Indomina has said it will provide the new Comerica bank loan with soft money solutions, mostly represented by the 25% Dominican transferable tax credit production incentive on above- and below-the-line costs
to finance two to three English-language motion pictures per year.
WHY: This past April, the Empire State increased its refundable tax credit for below-the-line costs
from 10% to 30%, which when combined with New York City's 5% credit, provides a 35% incentive to qualified productions shooting in any of the five boroughs.
And, from a cost of $40,000 per hour, telenovelas are now produced for $12,000 per episode, with $4,000 for below-the-line costs
and the rest for the artistic/creative portion.
The Broadway League, the trade association of Rialto producers and presenters, has initiated a concerted effort to secure, initially from New York City but also from the state, the same sort of tax breaks offered to screen producers, who get tax credits of 30% on in-state, below-the-line costs
, with an additional 5% in Gotham.
Meanwhile, even as fans wait for more visual wonder in Madhouse's "Yona Yona Penguin" (the studio's first fully 3-D CGI pic, skedded for release in December 2008 after reported below-the-line costs
of $12 million), its director Rintaro ("Metropolis") agrees that technical effects are but one small way of impacting an audience.
Hahn's proposal calls for reimbursing productions as much as $625,000 for 5% of below-the-line costs
with total spending up to $12.5 million.
Let's go East!" has long been the battle cry of producers looking to lower below-the-line costs
Producers can claim back between 10% and 20% of their below-the-line costs
as long as the majority of those are spent in France.
Samaha's formula for producing these pics: Rein in above-the-line costs through salary deferments for stars; use those star commitments to sell the pics overseas; keep a tight rein on below-the-line costs
; and mine soft-money deals for off-balance-sheet financing.
"Under studio term deals, the only portion of the budget that production companies control are the below-the-line costs
," says Devlin.
"We were willing to bet on the story and the characters, and put a lot of money into the below-the-line costs
of the picture."
But another key reason for the service is to save money, particularly on below-the-line costs
such as camera crews, while still being able to brand co-op feeds with a given station's above-the-line talent.