State Commercial Production Incentives – Principles for Fair Business Practices
May 1, 2014
By Bill Duggan, Group EVP, ANA
ANA has released “State Commercial Production Incentives – Principles for Fair Business Practices,” a set of guidelines to help marketers navigate and monetize the complex area of state commercial production incentives.
Many states offer financial incentives to shoot commercials in their states. Although such incentives originated more than ten years ago, recently they have expanded to additional states and have become increasingly attractive to production companies and marketers. It’s not uncommon to receive a $100k rebate for a single production job! In order to help marketers navigate the complexities of state commercial production incentives, the ANA Production Management Committee developed these principles. Highlights are:
- Fairness, good judgment and transparency are key practices that should be followed by all parties (i.e., marketers, production companies, and agencies) when considering state commercial production incentives jobs.
- Additional lead time is sometimes required for jobs where production incentives will be pursued.
- A state commercial production incentive job must be filed via a single application, complete with all possible qualifying components included.
- Depending on the type of expenditure, qualification for the incentive, and the state in which the commercial was filmed, an advertiser, production company, agency or third-party entity can file/administer the process and application.
- When the marketer is filing, the production company should be incentivized to follow state guidelines and maximize the qualified spend and rebate.
- Contracts should address state commercial production incentives.
- Marketers should be aware that, in many cases, it can take between 18 and 24 months to receive rebate checks.
“State Commercial Production Incentives – Principles for Fair Business Practices” is a follow-up to the 2012 ANA white paper, "The Found Money of State Commercial Production Incentives."
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