THE GUIDE TO UNITED STATES

Production Incentives
PRESENTED BY

Jeff Begun · Dama Claire

WINTER2010/2011
 Gallagher Entertainment Insurance Services
Protect Your Film or Television Production with

Tax Incentive Insurance

With Tax Incentive Insurance filmmakers can now protect themselves
and insure the tax incentive/rebate that they expect to earn on their film or
television production.

Tax Incentive Financing

• Retroactive Change in • Damage to sets, property,
legislation that reduce locations or facilities, which
or eliminate the state’s prevents them from completing
tax incentive; their required filming in
the state;
You Take Care of the Movie, • The inability of a state to pay the
tax incentive due to lack of funds • Hurricane, flood or earthquake,
We Take Care of the Incentives. (available in certain states only); Death or disability of cast or
crew, which prevents them
Let us help maximize your film incentives and help manage your • Bankruptcy, insolvency or from completing their required
production’s bottom line. repudiation of a states financial filming in the state.
obligation with respect to the tax
incentive/rebate;
The Incentives Office – we help select the best state for your film or
television project, maximize the incentives, prepare and file the application,
work with the show’s accountant and UPM, make sure invoices are Other Financial Solutions
properly prepared, help set up the accounting system to capture all Gallagher Entertainment provides production insurance services to the
of the qualified expenses, assist with the review process, prepare the worldwide entertainment community.
final report…and get your money!
For more information contact us:
Bob Jellen • Brian Kingman • Shirley Griffith • Konrad Dowling
(310) 562-6900 (818) 539-1220 (818) 539-1239 (818) 539-1221
starins@me.com brian_kingman@ajg.com shirley_griffith@ajg.com konrad_dowling@ajg.com
Jeff Begun or Dama Claire: (310) 982-1340
1507 7th Street, #157 . Santa Monica, CA 90401
jeff@theincentivesoffice.com / dama@theincentivesoffice.com Gallagher Entertainment Insurance Services • License #0726293

U.S. Production Incentives Guide · Winter 2010-2011 1

Telluride, Colorado
The Winter
2010-2011
Guide to U.S.
Production Incentives
Created and written by Jeff Begun
Edited by Dama Claire
newsletter and guide copies
To stay informed, please subscribe to
our U.S. Incentives Updates and Alerts,
at www.theincentivesoffice.com, and
click Publications.
Electronic copies of this Guide may be
obtained from the same address.
U.S. Production Incentives Guide · Winter 2010-2011
It should come as no surprise that
legislators in some states have cur-
tailed or suspended their production
incentives programs, with Iowa and
New Jersey being recent casualties;
many states have a hard time justify-
ing a “hand-out to Hollywood”, when
they can’t pay salaries for their
teachers. However, legislators in
other states view incentives as
another kind of stimulus program,
creating jobs and infrastructure.
There are now four studio complexes
in Louisiana, three studios in Georgia,
and construction starting on Raleigh
Studios in Michigan, plus a new studio
complex in Pennsylvania.
Over the next few years we expect
a few more programs to go away,
and new or revamped programs
like Florida to appear. For the latest
information, please feel free to give
us a call.
Copyright ©2010 Jeff Begun and Dama Claire
3

Definitions
Please note that unless otherwise indi-
cated the following definitions apply
to all states, referred to as “Standard
Qualified Expense,” “Standard Quali-
fied Labor,” and “Standard Qualified
Production” definitions.
Qualified Expense: an expense that
a state allows to be included in the
rebate or tax credits calculation.
This varies from state to state. Typi-
cally, this includes all expenditures
clearly and demonstrably incurred
in the state related to pre-production,
production, or post-production, in-
cluding: expenditures for payroll,
purchases including production
equipment, production software,
post-production work, post-produc-
tion equipment, post-production
software, set design, set construction,
props, lighting, wardrobe, makeup,
makeup accessories, special effects,
visual effects, audio effects, film
processing, leasing vehicles, meals
and lodging for people working on
the production; airfare purchased
through an in-state travel agency
or company; insurance and bond-
ing purchased through an in-state
vendor, music, sound mixing, edit-
ing, location fees, sound stages and
other direct costs incurred by the
production company from in-state
vendors, and used for production of
the film. Labor is not included.
Qualified Labor: unless indicated oth-
erwise, this includes payroll and
fringes paid to a resident of the state
4 The Incentives Office
for  work  actually performed in the
state.  Definitions of “resident” vary
from state to state.
Qualified Production:  unless indicated
otherwise, this includes motion pic-
tures; documentaries; long-form,
specials, mini-series, music videos and
interstitials television programming.  tional and important details.
Commercials, infomercials, interactive
television and video games are in-
cluded only if specifically enumerated.
It does not include: any ongoing televi-
sion program created primarily as news,
weather or financial market reports, a
production featuring current events,
sporting events, an awards show or
gala event, a production whose sole
purpose is fund raising, a production
that primarily markets a product or ser-
vice, a production used for corporate
training, or any production containing
material that is obscene.
Frequently
Asked
Questions
Lately, I’ve heard that you can no longer
order from out-of-state, and qualify your
purchases. Is this true?This depends on
where you’re shooting. Four states
allow you to order directly from
an out-of-state merchant, without
losing credit for the incentive: Cali-
fornia, New York, South Dakota and
Massachusetts. A few states, like
Pennsylvania and Louisiana, allow
you to use a pass-through company;
your out-of-state vendor invoices the
local pass-through company, which
in turn invoices you.
Some states do not allow pass-
through companies; Georgia, for
example. Michigan has posted an
FAQ to explain how to order from
out-of-state. The concept is to use lo-
cal vendors and build infrastructure,
but the rules must be followed very
carefully. Please contact us if you
plan to shoot in Michigan, for addi-
What is the Incentives Office? What do
you do? The Incentives Office is a
consulting company that works with
producers and states to facilitate the
incentives process, plus we estimate
the tax credits for lenders, so that
producers can get tax credit or soft
money loans.
For producers, we can manage the
entire process. We help choose the
best location to shoot, taking into con-
sideration the available tax credits or
rebate, crew availability, compara-
tive location costs, infrastructure,
and whatever else is needed for the
production. We revise the budget
with the line producer or UPM to
maximize the incentive. We prepare
and file the needed paperwork, and
interface with the state. Bottom line
— We help get your money.
For lenders, we prepare or evalu-
ate estimates of the anticipated tax
credits or rebate; these estimates
are bankable by many lenders, and
if needed, completion bond compa-
nies can also bond our estimate of
qualified spend.
We also help states create or improve
their film incentives programs.
Can you broker my tax credits, or fund
my rebates? No — but we work with
virtually every broker in states with
transferable tax credits, so we can
U.S. Production Incentives Guide · Winter 2010-2011
introduce you to brokers who will
give you the best price, and who
may be able to advance against the
credits. Plus, we work with just about
every mezzanine lender and entertain-
ment bank, so we can introduce you
to the best sources for cash-flowing
the rebate for your project. We are
frequently able to make introductions
to sources for gap or pre-sales financ-
ing, as well as equity investment.
But our main focus is on production
incentives.
How can you maximize our incentive?
We review the budget, and suggest
ways that might enhance your re-
bate. We make sure that you don’t do
something stupid, like order on the
internet. We know which national ven-
dors (production insurance, payroll
companies, completion bonds) are
qualified in which states. We make
sure that you are ordering materials
and services from vendors who will
qualify. We can also negotiate with
the state when we think you may be
entitled to more than you are getting.
What do you mean, you help the states?
We have worked with many states
to improve their incentive programs.
We presented a workshop for Alaska
legislators, and Dama Claire wrote
the initial draft of the legislation. We
met with the Lt. Governor and leg-
islators in Wisconsin, and helped
shape their former incentive pro-
gram; and, we recently weighed in
on new North Carolina legislation.
We have provided detailed analy-
sis and suggestions for improving
regulations in states like: Michigan,
Massachusetts, Mississippi, South
Carolina, West Virginia, etc. (In many
cases our suggestions became part
of the regulations). We are currently
working with the Nevada Film Office
to develop a new incentives program.
5
 Alabama crew as well as goods and services provided
by Alaska vendors, with an additional 10% Arkansas companies do not own more than 25%
of the producing company. Independent
Alabama Film Office for Alaska cast and crew, a 2% uplift for Arkansas Film Commission films will receive a transferable tax credit
Brenda Hobbie, Film Office Coordinator Christopher Crane, Director of 25% of qualified expenses.
filming in rural areas and another 2% for
brenda.hobbie@tourism.alabama.gov ccrane@arkansasedc.com
t: (334) 242-4195 out-of-season shooting – making a possible Feature films ($1 million minimum – $75
t: (501) 682-7676
f: (334) 242-2077 44% tax credit for qualified expenditures. t: (800) ARKANSAS million maximum production budget),
www.alabamafilm.org Minimum Alaska spend is $100,000 of f: (501) 682-3456
movies of the week or miniseries
qualified expenditures and there are no www.arkansasedc.com
($500,000 minimum production
Alabama offers a 25% rebate for production or salary caps. An independent budget) and new television series licensed
above-the-line and below-the-line audit by an Alaska-licensed CPA is The Arkansas program provides for for original distribution on basic cable
personnel, goods and services purchased required with the final application. a rebate equal to 15% of all qualified will receive a non-transferable credit of
in the state,  35% rebate for resident expenses (including resident and nonresi- 20% of qualified expenses. A TV series
crew, plus a waiver of sales and dent labor) incurred in Arkansas for the that filmed all of its previous seasons
lodging tax. $10,000,000 is available
for fiscal year starting October 1, 2010.
Arizona development, pre-production, produc-
tion, or post-production of a qualified
outside of California will receive a
25% non-transferable credit. (Certain
The minimum spend for film projects Arizona Film Office production. A bonus of 10% is provided restrictions apply).
Ken Chapa, Manager
is $500,000 and maximum qualified for resident Arkansas crew, bringing
kenc@azcommerce.com To be a “qualified motion picture,”
spend that will receive a rebate is the labor rebate for resident crew to 25%.
t: (602) 771-1116
$10,000,000, with a $50,000 minimum The salaries of cast or crew who receive 75% of the total budget spent or
f: (602) 771-1211
for qualified soundtracks. more than $500,000 will not qualify. 75% of production days must be in
www.azcommerce.com/film
California; the application must be
A CPA audit is required, and there is a There is a minimum spend of $50,000 submitted at least 30 days prior to
Incentive Guidelines:
$100 application fee. www.azcommerce.com/Film/Incentives/
to qualify, with a yearly cap of $5 million the start of principal photography,
Home.htm per year. There is no per-project cap, and production must start within 180
The website includes a comprehensive
and funds are disbursed on a first- days of approval of the application.
locations database.
come, first served basis. Post-production must be completed
The Arizona program sunsets on
within 30 months.
December 31, 2010. However, films
Alaska approved prior to that date will have California “Qualified expenses” are amounts paid
Alaska Film Office up to two years to complete the project. or incurred for the purchase or lease
California Film Commission
David Worrell, Film Office Director The state issues a 30% transferable Amy Lemisch
of tangible personal property and
David.Worrell@alaska.gov tax credit if in-state expenditures qualified wages for services performed
t: (323) 860-2960 ext 102
t: (907) 269-8190
exceed $1 million, or 20% with in-state alemisch@film.ca.gov in California. Not qualified are:
f: (907) 269-5666
incentiveprogram@film.ca.gov
www.film.alaska.gov spend of $250,000 to $1 million. • Wages paid to writers, directors,
www.film.ca.gov
The minimum spend requirement music directors, music composers,
is $250,000. A production company music supervisors, producers and
The Incentives Office worked closely
seeking tax incentives is required to California’s production incentive
with Alaskan filmmakers and state performers, other than background
maintain a physical office and bank allocates $100 million per year for
legislators to develop strong production actors with no scripted lines.
account in Arizona during its production. “qualified motion pictures.” $10 million
incentive legislation. The Alaska Film
per year is reserved for “independent” • Expenses, including wages, related
Office website, www.film.alaska.gov, Legislation may be introduced at the films; that is, films with qualified to new use, reuse, clip use, licensing,
has a variety of useful information.
next legislative session to extend California spend between $1 and $10 secondary markets, residual
The Alaska incentive program offers a base and improve the program which may million produced by a company that is compensation or the creation of
30% transferable tax credit for all cast and- change to a rebate. not publicly traded, and publicly traded any ancillary produced including

6 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 7

 but not limited to, a soundtrack
album, toy, game, trailer or teaser.
• Expenses related to acquisition,
development, turnaround or any
rights thereto; financing, overhead,
marketing, promotion, or distribu-
tion of a qualified motion picture.
• State and Federal Income taxes.
• Audit expenses
All funds for the current fiscal year have
been allocated; the California Film Com-
mission is maintaining a wait list. An
additional $100 million will be avail-
able on July 1, 2011; anyone interested
should plan to file on June 1, 2011, the
first day that applications will be
accepted. It is anticipated that all
funds will be allocated to films fil-
ing on that date.
The California Film Commission
supports film, TV and commercial
productions  with a variety of services,
including an extensive digital location
library, free on-line permitting, low
cost use of state properties as shooting
locations, and production assistance.
California is home to over 50 local film
offices that coordinate with the state
film commission. These regional offices
can be found on the CFC’s website.
There is no sales tax on production services
and there is a waiver of the state lodging
tax. Most cities waive the local lodging
tax after 30 days.
6.25% 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.)
8 The Incentives Office
San Francisco’s “Scene in San Francisco”
offers a refund on all San Francisco
payroll taxes and city fees paid during
production of a qualified Feature Film
or Television program. $1.8 million is
allocated for the current fiscal year.
Guidelines and Application forms:
Relationships are built on many things...
http://filmsf.org/index.aspx?page=46
Like having the expertise
to provide strategic
Colorado
recommendations.
Colorado Office of Film,Television & Media
Kevin Shand, Film Commissioner
kevin.shand@state.co.us
t: (303) 592-4075
f: (303) 722-1158 Crowe Horwath LLP takes pride in the relationships we have with our clients.
www.coloradofilm.org In a recent client survey, our clients said we do a better job than our competitors
of demonstrating the expertise needed to make strategic recommendations.
Crowe’s business management services team provides specialized expertise
overview
to support the needs of film production companies with production incentives
Colorado offers (1) a rebate equal to offered by various states. Our team can assist the production company with the
10% of the total local spend on productions state program requirements in order for the company to receive the incentive,
that originate in the state and spend at such as a tax credit, rebate, or exemption.
least $100,000 in qualified local spend
To learn more about our commitment to building lasting relationships,
or qualified payroll, or (2) a rebate
visit crowehorath.com/clients or contact Michael Kane at 818.325.8602
equal to 10% of the total local spend
or michael.kane@crowehorwath.com.
for productions that do not originate
in the state but spend a minimum of
$250,000 in qualified local spend or
qualified payroll. The determination
of whether a production company
“originates” a film production in
Colorado is based on which state the
production company is headquartered
and has its principal place of business.
25% of the total payroll must be paid to
Colorado residents; “qualified payroll
expenditure” is capped at $3,000,000
per person.
details
Audit | Tax | Advisory | Risk | Performance The Unique Alternative to the Big Four ®
Qualified local expenditures are payments
made to Colorado businesses. Qualified Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is
a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath
International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of
Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by
U.S. Production
Crowe Incentives
Chizek LLP, which is not a Guide
member· of
Winter
Crowe 2010-2011
Horwath International. © 2010 Crowe Horwath LLP 9
BMS11004A
 payroll is defined as salaries paid to actors,
management and crew who are Colorado
residents. Qualified payroll status will be
extended to wages paid to out of state
employees who pay Colorado income tax
on wages earned in Colorado.
The production company must apply to
the film commission prior to beginning
production activities in Colorado.  If the
actual expenditures are less than the
projected expenditures, but exceed the
minimum spend requirements, the
incentive will be based on actual
expenditures.  Pre-production, production
and post-production expenditures qualify.
Colorado offers a lodging tax rebate after
a 30-day stay, retroactive to the first day
of occupancy, if a contract is signed with
the hotel requesting the occupancy tax
waiver. Film permits are not required
in a majority of the cities in Colorado
but are required in  Boulder, Colorado
Springs and Denver, where they are
free or available for nominal fees.
There is a searchable locations database
on the website, and a Colorado pro-
duction resource guide is available at:
www.cprgonline.com.
Connecticut
Office of Film, Television, and Digital
Media, Connecticut Department of
Economic and Community Development
George Norfleet, Director Qualified expenses include digital media
george.norfleet@ct.gov production; deferred, leveraged or profit
t: (860) 270-8088
Ed Ruggiero, Tax Incentive Programs
ed.ruggiero@ct.gov
t: (860) 270-8211
www.ctfilm.com
10
overview
Connecticut’s incentive offers a possible
30% transferable tax credit for qualified
digital media and motion picture pre-pro-
duction, production and post-production
expenses incurred in the state, including
labor. Production companies incurring
production costs between $100,000 and
$500,000 are eligible for a 10% credit;
between $500,000 and $1 million are
eligible for a 15% credit, and productions
spending over $1 million receive a 30%
credit. The minimum spend require-
ment is $100,000 and at least 25% of the
principal photography days or 50% of
post-production expenses or at least $1
million on post-production must be spent
in Connecticut.
Salaries for both resident and non-resident
cast and crew working in Connecticut
qualify. The aggregate qualified salaries for
all star talent is capped at $20 million, and
must be subject to Connecticut income
tax. Equipment and supplies purchased/
rented from out-of-state do not qualify for
the tax credit. Local vendors may order
from out-of-state for items not available in
the state.
There is no statewide annual cap or per
production cap. Note that all fringes
and per diems qualify for all cast and
crew, resident and non-resident.
details
participations and costs related to the
transfer of the production tax are not
qualified expenses.
The production company must be regis-
tered to do business with the Secretary of
the State of Connecticut. To receive the
The Incentives Office
credit, the production company must
first apply to the Commission for
eligibility. This application must be
made no later than ninety days after
the first production expense is incurred.
The production company must submit
a certified audit (at the production
company’s expense) by an independent
CPA licensed in Connecticut. After the
costs are verified, the Commission will
issue a tax credit voucher. An eligible
production company is not entitled to
claim tax credits before the production
tax credit voucher is issued.
Once issued, the production company
may sell, transfer or assign the voucher,
in whole or in part, either directly to
a local taxpayer or to a broker. The tax
credit may not be sold, transferred or
assigned more than three times. Once
the tax credit voucher is issued, the
state may not conduct any further
review or audit of the associated ex-
penditures except in the case of fraud
or misrepresentation. In the case of
fraud or misrepresentation, the state’s
sole remedy is with the production
company that committed the fraud and
not from any transferee. The non-re-
fundable credit may be carried forward
for three years after the year in which
the costs were incurred. Corporations,
insurance companies, hospital and
medical service companies may use
the tax credit. Individuals may not use
the credit.
The 12% hotel occupancy tax is waived
for stays over 30 consecutive days.
There is also sales tax exemption for
certain production related items.
U.S. Production Incentives Guide · Winter 2010-2011
Delaware
Delaware Economic Development Office/
Delaware Film Office
Linda Parkowski
linda.parkowski@state.de.us
t: (302) 672-6857
alt: (302) 672-6826
www.dedo.delaware.gov/Film.shtml
There is no state or local sales tax in
Delaware. The Delaware Film Office
website includes a listing of local crew
and facilities.
District of
Columbia
Office of Motion Picture &Television
Development
Kathy Hollinger, Director
film@dc.gov
t: (202) 727-6608
f: (202) 727-3246
www.film.dc.gov
Legislation has been approved which pro-
vides a rebate equal to 42% of qualified
production expenditures that are subject
to taxation in the District; 21% of expen-
ditures that are not subject to taxation
in the District; 30% of the company’s
qualified personnel expenditures; 50%
of the company’s qualified job training
expenditures; and 25% of a company’s
base infrastructure investment. To qualify,
a production company must spend at
least $250,000 in the District for the de-
velopment, pre-production, production,
or post-production costs of a qualified
production; file an application, and enter
into an incentive agreement; and not
11
 Bonaventure Cemetery,
Bonnaventure Cemetery,Savannah,
Savannah Georgia be delinquent in any tax obligation
owed to DC.
Incentive grants are subject to the
availability of funds and projects will
be approved on a case by case basis.
Florida
additional projects in the queue. Anyone
interested should contact Susan Simms
or Lucia Fishburne to discuss tax credit
availability.
The film commission also maintains a
Discounts and Deals program that lists
discounts and special deals from
vendors around the state.

Governor’s Office of Film & Entertainment Florida is a major production center, with
Lucia Fishburne, Commissioner crew, equipment, processing, sound
Lucia.Fishburne@MyFlorida.com stages and support services available.
t: (877) FLA-FILM
A comprehensive on-line production
t: (850) 410-4765
f: (850) 410-4770 guide is available, and a print version
www.filminflorida.com may be ordered as well.

Los Angeles Liaison:

Susan Simms
t: (818) 508-7772 Georgia
The Florida incentives program now
provides a transferable tax credit for
production expenditures within the
state. $242 million is the total allocation
for five fiscal years starting July 1, 2010
through June 30, 2015. The incentive
provides 20% base rate, plus 5% for off-
season (June 1 - November 30) and 5%
for family-friendly product; the state will
waive the 6% sales tax for production
companies filming in Florida. Information
about the program is available on the
Florida website.
Florida provides three queues for
allocating tax credits: the General
Production Queue, the Independent
and Emerging Media Queue, and the
Commercial and Music Video Queue.
Although all funds for the current fiscal
year have been allocated, films drop
out of the Queue if they don’t start pro-
duction within 180 days of receiving an
allocation letter from the state, so funds
are continually becoming available for
Georgia Film, Music & Digital
Entertainment Office
Greg Torre, Division Director
gtorre@georgia.org
Lee Thomas, Film Director
lthomas@georgia.org
t: (404) 962-4048
f: (404) 963-4053
www.georgia.org/GeorgiaIndustries/
Entertainment/
The 2008 Georgia Entertainment
Industry Investment Act grants a tax
credit to qualified production and
post-production expenditures. It is
available for motion picture projects such
as feature films, television series,
commercials and music videos, and
also to new industries such as game
development and animation.
The legislation provides a transferable tax
credit of 20% for in-state expenditures, with
an additional 10% tax credit available
if an approved placement of a Georgia
promotional logo is featured in opening
titles or end credits as well as within all

12 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 13

 promotional trailers or alternative
negotiated placements. The tax credits
are issued after the production company
files its Georgia tax return. Any amounts
in excess of $500,000 per W2 hire will
not count toward the credit, although
there is no salary cap on individuals
receiving Form 1099 working under
a personal services contract or as a
“loan-out”. Workers compensation and
payroll processing qualify only if paid to
a local vendor. Most fringes are qualified
expenses. Airfare qualifies if a Georgia
headquartered travel agency or airline
is used. Georgia has a substantial crew
base, equipment rentals and services, a
35mm lab, soundstages, and significant
post-production services.
The tax credits may be transferred or
sold only once to one or multiple Georgia-
based taxpayers to use against their tax
liability, but transfers may now be on
different dates. Georgia has local brokers
who can negotiate the sale of the credits,
and may provide cash advances as well.
Should the state have reason to void a
credit due to fraudulent misrepresen-
tation of tax information, the buyer’s
recourse will be to/against the seller.
The regulations regarding production
(buying) service companies have been
changed. Out-of-state purchases will
only qualify if obtained from a local
vendor who rents or sells like items.
Goods ordered from companies in
the business of purchasing from out-
of-state, that do not operate a rental or
sales business, and do not maintain an
inventory, will no longer qualify for the
film tax credits.
14
Hawaii
Hawaii Film Office and subject to Hawaii’s general excise
Georgia Skinner, Administrator tax or income tax will be considered
info@hawaiifilmoffice.com
t: (808) 586-2570
f: (808) 586-2572 companies must register to do business
www.hawaiifilmoffice.com in Hawaii. The loan-out will need to
overview
Hawaii offers a refundable tax credit
based on a production company’s Ha-
waii expenditures while producing a
qualified film, television, commercial, or
digital media project. The credit equals
15% of qualified production costs in-
curred in Honolulu County (where
population exceeds 700,000) and 20%
in the other Hawaiian counties and neigh-
bor islands (Big Island, Kauai, Lanai,
Maui, and Molokai). There is an $8
million credit cap per production. All
fringes qualify for the incentive, al-
though workers compensation and
payroll processing fees must be paid
to a local company to qualify. Act 215,
which provides a non-refundable credit
to investors of 80% of qualified spend
over 5 years, sunsets on 12/31/10.
details
To use the 15-20% tax credit, a Production
Registration Form must be submitted
to the Hawaii Film Office at least one
week prior to the first Hawaii shoot date.
The production must make an effort to
hire local crew, and must also make a
financial or in-kind contribution toward
local educational or workforce develop-
ment efforts. (The commission website
provides a list of acceptable workforce
development contributions). An end
credit for the state of Hawaii must be
included in the film. To be eligible for
the credit, at least $200,000 in qualified
The Incentives Office
production costs must be expended in
Hawaii. Only costs incurred in Hawaii
“qualified production costs.” Loan-out
obtain a Hawaii General Excise Tax
License and pay general excise tax on
gross proceeds earned for monies paid
to the loan-out to qualify.
Note that this is a refundable credit; the
production company must file a state tax
return. The excess of tax credits over tax
liability, if any, will be refunded by check
within 6 to 8 weeks of the tax filing.
Hawaii boasts a burgeoning film
infrastructure, including equipment
rental and a film studio. Because
of Hawaii’s experienced labor pool,
productions can hire a significant
number of skilled local workers.
Idaho
Idaho Film Office betsy.steinberg@illinois.gov
Peg Owens, Film Office Manager t: (312) 814-3600
peg.owens@tourism.idaho.gov f: (312) 814-8874
t: (800) 942-8338  www.illinoisfilm.biz
f: (208) 334-2631
Diane Norton, Film/Tourism Specialist
diane.norton@tourism.idaho.gov
t: (208) 334-2470 ext 2149
m: (208) 859-5247
www.filmidaho.com
New legislation provides a 20% rebate
on specific Idaho expenditures if at least
$200,000 is spent in Idaho, and 20% of
the crew hired must be Idaho residents
increasing to 35% of the total crew over
five years. The maximum rebate per
U.S. Production Incentives Guide · Winter 2010-2011
production is $500,000. However, this
program is not currently funded.
Meanwhile, Idaho has a sales tax rebate
for film and media production, which
provides for a rebate of the 6% state sales
tax on tangible personal property  (ex-
cludes consumables such as food) when
$200,000 is spent on a wide variety of
qualifying expenses. In addition, produc-
tion personnel who are staying 30 days or
more in Idaho lodging facilities are totally
exempt from both sales and lodging taxes,
currently ranging from 8 to 13%. Certain
communities have local option taxes,
which are also exempt under the 30 days
rule, and can add to the savings. The state
website includes searchable directories for
crew, lodging, equipment and locations.
Most Idaho cities do not require a permit.
Public lands (managed by the USFS and
BLM) do require permits.
Illinois
Illinois Film Office
Betsy Steinberg, Managing Director
Chicago Film Office
t: (312) 744-6415
f: (312) 744-1378
www.cityofchicago.org/FilmOffice
The Illinois production incentive
provides a 30% transferable tax credit of
in-state spend for all qualified labor and
expenditures. Only residents qualify,
with a $100,000 cap per hire.
An application is required in advance of
production, and it is necessary to show
that the incentive was essential in choos-
15
 ing to shoot in Illinois. It is also necessary
to file a Diversity Plan, which involves
preparation of a number of documents,
and a good-faith effort to recruit
minority and woman-owned vendors
for the production. Minimum in-state
spend is $100,000; the 14.9% hotel
occupancy is waived after occupancy of
30 days, retroactive to the start of the stay.
There is no waiver of sales tax.
Chicago is a major production center
with a deep crew base, and can supply
full crew, equipment, studios, sound
stages, post-production facilities and
35mm processing.
Indiana
Film Indiana/Indiana Economic www.LouisianaEntertainment.gov
Development Corporation
Erin Newell, Director indefinitely.
One North Capitol Avenue, Ste. 700 or synopsis, a statement that the project
Indianapolis, IN 46204-2288 meets the definition of a state-certified
t: (317) 234-2087
f: (317) 232-4146
filminfo@iedc.in.gov Kentucky Film Office incurred within the state, e.g., purchases
www.filmindiana.com M. Todd Cassidy, Executive Director $200 and the maximum fee is $5,000.
Indiana’s Media Production Expenditure
Tax Credit offers a refundable tax credit of
up to 15% of in-state labor and purchases,
with a minimum spend of $100,000
Iowa produced for national tour also qualify.
The production company must file an
state brand or logo is required for
certified productions.
Iowa Film Office application with the state 30 days prior
t: (515) 725-3144 to incurring any expenses for which they
f: (515) 725-3010 details
are seeking to earn the tax credit. The
www.iowalifechanging.com/film Pre-production, production, and post-
Kentucky Film Office has a mandatory
production expenses qualify for the
administrative fee equal to the greater of
credit. Qualified payroll is defined as
The Iowa incentives program has been 0.5% of the estimated film incentive or
salary, wages, and other compensation,
terminated. $500. Please contact the Kentucky Film
including related benefits.
Office for further details.
A resident is defined as any person
Kansas domiciled in the state or any other person
Kansas Film Commission
Louisiana who maintains a permanent place to live
and spends more than six months of
Peter Jasso, Director Office of Entertainment Industry
pjasso@kansascommerce.com Development each year within the state.
t: (785) 296-2178 Christopher Stelly, Film & Television
The initial certification process begins
f: (785) 296-3490 Director
when the production company
www.filmkansas.com Chris.Stelly@la.gov
t: (225) 342-5403 submits an application to the Office of
f: (225) 342-5349 Entertainment Industry Development
The incentive has been suspended along with a detailed distribution plan,
a detailed preliminary budget, a script
overview
Kentucky Louisiana offers a 30% transferable
income tax credit for expenditures
production, and other required infor-
mation. The minimum application fee is
made from a Louisiana vendor. ATL,
Todd.Cassidy@ky.gov The fee is calculated as .2% of the
resident and non-resident labor qualify
t: (800) 345-6591 estimated total incentive credits. The
t: (502) 564-3456 for this incentive, which has no salary
state then issues an initial certification
f: (502) 564-1512 caps. An additional 5% employment credit
letter to the production.
www.kyfilmoffice.com is offered on the first million dollars of
each Louisiana resident’s payroll. This During production (once the minimum

for film and television, and $50,000 for
a digital media production intended
for reasonable commercial exploitation,
an audio recording or music video, an
advertising message broadcast on radio or
television, a media production concerning
training or external marketing or com-
munications. Acquisition costs and legal
fees are qualified expenses if done in-state.
$2.5 million of funding is available per
fiscal year (July 1 - July 30).
Kentucky offers a 20% refundable tax
credit (non-transferable) of all qualifying
expenses; including all below-the-line
wages for both resident and non-residents,
and 20% of the first $100,000 in wages
for above-the-line salaries (both resident
and non-resident).
The minimum spend necessary for
feature films is $500,000, $200,000
for commercials, and $50,000
for documentaries. Broadway plays
brings the total credit earned on Louisiana
resident labor to 35%. Also, the state now
provides for an 85 cent buy-back of all
certified tax credits for projects which
receive their initial certification on or
after July 1, 2009. The minimum in-state
spend is $300,000 and there is no per
production or statewide cap. All fringes
qualify, as do payroll-processing fees paid
to a local vendor, however, only the
portion of the fees for services performed
in Louisiana will qualify. Inclusion of a
in-state spend threshold of $300,000
is met) the producer may request that
expenditures to date be certified; once
certified by the film office, they may be
sold to brokers or private buyers. It is not
necessary to complete the film prior to
selling certified credits if earned in accor-
dance with Louisiana state law. However,
the statute prohibits the transfer of credits
before they are certified. Expenditures
may be certified twice during the duration
of the production, at no charge. Thereafter,

16 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 17

 there is a fee of $250 per additional certi-
fication. An independent CPA, licensed
in Louisiana, must audit and certify a
production’s expenditures before the State
will certify credits; each time a production
requests certification of expenditures an
audit report must be sent to the Office of
Entertainment Industry Development.
The credit may be used against the
Louisiana tax liability of an individual
or corporation, sold, or the investor
may transfer credits to the Office of
Entertainment Industry Development
for 85 cents on the dollar. Some of the
tax credit brokers and various banks will
advance funds against the credits. If the
credit exceeds the tax liability, it may be
carried forward for ten years. Within
30 days of a sale or transfer, both
parties must notify the Department of
Revenue (DOR) and the Office of
Entertainment Industry Development,
in writing. If for any reason, the DOR
disallows the credit claimed by the
transferee, the transferee’s recourse is
against the transferor.
The state administers other incentive
programs offering additional credits in
other areas of entertainment, such as
interactive media development, sound
recording and live performance.
There are three major Louisiana pro-
duction centers – New Orleans, Baton
Rouge and Shreveport – with additional
production in Lafayette, Alexandria, and
other parts of the state. Louisiana now
offers a substantial crew base; camera,
grip, and electrical equipment are available
in the state.
Additionally, the City of Shreveport offers
a tax rebate equaling the City of Shreveport
sales taxes, with a basic cap of $150,000
18
per project, and a subsequent production
cap of $165,000. There is a $10,000 cap
increase for productions which use a
Caddo Parish based post-production facility.
Only work actually done in the state
qualifies; outsourcing of post-production
or film processing is no longer a qualified
expense. Louisiana requires production
companies to agree to pay all undisputed
obligations, to publish a notice that
creditors should file requests for payment
by a specific date, and to agree that
failing to file by that date does not waive
the obligation. A claim for the film produc-
tion credit may not be filed until the film
office delivers written notification to the
Secretary of the Department of Revenue
that the film production company has
fulfilled all requirements for the credit.
Maine
Maine Film Office
Lea Girardin, Director
lea.girardin@maine.gov fiscal year, and there is no per-project cap.
t: (207) 624-9828 Nick Paleologos, Executive Director
f: (207) 287-8070 nick@mafilm.org
www.filminmaine.com details
The Maine Attraction Film Incentive Plan
includes two components. The first is a
wage based incentive offering a rebate
equal to 12% of wages paid to Maine
residents and 10% of wages paid to
non-residents. For purposes of this
incentive, wages are capped at $50,000
per individual. Second, Maine offers
a 5% non-transferable tax credit on all
qualified production expenses. The
minimum in-state spend is $75,000.
The state also offers fee-free Locations,
and a Surplus Property plan that provides
props and production office furniture.
The Incentives Office
A database of production resources is
available on the Maine website.
Maryland
Maryland Film Office The recipients of the rebate are selected
Jack Gerbes, Director by the Secretary of the Department
t: (800) 333-6632 based upon merit and economic benefit
t: (410) 767-6340 to the State, and subject to funds being
f: (410) 333-0044
JGerbes@choosemaryland.org
www.marylandfilm.org/ Additionally, Maryland offers an exemption
Production Guide:
www.mdrpg.com
filminfo@marylandfilm.org
overview
Maryland offers a rebate up to 25% of the
total direct costs of production incurred
in the state. This rebate is distributed in
the form of a grant. Salaries and wages of
residents and non-residents qualify. The film
must spend at least $500,000 in the state.
$1 million was allocated for the current
Qualifying projects include feature films,
television projects, commercials, corporate
films, infomercials, music videos, digital,
animation, and multimedia projects.
Not included are student films, non-
commercial personal videos, sports
broadcasts, broadcasts of live events
or talk shows. Qualified costs include
costs incurred for employee wages and
benefits; fees for services (payroll
handling fees are not included);
acquiring or leasing real property or
tangible or intangible personal property;
and other qualified expenses necessary
to carry out a film production activity.
U.S. Production Incentives Guide · Winter 2010-2011
To qualify for the rebate, the production
company must notify the Department of
Business and Economic Development
of its intent to seek the rebate before
commencing film production activity.
appropriated by the legislature.
from its 6% sales tax for purchases and
rentals used in the production of the
film. An application must be filed in
advance; if approved, an Exemption
Certificate will be issued to present
to vendors, who will not charge sales
tax on exempted purchases. Both on-line
and printed production guides are
available.
Massachusetts
Massachusetts Film Office
Mary Chichios, Director of Operations
mary@mafilm.org
t: (617) 423-1155
f: (617) 423-1158
www.mafilm.org
overview
The Massachusetts incentive offers
a 25% income tax credit equal to the
total in-state spend if at least 50% of
the movie is shot in-state or more than
half the production budget is spent
in-state, without salary or annual pro-
duction caps. Filmmakers may choose
to receive the credit as a rebate, equal to
90% of the face value (guaranteed and
rebated by the state), or the credit may
19
 be transferred or sold at the current
market rate. Minimum spend is only
$50,000. Cast and crew from out of the
state qualify. However, Massachusetts
now requires state withholding taxes to
be paid on qualifying wages, unless and
until a waiver has been granted, and
requires registered loan-out companies
applying for waivers of withholding
(Form PWH-WW) to file quarterly
returns, even if there is no tax liability
for that quarter. Additionally, filmmakers
may be eligible for a 100% sales tax
exemption on any production related
items purchased in the state. Note
that production insurance, workers
compensation and completion bond
are not qualified expenses. Massachusetts
has a growing crew base, and most
equipment can be obtained locally.
details
Only the first 27 episodes of a TV series
will qualify per year.
Pre-production, production, and post-pro-
duction expenses qualify as long as they
are directly incurred in the production
of the film. Qualified expenses include
payroll; payroll means salary, wages or
other compensation including all fringe
benefits. Costs associated with marketing
or advertising a picture, the transfer of the
tax credits, or any amount paid as profit
participation do not qualify.
The incentive is comprised of two
components: a payroll credit and a pro-
duction spend credit. The payroll credit
is equal to 25% of the total payroll that
is sourced to Massachusetts, when pro-
duction costs exceed $50,000 for the
taxable year. For purposes of the payroll
credit, total payroll does not include any
portion of the salary of any employee
20
whose salary is equal to or greater than
$1,000,000. Both residents and non-
residents working in Massachusetts
qualify for the payroll credit.
The production spend credit is equal
to 25% of all Massachusetts production
expenses (not including the payroll
expenses included in the labor credit)
if total production costs incurred in
Massachusetts exceed $50,000 for the
taxable year, and either the Massachusetts
production expenses are more than 50%
of the total budgeted production costs, or
at least 50% of the total principal photog-
raphy days take place in Massachusetts.
For purposes of the production credit,
the entire amount of each salary that is
equal to or greater than $1,000,000 may
be used to calculate the production credit
(if the entire salary was not included in
the payroll credit).
Loan-out corporations must register,
but may apply for a waiver of state
taxes; if it is granted by the Department
of Revenue, issuance of a waiver will
not adversely affect eligibility for the
credit. However, new rules have been
implemented to insure proper registration
and tax payments on loan-out companies.
All loan-out companies are required to
file quarterly returns, and DOR now
requires a signed contract between
the studio and the loan-out company
stipulating the rate of pay, etc. to be
submitted with Form PWH-WW
before the waiver can be issued. Further,
DOR will not issue the waiver with
performance dates listed earlier than
the date DOR approves the waiver.
Please note that MA requires 10 days
to process a Waiver of Withholding
request, and this is being interpreted
strictly; e.g. after all required information
The Incentives Office
is received, contracts executed and An additional 2% credit is available for
delinquent returns filed. production in or purchases from vendors
located in designated core communities.
The credits can be carried forward for
5 years, but once the credits have been Materials and services must be purchased 
transferred they are no longer refundable. or rented  in the state to qualify, but
items not available in the state can
Four new sound stage complexes are
qualify if ordered via legitimate in-state
in the works for the state; in Plymouth,
vendors. Mileage reimbursements and
Weymouth, South Boston, and Lowell,
per diems do not qualify, nor do private
but none are completed.
planes unless used for flights within the
In addition, a point-of-purchase sales state. There is a 35mm lab in Michigan.
tax exemption is available for qualified
Prior to starting pre-production in
expenses. An application is available at
the state the production company
www.mafilm.org and must be filed in
must submit an application package,
advance for this exemption.
which includes the application form,
There is currently a sunset provision a copy of the screenplay, an insurance
in the law which calls for the film tax credit certificate, and a check for $100. The
to expire at the end of December, 2022. state also asks for detailed financial
information; failure to provide it
will seriously delay the process and
Michigan  could cause a denial.  The production
company needs to have a signed agree-
Michigan Film Office
Carrie Jones, Director            ment of approval with the state before
jonesc@michigan.org       incurring any eligible expenses.
t: (800) 477-3456              
t: (517) 373-0638       Once production is completed in
f: (517) 241-2930        Michigan,  a full audit must be conducted
www.michiganfilmoffice.org   at the producer’s expense by a 3rd party
CPA who issues the audit report. The audit
must be completed within 60 days of the
Michigan’s incentive is one of the most
year end of the production company. The
generous in the U.S. – a 40% rebate for
audit report is then sent to the state for
all materials and services purchased  or
their review. If the post-production paper-
rented  from Michigan vendors, 40%
work is acceptable, the company will be
for Michigan crew and all above-the-line
issued a certificate of completion, which
salaries, and 30% for out-of-state
must be attached when the company files
below-the-line crew. There is a $2 million
a Michigan business tax return at the end
cap per hire, but no per-year or per-
of the company’s tax year. The tax return
project cap. Loan-out companies will
is necessary to show no taxes are owed the
qualify for the rebate, provided that
state.  If the return is error-free, a check
Michigan tax of 4.35% is withheld.
will be sent within 30-60 days.
The rebate will not be processed until
all loan-out state withholding taxes The company also has the option
have been paid. of  assigning or selling the credit rather
U.S. Production Incentives Guide · Winter 2010-2011 21
 than filing a tax return, once it receives its
completion certificate.
There is a substantial and growing crew
base in Michigan, as well as a few companies
that offer production services. However
a Michigan co-producer is not necessary
to earn the rebate. An on-line production
guide is available.
An information packet, including a
spreadsheet showing eligible expenses
and the complete application package is
now available on the website.
Minnesota
Minnesota Film and TV Board
Lucinda Winter, Executive Director production of a film, and sales/use tax
lucinda@mnfilmtv.org
t: (612) 767-0095
f: (612) 767-2425 Montana Film Office
www.mnfilmtv.org Sten Iversen, Manager
Minnesota’s Snowbate offers a rebate of
up to 15% of in-state production costs for
projects that spend less than $5 million
in the state and 20% for productions that
spend $5 million or more in the state over
a 12 month period, or locate more than
60% of production outside the metro
area. There are still some funds available
for FY2011, please check the state website
www.mnfilmtv.org for details.
overview
Mississippi provides a 20% rebate for
qualified local spend, a 25% rebate on
resident cast and crew, and a 20% rebate
for non-resident cast and crew, up to and
including $1 million per individual. For
purposes of this program, payroll means
salary, wages, or other compensation
including related benefits paid to employees
upon which Mississippi income tax is
due and has been withheld. For loan-
outs to qualify, Mississippi income tax
(a graduated rate to 5%) must be withheld
and paid to the state.
The 7% sales tax is waived on purchases
of certain items used directly in the
is reduced to 1.5% for rental or purchase
of specified production equipment. The
sales/use tax exemption/reduction may
be used in conjunction with the production
rebate. Applications for the incentive
must be submitted prior to the start of
production; expenditures made prior to
certification will not be approved.
There is a $20,000 minimum in-state
spend required, an $8 million per project
rebate cap, and a $20 million annual
cap. There is no minimum required
percentage of production or number of
filming days in the state.
Both in and out-of-state fringes qualify,
Missouri
Missouri Film Commission credits issued will be invoiced to the
Jerry Jones, Director
jonesjerr@missouri.edu
t: (573) 522-1288
f: (573) 526-1567 issued after the fee has been paid.
www.mofilm.org
Kansas City (Missouri) Film Commission
t: (800) 767-7700 ext 3872
www.kcfilm.com
Missouri offers a 35% transferable tax
credit of qualified expenses incurred
in the state. Out-of-state cast and crew
qualify for up to 30%, provided that
Missouri income taxes are withheld.
The state has $4.5 million available
each year (awarded on discretionary basis)
without any project cap. Minimum
spend requirements are $50,000 for
a program less than 30 minutes or
$100,000 for a program longer than
30 minutes. Qualifying spend does not
include any amount paid to a highly
compensated individual (defined as
anyone who receives compensation
of more than $1 million). Payments
to a loan-out company qualify if the
loan-out is registered in Missouri. It is
essential to apply for the credits prior
to opening a local production office, as
the incentives are only available prior to
selecting Missouri as the location of the
how the production will benefit the
state. A fee equal to 2.5% of the tax
production company upon issuance of
the tax credit. The tax credit will be
The tax credits may be sold, assigned,
exchanged, or transferred. Any unused
credits may be carried forward for five years.
Missouri has a substantial production
base, that includes crew and equip-
ment, both in St. Louis, Columbia,
Springfield/Branson, and Kansas City.
The website includes an on-line
Production Guide Database.
Montana
siversen@mt.gov
t: (800) 553-4563
t: (406) 841-2876
f: (406) 841-2877
www.montanafilm.com
overview
Montana has packaged all of its incentive
offerings as STUDIO 406; these include
a refundable tax credit equal to 14%
of the first $50,000 paid to each
Montana resident, as well as a 9%
refundable tax credit on all additional

Mississippi but only if subject to Mississippi with- project. A producer may receive credits
for only one project per year.
production company expenditures
made in-state (excluding labor).
holding tax.
Mississippi Film Office There is no cap and no minimum
Ward Emling, Commissioner Mississippi has a small (but grow- For goods with a purchase price of
spend requirement.  Per diem paid
wemling@mississippi.org
ing) crew base; a sound stage and a $25,000 or more the amount included
t: (601) 359-3297 to employees while in-state does
in qualifying expenses is the purchase
m: (601) 954-5955 workforce training facility is in develop- qualify for the 9% expenditure credit,
price less the fair market value at the
f: (601) 359-5048 ment in Canton. as does travel purchased through a
completion of the production.
www.filmMississippi.org Montana travel agent. FICA, FUI and
The application process requires an SUI, however, do not qualify. Workers
economic impact statement showing compensation, health insurance and

22 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 23

 payroll processing fees qualify if paid
to an in-state vendor.
Montana also offers these free services to
filmmakers: script breakdown, location
scouting, office furniture and machines,
as well as traffic control signage.
Montana does not have a sales tax;
the 7% accommodations and lodging
taxes are refunded for stays of more
than 30 consecutive days.
details
Qualifying productions include feature,
commercial, documentary, and magazine
advertising (other than advertising for
tobacco products). Projects produced
with money received for tobacco placement
do not qualify. Goods and services
obtained from out-of-state, or services
provided by out-of-state residents do
not qualify.
The production company must apply to
the Montana Film Office prior to the
start of principal photography. The
film office will reply to the application
within 30 days of submission. If the
production is a feature-length film,
the end credits must acknowledge
that the production was filmed in
Montana. Within 60 days of completion of
principal photography, the production
company must submit a report of all
Montana expenditures and compensation
paid to Montana residents.  A fee
of $500 is charged by the state to
administer the tax credit and is due
when the production files its tax return.
Both the employment production credit
and the expenditure credit may be
claimed as a credit against either
corporate or individual taxes. If the
employment credit exceeds the tax
24
liability, it may be refunded or carried
forward for the four succeeding
New Hampshire New Mexico
years. If the qualified expenditure New Hampshire Office of Film &Television New Mexico Film Office
Matthew Newton, Director Lisa Strout, Director
credit exceeds the tax liability, it must
film@nh.gov info@nmfilm.com
be refunded.
t: (603) 271-2220 t: (800) 545-9871
Montana has a strong local crew base f: (603) 271-6826 t: (505) 476-5600
www.nh.gov/film f: (505) 476-5601
with over 300 freelance crew members
www.nmfilm.com
and all major production support service
available. Databases are available on-line There are currently no tax credits overview
for production crew and support services available; however there is no sales/
New Mexico offers one of the most
at www.montanafilm.com. use tax, personal income tax or
successful U.S. incentives programs,
capital gains tax. Additionally, many
attracting both studio and independent
locations are available at little or no
Nebraska cost and there are no permit fees.
projects. Three major programs are
available: a 25% refundable tax credit, a
Nebraska Film Office An on-line production guide is available Film Investment Loan, and a Film Crew
Gary Hamer on the New Hampshire Office of Film Advancement Program/Incentive. The
gary.hamer@ded.ne.gov
and Television website. 25% credit applies to resident cast and
t: (800) 228-4307
t: (402) 471-3746 crew, and in-state rentals, purchases
www.filmnebraska.org and services that are subject to taxation
New Jersey in NM. Payments for non-resident
performing artists (actors and stunt
There are currently no incentives, New Jersey Motion Picture and
Television Commission performers), providing services in NM,
other than both sales and lodging taxes
Steven Gorelick, Executive Director will qualify if paid via a “super loan-out”
waived for a hotel stay of 30 days or njfilm@njfilm.org
company which pays gross receipts tax
more. Photos of locations are provided t: (973) 648-6279
(“GRT”) in New Mexico on the payments
on the Nebraska Film Office website. f: (973) 648-7350
and the performing artist receiving
www.njfilm.org
payments pays New Mexico income
Nevada overview
tax.  Because the 5.125% GRT is eligible
for the credit, the credit for non-resident
The New Jersey film tax credit is
Nevada Film Office performing artists is reduced to 21.15%
temporarily suspended, as the state
Charles Geocaris, Director if structured through a non-New Mexico
cgeocaris@bizopp.state.nv.us legislature and the Governor agreed on
“super loan-out.” The credit related to
t: (877) 638-3456 a budget by initiating sweeping program
performing artists’ salaries is capped at
t: (702) 486-2711 cuts. The suspension does not affect any
f: (702) 486-2712 $5 million collectively for ALL performing
production that has already obtained
www.nevadafilm.com artists in a production. In other words,
Economic Development Authority
actors’ collective salaries (including tax)
(“EDA”) pre-approval; all productions
up to $20 million qualify for the credit,
There are currently no incentives will maintain their place in the queue
until the suspension is lifted, on or in addition to other qualifying costs. Other
other than a reduction in the hotel tax
before July 1, 2011. Interested parties than this limit, there is no per production
after 30 days.
are urged to call the New Jersey Motion cap, yearly cap or minimum spend
There is a directory of production resources Picture and Television Commission for requirement. Non-resident crew does not
on the Nevada Film Office website. more information. qualify, but their housing and per diems do.
The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 25
 details
25% Production Tax Credit. This is a 25%
refundable tax credit on all direct
production expenditures, including New
Mexico resident labor, that are subject to
taxation by the State of New Mexico.  restaurants, etc. located on these lands; and,
Pre-production, production, and post-
production for feature films, short
films, television, national and
regional commercials, documentaries,
video games, animation, webisodes,
infomercials and music videos intended
for commercial exploitation qualify for
the rebate. Stand-alone post also qualifies.
Direct production expenditures include
payments of wages, fringe benefits
(pension) or fees for talent, management,
or labor for a person who is a resident of
New Mexico for purposes of the Income
Tax Act.
As a precaution, the production company
may want to include language in the
contract with the personal service company
that indemnifies the production company
against any loss of credit due to either
the loan-out company or the talent not
filing a tax return or paying tax on the
New Mexico source revenue.
Costs of goods and services necessary
for the production of the film qualify, if
purchased from a New Mexico vendor
and subject to New Mexico tax.
Post-production expenses qualify if
performed in New Mexico and are subject
to taxation by the state of New Mexico.
Costs that do not qualify include
expenditures for advertising, marketing,
and distribution; purchases made on
the internet unless the seller is located
in NM; federal/state unemployment
tax, FICA, workers compensation tax;
26
payments to federal/state government,
including permits and postage; FedEx/UPS
packages (unless sent from New Mexico);
purchases made on Native American
tribal lands, including gas stations, hotels,
cell phone reimbursements if the billing
address is outside New Mexico.
To be eligible for the refundable tax credit
the production company must agree:
that the script will not be obscene in
nature; that long-narrative films will
acknowledge the production was filmed
in New Mexico; to pay all obligations that
the production company has incurred in
New Mexico; to publish, at the completion
of principal photography, a notice at least
once a week for three consecutive weeks
in local newspapers notifying the public
of the need to file creditor claims against
the production company by a specific
date; that outstanding obligations are not
waived should a creditor fail to file by the
specified date; to apply on forms pre-
scribed by the NM Film Office and
NM Taxation and Revenue; and, not to
file a claim for the tax credit until the NM
Film Office has given written notification
to the taxation and revenue department
that the production company has fulfilled
all the requirements for the credit.
The production company may apply
all or a portion of the tax credit against
a personal or corporate income tax
liability. If the credit exceeds the
production company’s tax liability, the
excess will be refunded.
Film Investment Loan Program. New
Mexico offers a loan, with back-end
participation in lieu of interest, for up
to $15 million per project; terms are
negotiated; the project needs to be fully
The Incentives Office
collateralized and the budget must be
at least $2 million.
At least 85% of principal photography
must be shot in New Mexico. A guarantor
for the principal amount of the loan
and a signed distribution contract from
a reputable and appropriate distributor
for significant rights must be in place.
Sixty percent of below-the-line payroll
and body count must be allocated to
New Mexico residents.
New Mexico’s 25% tax credit, loan, and
Film Crew Advancement Program/
Incentive can be used in conjunction
with each another.  
Film Crew Advancement Program/
Incentive. A 50% wage reimbursement
for on-the-job training of New Mexico
residents in advanced below-the-line
crew positions.  New Mexico keys and
supervisors are required as mentors.
New Mexico is a union state with a
substantial crew base. Albuquerque
Studios is located only a few minutes
from the Albuquerque airport.
The website includes a searchable crew
directory, location database and links to
production services, equipment, facilities
and supplies available in the state.
U.S. Production Incentives Guide · Winter 2010-2011
New York
New York State Governor’s Office
for Motion Picture and TV Development
Pat Kaufman, Executive Director
pkaufman@empire.state.ny.us
t: (212) 803-2330
f: (212) 803-2339
www.nylovesfilm.com
Mayor’s Office of Film, Theatre,
& Broadcasting
Katherine Oliver, Commissioner
info@film.nyc.gov
t: (212) 489-6710
f: (212) 307-6237
www.nyc.gov/film
New York State offers 30% below-the-line
refundable tax credits of qualified New
York expenditures for feature films
and episodic television shows that do
a majority of their filming on qualified
soundstages in New York State. $420
million per year (“Pool 2”) has been
allocated through calendar year 2014,
with no per-project caps. Up to $7 million
per year of this total amount will be
available to the newly created, separately
administered NY State Post-Production
credit. Separate from the state incentive,
the Made in New York Incentive Program
provides an additional 5% tax credit
if the film is shot in New York City,
however the Made in New York
program no longer has funds available
for new applications.
NY State offers a below-the-line credit
only; talent, producers, writers and
directors do not qualify. The state website
includes a detailed budget template,
indicating specifically what is qualified.
There are now two types of eligible feature
film and television productions, Level 1
27
 (aka “independent” productions - defined
in the law) and Level 2 productions.
A LEVEL 1 production is a qualified
production that:
• Has a production budget of no more
than $15 million, and
• Is being produced by a company in
which no more than five percent of
the beneficial ownership is owned,
directly or indirectly, by a publicly
traded entity.
A LEVEL 2 production is a qualified
production that:
• Has a production budget over $15
million, or
• Is being produced by a company
in which more than five percent of
the beneficial ownership is owned,
directly or indirectly, by a publicly
traded entity.
There are three threshold requirements:
Facility Threshold refers to qualified
costs incurred during and related to
work at a production facility.
Location/Other Threshold refers to
principal photography shoot days in NY
State outside a production facility.
Post-Production Threshold refers to
qualified costs directly related to
post production.
A production must meet the facility
threshold, but does not have to meet all
three of the above thresholds, in order to
participate in the program; the specifics
of the threshold differ for Level 1 and
Level 2 productions.
In New York City there will now also be
two levels of Qualified Production Fa-
28
cilities (“QPF”), called Level 1 and Level 2
facilities. Level 2 productions filming on
a QPF within the five boroughs of NY City
ONLY, will have to use a Level 2 facility.
(Level 2 productions may use any QPF
outside of NYC.) For a complete list of
Level 2 facilities please call 212-803-2330
For a Level 1 feature film or television
project to be eligible for the NY State
tax credits, the production must satisfy
the following:
1. Shoot at least one full day on a set
built expressly for the production at
a NY State QPF.
2. Any QPF located anywhere in NY
State or City, whether is it called a
Level 1 or Level 2 facility, will do for
a Level 1 production.
3. At least 75% of the total of
all expenses related to work
(excluding post-production) done
at all facilities anywhere utilized
by the production must be related
to work done at the QPF.
For a Level 2 feature film or television
project to be eligible for the NY State tax
credits, the production must satisfy the
following:
1. Shoot on a set built expressly for the
production on a stage located in a QPF;
2. If the QPF is located within the five
boroughs of the City of New York,
it must be a Level 2 QPF (if the
QPF is located within NY State but
outside NYC, there is no distinction
and any QPF can be utilized by the
Level 2 production)
3. At least 10% of the total principal
photography shooting days spent
in the production of a Level 2 qualified
The Incentives Office
production (other than pilots) must
be spent at the appropriate QPF; and
4. At least 75% of the total of all expenses
related to work (excluding post-pro-
duction) done at all facilities anywhere
utilized by the production must be
related to work done at the QPF.
Pilots are exempted from this 10% of
principal photography days requirement,
even if they are Level 2 productions, but
pilots will still have to shoot one day at a
Level 2 stage.
In the Location/Other threshold, there is
no distinction between Level 1 and Level
2 productions; everything is the same for
both types of production.
For location work, pre-production and
all costs related to work other than
post-production work done in New York
outside the facility to be eligible, either
1. At least 75% of all principal photog-
raphy days shot on location outside
the facility must be in NY State, or
2. The production must spend at least
$3 million related to work at the
QPF. (In which case, there is no
percentage for location days).
If you have met the appropriate Stage
filming requirement, and you meet one
of these two thresholds, all costs related
to stage filming, location filming, pre
production and all below-the-line costs
other than post production will qualify
for the credit.
For post production costs to qualify;
• You must have met the Facility
threshold.
• You must have met the Location/
Other threshold and,
U.S. Production Incentives Guide · Winter 2010-2011
• At least 75% of the total of all
qualified post production costs
spent anywhere must be spent in
NY State.
Note that in the calculation of thresholds,
only qualified costs (as indicated by “Yes”
on Form B) are counted, so costs for
talent, music licenses/rights etc, which
are not qualified costs, are not included
and do not count against the 75%.
Specific end credits requirements have
been made mandatory by the new law;
failure to comply with the end credit
requirements will result in rejection of
the final application for the credit.
There are two ways a production can meet
the end credit requirements. Either:
1. Include in the end credits of each
qualified film “Filmed With the
Support of the New York State
Governor’s Office for Motion
Picture and Television Development”
and the New York ♥ Film logo
provided by the Film Office, or:
2. Include in each qualified film
distributed by DVD, or other media
for the secondary market, a New
York promotional video approved by
the Governor’s Office for Motion
Picture and Television Development.
Prior to the issuance of a final Certificate
of Tax Credit, every production will be
required to provide proof of compliance
with the end credit requirements in the
form of a still shot, frame grab, edited
DVD, or other materials which the Film
Office may request.
It is not necessary to use vendors based
in New York State; however, only purchases
from vendors who have registered to
collect and remit sales tax in NY State
29
 will qualify. To determine if a given
individual or company is registered, get
their NY State Sales Tax Vendor ID
Number, and go to: https://www7b.
nystax.gov/TIVL/tivlGateway, and enter
the Vendor Tax I.D. number.
Both programs require productions to file
New York state and city tax returns, and
the New York City incentives are paid over
two tax filing periods regardless of the
credit amount. New York state tax credits
are payable over one year if less than $1
million, over two years (in equal 1/2 pay-
ments) if between $1 million – $5 million,
and over 3 tax years (in equal amounts of
1/3) if greater than $5 million.
Credits earned under the program may
be applied against the New York State
taxes of the person or entity that owns or
controls the applicable qualified film. If
the person or entity is not able to use all
or some credits during the year in which
the credit is earned, that person or entity
may get a refund from the State of New
York of the unused amount of the credit.
These credits will be offered on a first-
come, first-served basis. To apply for
the credits, a production company
will need to first notify the New York
State Office for Motion Picture and
Television Development. Separate
from the increased incentive, New York
provides a waiver of sales tax for most
below-the-line expenses. To take advantage
of this benefit, the producer must first
become a registered vendor, by filling
out Form DTF-17, which is available at
www.nylovesfilm.com/tax.asp.
30
North Carolina
North Carolina Film Office television, direct-to-video/DVD features,
Aaron Syrett, Director episodic television series, television
aaron@ncfilm.com     mini-series, animation productions,
t: (919) 733-9900
hotline: (800) 232-9227
f: (919) 715-0151 this credit, episodic TV is considered
www.ncfilm.com
overview
North Carolina provides a refundable
income tax credit equal to 25% of all the
goods, services, and labor purchased
and used in-state, with new rules, but
the credit is not assignable. There is still a
$1M cap per hire, and any excess is excluded
from the production’s qualifying expenses,
but the maximum credit per feature
film has been increased to $20 million
and the minimum spend is $250,000.
There is no cap on other types of eligible
production expenses. The gross amount
of the film credit is no longer subject to
the 6.9% corporate income tax (for those
filing as a corporation), which previously
reduced the net rebate check. Compensation
and wages paid to both resident and
non-resident employees qualify if
the services are performed in North
Carolina and withholding payments
are remitted to the Department of
Revenue. Payments to loan-out companies
are subject to 4% withholding, and
this must be paid in order for the
production to earn the refundable tax
credit. Insurance is now a qualified
expense. Payroll processing fees paid
to an in-state vendor will qualify. Only
the taxable portions of per diems qualify
for both residents and non-residents.
Fringes, per diems and stipends are
now qualifying expenses.
The Incentives Office
details
Eligible productions include theatrical,
and commercials. For purposes of
one production. Political advertising,
sporting event coverage and news
productions do not qualify.
Any company interested in taking
advantage of the 25% tax incentive
should complete and submit the
form “Notification: Intent to Film” at
www.ncfilm.com. Qualifying expenses
include: goods and services leased or
purchased from a North Carolina
business and used or performed in North
Carolina; compensation and wages on
which North Carolina withholding tax is
paid to the Department of Revenue. For
goods with a purchase price of $25,000
or more, the qualified amount is the
purchase price less the fair market value
of the item at the time production is
completed. In order for payments to a
loan-out company to be eligible for the
film credit, the production company
(or payroll company) must withhold
4% on payments made to the loan-out
company (even if the loan-out company
is registered to do business in the state).
Spending for services is eligible for the
credit regardless of whether paid to
residents or non-residents, as long as the
services are performed in North Carolina.
Payments for meal and hotel per diem,
living allowances, and fringe benefits are
eligible to the extent they are included in
the recipient’s taxable wages subject to
withholding. Post-production expenses
qualify for the credit if performed in
North Carolina.
U.S. Production Incentives Guide · Winter 2010-2011
To receive the refund, the production
company must file a tax return at the
end of the year and attach Form NC-415.
Once NC-415 is filed, DOR will perform
an audit and issue an audit certificate
that will be filed with the tax return.
The credit will be reduced by any state
taxes owed and the excess, if any, will
be refunded in the form of a check. The
form can be filed as soon as all principal
photography has been completed,
however, you won’t receive your refund
until you file your tax return.
The 7.0% sales and use tax, on items
purchased or rented for making films, is
reduced to 1% with a maximum of $80
for any single item. A certificate, available
on the website, must be prepared and
presented to each vendor.
The accommodations sales tax is re-
funded for stays in excess of 90 days.
There is a substantial crew and equipment
base in North Carolina, with a number
of fully equipped sound stages available,
and a major ten stage studio facility
in Wilmington including a 37,500 sq.
ft stage with an indoor water tank.
Provided there are any credits on the
production, both the North Carolina
Film office and the regional office for
the area where filming took place must
be acknowledged.
North Dakota
Production Guide:
www.ndtourism.com/industry/media-links
There are no production incentives
or film commission, but there is an
on-line production guide. Included is
31
 information about filming on Native 35% (plus a 2% bonus for local music) overview details
American reservations. of documented expenditures made in Oregon’s incentive provides a 20% Unless otherwise permitted by the
Oklahoma directly attributable to the rebate on all in-state expenditures for Oregon Film and Video Office (OFVO),
Hotel stays of 30 consecutive days or
production of a film, television production goods and services, plus a labor rebate applications must be submitted prior
one month are exempt from state/city/
or commercial. “Crew” includes ATL of 16.2% on all cast and crew (resident to the start of production.
lodging taxes. However, stays in excess
salaries paid to loan-out companies, and non-resident), for whom Oregon
of 30 consecutive days or one month are The 10% rebate is based on payments
provided they have registered to do business withholding applies. The labor rate
subject to tax unless they total another 30 made for employee salaries, wages,
in the state, but cannot compromise more consists of two components: a 10%
days or one month. and benefits for work done in Oregon.
than 25% of the total rebated amount. rebate from the Oregon Production
Investment Fund (OPIF), which The 6.2% rebate is based solely on actual
$5 million is appropriated for the current wages. In order to claim the 6.2%
Ohio fiscal year. If a film is not bonded,
requires a minimum in-state spend of
$750,000 to qualify, and 6.2% from rebate, the production company must
rebate money will not be released until (1) submit an application to OFVO
Jeremy Henthorn, Film Office Director Greenlight Oregon, which requires a
Communications and Marketing Division evidence is provided that all Oklahoma within 10 business days of the start
minimum of $1 million to be spent in the
Jeremy.Henthorn@development.ohio.gov crew and vendors have been paid along of pre-production in Oregon and, (2)
state. New legislation provides for
t: (614) 644-5156 with evidence that there are no liens withhold and pay, to the Oregon
f: (614) 644-0108
a “local filmmaker” incentive under
against the production company in the Department of Revenue, a minimum
www.DiscoverOhioFilm.com the OPIF program for projects with
state of Oklahoma. aggregate amount of 6.2% of the qualifying
Oregon spend of $75,000, but less than
Ohio offers a refundable tax credit The state also provides a bricks and $750,000; plus 80% of the payroll must compensation. The 20% rebate is
equal to 25% of the qualified spend mortar tax credit for film and digital be for Oregon residents. There is no based on all other actual expenses paid
(including resident and non-resident facilities, providing $350,000 has been per-project cap but there is an annual in Oregon, including costs paid for
wages for cast and crew) while resident expended. This credit is not assignable cap of $7.5 million per fiscal year. principal photography, production and
wages earn an additional 10%. The and non-transferable. 5% of this increased funding will be post-production in Oregon. Amounts
minimum Ohio spend is $300,000. allocated to the local filmmaker program. paid by the production company to an
The additional 12% investment from individual who receives compensation
The per project maximum is $5 million,
Indion Entertainment Group, a private Note that OPIF is funded by Oregon in excess of $1 million are excluded and
with each episode of a TV series seen as
Oklahoma company working with the residents who purchase shares in the Fund. ineligible for a rebate.
a separate project. There is no withholding
tax on loan-out corporations, but film- Film Commission, is no longer available,
While the employer’s portion of state The OFVO will approve applications
makers must file an Ohio tax return in but it may be reinstated in the future.
and federal taxes do not qualify for the for eligibility if the production: meets
order to earn the rebate. $21 million A comprehensive production guide is incentive, pension, health and welfare the non-monetary portions of the
became available on July 1, 2010. available online. contributions along with the full amount “qualifying film or television production”
of meal and hotel per diems do qualify definition; is reasonably anticipated to
for both residents and non-residents reach the minimum spend requirement
Oklahoma Oregon performing services in Oregon. of $750,000; includes a letter to the
Oklahoma Film & Music Office The Oregon Governor’s Office of Film There are 231 fee-free State parks, and OFVO stating the producer’s intent to
Jill Simpson, Director & Television there is no sales tax on anything. film the production in Oregon and its
jill@oklahomafilm.org Vince Porter, Executive Director Lodging taxes are waived for rooms willingness and ability to enter into a
t: (800) 766-3456 vince@oregonfilm.org
t: (405) 230-8440 held longer than 30 days, and a parking contract with the OFVO setting forth
t: (503) 229-5832
f: (405) 230-8640 f: (503) 229-6869 rebate fee is available. the terms and conditions of the rebate.
www.oklahomafilm.org www.oregonfilm.org The OFVO may deduct reasonable
Oregon Media Production Directory:
http://sourceoregon.com/directory/
costs incurred by the OFVO in veri-
The Oklahoma Film Enhancement Northwest Production Index: fying the production expenditures in
Rebate Program provides a rebate of www.nwfilm.com Oregon, including the costs of an

32 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 33

 outside accounting firm to review Marketing and Development costs do Puerto Rico offers a transferable tax An on-line resources database is provided
the production’s financial records. not qualify. credit of 40% of the monies paid to Puerto on the film commission’s website.
Rican residents and/or entities (labor,
Film processing and post-production services and purchases). The market for
Pennsylvania expenses qualify only if the work is
subject to PA taxes. Note that a film is
these credits is discounted at 8% to 10%. Rhode Island
At least 50% of the film must be shot
Pennsylvania Film Office          complete once it is delivered to investors. Rhode Island Film & Television Office
Jane Saul, Director
in Puerto Rico unless the Puerto Rico Steven Feinberg, Executive Director
jsaul@state.pa.us         A third-party CPA is required; the budget is greater than $1,000,000 and steven@arts.ri.gov
t: (717) 783-3456            audit may not begin until the completed the project obtains the consent of the Film t: (401) 222-3456
f: (717) 787-0687   Commissioner and the Secretary of hotline: (401) 222-6666
film has been delivered and is ready for f: (401) 222-3018
www.filminpa.com          distribution! Audit fees qualify if they Economic Development and Commerce.
www.film.ri.gov
were part of the original budget and A maximum of $15 million is available
Pennsylvania’s film incentive pro- only if paid to an auditor registered to per year which can be increased on a per-
Rhode Island offers a 25% transferable
vides a 25% transferable tax credit, do business in PA, and the bulk of the case basis. Productions with a completion
income tax credit for qualified spend,
with a maximum of $75 million avail- work is performed in the state. bond or letter of credit to the benefit of the
including salaries for both in-state and
able per fiscal year. The most recent Film and television projects qualify, Puerto Rico Treasury Department may be
out-of-state cast and crew working in
budget allocated $60 million for fiscal as do national commercials, but multi- eligible for an advance of 50% of the Rhode Island. There are no salary caps,
year 2010-2011; the tax credit is sched- estimated tax credit. Absent a bond, 50%
media currently does not. but the total production budget must ex-
uled to revert to the full $75 million for of the credit may be made available when a ceed $300,000, and a minimum of 51%
2011 -2012 fiscal year. Production may Both Eastern and Western Pennsylvania government-appointed CPA certifies that of the production must be shot on the
begin immediately, but the credits may (i.e., Philadelphia and Pittsburgh) offer 40% of the money budgeted for Puerto ground in Rhode Island. A total of $15
not be used prior to July 1, 2011. complete crew 3-4 deep in each location, Rican residents has been paid. Most million per year is available.
equipment rentals, processing, and post- equipment and crew is available locally.
To qualify, 60% of the total  production
production. There is a comprehensive Only purchases from vendors who
spend, including post, must be for The tax credits, or the balance if an maintain a place of business in Rhode
“qualified Pennsylvania expenses.” on-line production directory, with printed advance is obtained, are certified after; Island, and (1) are subject to Rhode
The incentive is then calculated on the versions available on request. (1) an agreed upon procedures audit Island taxation, and (2) are qualified
qualified (i.e., Pennsylvania) expenses. Program summaries and forms are of the payments made to Puerto Rico to do business in Rhode Island, will
Cast and crew need not be Pennsylvania available at http://filminpa.com/incentives residents by a government-appointed qualify for the incentive. The motion
residents, provided their wages are CPA is completed, and (2) the Treasury picture production company must be
subject to state taxes. Also, goods and Department certifies the tax credits. The domiciled in Rhode Island.
services necessary for the production
of the film qualify, but they must be Puerto Rico Treasury Department has 60 days to
certify the tax credits after it receives the “Total production budget” is defined
purchased from Pennsylvania vendors Puerto Rico Film Commission report from the auditor. as all production costs including, but
or through a Pennsylvania service Mariella Perez, Executive Director not limited to, the purchase of the
company. There is an aggregate talent mperez@puertoricofilm.com To apply for the incentive, projects must screenplay, salaries, equipment, film
cap of $15 million per picture. t: (787) 758-4747 ext 2251 be endorsed in advance by the Puerto processing, sound, editing, and other
f: (787) 756-5706 Rico Film Commission and approved by services related to a production filmed
Loan-outs must register to do business
the Secretary of the Treasury. The Film in Rhode Island, and excludes costs
with the state prior to the beginning of Nadia Barbarossa
nbarbarossa@puertoricofilm.com
Commission charges a license fee equal associated with the promotion
their services to qualify.
t: (787) 758-4747 ext 2250 to 1% of the Puerto Rico budget, which it or marketing of the film, video or
Production insurance, completion bond f: (787) 756-5706 uses to manage and promote the incen- television product. Insurance and com-
and workers compensation qualify if www.puertoricofilm.com tive program and to pay for the agreed pletion bond are excluded. The credit shall
purchased from a Pennsylvania vendor. upon procedures audit. not exceed the total production budget and

34 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 35

 can offset income tax for the taxable period
in which the credit is earned, or can be
carried forward for not more than three
(3) succeeding tax years. Transferring
the credits requires notifying the Rhode
Island Film Office, and paying a fee of $200.
An application must be filed prior to
the start of production.
There is an experienced local crew base,
but cast (including loan-outs) and crew
from anywhere qualifies for the incentive,
as long as they are working in the state.
The state website includes location shots
and a production guide.
Carolina suppliers. Everything purchased
in the state from a local supplier that
is used for the production qualifies.
Productions may qualify for an
exemption of the 6% sales and use tax.
The production company must complete
an Incentive application in advance of the
production. An audit is conducted by
the state at no cost to the production, and
the rebate check is cut within 30 days of the
completion of the audit and verification of
compliance with the South Carolina
Department of Revenue. The wage rebate
is assignable to a financial institution.
For South Carolinians that invest in film
production: A non-transferable invest-
South Dakota provides for a refund
of state sales/use taxes and contractors’
excise taxes for filming motion pictures,
documentaries, commercials, and made
for television productions. The minimum
spend is $250,000 of taxable costs
in South Dakota. Goods and services
purchased from out-of-state qualify in
South Dakota if South Dakota Sales or Use
tax is paid. The production company must
apply for the tax refund through the state
Department of Revenue and Regulation
at least 30 days prior to filming. This
application can be  found online at
www.filmsd.com. The refund claims are
non-assignable and non-transferable. Only
the state sales/use or contractor’s excise
The first program, administered by the
Tennessee Film, Entertainment and
Music Commission provides a 17%
rebate of total qualified production
expenditures in the State of Tennessee.
Live coverage of events, including
news, sports, concerts and awards
shows; music videos; industrials and
corporate marketing or training videos;
projects consisting primarily of stock
footage and/or interviews; trailers
promoting theatrical films, website
development, and anything that is not
original film or television content
recorded in Tennessee, do not qualify for
the incentive. Also, the post-production of
a project that did not shoot in Tennessee

South Carolina ment tax credit of 20% for residents is

available up to a maximum of $100,000
taxes on taxable expenditures in excess of
$250,000 are refundable. You must file
will not qualify.
The rebate is calculated on the total
South Carolina Film Office per investor; all credits cannot reduce a for a refund within 60 days of completing
Contact: Tom Clark
qualified Tennessee spend with
taxpayer’s tax liability by more than 50% work in SD. The state will process the re-
1205 Pendleton Street, Room 529 a $250,000 “cap” for Tennessee
and may be carried forward 15 succeeding fund within 30 days of receipt of the return.
Columbia, SC 29201 personnel. A production company
t: (803) 737-0498 tax years. Interested producers should This incentive will sunset on June 30, 2011.
headquartered outside the state
f: (803) 737-3104 contact the film commission, as they may must spend at least $500,000
South Dakota has no corporate or
www.FilmSC.com be able to make an introduction to a local
personal income tax. Both state and local per production/per episode, and a
partner. $15 million is currently available. production company headquartered
sales taxes are waived for a hotel stay of
Provided the total production cost expended Charleston and Rock Hill can supply 28 consecutive days or more. within the state must spend at least
in South Carolina exceeds $1 million, crew and some department heads, $150,000 per production/per episode,
South Carolina offers an assignable 20% with smaller crew bases available in on qualified expenditures in Tennessee
wage rebate for all cast and for local crew Columbia and Greenville. A searchable Tennessee within 12 months after the Certificate
and a 10% rebate for out-of-state crew database is on the website. of Conditional Eligibility is issued.
Tennessee Film Entertainment and
(capped at $3,500 per person); however,
Music Commission It is highly recommended that all
this amount may be negotiated up to Perry Gibson, Executive Director
20%. Excluded are salaries that exceed South Dakota perry.gibson@tn.gov
t: (877) 818-FILM (3456)
production companies contact the
Tennessee Film, Entertainment and Music
$1 million. Wages paid to loan-out and
South Dakota Film Office t: (615) 741-3456 Commission to discuss their project
personal service corporations also qualify
Katlyn Richter, Media Relations Representative f: (615) 741-5554 and incentive eligibility before applying.
for the rebate if South Carolina withholding filmsd@state.sd.us www.tn.gov/film
tax (2% for loan-outs) is paid. t: (605) 773-3301 Expenditures are considered “qualified
f: (605) 773-3256 expenses” only to the extent that the
For qualifying television series, the www.filmsd.com The State of Tennessee has two incentive costs are clearly and demonstrably in-
wages of all non-residents are eligible
plans, which when combined, can curred in Tennessee in the pre-production,
for the maximum 20% rebate. South Dakota Department of Revenue
and Regulations possibly total a 32% rebate for quali- production or post-production phases of
Additionally, there is a 30% goods and Richard Benda, Cabinet Secretary fied Tennessee spend, subject to the a qualified production. Incurred in the
services rebate for purchases from South t: (605) 773-3301 state’s discretion.  state means payments made for goods

36 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 37

 or services used in the state in connection Under the first option A; total Texas Old
OldBarn
BarnAfter
AfterSnowstorm
Snowstorm,, Texas

with a qualified production and purchased qualified spend, if the spend is between
from a local Tennessee vendor or paid to a $250,000 and $1 million, the rebate
Tennessee resident. Currently $5 million is 5%. Between $1 million and $5
is available. million, the rebate is 10%. Above $5
million, it is 15%.
The second program is administered by
the Tennessee Department of Revenue, The second option, total qualified Texas
and provides a 15% rebate of total qualified wages; the rebates are 8% between
productions expenditures and requires $250,000 and $1 million, 17% between
that a certified Tennessee Headquarters $1 and $5 million, and 25% above $5
company spend at least $1,000,000 on million. This is a direct payment from
production in the state. There is no yearly the state — no tax credits are involved.
ceiling for this program.
Option A requires a full certified audit
Memphis & Shelby county has a local of all qualified expenses, which will be
wage training refund in addition to the expensive and time-consuming.
state program. Please contact Linn Sitler
Note that 60% of the shooting days
for more details.
must be in Texas, and at least 70%
linn@memphisfilmcomm.org of paid cast and crew must be Texas
residents. Anything less than 70% will
http://www.filmmemphis.org/
result in a loss of the entire credit.
memphis/incentives.
Also, the State of Texas is not required
to make payments to projects that in-
Texas clude inappropriate content or content
that portrays Texas or Texans in a
Texas Film Commission
Bob Hudgins, Director negative fashion. It is not clear if this
film@governor.state.tx.us determination is based on evaluation of
t: (512) 463-9200 the screenplay, or the finished product,
f: (512) 463-4114 but an arbitrary determination could
www.texasfilmcommission.com
cause problems for many productions.

overview More details on this incentive are avail-

The Texas Moving Image Industry able at http://bit.ly/cqhgoX
Incentive Program, which applies to Texas has always had a substantial
commercials, television, feature films, crew base and infrastructure, which is
talk shows and reality programs offers up expected to grow as producers become
to 15% of all qualified expenses, or 25% aware of the new incentive.
of qualified labor (less for talk and reality
programs).  Shooting in underutilized or
economically distressed areas can add
2.5% to the 15% rebate (17.5%) or 4.25% to
the 25% option (for a possible 29.25%).

38 The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 39

 Utah
Utah Film Commission or longer.
Marshall Moore, Director 20%. $2.5 million will be available
mdmoore@utah.gov A CPA audit is now required.
t: (800) 453-8824
http://film.utah.gov Utah is a right-to-work state.
Film Resource Directory: July 1, 2011 are now being accepted.
http://film.utah.gov/resources.htm Vermont
The State of Utah offers a 20% tax credit
or cash rebate on expenditures made in
Utah for film and television productions.
Producers now have a choice of tax credits
equal to 20% of the in-state spend, with
no per project cap (however a Utah tax
return is required), or a cash rebate equal
to 20% of the in-state spend, with a cap of
$500,000 per project. $15,587,400 of tax
credit is available for fiscal years 2010 and
2011, and $2,206,300 for the cash rebates
for fiscal year 2010.
Another $2,206,300 was made available
for the cash rebate for fiscal year 2011.
Productions are required to have a
minimum spend of $1 million in
the state.
Utah also offers an “Under $1,000,000
Film Incentive” where qualifying
productions can receive a cash rebate
of 15% on qualified spend.
The film incentive application is
available online at http://film.utah.
gov/incentives.htm. All film incentive
applications must be approved by The
Governor’s Office of Economic
Development Board.
Utah also offers a Sales and Use Tax
Exemption, which exempts sales tax
on rental and sales of film and video
equipment. In addition, the state offers a
Transient Room Tax Exemption which
40
exempts sales or sales-related taxes for
accommodations of 30 consecutive days
Virginia has passed legislation that
will provide a refundable tax credit
commercial, television, and feature
film productions selected for funding
beginning January 1, 2011, of 15% to by WF. There is no per project cap.
WF raises $3.5  million per calendar
per year. Current funding is already year. All fringes qualify. It is possible
committed; however, applications for to negotiate waivers for a few key crew
projects slated to begin production after members; interested producers should
contact Washington FilmWorks.
Additional state incentives include an details
Vermont Film Commission exemption from state sales and use taxes In order to qualify, the production must
Joe Bookchin, Executive Director and hotel taxes for stays of 30 days or meet the following in-state spending
joe.bookchin@state.vt.us more in many localities. In most cases, thresholds: $500,000 for feature films,
Perry Schafer, Deputy Director          
state-owned locations are provided free $300,000 for television productions and
vermontfilm@vermontfilm.com
t: (802) 828-3618       of charge. Based on availability, use of $150,000 for commercials. Principal
f: (802) 828-0607        a state-owned 35,000 square foot office photography must begin no later than 120
www.vermontfilm.com           building for office and production is days after receiving the Funding Letter
possible. The building has a 30´ ceiling of Intent from WF. The production must
in certain sections and is in the City of make industry standard payments for
Vermont offers an exemption from the
Richmond. The Film Office specializes health insurance and a retirement program
6% sales tax for all direct production
in assisting in negotiating other free or for positions typically covered by collective
expenses, which are defined as costs
low-cost locations that have historically bargaining agreements. Within 60 days
essential to the production of a film. A
resulted in significant savings to of completing principle photography,
lamp that appears in the film qualifies; a
productions shooting in the state. the production must (1) submit a cost
lamp for the production office does not.
report detailing all in-state expenditures
It is possible to assemble most crew
A 9% accommodations tax is waived if and compensation paid to Washington
locally. There is a production directory
the room rental is for 31 days or more, residents; (2) file a completed survey
available on-line.
and must be contracted in advance. with the Department of Commerce. In
addition, the production must contain
Non-resident performer’s income tax
is limited to that of their home state, or Washington   an end credit acknowledging the
production was filmed in Washington
the Vermont rate, whichever is lower.
Amy Lillard Dee, Executive Director State and, the producer must submit
There is an on-line resource database.
WashingtonFilmWorks   a viewable copy of the final production
Recent legislation has been introduced amy@washingtonfilmworks.org                when commercially available.
to create a transferable tax credit which t: (206) 264-0667    
the Incentives Office helped support. f: (206) 382-4343 Qualified expenses include per
www.washingtonfilmworks.org diem not to exceed the IRS rate or
Northwest Production Index:        
the minimum per diem amounts
Virginia www.nwfilm.com
as outlined in applicable collective
bargaining agreements. Qualified
Virginia Film Office overview
Rita McClenny, Film Commissioner
labor includes compensation paid to
Washington FilmWorks (“WF”) now
rmcclenny@virginia.org Washington residents.
offers a rebate of 30% of total in-state
t: (800) 854-6233
t: (804) 545-5530
qualified film related expenditures Non-eligible expenses include: pay-
f: (804) 545-5531 (including labor and talent who ment of penalties and fines; postage
www.film.virginia.org are Washington state residents) to and cell phone reimbursements.
The Incentives Office U.S. Production Incentives Guide · Winter 2010-2011 41
 A production may be disqualified from
receiving assistance if: principal
photography started before WF issues
a Funding Letter of Intent, principal
photography does not start within 120
days of receiving Funding Letter of
Intent, or the production schedule is
not being met.
Sales and use tax will be waived for rental
equipment and purchase of services and
vehicles used in production. A pro-
duction’s ability to claim the sales and
use tax exemption is not affected by the
receipt of funding assistance from WF.
Both sales and lodging taxes are waived
for stays of 30 or more consecutive
days if contracted for in advance. If
not contracted for in advance tax is
due on the first 29 days.
West Virginia
West Virginia Film Office www.filmwisconsin.net
Pam Haynes, Director
Pamela.J.Haynes@wv.gov
t: (304)-957-9382 and issued an approval letter, shall be
f: (304) 558-1662 placed at the top of the queue for
www.wvfilm.com
overview
The West Virginia incentive provides
a transferable tax credit of 27% on all
labor, talent, rentals and purchases in
the state, plus a 4% bonus for hiring
10 or more resident labor and talent.
The incentive applies to both resident
and non-resident wages for talent,
management and labor, provided that
wages are subject to WV income tax.
details
The current incentive is a transferable
income tax credit with limitations, as
42
noted above. The incentive is essentially
a 27% tax credit on all direct production
expenditures (for pre-production,
production and post-production),
including all labor and talent that is
subject to taxation by the state of West
Virginia. By hiring 10 or more residents
(talent and/ or crew), it is possible to
increase the total allowable credit by an
additional 4%, bringing the maximum
credit to 31%. The minimum expenditure
requirement is $25,000 and the state
is limited to approving no more than
$10 million per year. Payments to a
personal service corporation (“PSC”)
for out-of-state talent can qualify if the
PSC pays West Virginia income tax on
the payments and the talent pays West
Virginia income tax on the payments
received from the PSC.
If the credit exceeds the current year tax
liability, the excess may be carried forward
for two years, after which it expires.
A television series that has been approved
an open allocation period on each
subsequent year in the life of that series
whenever credits are assigned within
a fiscal year. Queue placement in
subsequent years will be based on the
year of original application and original
queue number assigned for that series.
Each TV series must submit a new
application for each season prior to any
open application period.
West Virginia also offers an exemption
from sales tax for qualified productions
such as films, television programs,
commercials and, music videos. Pur-
chases and rentals of tangible personal
The Incentives Office
property, in addition to the purchase of overview
services, directly used in a qualified Wyoming’s Film Industry Financial
production are exempt from the 6% Incentive program provides a cash
sales and service tax. rebate of up to 15% of qualified in-state
production costs, with a minimum
Lodging stays in excess of thirty in-state spend of $200,000. There are
consecutive days are exempt from additional criteria to determine the
both the sales/service tax (6%) and rebate percentages, which can range
the local hotel/motel tax (varies by from 12%–15%. Generally, wages or
other compensation for technical and
region). The Film Office may be able
production crews, directors, producers,
to negotiate discounts, e.g., discounted
performers, and extras who are residents
location fees, office space rental,
of Wyoming qualify. In addition,
lodging, vehicle rentals, etc.
expenditures on goods and services in
Wyoming for pre-production, production,
There are both on-line and download- post-production, digital media effects,
able production resources directories rental equipment, meals, lodging, sets
available on the website. and set construction qualify.
details
Wisconsin Expenditures qualifying for the rebate
include costs for goods and services
Film Wisconsin
David Fantle, Executive Director purchased or leased in Wyoming. No
DFantle@milwaukee.org      reimbursement will be made until the
t: (414) 287-4253 qualified production is complete and
substantially all contractual commit-
ments to the business council have
been fulfilled. If the production is not
The Governor has reduced the total
completed according to a reasonable
allocation for the current fiscal year to
schedule, the agreement may be
$500,000.
terminated and the fund reallocated
The new studios in Milwaukee are to other productions. The production
now open for business, with additional company must agree to retain all
facilities planned for Madison and records related to the project for
three years following the date of the
Green Bay.
closeout of the contract.
The council will determine a rebate
Wyoming percentage between 12% and 15% based
Wyoming Film Office
on a number of Wyoming-related criteria.
Michell Howard, Manager Lodging tax is waived for hotel/motel
t: (800) 458-6657
stays in excess of 30 days.
t: (307) 777-3400
f: (307) 777-2877 The website includes a comprehensive
info@filmwyoming.com listing of production resources.
www.filmwyoming.com
U.S. Production Incentives Guide · Winter 2010-2011 43
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46 The Incentives Office