Large Budget Screen Production and Post, Digital and Visual Effects Grants
Summary of Large Budget Screen Production and Post, Digital and Visual Effects Grant Criteria
New Zealand offers production companies filming large budget productions in New Zealand two incentives:
- the Large Budget Screen Production Grant (LBSP Grant)
- the Post, Digital and Visual Effects Grant (PDV Grant)
The Criteria, Frequently Asked Questions and Application Forms are available from the Related Downloads section below.
The Value of the Grants: 15%
The value of the Grants is 15% of qualifying New Zealand production expenditure (QNZPE). QNZPE is defined as the production expenditure incurred for, or attributable to (a) goods and services provided in New Zealand; (b) the use of land located in New Zealand; and (c) 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.
QNZPE includes the costs of all cast and crew while working on the production in New Zealand. In the case of crew, they must work on the production in New Zealand for at least 13 days for their fees and costs to qualify.
Eligible Formats
The Grants apply to screen productions in the following formats: feature films, television movies (drama) and television drama series or mini-series.
Large Budget Screen Production Grant
Eligible productions may access the LBSP Grant where the QNZPE reaches the following thresholds:
- QNZPE must be at least NZ$15 million.
- 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.
- Productions may be bundled together to qualify for the LBSP Grant where:
- QNZPE for the bundle is NZ$30 million or more; and
- QNZPE on individual productions included in the bundle is NZ$3 million or more; and
- Productions in the bundle have completed principal photography within a 24-month period; and
- The applicant for each production in the bundle is related to each other applicant by having 50% or more shareholding in common.
Post, Digital and Visual Effects Grant
Eligible productions which undertake post, digital and visual effects (PDV) work in New Zealand may access the PDV Grant where:
- QNZPE for a single production is between NZ$3 million and NZ$15 million (note: if QNZPE is more than NZ$15 million the LBSP Grant will apply); and
- The QNZPE is spent or is necessarily related to the PDV activities listed in the Criteria.
- PDV productions may be included in a bundle where the applicants meet the requirements for bundling.
Annexure 1 of the Criteria lists the qualifying PDV activities. Please note that all costs relating to motion capture and animation activities are included in qualifying PDV expenditure even if they are incurred during the principal photography stage of production.
Additional Grant for Very Large Budget Screen Productions
From 15 May 2011, an additional grant of up to NZ$9.75 million is available to screen productions which have QNZPE of NZ$200 million or more.
The additional grant is 15% of any Guaranteed Deferments and Participation Payments (defined below) that are paid to persons or companies who are treated as New Zealand tax residents. The additional grant can only be claimed on payments made within three years of the first commercial release of the production.
Guaranteed Deferments are payments to personnel or the production company (including payments for story rights) that are quantifiable prior to the completion of the screen production but are payable after completion of the screen production. Participation Payments are payments to personnel or the production company (including payments for story rights) that are contingent on gross and/or net receipts of the screen production.
Applications for the additional grant must be made no later than three years and three months of the first commercial release of the production.
Administrative Provisions
Applications for the Grants may be submitted as follows:
- each time the production reaches QNZPE of NZ$50 million; or
- within the NZ$30 million bundle threshold, on completion on the first individual production that reaches QNZPE of NZ$15 million or more; or
- on completion of the QNZPE applicable to the production.
In any event, the application must be submitted no later than three months after the completion of the production.
Exchange Rate: 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 the New Zealand Film Commission (NZFC) which is the administrator of the Grants. Such applications must be submitted no earlier than three months prior to the start of principal photography. If approved, it 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, the value of the Grant will still be calculated on the actual QNZPE incurred.
An Applicant 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 application and when the Grant is paid).
An applicant seeking one of the Grants will not be eligible for any other New Zealand Government film finance or tax incentives in relation to screen production.
Payment of the Grants 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 three months of receipt of the application. The Ministry of Economic Development will make payment of the Grant upon advice from the NZFC.
For further information on the Criteria and the application process please contact:
The Manager
LBSPG
New Zealand Film Commission
Ph: +64 4 382 7680
Email: LBSPG@nzfilm.co.nz
Postal: PO Box 11 546
Wellington 6142
New Zealand
