FLORIDA’S FILM AND ENTERTAINMENT INDUSTRY INCENTIVE PROGRAM

2008 – 2009 GUIDELINES FOR FILING FOR REBATE

Film and Television – Queue ‘A’

TIME FRAME FOR SUBMISSIONS

1. Effective 12/04/07, the Certified Production Company (hereafter “Company”) must file its final report
from its CPA to the Governor’s Office of Film and Entertainment (hereafter “OFE”) verifying its
actual qualified expenditures within 90 days of the date the last expenditure is made, or must get
written permission from OFE for an extension.

2. In no case may final reports be delivered to OFE after August 10, 2009, for productions certified in the
previous fiscal year (July 1- June 30), because of fiscal year-end constraints.

HIRING A CPA FOR REVIEW AND PREPARING SUBMISSIONS

1. The Company must select an independent third-party Florida-based Certified Public Accountant
(CPA) to prepare its submission for a rebate, using agreed-upon procedures provided herein, at the
Company’s expense. Any licensed Florida CPA is eligible.
a. The OFE can not recommend a CPA. However, a list of the CPA’s who have previously
performed this service will be provided if requested.
b. The Company must check the license status (make sure its current) from the Department of
Business and Professional Regulations Web License Search
(https://www.myfloridalicense.com/Default.asp ) or call the Customer Contact Center at (850)
487-1395.
c. The Company should enter into an agreed-upon procedures agreement with the CPA, listing
cost of services. (The CPA’s cost is not considered a qualified expenditure.)
d. It may be useful to select and consult with a CPA in advance of production to be sure all
necessary documents will be gathered correctly during the production, which may also result in
a quicker submission and rebate.

2. The Company will submit to the CPA:

a. Proof of expenditures made to Florida-registered businesses (invoices and cancelled checks).
b. Payroll records of all payments made to Florida resident employees & proof of residency (see
“Submitting Payroll Expenditures,” #2)
c. All materials in a way that enables the CPA to complete the submission requirements to OFE
herein.
d. A copy of the Company’s certification letter from the Office of Tourism, Trade, and Economic
Development (OTTED), listing the date of certification.

OVERVIEW OF ‘QUALIFIED EXPENDITURES’

1. SAMPLE BUDGET: For a detailed breakdown of what expenditures may qualify, see the ‘Sample
Qualified Expenditures Budget’ provided. It’s also available online at our website, filminflorida.com.

2. Only expenditures paid to a Florida resident or to a business registered and doing business in Florida
are qualified expenditures, and must be associated solely with pre-production, production and post-
production of the applicant’s production. Generally, post-production is considered complete once an
‘answerprint’, or finished version of its production, is reached.
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 3. Costs of development (script, writer, etc), marketing, publicity (still photographer, publicist, etc.), and
distribution (rights, license fees, E&O insurance, interpositive/internegative, deliverables, etc.) are
NOT considered qualified expenditures.

4. For a qualified production involving an event, such as an awards show, the term ‘qualified
expenditures’ excludes expenditures solely associated with the event itself and not directly required by
the production.

5. Only actual expenditures paid (with documentation) during the certified period are qualified
expenditures, not outstanding accounts. Goods, services or payroll must have been paid during the
certified period to qualify. Check the certification letter from OTTED for the initial date expenditures
can qualify.

SUMBITTING PAYROLL EXPENDITURES

1. WHAT QUALIFIES:
a. According to the Florida Statutes 288.1254, “Wages, salaries, or other compensation including
amounts paid through a payroll service company, for technical and production crews,
directors, producers, and performers” are qualified expenditures if paid to “residents of this
state in the form of salary, wages or other compensation up to a maximum of $400,000 per
resident.”

2. DETERMINING FLORIDA RESIDENCY:

a. Company MUST provide a completed Declaration of Florida Residency Form (DFRF) for
each individual it is claiming wages for.
b. NOTE: If a staffing, loan-out, or extras company is being used, a DFRF must still be
submitted for each individual supplied by such company.
c. It is strongly suggested productions obtain the DFRF and copy of drivers license during the
employment period. Productions often have difficulty obtaining such after the fact.
d. A completed DFRF must include all of the following:
e. Individuals name, address, telephone number and signature.
f. A copy of the individual’s current Florida driver’s license, identification card, voter
registration card or last year’s personal income tax return attached to the DFRF. A copy of a
utility bill, W-9, or application for a Tax ID is NOT considered proper proof of residency. It
must be valid for the employment period. Information must be legible. Note: Some Florida
driver’s licenses are renewed on the back of the card. In this case, copy both sides of the
identification!
g. In lieu of providing a copy of the individual’s driver’s license, you may provide a print out of
the Florida Department of Highway Safety & Motor Vehicle’s Driver License Check
indicating the driver’s license was valid during the employment period. Visit
https://www6.hsmv.state.fl.us/dlcheck/dlcheckinq to use the service.
h. Law enforcement officers who are unwilling to provide a copy of their state identification
must provide their department, precinct and badge number on the DFRF.
i. Signature of the Company’s Producer, or Authorized Production Executive, must be on each
DFRF.
j. MINORS – A parent’s Florida drivers license may be provided, with notation of such.
k. FRINGES: Fringes that are paid to a Florida resident employee as part of their compensation
are qualified expenditures. Fringe payments paid by the employer to the government (FICA,
Medicare, FUTA, and SUI) are qualified expenditures. Worker’s Compensation is a qualified
expenditure when premiums are paid to a Florida corporation.
l. Payroll handling fees count only if paid to a Florida payroll company.
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 3. CREATING A PAYROLL REPORT:
a. Provide a Payroll Report containing the salaries and wages for the Florida residents claimed.
Rebate on any individual’s salary (from all sources on the production) is limited to the first
$400,000, which is determined based on payroll payments made to the Florida resident.
b. The Payroll Report should consist of 3 schedules if applicable. Florida Cast, Crew and Extras
should be on separate schedules. A payroll register from the payroll company must list all
personnel separate, detailing total qualified wages and all applicable fringes (FICA, Medicare,
FUTA, and SUI) associated with that individual.
c. Example of information for payroll spreadsheet:

Employment Period Last First Position Wage Fringe Handling Total DFRF Binder
Fee Reference
7/01/2008 - Welge Isla Costumer 20,000.00 - - 20,000.00 Y Crew A-Z
9/30/2008
7/01/2008 – Jacobs Gabriel Prod Mgr 35,392.00 5,743.91 - 41,135.91 Y Crew A-Z
9/30/2008

SUBMITTING VENDOR EXPENDITURES

1. All receipts/invoices MUST be legible – make sure whoever makes copies understands this. Receipts
that are not readable should not be accepted by the CPA, and will not be accepted by OFE.
a. All submitted invoices for goods or services purchased or leased must be from a vendor or
supplier who is Florida-registered company and doing business in this state and must include
the company’s Florida-based address and telephone number. If from an individual, a
Declaration of Florida Residency Form (DFRF) must accompany the invoice. When renting a
non-business location (e.g., a private home) as a filming site in Florida, the owner does not
need to provide proof of residency.

2. All submitted invoices relating to labor (e.g. security companies, extras casting, camera , sound,
catering, production crew) from a vendor or supplier who is a Florida-registered company and doing
business in this state must include an itemized list of employees/crew and a completed Declaration of
Florida Residency Form (DFRF) for each individual listed on the invoice.

3. REMINDER: For a detailed breakdown of what expenditures may qualify, see the ‘Sample Budget’
form provided, which is also available online at the incentives page of our website, filminflorida.com.

4. Qualified expenditures can include, but are not limited to, payments to Florida companies as:
a. Expenditures for sound stages, backlots, production editing, digital effects, sound recordings,
sets, and set construction
b. Expenditures for rental equipment, including, but not limited to, cameras and grip or electrical
equipment
c. Expenditures for meals, travel, and accommodations
d. Florida state sales tax (note: Florida offers productions a sales-tax exemption)

5. Expenditures that are NOT qualified include, but are not limited to, the following:
a. Purchases made on the Internet unless purchased from a Florida-based company
b. Shipping costs unless shipped by a Florida-based company
c. Telephone or cell-phone charges when the service address is not in Florida
d. Parking and tolls, except when the Production Company leases the parking area
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 e. Wrap party expenditures
f. Entertainment expenses
g. Liquor
h. Cigarettes
i. Charitable contributions, tips, location gratuities
j. Costs associated with the development, marketing, publicity or distribution of the production,
including still photography
k. Costs associated with the third-party CPA’s report on the rebate submission.

6. Only actual expenditures paid shall be qualified expenditures, not outstanding accounts.

7. CREATING A VENDOR EXPENDITURES SPREADSHEET:

a. Present data in a P.C. compatible electronic medium (i.e. Excel spreadsheet on CD, flash or
thumb drive) along with hard copies of the verifying documentation, organized in notebooks or
other easy-to-reference way.
b. Example of information to include in vendor spreadsheet:

OSD* Check# Date Amount Florida Vendor Name Purpose FL Company

X 1001 7/1/2008 500.00 ABC Catering Craft Service Y
1002 7/5/2008 2,500.00 Back Stage Rentals Stage Rental Y
X 1003 7/5/2008 5,000.00 Camera Equip Company Equip Pkg Y

7. The spreadsheet listing each qualified expenditure must be accompanied by:

a. A clear copy of the receipt and/or invoice.
b. A clear copy of the cancelled check provided by the financial institution.
c. A reference number/letter for each line-item, placed on each physical copy of the supporting
documentation, for easy identification.
d. * OSD – The Company is responsible for indicating in the submitted report if each vendor is
a registered women-owned and/or minority-owned business. You may visit The Office of
Supplier Diversity’s website at https://vendorstrator.dms.myflorida.com/directory for more info.

PETTY CASH
1. Petty cash receipts should follow similar procedure to Vendor expenditures, if submitted separately.

2. 2. Receipts must all be legible, individually numbered or lettered for easy reference to the CPA’s
master spreadsheet.

3. Example of petty cash spreadsheet:

Date P.C.# Ref. # Amount Name Vendor Purpose FL Comp. Agreed to Receipts
7/1/2008 1001 A1 17.45 E. Harvey ABC Catering Craft Service Y Y
7/8/2008 1002 B1 12.90 S. Jacobs Back Stage Rentals Grip Tape Y Y
7/9/2008 1003 B2 4.65 S. Jacobs 7-Eleven Scotch Tape Y Y

FILING YOUR FINAL REPORT

1. HOW TO FILE: After the CPA returns the final report to the Company, the Company must submit the
following to OFE:
a. A letter from its CPA outlining what procedures were followed for its report on the rebate
submission.
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 b. Proof of payment to the CPA for services provided.
c. A final report on the agreed-upon procedures by the CPA determining the amount of actual
qualified expenditures incurred by the Company.
d. A copy of all substantiating data (receipts, invoices, cancelled checks, payroll records, etc.)
used to justify the qualified expenditures, organized as described herein.
i. Each box must be clearly labeled with name of production, company, contents, and Box
# (e.g., Box 1 of 5, Box 2 of 5, etc.)
e. A breakout of the following:
i. Florida Accounts Payable (Vendors)
ii. Florida Petty Cash (if submitting separate from Vendors)
iii. Florida Cast, Crew Wages and Extras (separated out)
iv. Number of hired Florida Cast, Crew and Extras (separated out)
v. Number of hotel room nights (estimate is acceptable)
f. A signed statement by an authorized officer of the Company listing the total numbers and
verifying the final percentage of Florida resident cast, crew and extras per the statutory
requirement of FS 288.1254(1)(h)1, working on the production divided by the total number of
all workers on the production. NOTE: If the total is less than 50%, the applicant will not
receive the incentive.
g. A signed statement by an authorized officer of the Company verifying it made a good faith
effort to use existing Florida vendors for rentals and purchases where possible.
h. A signed statement from the Company that the final distributable product does not, and will
not, contain obscene content as defined in s. 847.001(10).
i. A copy of the FINAL and ACCURATE shooting schedule.
j. ADDRESS FOR SUBMISSION:

The Governor’s Office of Film and Entertainment

The Capitol
400 South Monroe St.
Suite 2001
Tallahassee, FL 32399-0001

RECEIVING AN INCENTIVE REIMBURSEMENT

1. Once the Company’s submission and all required documentation has been reviewed and approved by
OFE and OTTED, the Company will receive a rebate of the certified percentage (15 or 20 per cent) of
its approved actual qualified expenditures (providing it exceeds the $625,000 threshold), but no more
than the amount initially certified by OTTED.

2. The rebate check will be sent to the business contact and address listed on the Application unless OFE
is notified in writing at the time the Company submits files its final report.

3. OFE will make payment only one time to the Company as reimbursement for qualified expenses in
any one fiscal year.

4. If at any point OTTED provides written evidence of an overpayment to the Company, the Company
must refund the overpaid amount to the state of Florida within 30 days.

FAMILY-FRIENDLY BONUS REBATE

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 1. FAMILY-FRIENDLY DEFINITION: Per FS 288.1254, family-friendly productions are: “Scripted
productions that have cross-generational appeal; are suitable for viewing by children age 5 and older;
are appropriate in theme, content, and language for a broad family audience; embody a responsible
resolution of issues; and do not exhibit any act of smoking, sex, nudity, or vulgar or profane
language.” A review of the script and interview with the director is required to determine eligibility.

2. Unlike the main incentive program, the 2% bonus is not certified, or ‘set aside’ in advance. It is paid
separately from the main incentive program, after the final product is ready for distribution.

3. To receive the family-friendly bonus, the script should be submitted at the time of application, and the
film commissioner, or the representative of, must interview the director to make sure the requirements
for ‘family-friendly’ are fully understood. After the production is complete, the Company must
submit 3 DVD copies of the final product (the cut that is intended for distribution) to OFE for review.
If it is found to abide by the statutory rules of ‘family-friendly’, the production will receive a rebate
equal to 2% of its actual qualified expenditures, as determined previously by the CPA report and
OFE/OTTED review, providing funds are available in the fiscal year in the appropriate queue.

4. If no funds are available at the time of submission of the distribution-ready copy of the production, the
production will be added to the queue to await funds that might become available before the end of the
fiscal year. If funds do not become available in that fiscal year, the production will be considered
‘first in line’ for funds in the appropriate queue in the next fiscal year, but not ahead of certified
productions crossing into the next fiscal year.

FRAUDULENT CLAIMS

1. Per Florida Statute 288.1254, “any applicant that submits information under this section that includes
fraudulent information is liable for reimbursement of the reasonable costs and fees associated with the
review, processing, investigation, and prosecution of the fraudulent claim. An applicant that obtains
an incentive payment under this section through a claim that is fraudulent is liable for reimbursement
of the incentive payment plus a penalty in an amount double the incentive payment. The penalty is in
addition to any criminal penalty to which the applicant is liable for the same acts. The applicant is
also liable for costs and fees incurred by the state in investigating and prosecuting the fraudulent
claim.”

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