In our previous posts, we’ve explored some of the practical implications of international co-productions, and both the vital resources and challenges that they can bring.
But for creatives such as writers, directors, and producers, how can you use these co-pro structures to your advantage?
Creating The Project
Some projects are naturally great fits for certain locations and, as a result, for international co-productions too.
Whenever you craft a story, you should always be considering the practicalities of where and how it can be shot, and using your knowledge of production to inform the creative choices that you make.
A story that takes place in two countries is a natural creative fit for an international co-production. However, bear in mind that the creative elements of a script are only one part of what usually qualifies a film or TV project for a co-production, and the nationalities of the filmmakers are often just as important, if not more.
I once worked on a film that was set in Northern Ireland with a story centered around an IRA informant during the “Troubles”. Creatively, it was a purely Northern Irish story, but because the director and writer were Canadian, and a few additional boxes were ticked (including some Canadian leading cast members), it became a UK-Canada co-pro and accessed funding from both countries to fill out its budget.
The value for Canada came in part from some of the services being performed there, but largely to promote its local talent on the big screen. Without that element, the film may never have got made, even though there was nothing Canadian whatsoever about the story itself. Rather, it was the team behind the film that gave us access to those vital resources.
So, if you are writing a story specifically to access the benefits of an international co-production, it might not be as straightforward as simply setting it in two locations and then assuming that it will qualify for the incentives in both.
However, for any filmmaker, understanding your own value as a resident of one country or another can help you tremendously in your career. Whether as a writer, director, or producer, choosing the right location can be what gets a project greenlit, as we explore in our book on tax incentives and locations.
Knowing Your Value
It’s important for any writer, director, or producer to understand the benefits that they may bring to a project thanks to their birthplace or current place of residence.
Wherever you are from or currently pay taxes, it’s likely that there is a location-based tax incentive that could add value to your next project, and make you a valuable asset to any producer that is looking to work there.
Most tax incentives are set up to boost their local economy and promote their local talent. So, that means that you might bring additional benefits and unlock extra incentive value simply by virtue of where you were born or currently reside.
For example, I have witnessed multiple occasions on which producers will call around specifically looking for Canadian writers who are working in Hollywood. That small group of people will not only likely have a certain commercial quality to their work, but they will also tick a very large and important box to unlock some of the great incentives that the Canadian programs have, and where the writer is regarded as one of the key figures that must be a local.
Many of the European countries in particular put a huge emphasis on the nationality of the writer and/or director as a requirement. This makes European filmmakers extremely valuable when considering a project’s finance plan as well as its creative aspects.
It’s also a boon if you’re an actor, producer, distributor, or even an investor from one of those countries, where subsidies are available specifically to promote and grow the local industry.
Whatever your role in the business, do you know how your local tax incentive works, and whether you have more value than you know?
But I’m An American…
As we noted in a previous post, if you’re an American, international co-productions are a bit tougher to access.
Some of the first international tax incentives got started as a specifically anti-US measure. They were designed for two primary reasons:
To encourage “runaway productions” to leave the US and shoot in countries like Canada, and enjoy the financial benefits of doing so
To enable and encourage local filmmakers to stay at home, and finance, shoot, and mount their productions there rather than feeling like they had no choice other than to go to LA
That’s great news if you’re from practically anywhere in the world other than the US. However, for American nationals, the road to an international co-production is laden with obstacles. They don’t exactly have a sign on their doors saying “Americans Not Allowed”… But they do make it more difficult for American nationals to be part of this process.
So, unless you can dig into your family history and find some foreign ancestry that entitles you to citizenship of another country (as Oliver Stone allegedly did to get the “Alexander” shoot to qualify as a French production!), you may have to look for other ways to set up your project.
Making Sacrifices
That being said, it’s definitely not impossible! I’ve seen Americans feature in international co-productions before in all kinds of ways, even if there were a few hoops to jump through.
Some co-production treaties will allow a maximum number of foreign nationals (including Americans) in key positions, while others will demand a minimum number of local residents in those key positions instead.
That may lead to some tough decisions, and sacrifices must occasionally be made. These limits on non-treaty participants must be strictly observed.
I’ve seen American actors and directors being replaced by Europeans or Canadians, I’ve seen “co-writers” board a project at the last moment who just happen to be from one of the co-pro countries, and I’ve seen American producers asked to become “Executive Producers” or “Associate Producers” in order to get their project made.
Some say “no” - as is their right! It’s your project and if you feel that your role will be minimized to an unacceptable level, you are entitled to say so. In other cases, your union or guild will step in for you, whether you like it or not!
On other occasions though, filmmakers swallow their pride, get the movie made, and then move on to the next one. There’s no correct answer here, but the earlier that you can establish some of the sacrifices that you might be asked (and willing) to make, the easier it will be to set the production up in a way that keeps everybody happy.
So, an international co-production featuring American cast and crew is doable - it just has to be structured in the right way. Speak to people who have done this before and you’ll soon figure out what you need to do to make your next project eligible for this kind of co-production.
Your best starting point is to identify some of the likely candidates for co-production countries, and then get in touch with some local producers in those locations to discuss it with them. They'll likely have heard all your questions before, and can give you some guidance on whether this sounds possible or not and, if so, where to get started. Ask around and try to get some referrals of producers that have a good reputation and might be a good fit for you and your project's needs.
But There’s Good News Too!
Ready for some good news? Here goes:
In recent years, the US has stepped up to counter these runaway productions with its own set of tax incentives in an effort to keep its domestic production scene thriving.
This has mainly been done at state level, where places such as Louisiana and New Mexico have emerged as huge players on the entertainment scene (although some federal actions have also been passed, such as the Section 181 ruling for investor tax relief).
So, if you’re a filmmaker hailing from one of those states with a strong tax incentive program, make sure that you familiarize yourself with it, and see how you could use it to your own benefit! You could have value that you are not even aware of. We ran a post a while ago about some of the do's and don't's of tax incentives that might help get you started.
Many of these states offer additional incentives for local residents who work as cast or crew on a production. They want to help promote you and your project. They may also offer grants to local filmmakers, and provide connections with local studios or investors who want to use their financial power to see productions happen within their region.
So, see how you can make yourself valuable. Make friends with your local film office. Get on their radar and become an active part of the local film community. Attend their meetups and networking events (online or in person) and get connected with others there who are building the local production ecosystem.
Support the local scene and you’ll find the film office supporting you! After all, their job is to promote the region and its filmmakers. Be aware of any financial support that they can give you to kickstart your next project.
Whichever driver’s license you have, or wherever you pay taxes, that could be helpful to your next project - and your career - in ways that you couldn’t have imagined! Make sure you use every opportunity for institutional help that might be available to you, whether at home or abroad.
Working Backwards
Figure out the local incentives that you can unlock for a production by virtue of your birthplace or residence. For Americans, this will likely be at state level, whereas for citizens of other countries, this will be at federal level, and possibly at a regional level as well.
You can then work backwards to figure out what extra value you can bring to a production, and what additional incentives you can unlock for it.
If your country does have international co-production treaties, there will be probably a few standard structures that get used over and over again. That can be your starting point, and you can work from there to see how your next production could benefit from any agreements that are available to you.
But wherever you're from, be sure to know your own value and the incentives that are within reach, both at home and further afield. It may just be the thing that gets your next film or TV show funded and into production!
Ricky Margolis has more than 15 years' experience in the entertainment industry as a producer and financier of films and TV shows. To learn more about Tax Incentives and how they can help you to get your next project financed and produced, check out his book HOW THE HELL... Do I Get My Film Financed: Book One: TAX INCENTIVES. Still want to know more about film & TV financing and production? You can find the other books in this series by clicking here.
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