Tennessee Film Incentives Get Funding Boost

Changes to state law made during the 107th General Assembly will mean $2 million in anticipated funding for the state’s film incentive program, administered by the Tennessee Film, Entertainment and Music Commission (TFEMC).
 
In addition, reforms to the state’s film funding grant formula will give smaller, indigenous film productions access to a larger share of available grant dollars.
 
Sen. Majority Leader Mark Norris, R-Collierville, sponsored a repeal of the refundable tax credit available to film productions under TCA §67-4-2109(j). The repeal will mean an additional $2 million in funding for the Tennessee Film/TV Incentive Fund.
 
Norris said the move makes TFEMC the “one-stop shop” for film incentives in the state and ends a complex system of incentivizing productions through both TFEMC grants and refundable tax credits issued by the Department of Revenue.
 
"We recognize the importance of the film industry, not only to the economy of the state, but to the welfare of countless Tennesseans whose livelihoods depend on it,” Norris said. “This new program simplifies, streamlines and strengthens our commitment to the film industry."
 
Changes made to the Tennessee Film/TV Incentive Fund grant formula by the TFEMC are designed to promote the development of indigenous production and attract independent filmmakers by streamlining the incentive delivery process.
 
Under the new program, projects with budgets greater than $200,000 will be eligible to receive grants equal to 25 percent of their qualified Tennessee expenditures. Previously, the combined grant and tax credit system awarded a 17-percent grant and 15-percent refundable tax credit only to productions with budgets over $1 million.

“As part of Gov. Haslam’s Jobs4TN economic development plan, the entertainment industry was identified as one of the key industries in which the state has a clear competitive advantage,” Bill Hagerty, commissioner, Tennessee Department of Economic and Community Development, said. “I would like to thank Sen. Norris for his vision on this bill and members of the General Assembly for their support.”
 
When asked about the film incentive, Nashville Local Co-President and National Board Member Cece DuBois said, “For years I have declared the entertainment industry to be Tennessee’s cleanest, most untapped resource. This new incentive program now allows us to compete for productions. Tennessee is rich in talent, production crew, musical scoring and everything else. We have it all. It’s time to let the secret out.”

“I see this as an excellent beginning. Streamlining the process and lowering the qualification threshold should result in more production almost immediately. Hopefully, a quick return on our investment will convince the powers that be to step up Tennessee's commitment to even greater levels,” added Nashville Local Co-President Mike Montgomery.