Criteria finalised for NZ Screen Production Grant

The Government has released the criteria for the New Zealand Screen Production Grant (NZSPG) that comes into effect from today.

The NZSPG combines the Large Budget Screen Production Grant and Screen Production Incentive Fund into a new grant agreed by Cabinet in December 2013.

The new arrangements introduce a 20 per cent grant for international productions, increasing to 25 per cent in limited circumstances. A 40 per cent grant is being made available for New Zealand productions, and the range of these that will qualify has been increased. For New Zealand grants above $6 million the Crown will benefit from a share of any profits which will be reinvested in the screen sector.

There are a number of criteria that need to be met in order to get the additional 5 per cent for international productions – in particular the wider economic benefits to New Zealand. That includes the marketing, promotion and showcasing of New Zealand and New Zealand expertise as we have seen with The Hobbit films and has been agreed with the makers of the Avatar trilogy.

"The marketing benefits for New Zealand from these sorts of high profile productions underline the New Zealand story of creativity and innovation that benefits our exporters more generally.

The new criteria follows consultation with 150 representatives from the New Zealand and overseas screen industries.

“These changes have been designed to encourage more mid-sized locally-driven productions and attract more international productions while our own local industry develops and becomes more sustainable,” Mr Joyce says.

“Supporting our local screen industry is vital so longer term more New Zealand-made stories can be successful on the world stage,” Mr Finlayson says.

The criteria on the NZSPG is available at: http://www.nzfilm.co.nz/funding/feature-films/production-funding/new-zealand-screen-production-grant

Pre April 2014 – New Zealand’s screen production incentives	Post April 2014 – New Zealand’s screen production incentives
International Productions
Large Budget Screen Production Grant (LBSPG) Vote Economic Development Annual appropriation Uncapped	New Zealand Screen Production Grant – International Vote Economic Development Five year multi-year appropriation Uncapped
QNZPE qualifying thresholds Film $15m TV $4m PDV $1	QNZPE qualifying thresholds Film $15m TV $4m PDV $1
Grant rebate rate 15%	Grant rebate rate 20% 25% in certain circumstances – subject to meeting significant economic benefits points test
Additional grant for productions over $200m	Discontinued
Eligible format Film TV and other non-TV formats – see criteria	Eligible format Remains the same
Initial verification process Recommended and encouraged for non-film formats only	Initial verification process Recommended and encouraged for non-film formats Required for all applicants wishing to apply for the additional 5% grant
Eligibility (no points test) Format, expenditure threshold, relevant entity and special purpose vehicle, residency status – baseline 15% grant No access to other NZ government incentives	Eligibility– introduced new significant economic benefit points test Same as previous Large Budget Screen Grant criteria for baseline 20% grant or Productions wishing to apply for additional 5% grant (25%) must then meet requirements of the significant economic benefits points test – either by reaching 20 points or through fast-track qualification – subject to also delivering wider economic benefits
Bundling Available for 2 or more productions where each has a minimum qualifying New Zealand production expenditure of $3m or more and together bundled to a total qualifying New Zealand production expenditure of $30m or more	Bundling Remains the same
New Zealand Productions
Screen Production Incentive Fund (SPIF) Vote: Arts, Culture and Heritage Multi-year appropriation Capped	New Zealand Screen Production Grant for New Zealand Productions Vote: Arts, Culture and Heritage Five year multi-year appropriation Uncapped
Grant rebate rate 40% Film 20% TV and other	Grant rebate rate 40% Film 40% TV and other
Provisional application process Recommended	Provisional application process Recommended
Eligibility for New Zealand Productions
QNZPE qualifying thresholds Film $2.5m total TV and other $250k-$1m total & $250k/hour-$800k/hour – see criteria Short form animation $250k total & no less than $400k/hour	QNZPE qualifying thresholds Film $2.5m total TV and other $250k-$1m total & $250k/hour-$800k/hour – see criteria Short form animation $250k total & no less than $400k/hour
Eligible format (including evidence of commercial distribution) Film TV and other non-TV formats	Eligible format (including evidence of commercial distribution) Amended to align with New Zealand Screen Production Grant – International Productions Requirement for NZ theatrical distribution amended to remove reference to 20 screens
Significant NZ content Via points test (15 points TV and other, 20 points film with minimum mandatory points in section A and C) or official co-production	Significant NZ content Via points test (15 points TV and other, 20 points film with minimum mandatory points in section A and C) – more flexibility in A3 (creative material) and new B4 or official co-production
Other eligibility criteria Relevant entity and special purpose vehicle Residency status Recoupment position Access to other government incentives Non-NZ government funding thresholds	Other eligibility criteria Relevant entity and special purpose vehicle Residency status – revised and tightened Recoupment position – revised and tightened Access to other government incentives Non-NZ government funding thresholds Two new criteria for productions with qualifying New Zealand production expenditure of $15m or more – producer’s track record and export potential
Grant arrangements Grant capped at $15m qualifying New Zealand production expenditure per production – i.e. $6m (film), $3m TV.	Grant arrangements Grant capped at $50 million qualifying New Zealand production expenditure Productions with qualifying New Zealand production expenditure of $15m or more: must satisfy additional eligibility criteria otherwise grant is capped at $15m qualifying New Zealand production expenditure must share 50 per cent of the net income and profit deriving from the grant on qualifying New Zealand production expenditure between $15 million and $50 million with the NZ Film Commission to reinvest in the sector

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Criteria finalised for NZ Screen Production Grant