5. Tax Credits & Rebates
On productions that are eligible for state or foreign tax credits/rebates, it is paramount that Producers fully understand the requirements, submission deadlines, and procedures, as Producers are contractually responsible for meeting the eligibility requirements and submission deadlines to receive the credits/rebates. Please be sure to comply with any such requirements and follow the applicable guidelines for each state/region. FES must have complete visibility into each step of the application process.
The tax credit estimate must be included in the production budget, at a discounted rate. Check with the FES Production Executive to confirm the applicable discount.
If applicable, Producers will be required to arrange for the sale of the tax credit certificate to a broker at the most advantageous possible discount. Upon approval of sale, Producers shall sign a direction to pay document under which the broker shall pay the sale price directly to FES. Be sure to confirm this with the FES Production Executive.
Producers must copy the FES Production Executive and FES Production Finance on all correspondence with government entities regarding tax credit/rebate. Producers must also provide copies of all documents submitted regarding tax credits/rebates.
If a portal/login is required for submission, Producers must send the login information to the FES Production Executive and FES Production Finance.
The FES Production Executive should be listed as an additional point of contact on all applications. If this is not possible, Producers must authorize the FES Production Executive as an additional contact via email.
Producers must obtain a Tax Credit Opinion Letter from RC Baral (see contact info below) if the anticipated taxcredit/rebate is over $500K, with the exception of new producers. All new producers (never having worked with FESbefore), must obtain the Tax Credit Opinion Letter regardless of the anticipated amount. The cost of the Tax Credit Opinion Letter should be included in the budget.
RICH DARVEY // rich@rcbaral.com
Office: 818.905.0151x102 Mobile: 818.489.1640 Direct: 818.933.2902
JOEL BARAL // joel@rcbaral.com
15821 Ventura Boulevard Suite 500
Encino, CA 91436 USA | Los Angeles - Vancouver
For features, Producers must engage Rise Impact (see contact info below) if the anticipated tax credit/rebate is over $500K, with the exception of new producers. All new producers (never having worked with FES before), must engage Rise Impact regardless of the anticipated amount. The cost of engaging Rise Impact should be included in the budget. There are two services that have been pre-negotiated with Rise Impact. Please contact your FES Production Executive to confirm the applicable service.
LISA TORRES // Lisa.Torres@RiseImpact.com
Mobile: 818.489.1640 Direct: 818.933.2902
If an audit is required, Producers must arrange to have the audit as soon as allowable following the completion of production. If this requires an audit by an outside CPA firm, it is the Producer’s responsibility to have budgeted for these costs and to arrange and pay for the audit and preparation of the tax credit application(s).FES shall have the right to review the results of the audit. FES Production and FES Production Finance should be copied on all correspondence with the CPA firm.
When submitting the tax credit/rebate paperwork, Producers should not use outside companies that apply for the credit/rebate and charge a percentage of the received credit/rebate.