Where s financially best to film your commercials?

Unlike film production, the commercials production industry's choice of filming locations is rarely driven by government-sponsored tax incentives. In part, this is because many tax incentives are primarily designed to attract feature films. But it is also because the economic benefit to commercial producers is much less than it is to film producers, who typically operate on bigger budgets and longer shooting schedules.

For commercials producers that are looking to save money, the best way to do so is usually to go looking for cheaper places to shoot - examples being Eastern Europe, Spain or South Africa. Having said this, it is clear that tax incentives could prove decisive in some situations. If it's a question of deciding between a number of similar US states, for example, then a decent incentive might tip the balance one way or the other.

Equally, a European or Asian country that can offer both low costs and an attractive tax break is well-placed to win work. This is certainly an option for countries that don't have a track record in audiovisual, but want to make a mark in the business.

In reality, there aren't many places that currently offer commercial producers incentives. Below, we look at some of the countries and regions that have a good track record with commercials production, and identify which have incentives.

USA: Incentives

The US is blessed with all the raw materials you need to make great TV commercials, such as diverse locations, high-quality acting and technical talent, state of the art camera and lighting equipment and cutting edge post-production and graphics companies. It's no real surprise, then, that the vast majority of US commercials are shot domestically, according to the AICP (Association of Independent Commercials Producers). In a 2012 survey, it found that only 12% of commercials went abroad.

Where incentives come into play is in encouraging commercials producers to switch from one state to another. States that have incentives applicable to commercials include: Alaska, Colorado, Florida, Hawaii, Kentucky, Minnesota, Mississippi, New Mexico, New York, North Carolina, Pennsylvania and Texas.

Other states may also accept applications from commercials, but not necessarily on terms specifically targeted at commercials. For example, South Carolina says commercials will qualify as long as they meet the standard $1m spending requirement. By contrast, Florida has a specific category for commercials that says: A minimum of $100,000 per commercial must be spent. A production company must spend at least $500,000 within one fiscal year to apply. In other words, Florida has a lower bar to entry for commercials than for films but is seeking to encourage producers to return.

Similar conditions exist in other states, so check out our filming guides for specifics.

Canada/Australia/New Zealand/South Africa: No Incentives

Canada is a very desirable production destination thanks to the quality of its infrastructure, the depth of its talent-base and its world-beating incentives. British Colombia, Ontario and Quebec are all Canadian states that offer attractive tax incentives for vfx and animation but not for commercials. Commercials are also excluded from eligibility for the national tax credit.

The situation is similar in Australia, New Zealand and South Africa where there are attractive tax credits for film, TV, post-production and vfx but not for television commercials. Locations, climate and - in the case of South Africa - cost, are the real attraction.

Western Europe: No Incentives

The UK, France, Germany, Italy, Ireland and Belgium all have film and TV tax incentives and all have strong commercials businesses. But the latter group don't benefit from the former incentives. In the UK, the Treasurys Creative Sector Tax Reliefs document, published in April 2014, states that tax relief is available to film, TV, animation & video game production but not commercials.

In Spain, which is a popular location for commercial shoots, there are some incentives for TV and film but not for advertising. It is possible that any attempt to include advertising within such schemes would need to secure EU approval. The EU pays close attention to the film incentives sector to ensure that countries are not distorting the way the single market functions.

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