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State Tax Incentives for Film Production
January 2007
Alabama
Alabama offers sales tax and lodging tax abatements for qualified productions. In
addition, a comprehensive legislative package is being assembled and will be introduced
in March 2007 legislative session.
Web Sites: http://www.ador.state.al.us/taxincentives/index.html or
http://alabamafilm.org/filmakerincentives.htm
Alaska
Alaska has no state sales and income tax.
Web Site: http://www.alaskafilm.org
Arizona
Arizona offers the following incentives:
- Transaction Privilege Tax Exemption on:
- Purchased machinery, equipment and other tangible personal property,
- Job printing, embossing, engraving and copying,
- Leased or rented lodging space,
- Sales of catered food, drink and condiments, and
- Construction contracts for buildings and other structures.
- Use Tax Exemption - on machinery, equipment and other tangible personal property.
- Income Tax Credit - an Arizona transferable income tax credit equal to 10%, 15% or 20%
of the company’s investment in eligible Arizona production costs.
Web Site: http://www.azcommerce.com/film/incentives.asp
Arkansas
The Arkansas Motion Picture Incentive Act of 1997 allows for a refund of the state
sales tax paid on Arkansas businesses, services and residents hired as cast and crew
during a production. The film company must spend a minimum of $500,000 in
Arkansas on one project within a six-month period or a minimum of $1-million on
multiple projects within a 12-month period.
Web Site: http://www.1800arkansas.com/film/index.cfm?page=tax_information
California
The state offers a 5 percent sales tax exemption on the purchase or lease of post-production equipment
for qualified persons. (Exemption is taken by the seller of the equipment and passed on to the buyer at
the point of purchase.)
California also has the STAR program, which provides surplus state-owned assets for motion picture
production. Through this program unused state properties such as health facilities and vacant office
structures are available at no charge or a nominal fee to filmmakers.
The Film California First program directly reimburses production companies certain costs associated
when filming on public property. These reimbursements fall into four categories: personnel - available
for public employees assigned to work on film shoots; permits - any permit costs associated with filming
on state property; public property fees - those costs associated with filming on state properties; and
public equipment fees - the costs incurred when using equipment mandated by the state on public property.
Recent enhancements to the program include increased reimbursement levels as well as an expansion of the
number of shoots that could be considered for reimbursement. The program is capped at $300,000 per
production. This program is currently not funded.
Web Sites: http://www.film.ca.gov/state/film/film_homepage.jsp and http://www.filmcafirst.ca.gov
Colorado
No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.coloradofilm.org
Connecticut
30% DIGITAL MEDIA & MOTION PICTURE TAX CREDIT - Public Act No. 06-186
In the 2006 session, the Connecticut General Assembly established tax credits for the production of
digital media and motion pictures in Connecticut. The legislation calls for a tax credit equal to 30% of
qualified digital media and motion picture production, preproduction and postproduction expenses incurred
in the state that exceed $50,000.
No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.cultureandtourism.org/cct/cwp/view.asp?a=2126&q=302534&cctPNavCtr=|#43532
Delaware
Delaware has no state sales tax.
Web Site: http://www.state.de.us/dedo/filmoffice/default.shtml
Florida
The state of Florida offers a cash reimbursement of up to 15% on the total Florida budget of a filmed
entertainment program that spends at least $850,000 in qualified expenditures. The maximum reimbursement
that may be given is $2 million. The Florida Entertainment Industry Financial Incentive was created on
July 1, 2004, which allows for companies engaged in digital media production to apply for a rebate
of up to 5% of the company’s annual gross revenues.
In addition, A qualified digital media effects company which furnishes digital material to filmed
entertainment may be eligible for a rebate of 5% of its annual gross revenues, not to exceed $100,000.
A qualified relocation project may be eligible for a rebate of 5% of it’s first 12 months of gross revenues
in Florida, not to exceed $200,000.
Effective January 1, 2001, any qualified production company engaged in Florida in the production of
motion pictures, made for television motion pictures, television series, commercial advertising, music videos
or sound recordings may be eligible for a sales and use tax on the purchase or lease of certain items used
exclusively as an integral part of the production activities in Florida.
Web Site: http://www.filminflorida.com/
Georgia
The Georgia Entertainment Industry Investment Act grants a base tax credit to qualified productions, as
well as additional credits for employing Georgia talent and shooting in underdeveloped counties. It is available
not only to traditional motion picture projects such as feature films, television series, commercials and music
videos, but also innovative new industries such as game development and animation. The foundation of the act is
a 9 percent investment tax credit available to production companies that spend a minimum of $500,000 in the state
on qualified production expenditures in a single year.
Georgia also offers a sales & use tax exemption for film, video, broadcast and music production companies
working in Georgia. Qualified companies can get an immediate point-of-purchase sales tax exemption that will
save productions up to 8 percent on most below-the-line materials and service purchases, leases or rentals.
Web Site: http://www.filmgeorgia.org
Hawaii
Hawaii offers a non-refundable income tax credit applicable to Hawaii taxpayers that invest in qualified
companies producing "performing arts products," including film, television, video, audio, and animation products.
The credit is equal to 100% of the investment amount, payable over five years.. This credit was established by
Act 221 in 2001 and amended by Act 215 in 2004, hence it is commonly referred to as "Act 221" or "Act 215."
Also, the Motion Picture, Digital Media and Film Production Income Tax Credit is a refundable tax credit of
15 percent of total production expenditures while filming on Oahu and 20 percent on other islands. Royalties
derived from performing arts products are excluded from a Hawaii taxpayer's income and not subject to state
income tax.
Web Site: http://www.hawaiifilmoffice.com/incentives-tax-credits
Idaho
New film incentive legislation was adopted in 2006. It provides for a rebate of the 6% sales tax on tangible
personal property when $200,000 is spent on a wide variety of qualifying expenses. In addition, Lodging tax of
2% and sales tax of 6% on lodging is fully waived for all visiting production companies after 30 days.
Web Site: http://www.filmidaho.org
Illinois
The Illinois Film Production Tax Credit was expanded in 2006 to provide a 20% income tax credit on all
production costs, including post-production. The spending requirements are: $100,000 for a production over
30 minutes and $50,000 for a production under 30 minutes. The Hotel/motel tax of 14.9% is rebated if the stay
is longer than 30 days. There is also an exemption from all state sales tax on film processing of 35mm film.
Web Site: http://www.illinoisbiz.biz/film/index.html
Indiana
There is no fee to film on state property. Also, no lodging tax on hotel rooms for production companies
after 30 days.
Web Site: http://www.in.gov/film
Iowa
There is no fee for use of state property. No lodging tax for continuous stays of 30 days or longer, provided
the original contract is for 30 days or more.
Web Site: http://www.traveliowa.com/film/
Kansas
No lodging tax on hotel rooms for production companies after 28 days.
Web Site: http://kdoch.state.ks.us/kdfilm/index.jsp
Kentucky
The Kentucky Tax Rebate Program entitles eligible production companies to a refund of the 6% sales and use
tax on expenditures made in connection with the production. Expenditures must be paid through a Kentucky financial
institution.
Web Site: http://www.kyfilmoffice.com/taxrebateinfo.htm
Louisiana
Louisiana offers three tax incentive programs. A sales and use tax (4%) exclusion is available to companies that
anticipate spending more than $250,000 in Louisiana within a consecutive 12-month period (only applies to productions
that were certified prior to Jan. 1, 2006). A labor tax credit of 10% is also available to production companies that
employ Louisiana residents. And if the base investment is greater than $300,000, an investment tax credit of up to
25% can be claimed for investing in Louisiana-based productions.
Web Site: http://www.lafilm.org/incentives/index.cfm
Maine
Maine's Attraction Wage Tax Rebate offers producers of certified productions a rebate equal to 10 percent of the
amount spent on wages for non-Maine residents and 12 percent of the amount spent on wages for Maine residents. Wages
in excess of $1 million to a single individual are not eligible.
Maine's Income Tax Rebate program offers a company that invests in production an income tax credit equal to the
amount paid on profits make by the production. To be eligible for either rebate, a project must spend at least
$250,000 or more on production related expenses in Maine, but it doesn't need to be on a single project. No lodging
tax on hotel rooms for production companies after 28 days.
Web Site: http://www.state.me.us/decd/film
Maryland
Maryland's "Film Production Activity - Sales and Use Tax Exemption" provides for exemptions on property and services
used in connection with filming activity. The type of activities that are free of the 5% sales and use tax and are
considered "services" include editing, film processing, voiceovers, looping, and animation and special effects.
Web Site: http://www.marylandfilm.org/incentives.htm
Massachusetts
The Massachusetts Motion Picture Tax Incentive offers film companies:
- A 20% tax credit based on a production's total payroll in the state, with the exception of employees who make more
than $1 million.
- Filmmakers could also get a 25% tax credit based on all production expenses in the state, as long as at least half of
the film is shot in Massachusetts, or half of the expenses are spent in the state.
- Companies could carry tax credits forward for up to five years or sell to another corporate taxpayer.
- Any production spending more than $250,000 would also be exempt from paying sales tax on equipment they buy in the
state.
- Any production spending more than $250,000 in the state would be eligible, but total tax credits would be capped at
$7 million per production.
Web Site: http://www.massfilmbureau.com/
Michigan
A new film incentive package was adopted in 2006 that provides a graduated scale for credits depending on how much
a company spends in Michigan. Between $200,000 and $1 million, a company receives a 12 percent rebate; between $1 million
and $5 million, a 16 percent rebate; between $5 million and $10 million, a 20 percent rebate; and anything over $10 million
is a 20 percent credit on the first $10 million spent. Rebates are limited to a total of $7 million annually and are first
come, first served.
To qualify for the tax credits a film company must:
- Spend at least $200,000 in Michigan;
- Submit an application to the Michigan Film Office and state treasury for pre-approval of credits; and
- Not owe the state any money, guaranteed loans or be in default with the state.
Web Site: http://www.michigan.gov/hal/0,1607,7-160-17445_19275_37781---,00.html
Minnesota
Television commercial production and post-production companies are exempt from the 6.5% state sales tax. Also, no
lodging tax on hotel rooms for production companies after 30 days. Minnesota offers a 15% rebate of Minnesota
production costs to eligible producers of feature films, TV series, documentaries, commercials and music videos.
"Snowbate" is funded through fiscal 2009.
Web Site: http://www.mnfilmtv.org
Mississippi
A 10% tax credit against payroll is now available for production companies that hire Mississippi residents. Also the
state sales tax is reduced to 1.5% for production company-related equipment purchases. The state sales tax is eliminated
for purchases of expendable items. Mississippi also offers a 10% rebate on investment in in-state production related
expenditures.
Web Site: http://www.visitmississippi.org/film/index.asp
Missouri
The state's "Film Production Tax Credit" allows a production company to get state income tax credits of up to 50% of
the company's expenditures in Missouri. To qualify, the production company must spend $300,000 or more in the state. Up
to $1 million in tax credits is available per project.
Web Site: http://www.ded.mo.gov/business/filmcommission/html/incentives.htm
Montana
The Big Screen Act provides:
- 12% rebate based on hired Montana Labor
- Applies to first $50,000 of wages per Montana resident.
- 8% rebate based on qualified expenditures- Includes hotel and lodging expenditures, production equipment rental,
fuel costs, expendables, lumber/construction materials, vehicle rentals, and food expenditures.
Montana has no state sales tax, although local communities may have a local tax of up to 4%. No lodging tax on hotel
rooms for production companies after 30 days.
Web Site: http://www.montanafilm.com/taxlaws_03.htm
Nebraska
No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.filmnebraska.org/permits.htm
Nevada
Nevada has no state income tax. There is also a reduced lodging tax for production companies.
Web Site: http://www.nevadafilm.com
New Hampshire
There is no state income tax or sales tax in New Hampshire.
Web Site: http://www.nh.gov/film/
New Jersey
New Jersey offers a tax credit in an amount equal to 20% of qualified production expenses, available to production
companies meeting certain criteria, chiefly:
(1) At least 60% of the total expenses of a project, exclusive of post-production costs, will be incurred for services
performed and goods used or consumed in New Jersey.
(2) Principal photography of a project commences within 150 days after the approval of the application for the credit.
In addition, certain tangible property used in the production of films and television programs is exempt from New
Jersey's 6% sales tax. The Film Production Assistance Program allows film projects to be eligible for loan guarantees
through the New Jersey Economic Development Authority. Loan guarantees cannot exceed 30% of the bank financing cost of the
project, or $1.5 million, whichever is less.
Web Site: http://www.njfilm.org/
New Mexico
New Mexico offers a tax rebate of up to 25 percent of direct production expenditures made in the state that are subject
to taxation. The State also offers an exemption of the 6% gross receipts tax, but you cannot qualify for both of these
programs. Also, New Mexico offers a loan, with participation in lieu of interest, up to $15 million per project, (which can
represent 100% of the budget) for qualifying feature films or television projects. Terms are negotiated and budget must be
at least $1 million. No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.nmfilm.com
New York
Legislation establishing the Empire State Film Production Credit was signed into law on August 20, 2004. Designed to
bring new film and television production into New York State, the program provides a fully-refundable tax credit equal to
10% of qualified expenditures to qualifying film and television productions. The program will be administered by the New
York State Governor’s Office for Motion Picture & Television Development.
The program applies to qualified expenditures incurred on or after August 20, 2004 (regardless of whether the production
commenced before the legislation was signed into law), and is currently scheduled to expire in 2011.
New York City provides an additional 5% credit and also provides free permits at public locations as well as location
parking for essential production vehicles. In addition, police officers are provided at no cost. Both the State and City
of New York provide a comprehensive sales and use tax exemption for machinery, equipment, and services used in production
and postproduction.
Web Site: http://www.nylovesfilm.com/index.asp
North Carolina
2006 legislation provides for a full 15% tax credit on productions over $250,000, and not exceeding a credit per project
over $7.5 million. In addition, motion picture production companies are entitled to a cap of 1% on sales and use tax
purchases or rentals of items used in the making of films.
Web Site: http://www.ncfilm.com
North Dakota
Web Site: http://www.ndtourism.com
Ohio
Web Site: http://www.ohiofilm.com
Oklahoma
The Oklahoma Film Enhancement Rebate program offers a rebate of up to 15 percent of Oklahoma production expenditures to
companies filming in the state capped at $5 million per year. Specifics:
- The rebate is extended to film, television and commercial productions
- A company must have a minimum budget of $2 million and spend $1.25 million in Oklahoma. The minimum budget requirement
is cumulative so that companies producing multiple projects in a fiscal year with a minimum budget of $300,000 and totaling
at least $2 million will qualify.
- A company must employ Oklahoma residents for at least 50% of its below-the-line crew to qualify for full 15% rebate.
Rebates of 5% are available if a company employs up to 24% Oklahomans and 10% for companies who employ 25 to 49% Oklahomans.
If the budget is $30 million or higher, this requirement is waived.
- The hiring of Oklahoma expatriates counts toward the tier requirements and the $1.25 million Oklahoma expenditure
requirement.
Also, no sales tax on hotel rooms for production companies after 30 days.
Web Site: http://www.otrd.state.ok.us/filmcommission
Oregon
The Oregon Production Investment Fund rebates 10% of Oregon-based production expenses (including labor!) and the
Greenlight Labor Rebate offers qualifying productions an additional cash payment of up to 6.2% of wages paid to production
personnel. These incentives are cash rebates as opposed to tax credits. In addition, Oregon has no state sales tax.
Web Site: http://www.oregonfilm.org
Pennsylvania
Pennsylvania provides for a 6 percent sales tax exemption for film production companies that produce for a national
audience. Assignable corporate, partnership or income tax credit equal to 20 percent of production costs including wages
if in-state spending is 60 percent of aggregate production expenses for features and television productions. Three-year
carry forward provision, total annual state credit disbursement capped at $10 million per fiscal year. Pennsylvania also
provides free use of state property.
Web Site: http://www.filminpa.com/advantages.html
Rhode Island
The 2006 incentive law provides a 25% Motion Picture Company Transferable Tax Credit for all Rhode Island spending.
There are no caps. It also includes salaries for people working on the ground. The film/TV commercial/video game production
must be filmed primarily in the state of Rhode Island and have a minimum budget of $300,000.
Web Site: http://www.rifilm.com
South Carolina
Productions that film in South Carolina can receive up to a 20% cash rebate on employee wages and up to a 30% cash
rebate on supplier expenditures. In addition, all productions spending over $250,000 in SC are exempt from sales and
accommodations taxes and are eligible to use state properties location fee-free.
Web Site: http://www.scfilmoffice.com
South Dakota
South Dakota offers a tax refund to production companies for projects made in the state with costs over $250,000 in
taxable costs incurred in South Dakota. The state has no corporate or personal income tax. No sales tax on hotel rooms
for production companies after 28 days.
Web Site: http://www.filmsd.com/
Tennessee
Tennessee refunds the sales and use tax if production companies spend at least $500,000 during a 12-month period. No
lodging tax on hotel rooms for production companies after 30 days. There is no state or local income tax collected in
Tennessee. State-owned buildings and land are available to filmmakers free of charge.
Web Site: http://www.state.tn.us/film/incentives.htm
Texas
Comprehensive sales and use tax exemption for film/video production. Exemptions apply to the entire amount of state
sales tax (6.25%) and local sales taxes. No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.governor.state.tx.us/divisions/film/incentives
Utah
Utah is offering a tax rebate program that would typically offer 10-12% returns. Rebate is dependent on script content
and money spent in Utah. The state also has a sales and use tax exemption for the purchase, lease or rental of machinery
and equipment used in the production or post production of motion picture, television, music video or commercial productions.
State also offers a transient room tax rebate after 30 days.
Web Site: http://film.utah.gov/film_incentives/index.html
Vermont
The Vermont Film Production Grant Program, was signed into law in 2006 as part of an overall economic development bill.
For moviemakers, the incentive is actually a grant from the state to offset production costs. Producers spending $1 million
can be reimbursed for 10 percent of local spending, capped at $1 million annually. No lodging tax on hotel rooms for
production companies after 31 days. Sales and use tax exemption on goods and services purchased and used in the making of
a film. Income tax for performers is limited to the amount the performer would pay in their home state.
Web Site: http://www.vermontfilm.com
Virginia
Broad sales and use tax exemptions for costs involved in production of motion pictures.
Web Site: http://www.film.virginia.org/VirginiatheFilmOffice/Incentives.htm
Washington
6.5% Sales and use tax exemption on rental equipment. No state income tax. Local, state, and special use taxes off
rental vehicles "used in production." No lodging tax on hotel rooms for production companies after 30 days.
Web Site: http://www.filmwashington.com/e
West Virginia
Purchases and rentals in West Virginia of tangible personal property directly used in an "Entertainment Production
Project and purchases in West Virginia of services directly used in an "Entertainment Production Project" are exempt from
the six percent (6%) Consumers Sales and Service Tax.
Web Site: http://www.wvfilm.com/
Wisconsin
Effective July 1st, 2007:
- An investment tax credit of 25% that can be claimed for investing in Wisconsin based productions
- A comprehensive sales and use tax exemption for machinery, equipment and services used in production and post-production.
- A 0% tax for all film and television services contracted by out of state production companies.
- A refundable tax credit of 25% of direct production expenditures for feature films, television movies, episodic and
mini-series television, video games and broadcast advertising production.
- A 15% state income tax credit for film, television and electronic game production businesses who make a capital
investment by starting a business in Wisconsin.
- Further incentives are available on a city-by-city basis including the use of State owned buildings and locations free
of charge as available, no fees for permits, a dedicated "traffic control" Police Unit during daylight hours at no cost and
internal accounting reports on verification of incentive savings to the production company. In many cases, local "Visitors &
Convention" bureaus have created special "Industry Rates" for hotel rooms that will be based on "room nights" for each
production, including local hotel occupancy tax in their flat room rates to the individual production.
Web Site: http://filmwisconsin.org/sites/filmwi/
Wyoming
The State provides a list of Wyoming businesses that offer production companies filming there a 10% discount on
production related services including, hotels, catering, restaurants, etc.
Web Site: http://www.wyomingfilm.org
Posted August 28, 2007
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