To earn some countries' film tax incentives, you have to pass the test

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Promising rebates of up to 40% on an infamously expensive art form, tax incentives for film and television production — now offered by nearly four dozen countries — have been instrumental in luring the industry from its traditional capital in Los Angeles to locations around the globe.But there is a catch.

Or, more precisely, a test.Cultural tests, reviewed by a nation’s film office, are meant to determine if a production has significant enough ties to a given country to receive a tax rebate.But they also reveal what factors a country prioritizes to attract entertainment productions.In the United Kingdom, which offers a 25.5% rebate for high-budgeted films and TV shows and a roughly 40% rebate for features that cost under $31.5 million — the test is broken into four pillars: Content, contribution, hubs and practitioners.

There are 35 points possible across the test; a production requires 18 to pass.Of these pillars, only two are explicitly centered around the UK: “Contribution” specifically requires a connection to British heritage and “hubs” refers to a percentage of production or postproduction taking place in the UK.Points for “content” — which evaluates elements seen on screen such as the characters’ nationalities or the setting — and “practitioners” — which identifies the nationalities of the cast and crew — can be earned via representation by the UK or another European Economic Area state.“It’s not only about location of production, location of activity.

It’s also about who’s involved in it and what we’re seeing,” says Lloyd Gunton, the vice president of incentives for production finance organization Entertainment Partners.Gunton notes that even relatively loose ties to Britain can help accumulate points, such as a project being based on the works of Shakespeare or in the English language.“So even if it’s … an American v...