The Federal Film and TV Tax Incentive Gets a Name as Momentum Builds

www.hollywoodreporter.com: Amid a precipitous drop in domestic film and television production in recent years, Hollywood has coalesced around support for a federal tax credit. It’ll almost always be cheaper to shoot in other countries, but the thinking is that government support could make it palatable to shoot more big-budget projects in the United States.

Maryland Extends Theatrical Production Tax Credit Program Through 2032

www.broadwayworld.com: Maryland has extended its Theatrical Production Tax Credit Program through June 30, 2032, reinforcing the state's commitment to growing its arts economy and attracting major national touring and pre-Broadway productions.

HOCHUL PROPOSES $150 MILLION PRODUCTION TAX CREDIT EXTENSION

www.broadwayjournal.com: Empire State Development, which supports economic growth in the state, currently isn’t accepting applications for the New York City Musical and Theatrical Production Tax Credit. Applicants had to have their first paid performance by Dec. 1, 2025. The proposed state budget announced today “increases the aggregate amount available under the program by $150 million for productions with initial performances on or after December 1, 2025,” according to a state briefing book posted online.

What Freelancers Should Know About the New 1099-NEC Tax Form

twocents.lifehacker.com: If you made money from freelancing or gig economy work in 2020, you will receive a new tax form by February 1, 2021—Form 1099-NEC. This replaces Form 1099-MISC, which companies have to send when you earn $600 or more. Although there are still limited details about Form 1099-NEC, you can find the latest version (currently a draft) and future filing instructions here.

If You're Self-Employed, You Need to Know About the Paycheck Protection Program

twocents.lifehacker.com: Earlier this month, the federal government launched the Paycheck Protection Program, which gives small-business owners the opportunity to apply for a Small Business Administration (SBA) loan designed to help businesses make payroll during the coronavirus pandemic. If the loan money is spent on certain designated costs—payroll, mortgage interest, rent and utilities—the loan has the possibility of being partially or fully forgiven.

Georgia Attorney General Closes Probe of ‘Sully’ Tax Credits

Variety: The Georgia attorney general’s office has closed a criminal investigation into Warner Bros.’ use of tax credits on the Clint Eastwood film “Sully,” after state revenue agents declined to pursue the case.

Trump Tax Cut Upsets Entertainment Industry Calculations

Variety: The legislation known as the Tax Cut and Jobs Act, along with its accompanying proposed Treasury Regulations, has already had a significant impact on the entertainment industry. While not every effect is known, several unintended consequences are immediately apparent.

Theaters not amused by idea of amusement taxes, like the one being considered in Irwin

TribLIVE: Adding a tax on a community theater, such as the proposed dollar-per-ticket amusement levy being considered in Irwin, does not make much sense and could pose a threat to their survival, theater operators across the region said.

“It’s a slippery slope to start down,” said Michael Langer, president of the Westmoreland Cultural Trust, which operates Greensburg’s Palace Theatre. “The live theater industry is both very competitive and very price sensitive.”

New York Continues Tax Credit for Upstate Broadway Tours

Backstage: New York Gov. Andrew Cuomo has approved extending the Empire State Musical and Theatrical Production Tax Credit program for four more years, according to Forbes. The tax credit demonstrates that New York loves not only its Broadway shows but also its Broadway tours.

What Freelancers Can Write Off on Their Taxes

twocents.lifehacker.com: If you’re a freelancer, deductions are the name of the tax game: there are many business expenses you can deduct to lower your taxable income on your Schedule C (or Schedule C-EZ) if you haven’t incorporated. If this is your first time filing self-employment taxes, it’s worth the money to make an appointment with a professional.

Portland Has a $35 Tax For Arts Education—Here’s Why It’s So Controversial

www.artsy.net: As a nation-wide debate continues following the proposed elimination of the National Endowment for the Arts, a separate fight over arts funding played out in the city of Portland, Oregon, this week. The city’s controversial “arts tax” survived a potentially fatal legal challenge—but that is unlikely to quell criticism of the measure, with even proponents advocating that the levy needs to change.

How America's Outdated Tax Code Fails Gig Economy Workers

Reason.com: "The current tax administration system isn't working for a significant percentage of on-demand platform small business operators," says Caroline Bruckner, managing director of the Kogod Tax Policy Center at American University. "These tax compliance challenges are only going to continue to grow and impact more and more self-employed small business owners."

Obama Signs Broadway Tax Package Into Law – Broadway Producers Weigh In

Playbill.com: A package that establishes equal tax treatment for live theatrical productions was signed into law Dec. 18 by President Barack Obama. Broadway producers spoke exclusively with Playbill.com about how this legislature will impact the "art of making art."

The bill levels the playing field between New York-based theatrical productions and film and television shows. Current tax codes allow TV and film productions to expense up to $15 million in qualified costs, when 75 percent of compensation paid is for services performed in the United States. Broadway shows and other live theatrical productions did not previously qualify for the tax incentive.

Independent Contractors and the American Theatre

HowlRound: Very early in my career, I accepted a summer job with a large producing organization. Happy to be working, I didn’t mind that the compensation totaled less than $100 per week. I assumed it was the cost of “getting my foot in the door” and was still young and idealistic enough to not mind living on beans and rice. Several months later, navigating the world of income tax for the first time, I received a tax form from this organization unlike the W-2’s I had received from my other employers: IRS Form 1099-MISC. Mystified, I turned to tax preparation software and plugged in all of the endless data required.

6 Ways to Avoid Troubles with the Feds Over Your Use of Subcontractors

Remodeling | Finance, Contractors, Business: Answering the sub-vs.-employee question has always required a judgment call, and until recently the determining factors have involved the amount of control a contractor had over the sub and that amount of control a contractor had over his own decisions. But recently, the administrator of the Wage and Hour Division in the U.S. Department of Labor issued a memorandum that analysts say puts more emphasis on the sub’s economic independence. In essence, the more that subcontractor relies on you for his living, the harder it will be for you to prove he’s independent.

Meanwhile, the IRS is increasing its audits of contractors with 1099 classifications in its crosshairs. Protect yourself now!

How the Tax Code Hurts Artists

NYTimes.com: WITH tax day looming, you can practically hear the cries of creative professionals across the country. That’s because the tax code hits many right where it hurts, by penalizing them for the distinctive way they make money.

The biggest offender is still the alternative minimum tax, despite the American Taxpayer Relief Act of 2012, which brought long-overdue reform. Two provisions of the A.M.T. hit a disproportionate number of actors, screenwriters and directors: In calculating it, taxpayers can’t deduct employee business expenses, nor can they deduct state, local and property taxes.

Nonprofit Tax-Exemption Approvals Double, Thanks to Simplified Form

The Chronicle of Philanthropy: The Internal Revenue Service approved 94,365 applications from organizations seeking 501(c)(3) designations in fiscal year 2014, more than double the number approved in the previous two years.

The one-year jump was due to the introduction of an alternative, three-page electronic version of the 26-page form 1023, the IRS said in its 2014 Data Book, an annual report released Tuesday. The electronic option, 1023-EZ, first became available in July 2014 and provides a streamlined way for organizations with annual gross receipts of less than $50,000 to apply for tax-exempt status.

California Sweetens Tax Credit Program, But Will Productions Return?

Variety: As most California-based producers already know, the state’s film and TV tax credit program has gotten sweeter. The size of its subsidies has more than tripled (to $330 million annually), and extends to types of projects that were formerly ineligible.

Baker seeks to kill film industry tax credit, boost aid for low-wage workers

Metro - The Boston Globe: Governor Charlie Baker is proposing that the state kill a controversial tax credit for the film industry and expand one for thousands of low-income workers.

Baker’s proposed state budget, to be released Wednesday, will call for doubling the state’s Earned Income Tax Credit, which currently adds as much as $937 to the tax returns of low-income working families with three or more children. Within three years, that figure would increase to $1,873.

To pay for it, Baker calls for phasing out the state’s film tax credit.

Louisiana Tax Incentives at Risk?

Backstage: Hollywood South might be losing some of its luster. Louisiana lawmakers are considering pulling back on the state’s tax credit incentives that have encouraged television shows like “True Detective,” “The Walking Dead,” “NCIS: New Orleans,” and “American Horror Story: Freak Show,” and Oscar-winning movies “Dallas Buyers Club,” “12 Years a Slave,” and “Django Unchained” to film everywhere from New Orleans to Baton Rouge.