PORT ST. LUCIE, Fla., December 29, 2011 – Digital Domain Media Group, Inc. (NYSE: DDMG), a leading digital production company focused on visual effects, original content animation and major studio co-productions, today announced that it has been approved for an additional $11 million of transferable tax credits by the Florida Department of Economic Opportunity. Such tax credits can either be applied in the award amount to directly reduce the recipient’s Florida state tax liability, or they can be sold for cash to other Florida state corporate taxpayers.Â The awarded amounts are designed by the Florida legislature to reduce the company’s direct costs of Florida-based visual effects productions and animation feature film projects by amounts equal to between 20 percent and 30 percent. The recent award is in addition to prior awards of $8.9 million that will be used primarily to offset the cost of the company’s first animated feature film to be produced in Florida, The Legend of Tembo.
Including the recent transferable tax credits, Digital Domain Media Group is the beneficiary of approximately $135.1 million of cumulative and continuing incentives provided by the State of Florida and the Florida cities of Port Saint Lucie and West Pam Beach.Â These incentives provide meaningful benefit directly to the company’s newest business initiatives:
Â·Â Â Â Â Â Â Â Â Tradition Studios, a family-focused, original content feature animation film studio in Port Saint Lucie, Florida
Â·Â Â Â Â Â Â Â Â Digital Domain Institute, a groundbreaking collaboration with The Florida State University’s College of Motion Picture Arts that provides students with a dual-enrollment opportunity to earn a bachelor of fine arts (BFA) degree from FSU, along with professional certification in animation and visual effects from DDI.
“This recent award brings the total funding that we have received from our government partners to approximately $135.1 million in support of our business expansion,” said John Textor, CEO of Digital Domain Media Group. “As we deliver on the job creation promises we have made to the communities that support our growth, we benefit from a unique business model that utilizes these grants and economic incentives to greatly minimize the financial risk of such growth.”
Including an estimated $50 million facility contribution from the company’s recently announced China joint venture partner, Digital Domain Media Group has received approximately $185.1 million from government entities and partners, as follows:
|State of Florida|
|Tax rebates – resalable||$19.9|
|City of Port St. Lucie, Florida|
|Land (appraised value)||$10.5|
|Low-interest building and equipment|
|City of West Palm Beach, Florida|
|Land (appraised value)||$9.8|
|Beijing Galloping Horse Film Co.||$50.0|