Home > News > Entertainment Industry Tax Credit Excludes Adult • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Entertainment Industry Tax Credit Excludes Adult

Entertainment Industry Tax Credit Excludes Adult
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.66%
Yes, but in a few years
  37.36%
No
  22.99%
Out of 174 votes. Results based on votes submitted by members of XBIZ.net social network.
Feb 21, 2005 12:01 PM PST    Text size: 
PHOENIX — A new bill introduced in the Arizona Legislature would allow special income tax credits and exemptions for motion picture production companies, but would exclude those benefits from adult companies.

Senate bills 1346 and 1347, introduced in late January, are designed to bring Arizona up to speed with other southwestern states, including New Mexico, which enacted several tax exemptions and incentives during the end of 2002.

The New Mexican incentives encouraged massive growth in entertainment industry money spent within the state, raising it from $8 million during 2002 to roughly $80 million in 2003.

According to supporters within the senate, the Arizona bills would be a huge boon to the state’s current $21.9 million film industry, which contributed over $107 million in direct economic activity throughout the state during 2003.

“Any options to help the film business in Arizona are welcomed,” said Michele Regan, chair of the House Commerce Committee. “We are missing a big opportunity by letting films slip away from us and being shot in New Mexico or Nevada.”

However, on Thursday, the Senate Finance Committee amended both of the proposed statutes to prohibit “obscene” movies from taking advantage of the tax break.

According to the amendments referenced in the legislature’s record, the changes would “deny a certificate under this subsection for any production that would constitute an obscene motion picture film or obscene pictorial publication.”

The changes to the bill would deny adult companies the ability to receive a 10 percent credit on films that cost more than $100,000 to produce, 15 percent on films that cost more than $5 million to produce, and 20 percent on films that cost more than $10 million.

The exclusion of adult films from credits received by entertainment industry productions is consistent with similar laws enacted in Canada, where adult content is also excluded from receiving government subsidies.

New Mexico also includes similar limitations, prohibiting filmmakers that produce moves “harmful to children” from receiving a 15 percent entertainment industry tax credit.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

WIA Profile: Kate Hodgson-Egan

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Q&A: Holiday Products Founder Moe Levy Reflects on Decades of Career Accomplishments

Born and raised in the Bronx, N.Y., as an only child, Moe Levy learned to become business savvy at an early age from his parents. Even more importantly, Levy says his parents instilled in him their people-oriented... More »

AWSummit’s Alexandru Gheorghe Has Eyes Set on Growth

The AWSummit has quickly made its mark and has become a top draw for chat hosts, studios and cam sites from all over the world. Founded by CEO Alexandru Gheorghe just two years ago, the cam-centric AW... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!