Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Drafting Film Production Compensation Clauses In Light of State Tax Credit Requirements
Entertainment industry contracts often cover a variety of issues: services to be performed, rights granted, representations and warranties, travel and expense arrangements and compensation (both fixed and contingent), among other matters. In many cases, the compensation provisions are in one or two subparagraphs. To simplify drafting and to use “plain English,” the compensation provisions often contain introductory, governing language along the lines of: “In full and complete consideration for entering into and performing all of the terms hereof.” However, is such a “plain English” approach always a “best practice”?
Not necessarily. Drafters of contracts for a film project must consider the agreements in the larger context of other considerations relevant to the project. If state production tax incentives are part of the financing plan, an attorney for the producers needs to review the current requirements of the applicable tax incentive program before drafting agreements with creative contributors: What types of production expenditures qualify for the credit? Are there caps on particular expenses? Does the company applying for the credit need to be organized in the jurisdiction offering the credit or is authority to do business sufficient? What are the requirements of the state with respect to the selection of an auditor who will submit a cost report to obtain the credit, and does the state supply a list of pre-approved auditors for cost report submissions? Will using a pre-approved auditor expedite receiving the credit? (This consideration is important if the finance plan involves banking the expected credit with a due date for repayment of the loan.)
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.