan and get the 25% increase? Australia is too far away to make it logistically feasible on a small budget.

R,

Alex Ellerman · December 6, 2008

Wow Rich - i read through their site and some pdf's, definitely an interesting place... are there some filmmakers in good old Saskatchewan? thanks~

December 6, 2008

Wow Rich - i read through their site and some pdf's, definitely an interesting place... are there some filmmakers in good old Saskatchewan? thanks~

I'm sure there are but mainly it's a service location, outside productions shoot there for the tax breaks. What makes them unique in North America is that you can hire foreign crew members and still get the tax break on their labour. No other jurisdiction offers that at present.

All other film "tax havens" state that you must employ residents of the state or province in order to get the tax credits.

R,

John Brawley · December 6, 2008

So why not shoot in Saskatchewan and get the 25% increase? Australia is too far away to make it logistically feasible on a small budget.

R,

Well there's a 40% Federal rebate being offered at the moment PLUS the exchange rate at the moment is even better at something like $1.54. Those two figures add up to pretty good bang for your buck.

Plus I imagine our production and post production infrastructure is at or near worlds best, especially in Sydney considering the number of high budget productions that have gone through there in recent years (matrix, superman, star wars etc.) There have been hundred's of MOW's shot at the warner's studio's on the gold coast. (our version of florida) There are three major studio complex's located in three states which also have their own state based incentive's for runaway productions. Oh, and New Zealand's just over the road as well.

jb

(it's only 14 hours to Sydney from LA)

December 7, 2008

Well there's a 40% Federal rebate being offered at the moment PLUS the exchange rate at the moment is even better at something like $1.54. Those two figures add up to pretty good bang for your buck.

Plus I imagine our production and post production infrastructure is at or near worlds best, especially in Sydney considering the number of high budget productions that have gone through there in recent years (matrix, superman, star wars etc.) There have been hundred's of MOW's shot at the warner's studio's on the gold coast. (our version of florida) There are three major studio complex's located in three states which also have their own state based incentive's for runaway productions. Oh, and New Zealand's just over the road as well.

jb

(it's only 14 hours to Sydney from LA)

Wow I didn't know the AUD had gone down that far.

Still it's a very long way away for US productions, you need flights for every one. Americans can drive to Saskatchewan, Ontario, or BC.

The question is on the 40% federal rebate, does that apply to non-Australian cast and crew as well?

If a US DOP is brought in and paid $50,000.00 for the shoot, can the producer get a 40% labor rebate on that 50K even if he's not an Australian?

I'm guessing the Australian program is like most places the rebates are in place to encourage producers to hire local talent.

What about all of the extras and day players? You don't want to have to fly them in from the USA, and if they speak with Australian accents that kind of gives it all away. Canadians at least sound like Americans on camera. Plus Canada looks like the USA, where as Australia looks distinctly Australian. If you need deserts then Australian would be great. But there is no way Sydney can pass for New York City, where Toronto stands in for NYC all the time.

I can see Australia working for a big budget movie, but any thing under a million and the producer is much further ahead to use Ontario, BC, or Sask, the logistics just work out a lot better.

At this point Canada still gets the lion's share of Hollywood shoots that leave the USA.

R,

Alex Ellerman · December 7, 2008

Hey Guys -

the one thing about Saskatchewan to note is that it is the credit is for labor only, i believe. I think other tax credits extend to all aspects of production. The bonus is Saskatchewan is that they will let you collect on out of town employees.

But looking through Wisconsin (25% plus other incentives) and Detroit (42%), there are some serious incentives, plus there is a Federal incentive too:

>>Here?s how extended and amended Section 181 works

You can elect to deduct qualified production costs in the year (or years) production costs are paid by the Producer.

Even if your project doesn?t get distributed, by applying the tax breaks of Section 181, your investors get benefits on their federal taxes.

When you package it with a good state incentive, you can almost guarantee a taxpaying investor a recovery of their investment of 50-77%.

The maximum deduction is $15 million but the maximum deduction is increased to $20 million if the costs are significantly incurred in economically depressed areas.

>>>Best of all, the Act benefits can be combined with any state film or television incentive programs.

The only thing you don't get in this instance, if you are an american, is the benefit of currency fluctuations. but that is probably difficult to time, as well.