KFTV's Film & TV Finance Magazine - page 6-7

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 K F T V
g u i d e t o f i l m & t v f i n a n c e
w i t h t h e n e t h e r l a n d s f i l m f u n d & n e t h e r l a n d s f i l m c omm i s s i o n
w i t h t h e n e t h e r l a n d s f i l m f u n d & n e t h e r l a n d s f i l m c omm i s s i o n
K F T V
g u i d e t o f i l m & t v f i n a n c e 
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i n c e n t i v e h o t s p o t s
i n c e n t i v e h o t s p o t s
The final decision about where to shoot a film or TV production is generally based on a number of factors. These include the
diversity and accessibility of locations, the willingness of the onscreen talent to travel, the quality and efficiency of local
crews and the availability of studio space. And of course there’s the question of incentives. Here we look at a few situations
where attractive government-backed incentives have had a part to play in winning high-profile productions. Also check out
page 1 for more on the Netherlands Film Fund 30% cash rebate.
Abu Dhabi
Fast & Furious 7
The Fast & Furious movie franchise has visited numerous
locations around the world. As such, it has become a
useful guide to locations that are creatively and financially
attractive for filmmakers. In the latest instalment, FF7, the
production team took advantage of Abu Dhabi’s recently-
introduced 30% filming incentive, filming around the area
for two weeks. Abu Dhabi has invested heavily in transforming itself into the Middle East’s most
sophisticated media hub. And that investment now seems to be paying off. After FF7, it also
managed to secure the new Star Wars film (The Force Awakens). Initially, Star Wars had been
expected to go to Jordan – but a last-minute decision by Disney went Abu Dhabi’s way. The result
is a major shift in the region’s balance of power. Interestingly, Abu Dhabi is rumoured to have
offered additional inducements to Star Wars, such as cut-price hotel rooms, showing there are
other tools aside from film incentives that can be used to lure prestigious productions.
Australia
Australia offers a mix of federal and regional
incentives. These incentives are tax-based
and provide a cash rebate to the producer on
Qualifying Australian Production Expenditure.
At a federal level, the three incentives are
a 16.5% Location Offset, 30% Post, Digital
and Visual Effects Offset and 40% Producer
Offset. At a regional level, one of the best
incentives comes from Screen NSW, which
has around A$8m a year to allocate.
So far, the government has resisted calls to
increase its 16.5% location offset to 30%.
But it has just increased the size of its
available fund by A$20m. It is also willing to do
deals on a case by case basis. For example,
Twentieth Century Fox secured a A$12m
increase in the incentive for The Wolverine
when it shot in Sydney.
In the latest instalment, FF7, the production team took advantage of Abu Dhabi’s
recently-introduced 30% filming incentive, filming around the city for two weeks.
Belgium
The Missing
The Belgian region of Flanders has picked up some high-
profile production tasks from UK producers in recent times,
thanks to its beautiful historic locations and attractive
production incentives. First came Parade’s End in 2011,
quickly followed in 2013 by period drama The White
Queen. More recently, Flanders has played host
to BAFTA-nominated drama The Missing,
which saw the region effortlessly
double as France. The series also employed local crew members
in key positions as well as using local production and post-
production facilities. The funding system is managed by
Screen Flanders and offers financial support to audiovisual
productions that spend part of their budget in the region. The
system is open to foreign producers who co-produce with a
Belgian producer and is worth a maximum of €400,000 per
project. To qualify, co-productions must enrich the cultural
heritage of Flanders and invest a minimum of €250,000 in the
region. Every € entrusted to a producer must yield at least €1
of audiovisual expenditure in the region. Screen Flanders’ annual
budget is €3.5m.
Croatia
Game Of Thrones
HBO’s Game Of Thrones used a number of
Adriatic locations including the spectacular
city of Dubrovnik – which is used as the basis
for King’s Landing in the fantasy series. One
of the big attractions of Croatia is its 20%
filming incentive, which was introduced in
2012 and has led to a boom in production. In
the case of Game Of Thrones, it is reckoned
that HBO spent around €6m in Croatia during
the most recent series – with Croatia paying
back €1m under the terms of its incentives
scheme. The successful relationship between
HBO and Croatia has led to a big boost in the
number of productions seeking to work there.
One production that came to the country in
2014 was NBC’s Dig, after execs decided to
relocate filming from Israel.
Canada
Canada continues to be one of the world’s most attractive production destinations thanks to
the quality of its infrastructure, the depth of its talent base and its world-beating incentives.
A big appeal (particularly to Hollywood producers) is that there are both Federal and State
incentives – which is why it has secured franchises like The Twilight Saga. At a federal level,
there is a refundable tax credit that is equal to 16% of qualifying labour. This can then be
topped up with attractive state programmes linked either to labour or expenditure. The most
significant incentives are British Columbia’s Production Services Tax Credit (33% of qualified
BC labour expenditures) and Ontario’s PSTC, which is calculated as 25% of all qualifying
production expenditures incurred in the state. These aren’t the highest % tax credits in the
country, but they are the most significant because they can be used while filming in and
around the state-of-the-art production hubs of Vancouver and Toronto.
A big appeal (particularly to
Hollywood producers) is that
there are both Federal and State
incentives – which is why it
has secured franchises like The
Twilight Saga.
Incentive
HotSpots
Continued on page 16…
The funding system is
managed by Screen Flanders
and offers financial support to
audiovisual productions…
THE MISSING
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