Legislation passed by Congress on Tuesday, to avert a fiscal cliff, includes the extension of a tax provision that is designed to boost U.S. film and TV production.

The provision allows producers to immediately deduct the first $15 million of production costs if 75% occurs in the U.S., allowing investors the option of writing off expenses in the year it occurs. The provision has been extended until December 31, 2013.

For more on this provision, read an article by Ted Johnson of Variety.

2012 was another record breaking year for the North Carolina Film Industry.  The NC Film Office says year end projections show productions had a direct in-state spend in excess of $376 million and created more than 4,100  crew positions for the state’s highly skilled workforce. Productions created nearly 20,000 job opportunities—including talent and background extra positions– for North Carolinians. These numbers are well above last year’s record breaking $220 million in spending and 3,300 crew positions. For more news articles on NC’s film industry 2012 in-state spends, click on the links to news stories below.

NC Film Office

NBC 17 article

Poyner Spruill congratulates EUE/Screen Gems Studios on bringing the filming of Iron Man 3 to Wilmington! We’re proud to have helped close the deal!

Gov. Bev Perdue said in a press conference today, “Iron Man 3′ will be made here in Wilmington, NC. How about that?” Gov. Perdue says with the film will come many economic advantages to the Cape Fear. “This is a great day for North Carolina.” Five-hundred-fifty jobs, all the other sub-jobs, the construction jobs, that’s what it’s all about to us here locally. But around the country and around the world it’s about North Carolina’s brand. Today we are Hollywood East, and it starts right here in Wilmington.” Shooting for the film will start in 2012 and ”Iron Man 3″ is scheduled to hit theaters May 2013.

About EUE/Screen Gems Studios

EUE/Screen Gems provides worldwide production, studios, sound stages and technological infrastructure and support for major motion pictures, films, commercials and television shows and television series. EUE/Screen Gems Studios North Carolina has a total of 150,000 square feet of column-free studio stage space, and is comparable to any major studio in the country. Based in Wilmington, North Carolina, this 50-acre film and television production complex has 10 sound stages, two special effects water tanks and 30,000 square feet of office space. Why go to Los Angeles if you don’t have to? We don’t have an answer for that because we know where you should be. We also know that our studios offer the convenience of the east coast, full-access to our lighting and grip inventory and the advantages of all of our amenities.

We are very excited for Betsy’s Kindergarten Adventures, winner of another Parent Choice Award for 2011.

Betsy’s Kindergarten Adventures proves kindergarten is about more than just learning how to color inside the lines. In this animated half-hour series airing on PBS, stories follow the antics and activities of little Betsy and her friends as they navigate new experiences at school. In each episode, Betsy confronts novel emotions and social situations, which she tackles with sweet but straightforward charm.

Please click here for more information on Betsy’s Kindergarten Adventures.

Whether you’re a musician, filmmaker, painter, game developer, actor, or gallery owner, sooner or later you will be asked to sign a contract. If you are serious about your art (as art and as business), you will take a serious approach to understanding, negotiating and performing the contracts that are presented to you. Here’s a list of 10 things you should consider when someone hands you a contract.

1. Establish expectations. A contract should establish the parties’ expectations for the relationship. This is just as important as the payment terms or your ability to get out of the contract. If you sign a contract that doesn’t reflect your expectations, the relationship is destined for failure. For example, if you’re negotiating a recording agreement, and you expect to keep all your publishing rights, but the record label expects to share in the publishing rights, you have a problem. If the parties’ expectations are not aligned, you may be better off finding another deal.
2. Keep it simple and clear. Deals in the entertainment industry can be very complex, and so can the contracts for those deals. Sometimes the complexity is necessary, but not always. If possible, try to use contracts that say what you mean in a simple, concise and clear manner, but be sure not to oversimplify. If you understand what the contract means, and the other party understands what the contract means, you’ve hit the mark.
3. Everything is negotiable. Everything, even terms that the other party tells you aren’t negotiable. You’re not likely to get everything you want, and if you push on things that are extremely important to the other party, you may lose the deal, but you will quickly learn where there’s flexibility. Part of the art of negotiating (which is a give-and-take process) is identifying the things that are important to you and the things that are important to the other party and finding a middle ground. If an important point becomes non-negotiable—i.e., a “deal killer”—then you may have to walk away from the deal.
4. Be willing to walk away. This is very important and, sometimes, it may be your only leverage in negotiating a contract. Leverage—the principle of using a small advantage or even merely a perceived advantage to gain a benefit—is critical in contract negotiations. Sometimes, especially as an artist, the only leverage you will have is the ability to walk away from a deal. If you indicate you’re willingness to walk away, the other party may be more willing to negotiate terms in your favor.
5. If you don’t understand something, ask. Contracts are legal documents often drafted by lawyers. Lawyers sometimes use confusing language or concepts. So, don’t be afraid to ask a question if you don’t understand what something means (remember, there are no stupid questions). If you sign a contract, it’s binding on you whether you understand it or not, so you should understand what each provision means before you sign it.
6. Use a qualified lawyer if you can. While lawyers can be expensive, they can also save you money and aggravation in the long run (and the short run). A lawyer can help you understand the contract and negotiate terms in your favor. A qualified lawyer will know your industry and which terms should be negotiated. Avoid using a friend or relative who is a lawyer, but doesn’t specialize in your industry—you may end up paying for it down the road.
7. Put all deal terms in writing. It’s surprising how many times you may hear “just trust me” when you’re negotiating a contract. That’s a negotiating tactic—an appeal to your emotions—often used by people who don’t have a legitimate negotiating position. All your important deal points should be in the contract and not left to “trust.” These include: (a) the reason for entering the contract; (b) what you agree to do and what the other party agrees to do; (c) when these things are supposed to happen; (d) what the financial terms of the deal are (e.g., how and when you get paid); (e) how you get out of the deal if something goes wrong; (f) how long the deal lasts; etc.
8. Don’t make assumptions. Don’t assume anything when drafting or negotiating a contract. Spell out all the key assumptions in the contract. For example, if you’re negotiating an agreement with a personal manager named John who works in a company with several personal managers, don’t assume that John will actually do your work. If it’s important to you that John actually does your work, make that clear in the contract.
9. Pay attention to “boilerplate.” Boilerplate refers to the standardized, formal language in a contract that is often located at the end of the contract. Boilerplate provisions affect your legal rights and are binding on you when you sign the contract even if you don’t read them. Be sure you read and understand these provisions, and negotiate them if you don’t like what they say. Examples of boilerplate provisions are: (a) requiring the loser in a lawsuit to pay the other party’s legal fees; (b) requiring a lawsuit to occur in a selected state (which may be far from where you are); (c) prohibiting transfer or assignment of the agreement; (d) specifying which state’s law controls the interpretation of the agreement; and (e) requiring arbitration.
10. Understand your business. Translating your business deal into a contract requires a good knowledge of the customs and nuances of your business. If you don’t already have an intimate knowledge of how your business works and how deals are structured, talk to others who have done similar deals. If you don’t know what’s customary in your industry, you may not end up with the best contract.

Kennebec video for 26 Interstate has been accepted into the 2011 Live From Memphis Music Video Showcase. The 6th Annual Music Video Showcase, March 11-13, features 49 music videos from Memphis and around the world!

Click here for more on the Music Video Showcase Awards.

To hear Kennebec’s music, click here.

The Kids are All Right won a Golden Globe for the Best Motion Picture, comedy or musical at the ceremony on January 16th.  Poyner Spruill is pleased to have represented one of the producers on the project. Annette Benning also won Best Performance by an Actress in a Motion Picture – Comedy Or Musical for her performance in The Kids Are All Right.

Click here to read an article on the win.

In this week’s local and national news, tax incentives for the film and television industry have come under scrutiny. With states across the U.S. facing billion dollar budget gaps, the question is can states afford these tax incentives?

We’ve included links below to several articles written this week discussing these incentives.

State Government News Service, The Insider

Strengthened film incentives face uphill battle, The Wilmington Star News

States Weigh Cuts in Hollywood Subsidies, New York Times

Tax bill helps indie filmmakers with an extension of Section 181 tax relief. To read more, click here.

The new tax bill that Obama recently signed into law will extend the Section 181 film tax credit to the end of 2011. In addition, it can be applied retroactively to all qualifying films produced in 2011 and 2010.

The bill allows producers to deduct the cost of qualifying expenditures in the year they occur rather than having to amortize those costs over several years. This is great news for independent filmmakers and their equity backers, who can now offset their equity investment by as much as 50 percent or more through the combination of state and federal incentives. (reprinted from thewrap.com)

reposted from John Morris in Uniquities - Good Night Raleigh

Raleigh’s miniature version of the iconic Hollywood sign appears on Hillsborough Street across from Cup-a-Joe’s

To view other photos of the sign, click here.