![]() ![]() To be eligible for the tax credit, producers must shoot their film or television show primarily in Arizona, conduct pre- and post-production in the state and hire Arizona workers to work as crew in the production.ġ5% tax credit will be provided for productions of up to $10 million, 17.5% tax credit for productions of up to $35 million, and 20% tax credit for productions over $35 million. ![]() $75 million in 2023, set to grow to $125 million by 2025.ġ5% tax credit for productions of up to $10 million, 17.5% tax credit for productions of up to-$35 million, and 20% tax credit for productions over $35 million.Īdditional 2.5% tax credit on production labor costs for positions held by Arizona residents. This state currently has no film tax incentive program in place. The production company must spend a minimum of $150,000 in a year and at least $500,000 on the whole project in the state to qualify for the movie production incentives in Alabama. Qualified expenditures include pre-production, production, and post-production costs incurred in the state, including salaries and wages but excluding marketing and distribution expenses. This means that if your film budget exceeds this amount, only the first $20 million spent in Alabama will qualify for the film tax credit. Any other expenses incurred also get a 25% tax incentive.Īlabama only offers incentives on the first $20 million of qualifying product expenditures. Resident workers (both above and below-the-line) earn a 35% tax incentive, and all other qualified workers get a 25% tax incentive. We’ve included a list of all states in alphabetical order, a link to the application website, and a brief summary of their tax credit details. When picking a location, weigh the costs and benefits of shooting at a local destination vs. Transferable Refundable Tax Credit: The production company can transfer their tax credits to a local company to reduce or eliminate their tax liability.įilm tax incentives differ across every state.The state repays production companies' excess production credits after all income tax is paid. Refundable Tax Credit: This is applicable only on tax credits.Bonuses: These are additional perks offered to producers, such as shooting at locations free of cost, special permissions for filming in public places, hiring local staff, or discounts while buying from local businesses.They are similar to grants, but they are taxable. Film Tax Rebates: Film tax rebates are paid to production companies by the state, usually as a percentage of the company's qualified expenses.Grants: The state issues a tax-free payment to production companies for filming.Here’s a breakdown of the most common film industry tax incentives: ![]() There are several types of incentives offered to production companies, and each state uses a different combination of these incentives to encourage production companies to film in their state. Tax benefits allow you to save money on taxes, get discounts on local goods, and even receive cashback from the state, making a considerable difference to your (ever-shrinking) budget for your next project. Why do film tax incentives matter to producers?Īs a producer, we don’t need to tell you that you spend huge sums of money when shooting your projects. However, the structure and type of tax benefits vary by state. States benefit through movies being filmed in their area because it drives the economy through employment opportunities, revenue, and related infrastructure development. These incentives were created in response to an increasing number of movie productions shifting to other countries, like Canada. Tax incentives for production companies were introduced in the 90s and provided a win-win scenario for both production companies and the state. ![]()
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