Hobbit Tax: New Zealanders Help Fund Hobbit Movie to tune of $67.1 million

Herald Sun Reports 

"NEW Zealand taxpayers lent a $67.1 million helping hand via tax rebates for the making of Peter Jackson's movie The Hobbit in the first two years of actual production, according to its financial statements"


The movie, produced by Warner Bros Entertainment subsidiary 3 Foot 7, reaped $46.9 million from New Zealand's large budget screen production grant in the 12 months ended March 31, according to statements lodged with the Companies Office.
That added to the $20.2 million tax rebate it received in 2011, the first year it got the subsidy.
Shooting on The Hobbit: An Unexpected Journey wrapped in early July, meaning the company should be able to claim a further rebate in the 2013 period.
The subsidy over the two years amounts to about 14.6 per cent of the $459.6 million production cost incurred over the 2011 and 2012 financial years, just below the 15 per cent of locally incurred costs that can be claimed back in tax under the scheme, known as qualifying New Zealand production expenditure.
New Zealand is coming under pressure to raise the subsidy as the weak US dollar eats into Hollywood studios' margins.




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