Film Incentives and the Union in NM

Prepared by John M. GraceDATA Charter HSAlbuquerque, NM

© 2009 All Rights Reserved

NM Film IncentivesFilm Production Income Tax Credit• The credit is based upon costs of producing films,

videogames and national or regional advertising content, in film and digital formats,

• For taxable years beginning before January 1, 2006, a personal or corporate income tax credit up to 15% of the total direct production costs incurred in New Mexico after January 1, 2002.

• For tax years beginning January 1, 2006 through December 31, 2009, up to 25%.

• For tax years beginning January 1, 2009, up to 20%• Credit applies to all industry accounting standard

direct costs taxable by New Mexico. • Companies must register before production; credit

applies after production in New Mexico has been completed for a tax year

NM Film IncentivesFilm Production Sales Tax Deduction• This deduction primarily helps the in-state

advertising industry by eliminating double taxation of amounts paid by qualified production companies to those selling or leasing production-related property and services.

• Broad application to production costs, including payments for talent, management and labor, set construction, photography, facility and equipment rental among others.

• A qualified production company executes nontaxable transaction certificates with its suppliers and vendors for tangible sale or leasing of personal property in New Mexico and services performed in New Mexico.

• Suppliers then deduct their receipts from gross receipts tax.

• Deduction offers a cost savings 6-8%.

NM Film IncentivesFilm Investment Program• The SIC negotiates terms for each project. • Up to $15M can be invested in each project. • Equity investment can be up to 2/3 of production

costs. • Guaranteed debt investment can be up to 100% of

estimated total production costs. • Equity is paid in lieu of interest, with final maturity

between two and four years. • Film project must be filmed wholly or substantially in

NM• Film must already have a reputable distribution

company. • A majority of the production crew will be New

Mexico residents. • Company must post a completion bond or other

acceptable guarantee.

NM Film Incentives25% Rebate• New Mexico offers a 25% Tax Rebate on all direct

production expenditures, including New Mexico crew, that are subject to taxation by the State of New Mexico. It applies to feature films, independent films, television, regional and national commercials, documentaries, video games and post-production. Non-resident actors and stunt performers will also qualify under a separate tax structure.

• No minimum budget requirement • No minimum spend requirement • No minimum shoot day requirement • No prequalifying • No cap

NM Film IncentivesFILM CREW ADVANCEMENT PROGRAM - FCAP• New Mexico offers a 50% reimbursement of wages

for on-the-job training of New Mexico residents in advanced below-the-line crew positions. New Mexican Supervisors and Keys have the opportunity to hire and mentor qualifying NM crew in advanced positions for this program.

• For example: if a New Mexican Key Grip is hired, the Key Grip may mentor a New Mexican Best Boy Grip who has less than two film/TV credits as a Best Boy Grip prior to being hired on the production. The Best Boy Grip in this example would qualify for the 50% reimbursement of hourly wages for as many hours the Best Boy Grip has available in the program (up to 1040 hours).

I.A.T.S.E.

I.A.T.S.E. stands for: “The International Alliance of

Theatrical Stage Employees”Which is short for:

“The International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada”

I.A.T.S.E.

I.A.T.S.E. is divided into over a hundred Locals with 110,000 members Internationally

The Local Chapters of I.A.T.S.E.Local 480 – Studio MechanicsLocal 423 – Mixed (Stage Workers)Local 869 – Theatrical WardrobeLocal 153 – Mixed

(El Paso and Las Cruces)

I.A.T.S.E.

Membership in I.A.T.S.E. Local 480 is carefully controlled and there are four ways to join:

1. 15 Days of continuous work on a signatory production

2. 30 Days of accumulated work in a covered craft over a 1-year period

3. 5 Years of verifiable paid equivalent experience in a covered craft or 5 years of membership in another trade union (e.g. Electricians Union)

4. A current card from another Local

I.A.T.S.E.If you qualify under one of the

criteria you still need to:1. Apply for membership by submitting

a membership application2. Submit two recommendation letters

from union members if you are applying under Options 1-3

3. Submit an Application Fee of $200.00 applicable to Initiation Fees of $600.

4. Be voted in by a majority of members attending a General Membership Meeting

I.A.T.S.E.

Once you are voted in you can:1. Have your name added to the

overflow list in one craft2. Work on Signatory Productions3. Submit your resume for

consideration on Signatory Productions

4. Post your availability day by day on the Union website

I.A.T.S.E.

Once you receive your Union card you can:

1. Do all of the previous items plus:2. Have your name added to the roster

in three crafts3. Collect Union benefits4. Sponsor new members5. Pay quarterly dues of $75. / Quarter6. Pay work dues of 4% of your income

I.A.T.S.E.The Union Structure: • BA negotiates contracts with the

Producers for the membership and receives a percentage of work dues

• Office Staff oversees day-to-day operations and is paid a salary

• Executive Board oversees management and operations and is paid to attend meetings

• Trustees and auditors oversee the Executive Board & Business Agent

• IATSE National oversees all of the above

I.A.T.S.E.

If you want to join the IA Camera Local 600 you need:

1. 100 days paid work in the specialty of your choice over a 3-year period

2. To submit an application with at least three references from Local 600 members

3. To pay an initiation fee of from $8000.00 to $15,000.00

4. To pay quarterly dues of $175.00

The State of the State

Film Facts:• >$1B in Revenues in 2008/2009• Academy Award Winning Films• Salaries – Union vs “Right to Work”• 1150 Members of IATSE in 110

Crafts • Green, Self-Sustaining Industry

The State of the State

Films Shot in New Mexico:• Transformers 1 & 2• Observe and Report• Stargate Universe• Terminator Salvation• Appaloosa• Comanche Moon• The Eye• North Country• Love Lies Bleeding

The State of the State

Films Shot in New Mexico:• Sunshine Cleaning• Swing Vote• The Spy Next Door• Year One• 3:10 to Yuma• Astronaut Farmer• The Burrowers• Donor Conspiracy• Five Dollars a Day

The State of the State

Films Shot in New Mexico:• In the Valley of Elah• No Country For Old Men• Spirit• Wild Hogs• Beerfest• Cruel World• Employee of the Month• The Flock• Gamer

The State of the State

Films Shot in New Mexico:• Brokeback Mountain• Longest Yard• Rent• 21 Grams• Missing• Hamlet 2• First Snow• Astronaut Farmer• Twins

The State of the State

TV Series Shot in New Mexico:• Breaking Bad• Crash• In Plain Sight• Easy Money• Wildfire• Terminator: The Sarah Connor

Chronicles• The Man and the City