The New Zealand Film Commission (NZFC) and Film New Zealand (FNZ) welcome the New Zealand Screen Production Grant, which comes into effect today.
The Government announced changes to the structure and level of support for screen incentives in December last year.
The new incentive offers a 20 per cent grant for international productions, with an additional 5 per cent available for a small number of productions that can pass a significant economic benefits test. A 40 per cent grant is available for New Zealand productions, and the range that will qualify has been increased, with more flexibility in the definition of a New Zealand production being introduced.
“These changes will mean more international business here while encouraging larger scale New Zealand productions that grow and develop the screen sector’s capability, talent base and intellectual property,” says NZFC Chief Executive Dave Gibson.
“The increased incentive is very welcome, as is the Government’s recognition that attracting film and television production into New Zealand has significant wider benefits for New Zealand, including most recently in our tourism sector,” says Gisella Carr, Chief Executive of FNZ.
Industry members here and overseas have been consulted about the implementation criteria of the new grant, including at meetings held throughout the country early in 2014. Both FNZ and the NZFC want to thank people for their time and valuable contributions
The full criteria for the NZSPG will be published mid-May 2014. In the meantime, please read the Summary of Key Technical Criteria for international productions and New Zealand productions. International productions were previously governed by the LBSPG Criteria and New Zealand productions by the SPIF Criteria, both dated 1 October 2013. Please refer to Summaries of Key Technical Criteria and the existing LSBPG and SPIF Criteria until the full NZSPG Criteria are published.
NZSPG For International Productions – including PDV Grant
Eligible formats (films, television and other non-feature film formats) can access a cash grant equivalent to 20% of Qualifying New Zealand Production Expenditure (QNZPE). The New Zealand Screen Production Grant includes the Post, Digital and Visual Effects Grant. To be eligible feature films must have QNZPE of at least NZ$15 million, TV and other non-feature film formats must have QNZPE of at least NZ$4 million and productions accessing the PDV Grant must have QNZPE of at least NZ$1 million. Only New Zealand resident companies can apply.
An additional 5% of QNZPE is available to a small number of productions that meet the significant economic benefits points test. See the Significant Economic Benefits points test and guidelines below for further details.
Previously the Large Budget Screen Production Grant offered 15% of QNZPE on all international productions.
NZSPG for New Zealand Productions
Eligible formats (film, television and other non-feature film formats) demonstrating significant New Zealand content and meeting the relevant expenditure thresholds can access a cash grant equivalent to 40% of QNZPE up to $15 million (i.e. grant of $6 million).
In order to determine whether a production has significant New Zealand content, it needs to meet the significant New Zealand content test (see guidelines) or be an official co-production. Productions certified as official co-productions are deemed to have significant New Zealand content for the purposes of this grant.
New Zealand productions with QNZPE of more than $15 million (“additional QNZPE”) may apply for a 40% grant on the additional QNZPE up to $50 million QNZPE subject to meeting additional criteria and providing a share of income to the NZFC to reinvest in the screen sector. The grant on the additional QNZPE will be capped at $14 million. Therefore, the total grant any screen production can access is capped at $20 million.
The amount of the grant for TV and other non-feature film formats has been increased from 20% to 40% of QNZPE.
QNZPE
QNZPE is generally production expenditure spent by the applicant on:
Goods and services provided in New Zealand
The use of land located in New Zealand
The use of a good that is located in New Zealand at the time that the good is used in the making of the screen production
QNZPE includes fees and expenses of non-New Zealanders who work on the production in New Zealand, provided (in the case of non-cast members) they work on the production for at least 14 days. Further details on exclusions to QNZPE are set out in the NZSPG Criteria.
Bundling
International productions can bundle productions together to qualify for a NZSPG if they satisfy these criteria:
The bundle must have a total QNZPE of $30 million or more
Each production in a bundle must have at least $3 million QNZPE
The principal photography for all productions within a bundle must start and finish within a 36-month period
The applicants for each production within a bundle must have at least 50% of shareholding in common.
Initial Assessment – International Productions
It is not mandatory for applicants to obtain initial assessment of a production’s eligibility for a grant. However, it is highly recommended that international applicants who intend to apply for an additional 5% grant or for television and other non-feature film formats submit an application for initial assessment. The Initial Assessment Application Form is available below.
Provisional Certification – New Zealand Productions
A Provisional Certificate may be requested. Certificates lapse six months from the date of issue, unless the production has started principal photography or key animation in that timeframe. The Provisional Application Form for New Zealand Productions is below.
The full suite of combined and aligned NZSPG Criteria will be published mid-May 2014.