Large Budget Screen Production Grants Scheme

Since November 2003, the New Zealand Government offers production companies filming a large budget production in New Zealand an incentive known as the Large Budget Screen Production Grant Scheme (LBSPG or the Grant).

Effective 16 July 2007, the value of the Grant is increased to 15% of qualifying expenditures (previously 12.5%), a new 15% Grant is now available for post/digital/visual effects (PDV), and further changes are introduced. These are summarised below pending publication of the revised LBSPG criteria.

These changes take effect as of 16 July 2007 and apply only to production expenditures incurred as of that date; the changes are summarised below pending publication of the revised LBSPG criteria.

Full criteria on the existing Grant is available for download on the right. The Grant continues to apply to screen productions in the following formats: feature film, television movie (drama) and television drama series or mini-series. These formats are defined in the existing criteria.

Eligible Productions may access the Grant where the Qualifying New Zealand Production Expenditure (QNZPE) reaches the following thresholds:

• Continuing: productions' QNZPE must be at least NZ$15 million. QNZPE is generally defined as the production expenditure incurred for, or attributable to: goods and services provided in New Zealand; the use of land located in New Zealand; and the use of a good that is located in New Zealand at the time that good is used in the making of the screen production. (Note: QNZPE does include costs of all cast and crew while in New Zealand).
• Continuing: In the case of television series, individual episodes which have completed principal photography within any 12 month period and with a minimum average spend of NZ$500,000 per commercial hour, may be bundled to achieve the total of NZ$15 million.
• NEW: Productions may 'bundle' together to qualify for the Grant where:
• QNZPE for the bundle is at least NZ$30 million;
• QNZPE on individual productions included in the bundle is at least NZ$3 million;
• Productions included in the bundle have completed principal photography within a 24 month period; &
• Each production included within the bundle is produced by the same applicant production company.
• NEW: Productions undertaking only post/digital/visual effects (PDV) work may access the Grant when the QNZPE for a single production is between NZ$3 million and NZ$15 million. This applies to QNZPE incurred since 16 July 2007.
• NEW: Also effective on 16 July 2007, productions commencing as of that date are no longer required to ensure that the value of QNZPE between NZ$15 million and NZ$50 million must represent at least 70% of the total production expenditure.

New administrative provisions are also introduced:

• Where a production's ability to reach the QNZPE NZ$15 million threshold or the NZ$30 million bundle threshold may be at risk from future exchange rate fluctuations, an application for the sole purpose of determining QNZPE eligibility may be submitted to New Zealand Film Commission (NZFC) as administrator of the Grant. Such applications must be submitted no earlier than 90 days prior to the start of principal photography and will enable the production to use the exchange rate relevant on the date such application is received for the purpose of determining Grant eligibility. However, in such cases, the value of the Grant will still be calculated on the actual QNZPE incurred.
• Grant applications may be submitted before completion of the final production under the following circumstances:
• each time a production reaches QNZPE of NZ$50 million, or
• within the NZ$30 million bundle threshold, on completion on the first individual production that meets the QNZPE of NZ$15 million; or
• on completion of the QNZPE applicable to the eligible production.

But in any event, the application must be submitted no later than 90 days after the completion of the production.

Applicants must be either:

• A New Zealand resident company, or
• A foreign corporation operating with a fixed establishment in New Zealand for the purposes of lodging an income tax return (both when it lodges the Grant application and when the Grant is paid).

An applicant seeking the Grant will not be eligible for any other New Zealand Government film finance or tax incentives in relation to screen production.

Payment of the Grant will be dependent on the Inland Revenue Department verification of the audited information provided to the NZFC. Provided that the application for expenditure is complete and verified, the NZFC will endeavour to approve payment within 3 months of application. The Ministry of Economic Development will make payment of the grant upon advice from the NZFC.

Full criteria on the existing Grant is available for download from http://www.filmnz.com/production-guide/large-budget-screen-production-grant-scheme.html.

Changes to the criteria will be posted once available. This will include further explanation of the QNZPE for the new PDV Grant.

For further information on the criteria and the grant application process contact:
The Manager
LBSPG
New Zealand Film Commission

Ph: +64 4 382 7680
Email: LBSPG@nzfilm.co.nz
Postal:
PO Box 11 546
Wellington
New Zealand