BajaNomad

Mexico targets Hollywood with tax incentives

BajaNews - 3-10-2010 at 03:08 AM

http://www.reuters.com/article/idUSTRE6290EL20100310

John Hecht
Mar 9, 2010

MEXICO CITY (Hollywood Reporter) - Mexico has launched a $20-million tax-incentive program in an ambitious move to lure film production from Hollywood and other locales.

Mexican President Felipe Calderon said Tuesday he hopes the program will make Mexico "the capital of Latin American cinema."

He made the announcement at Baja Studios in the state of Baja California, where James Cameron's "Titanic" and Peter Weir's "Master and Commander: Far Side of the World" were shot in the studio's colossal tanks.

Managed by state-run film financing agency Imcine and Mexican trade and investment body ProMexico, the program offers tax rebates of 7.5% on film productions that exceed the amount of 70 million pesos ($5.5 million). By Mexican standards, where the average budget runs about $2 million, that is considered a high-budget production. The fund will double next year to $40 million.

To qualify, foreign producers must contract local production services. Producers also can write off an additional 10% owed for IVA, Mexico's value-added tax.

"The message is that there is a 17.5% rebate for foreign productions," said Manuel Sandoval, ProMexico's head of strategy and innovation.

Woooosh - 3-10-2010 at 09:49 AM

A tax rebate is the incentive? No wonder they shoot so many films and TV shows in Canada now. eh? I think Fox sold their "Titanic" studio (Foxploration?). If there was a financial advantage/incentive to keeping it- they most likely would have. Anything major been filmed there since Mexico took it over- or is it just tours?

Bajahowodd - 3-10-2010 at 03:27 PM

California, especially Hollywood has seen their percentage of film and TV production drop for a number of years. Vancouver is the site of many TV shows. But many states and cities around the country offer all kinds of incentive for filming.

As for Foxploration, you do the math. Master and Commander was released in 2003. I'm guessing that Fox more or less gave the place away, what with the profit they made on Titanic.