The AFM calls itself the “Home of the Independent” and it’s true. This is the one main places where independent film deals get put together. However, it’s not the type of independent film that you’re most likely familiar with. These are not the independent films that rule Sundance. You’re not going to find movies starring Parker Posey, Sam Rockwell or whatever indie darling that is currently in vogue. No, the AFM is where you find the other type of “independent” film, the straight to video movie.

The straight to video world is a completely different universe than Hollywood. These are the movies that line the shelves at your local Blockbuster or other video store. This is a world where action, horror and franchises rule the day. Where the biggest stars are Steven Seagal and Dolph Lundgren and the biggest franchises may be ones you’ve never even heard of.

This is a different world operating on a completely different margin. Movies here are made for a fraction of what your typical Hollywood film budget is. The companies that attend these markets operate under the model of making movies cheap enough with desirable elements (action, nudity, more nudity) so that they can be sold to the international market. Quality is not as important as marketability and genre. Drama and comedy are more dependent on dialogue and cultural influences and thus are harder to sell. But boobs and blood will sell anywhere. That’s why action and horror are king at the AFM.

Some of you may ask, why doesn’t quality matter? It’s because the AFM has no pretense of art. The movies here are nothing more than widgets to be sold. You see, America has a thriving film industry. Most countries do not. Sure, the UK makes a fair amount of movies as does France and Asia, but the majority of the world just do not have the infrastructure nor the economy to support a prolific film industry. But that doesn’t mean that the rest of the world doesn’t need content to fill their movie theaters or to program their television networks. And that’s precisely the market for these schlock, straight to video (in the US) movies that are made and traded for the American Film Market. Making a quality film with a good story takes too much time and energy. It’s much easier for the companies that rely on AFM to make movies to a formula. Recycle the plot from this movie, change the setting, add some boobs, maybe an alien monster and that’s about all the innovation that you’re going to get here.

So how does the American Film Market work? To oversimplify it, there are sellers and there are buyers. The buyers are people who represent distributors (theatrical, TV or DVD) from the US and other countries. The sellers are either production companies trying to sell their finished product or pre-sell their future product or individual producers trying to the same. The AFM represents a place where all of these buyers and sellers come together with the hopes and intent of commerce taking place.

In a future post, the Moose will talk more about how an independent filmmaker can use the AFM to help find financing for their film. In the meantime, enjoy a sampling of the movies that are made for and sold at the AFM.

Mystic River

The Departed

So what does Massachusetts have to offer to Hollywood? Plenty. First, there’s the refundable tax credit. Massachusetts offers a unique tax credit that is both refundable or transferable. Filmmakers can take the tax credit themselves as a cash rebate at 90% of the value, or they can sell (transfer) the credit to someone else for market rates. This option is useful for filmmakers looking for financing as they can offer a tax credit for their investors in addition to equity profit participation. To make things even better, the credits has a 5 year carry forward from the year incurred. Not too shabby. And there is no cap on the tax credit. There is, however, a minimum spend of $50,000.

Massachusetts does not offer a hotel tax exemption. However, discount rates at hotels may be obtained for production by contacting the Massachusetts Film Office. All state owned locations and facilities are fee free for filmmakers and no sales tax is collected on all production related expenditures. There is an experienced crew base in Massachusetts and a selection of several sound stages and production rental houses for filmmakers to use.

For more information about Massachusetts filming incentives, contact:

Massachusetts Film Office
31 St. James Avenue, Suite 260
Boston, MA 02116
Phone: (617) 423-1155

Nick Paleologos
Executive Director
Phone: (617) 423-1202

New Mexico does not offer a tax credit, but an actual cash rebate of 25% of qualifying local spend. There is no brokering required as the check will be sent straight to the production company’s office from the New Mexico Taxation and Revenue Department. There is no cap on in-state expenditures and the qualifying amount includes New Mexico labor costs. The rebate is capped, however, at $5,000,000 on all out of state “performing artists” per project. Best of all, there is no minimum spend to qualify so this is great news for smaller, independent productions. The state has set no annual cap on the rebates so there’s no need to rush or plan an early year shoot

There is also a sales tax exemption for film production in New Mexico. In addition, all hotel and lodger taxes are waived on stays longer than 30 days. There are no permit fees for the city of Albuquerque while the city of Santa Fe charges a meager $25.00 permit fee. State owned buildings are fee-free including a closed state penitentiary with space for a mill and production offices. Not too shabby. If that’s not enough, New Mexico also offers a loan/investment program for film production.

New Mexico is a union state and as such has a large and experienced union crew base capable of handling up to 12 productions at a time. There are three studios with a total of ten stages in Albuquerque and another two soundstages in Santa Fe. Camera, sound, and other production equipment houses can be found in the two big cities of Albuquerque and Santa Fe.

The terrain and environment of New Mexico is suitable for desert and mountain locations. Some recent productions that have been filmed in New Mexico include: In the Valley of Elah, 3:10 to Yuma, No Country for Old Men, Wild Hogs, The Astronaut Farmer and Transformers. Currently, the latest installment of the Terminator franchise Terminator: Salvation is shooting in Albuquerque.

For more information, contact:

New Mexico Film Office
418 Montezuma Avenue
Santa Fe, NM 87501
Phone: (505) 476-5610
Fax: (505) 476-5601

Lisa Strout
Director

Jennifer Schwalenberg
Deputy Director

Tax Rebate

Sales Tax Exemption

Loan Program

Now New York State will increase its 10% below-the-line tax credit for film and television production to a whopping 30%, upping the program to $575 million, speeding the rebate waiting period from two years to one and extending the deal to 2013, with an ultimate $110 million cap. Now that’s an incentive package. In actuality, the Republicans in the Senate wanted a bigger incentive package but the Democrats bargained the incentives down to this still sterling package. Is it as good as Michigan’s production incentives? No. But this is New York. You have Niagra Falls and New York City and all the places in between. New York doesn’t have to be the cheapest state to film in or have the best incentives, it just needs to be competitive and this package is a good one.

Already business is picking up for New York. There’s talk that the show Ugly Betty may move to New York to take advantage of the incentives. Even films that aren’t set in New York are relocating there to take advantage of all New York has to offer. And what does New York offer besides great locations? How about an experienced and diverse crew and talent pool to draw from. Now that’s exciting.

So how does one qualify for the New York refundable film production tax credit? Qualified production costs at a qualified film production facility must be greater than or equal to 75% of the costs within and outside New York. Productions are required to spend at least one day at a qualified facility on a set. If production costs at a qualified facility are less than $3,000,000, then shooting days in New York outside qualified production facility must be greater than or equal to 75% of shooting days within and outside New York.

There is an investment tax credit that is available for tangible property containing at least one sound stage greater than or equal to 7,000 square feet, which is principally used as a qualified film production facility and the taxpayer provides at least 3 qualified services, including but not limited to: studio lighting grid, lighting and grip equipment, multi-line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heating, ventilation and A/C.

In addition, sales tax is exempt for film productions for most film related expenditures. And New York City doesn’t charge for film permits or use of New York City police. Bravo!

New York State Governor’s Office for Motion Picture & TV Development
633 Third Avenue, 33rd Floor
New York, NY 10017
Phone: (212) 803-2330

Pat Swinney Kaufman
Deputy Commissioner & Executive Director