1. 1 PRODUCTION INCENTIVES September 10, 2013 Presented By: Nicole Ameln Presented at: WJCT Studios

2. 2 Refundable Tax Credits These credits are refunds provided by the Tax Authorities once the Production Company has filed an income tax return. The refundable credit consists of excess production credits remaining after all income taxes are paid, and are received regardless of owing any income tax liability. Transferable Tax Credits These credits are non-refundable tax credits. If not used to offset the Production Company’s income tax liability, the Production Company is allowed to sell the tax credits directly to local taxpayers, or indirectly through brokers. Rebates Rebates are funds paid to the Production Company directly from the respective film office, are typically not administered by the Tax Authorities, and are not processed through income tax returns. Types of Production Incentives

3. 3 Production Incentives Interactive U.S. Map

4. 4 Rebates/Grants AR, CO, DC, ID, ME, MN, MS, OK, OR, SC, TN, TX, UT, VA, WA, WY Tax Credits Refundable HI, LA, MA, MD, MT, NM, NYS, NYC, NC, TN, WI Transferable AK, CA, CT, FL, GA, IL, LA, MA, MO, NJ, PA, RI, PR, WV Non-Refundable and Non-Transferable CA, KS

5. 5 Key U.S. Jurisdictions Alabama Type of Incentive: Refundable tax credit Maximum Benefit: 25% of qualifying local spend and nonresident labor; 35% of resident labor Project Criteria: Minimum spend $500,000 Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents

6. 6 Key U.S. Jurisdictions Alabama (cont’d) Caps: Per project cap of first $20,000,000 of Alabama spend; Annual cap of $15,000,000; increasing to $20,000,000 October 1, 2014 Sunset/Review: None Recent Productions: Southern Crackers, pilot – Baltic Tigers Mom’s Night Out, feature – Signal Hill Productions Tokarev, feature – Hannibal Pictures

7. 7 Key U.S. Jurisdictions California Type of Incentive: Non-refundable, non-transferable (except for “independent films” or transfers to affiliates) income tax credit (with 5- year carry forward) or sales and use tax credit (with 5-year carry forward) Maximum Benefit: 20% of qualifying local spend in the case of qualifying features, MOWs, miniseries, and new television series for basic cable; 25% of qualifying local spend for qualifying “relocating” television series and “independent films”

8. 8 Key U.S. Jurisdictions California (cont’d) Project Criteria: ≥75% of the production days or total production budget within the state; budget between $1,000,000 and $75,000,000 - feature films/$10,000,000 - independent film; minimum spend of $1,000,000 for new television series and $500,000 for MOW. No minimum spend for relocating TV series. Qualifying Compensation: BTL – Residents & Non-Residents Caps: No per project cap, $100,000,000 annual cap Sunset/Review: June 30, 2017

9. 9 Key U.S. Jurisdictions Florida Type of Incentive: Transferable tax credit (one transfer to 2 transferees, 5-year carry forward) Maximum Benefit: 30% made up of the following: 20% of qualifying spend (including digital media projects), with 5% bonus for "off season" projects and 5% bonus for "family-friendly" projects and/or filming within an underutilized region. Additional 5% on stage expenses if ≥50% principal photography filmed at a qualified facility. 15% to hire FL students. Project Criteria: ≥ 60% of cast and BTL crew must be residents; Minimum spend: general $625,000, comm./music $100,000, ind./em. mkt $100,000.

10. 10 Key U.S. Jurisdictions Florida (con’t) Qualifying Compensation: maximum of $400K per person ATL – Residents BTL – Residents Caps: Per project cap of $8,000,000 film; $500,000 comm./music; $125,000 ind./em. Mkt. Program cap of $296,000,000 through June 30, 2016 Sunset/Review: June 30, 2016 Recent Projects: Burn Notice, Season 7 – Fox Television Studios The Glades, Season 4 – Fox Television Studios

11. 11 Key U.S. Jurisdictions Georgia Type of Incentive: Transferable tax credit (one transfer to one or more transferees, 5-year carry forward) Maximum Benefit: 20% of the "base investment" in the state, plus 10% if the production includes a "qualified Georgia promotion” Project Criteria: Minimum local spend = $500,000 Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents

12. 12 Key U.S. Jurisdictions Georgia (cont’d) Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents Caps: None Sunset/Review: None Recent Productions: The Hunger Games: Mockingjay, feature – Lionsgate Spongebob Square Pants, feature – Paramount The Internship, feature - Fox

13. 13 Key U.S. Jurisdictions Hawaii Type of Incentive: Refundable tax credit Maximum Benefit: 20% of qualified costs on Oahu or 25% on the other islands Project Criteria: Minimum local spend is $200,000; Make reasonable efforts to hire local talent and crew; Provide evidence of contributions (financial or otherwise) towards the furtherance of local film, TV and digital media industries

14. 14 Key U.S. Jurisdictions Hawaii (cont’d) Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents Caps: Per project cap of $15,000,000; No annual cap Sunset/Review: December 31, 2018 Recent Productions: The Descendants, feature – Fox Searchlight

15. 15 Key U.S. Jurisdictions Louisiana Type of Incentive: Fully transferable and partially refundable tax credits; can be transferred to the state of Louisiana for 85% of face value Maximum Benefit: 30% of qualifying local spend, including the payroll for residents and nonresidents, plus 5% of resident payroll up to the first $1,000,000 for each resident Project Criteria: Minimum local spend > $300,000

16. 16 Key U.S. Jurisdictions Louisiana (cont’d) Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents Caps: None Sunset/Review: None Recent Productions: American Horror Story 3, series – Fox When the Game Stands Tall, feature – Mandalay Bonnie and Clyde, mini series - Sony Fantastic Four 2, feature - Fox

17. 17 Key U.S. Jurisdictions Michigan Type of Incentive: Cash Rebate Maximum Benefit: 27% of local spend 32% of resident labor 20% of nonresident BTL 27% of nonresident ATL AND An additional 3% on local spend and resident labor if incurred at a qualified facility or post- production facility Project Criteria: Minimum local spend of $100,000; Film Office has discretion to approve a project based on a number of factors.

18. 18 Key U.S. Jurisdictions Michigan (cont’d) Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents Caps: No per project cap; Labor is capped at the first $2,000,000 of each person $50,000,000 annual cap Sunset/Review: September 30, 2017 Recent Productions: Batman, feature – Warner Bros.

19. 19 Key U.S. Jurisdictions Mississippi Type of Incentive: Cash Rebate Maximum Benefit: 25% of local spend and nonresident labor; 30% of resident labor; plus an additional 5% for veterans Project Criteria: Minimum spend of $50,000 Qualifying Compensation: ATL – Residents & Non-Residents BTL – Residents & Non-Residents

20. 20 Key U.S. Jurisdictions Mississippi (cont’d) Caps: Per project cap of $10,000,000; Labor is capped at the first $5,000,000 of each person $20,000,000 annual cap Sunset/Review: June 30, 2016 on rebate for nonresident only Recent Productions: Batman, feature – Warner Bros. The Help, feature – Dreamworks Walk the Line, feature - Fox

21. 21 Key U.S. Jurisdictions New Mexico Type of Incentive: Refundable tax credit Maximum Benefit: 25% of qualifying local spend; an additional 5% bonus for qualified television series; an additional 5% bonus on resident crew labor expenses and fringe benefits, excluding performing artist compensation, if shooting requirements in a qualified production facility in New Mexico are met Project Criteria: No minimum spend;

22. 22 Key U.S. Jurisdictions New Mexico (cont’d) Qualifying Compensation: ATL – Residents & Non-Residents (Talent & Stunt ONLY) BTL – Residents BTL – Non-Residents (Special “Employee” Rules) Caps: No per project cap; Resident & nonresident Talent and Stunt are capped at $20,000,000 in the aggregate; $50,000,000 annual cap Sunset/Review: None Recent Productions: Lone Ranger, feature – Disney Breaking Bad, series - Sony

23. 23 Key U.S. Jurisdictions New York Type of Incentive: Refundable tax credit Maximum Benefit: 30% of qualifying production local spend (facility, location, and post-production costs) or 30–35% of stand-alone qualifying post-production spend; Beginning Jan 2015 an additional 10% for services performed in certain counties outside NYC area Project Criteria: With the exception of an independent film or pilot, at least 10% of total principal photography must occur on a stage and for location costs to qualify, at least 75% filmed in NYS or $3,000,000 spent on stage costs

24. 24 Key U.S. Jurisdictions New York (cont’d) Qualifying Compensation: No ATL BTL – Residents & Non-Residents Caps: $420,000,000 annual cap Sunset/Review: December 31, 2019 Recent Productions: The Tonight Show, series – NBC Spider Man 2, feature - Sony

25. 25 Key Jurisdictions Puerto Rico Type of Incentive: Transferable film tax credit (unlimited carry forward and transferees) Maximum Benefit: 40% of qualifying local spend and resident labor; 20% on payments to nonresidents Project Criteria: Minimum local spend ≥ $100,000; ≥ 50% of principal photography must be local for development expenses to qualify

26. 26 Key Jurisdictions Puerto Rico (cont’d) Caps: No per project caps; $50,000,000 annual cap can be increased by the Government when expenses incurred in a Film Development Zone Sunset/Review: June 30, 2018 Recent Productions: Pirates of the Caribbean, feature – Disney Fast Five, feature – Universal Teen Beach Movie, MOW - Disney

27. 27 Production Incentives Caribbean

28. 28 Key Jurisdictions Dominican Republic Type of Incentive: Transferable tax credit (additional incentives for local content and related investments) Maximum Benefit: 25% of qualifying local spend Project Criteria: Minimum local spend ≥ US$500,000; bundling of projects by single owner permitted; foreign productions require a minimum participation of resident labor: 10% (first three years), 20% (next two years) and 25% (in the sixth year of enactment); the Directorate General of Film (DGCINE) can reduce the requirement if DO residents/nationals unavailable

29. 29 Key Jurisdictions Dominican Republic (cont’d) Caps: None Sunset/Review: None Recent Productions: Fast and Furious, feature - Universal