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Economic and Fiscal Impacts of Texas’ Moving Media Industry

Appendix C
Incentives by State

State Tax Credit, Rebate, Reimbursement or Investment Incentives Sales and Use Tax Exemption/Rebate Hotel Tax Exemption Other Incentives Info Updated
Alabama Exemption on 4% tax to qualifying productions. Exemption for qualified productions. Jun-07
Alaska Tax Credit of 30% for expenditures including ALL cast & crew. Additional 10% for wages to Alaska residents. Additional 2% if filming in rural area. Additional 2% if filming between October – March. To qualify, must spend $100K in 24 months. No salary cap. Credits are transferable and capped at $100 million per year. No state sales tax. No tax on occupancy. No state income tax. Jul-08
Arizona Income Tax Credit provides tiered, transferable credit for Arizona production costs including wages – 10% if spending $250K-$1M, 15% if spending $1M-$3M and 20% if spending over $3M. To qualify, 25% of full-time employees must be Arizona residents in 2006, 35% in 2007 and 50% in 2008. Capped at $5M per project, $30M per year (increasing by $10M every year until 2010). Must choose between income tax credit OR sales tax exemption. Exemption on 5% tax for production spending. Occupancy tax exemption for productions. Fuel Use Tax exemption on production vehicles entering state for use on location. Jun-07
Arkansas Rebate of 5.125% tax to companies spending $500K in six months or $1M in 12 months. Jun-07
California No tax on production/post services. 5% exemption on purchase/lease of post-production equipment. No state tax on occupancy. Local tax after 30 days. No location fees for state property. Unused state buildings available to filmmakers. Jun-07
Colorado Cash Rebate of 10% of below-the-line costs. To qualify, 75% of Below-the-Line spending, (i.e. salaries for non-starring cast members and film crew, items needed for production, etc…) must be with Colorado businesses and 75% of crew must be Colorado residents. No tax on production services. Tangible property is taxed. After 30 days. Jun-07
Connecticut Business Tax Credit of 30% for qualified digital media and motion picture production expenses (including pre and post) incurred in Connecticut. Must exceed $50K in spending to qualify. Includes goods, services and labor. Credits are transferable and carry forward for 3 years. No annual or per-production cap. Exemption on 6% tax for most production services and rentals. After 30 days. No location fees for state property. Five-year exemption on local property taxes for machinery/equipment used in production. State reimburses municipalities for taxes they waive for brick and mortar facilities. Apr-06
Delaware No state sales tax. Apr-06
Florida Entertainment Industry Financial Incentive provides qualifying productions with 15% reimbursement on total cost of approved Florida expenditures when spending minimum of $625K in Florida. Projects placed in queue and funds certified to projects in queue until funding exhausted. Award capped at $2M per project. Appropriation for fiscal 2008 capped at $25M. Exemption on 6% tax for most production services and rentals. No state income tax. May-07
Georgia Income Tax Credit of 9% of all Georgia spending including personnel/services brought into the state to companies spending at least $500K in calendar year. Wages limited to first $500K per individual. Additional 3% credit for wages to Georgia residents. Additional 3% credit for spending in underdeveloped counties. Additional 2% credit if spending exceeds $20M in calendar year. Credits carry for five years and can be sold for minimum of $0.60 on the dollar. The 2008 Entertainment Industry Investment Act reinforces and strengthens Georgia’s position within the entertainment industry. The new, more competitive incentives replace those currently in use by offering a 20 percent tax credit for qualified productions, which are then eligible for an additional 10 percent tax credit if they include an animated Georgia promotional logo within the finished product. Exemption on 7% tax for most production services/rentals including certain vehicles. Georgia Production Partnership Program – Statewide discount program offered through an alliance of industry specific service/material providers, professional organizations and support businesses. Oct-08
Hawaii Income Tax Credit of 15 – 20%. 15% of production costs if filming in Oahu; 20% if on a neighbor island. $8 M cap per production. “Qualified production” spends $200K + in “qualified production costs” in Hawaii. Applies to film, television, commercials, music videos, and gaming. Must demonstrate reasonable efforts to hire local talent and crew. Must make a financial or in-kind contribution or educational or workforce development efforts, in partnership with related local industry labor organizations, educational institutions, or both, toward the furtherance of the local film and television and digital media industries. Up to 7.25% rebate with same percentages and qualifications as income tax credit. High Tech Investment Tax Credits for production entities provide a 100% return over five years for investments up to $2M per year per qualifying business. Business is required to be an employer, own capital / property or maintain an office in Hawaii, stay in business for five years and conduct 75% of all business in Hawaii. Sep-08
Idaho 20% rebate for qualifying productions on all goods and services purchased in Idaho. Capped at $500,000 per production. After 30 days. Apr-06
Illinois Income Tax Credit of 20% of wages paid to Illinois resident (35% if resident from high unemployment area) and 20% of Illinois production spending. Wage credit limited to first $100K paid to each employee. Minimum spending to qualify: $100K for projects over 30 minutes and $50K under 30 min. Credits are transferable. After 30 days. Apr-06
Indiana After 30 days No location fees for state property. Production-related businesses with tax liability in Indiana can qualify for 10% tax credit for investment in equipment or buildings. Apr-06
Iowa Investors earn 25% of qualified spending as transferable Iowa income tax credits. Producers earn 25% of qualified spending as transferable Iowa income tax credits. No cap on projects or program. Applies to “film, video and television” productions. Sep-08
Kansas 30% tax credit of the direct production expenditures made in Kansas that are directly attributable to the production of a film in Kansas. $2M in funding available. Applies to any “film, video, commercial or television production.” Rebate of 4.9% sales tax. After 28 days. Sep-08
Kentucky Rebate of 6% sales tax on expenses including lodging, meals, office equipment and utilities. Apr-06
Louisiana Investor Tax Credit of 25% of total production expenditures (including payroll, except portion of any salary over $1M) for projects spending at least $300K in Louisiana. Payroll to Louisiana residents receives an additional 10% credit. Credits are transferable and can be carried forward for 10 years. Louisiana repealed the 4% state tax exemption over a year ago. Now there is no tax exemption, either state or parish. Combined, taxes can be as high as 9%. Effective January 1, 2006, the Sales and Use Tax Exemption is no longer part of Louisiana’s incentive package. After 30 days. Oct-08
Maine A wage rebate equal to 10% of non-Maine residents’ wages and 12% of Maine residents’ wages. Income tax offset for companies investing in Maine productions. Applies to film, television, video, commercials, photographic project, interactive computer or video game. Exemption of 5% tax for approved productions on production-related expenses. After 28 days No location fees for state property. Exemption from tax on 95% of the cost of fuel/electricity used at production sites such as locations/studios. Free use of surplus state property such as furniture/office equipment. Sep-08
Maryland Wage Rebate Grant of 50% of wages, limited to the first $25K paid and excluding anyone making $1M or more. Project must spend $500K in Maryland to qualify. Grant capped at $2M per project with annual appropriation of $4M. Exemption on 5% tax for approved production services and rentals including vehicles. After 30 days. Apr-06
Massachusetts Income Tax Credit of 20% of Massachusetts payroll (excluding salaries of $1M or more) when spending at least $250K in the state. Projects spending more than 1/2 of days or cost in Massachusetts also receive 25% credit on all production expenses incurred in state (excluding payroll). Credits capped at $7M per project. Exemption on 5% tax if spending more than $250K in any one-year period. After 90 days. Productions provided with office and stage space at no cost except for utilities in vacant state-owned properties. Apr-06
Michigan Income Tax Credit of 40% of Michigan expenditures. Project must spend at least $50K in Michigan. Extra 2% may be claimed if filming in certain areas. Wages (capped at $2M per employee) credited at 40-42% for BTL Michigan residents and all Above-the-Line personnel (those with wages negotiated before filming takes places, i.e. producer, director, actor, etc). Wages credited at 30% for non-resident BTL crew. After 30 days. Jun-08
Minnesota 15% rebate (“Snowbate”) on production costs for film, television, video and commercials. $1.7M in funding available. TV commercial production exempt from 6.5% sales tax. After 30 days. Sep-08
Mississippi Income Tax Rebate of 10% on all production expenditures in Mississippi (except payroll). Payroll Tax Credit of 10% of the total aggregate payroll for Mississippi residents employed by a state-certified production. Exemption from 7% tax on production material. Tax reduced to 1.5% for production equipment such as cameras. Apr-06
Missouri Income Tax Credit of up to 50% of production expenditures (labor, equipment, lodging, food, property rental, etc.) in Missouri not to exceed $1M/project. Company must spend $300K or more in Missouri. Annual appropriation is capped at $1.5M/year. After 31 days. Apr-06
Montana Wage Rebate of 12% of the first $50K paid to Montana residents. Spending Rebate of 8% of total Montana spending. Total of both rebates capped at $1M per project. Rebate applied against Montana tax liability with any remainder refunded directly to the production. $500 application fee. No state sales tax. After 30 days. Out-of-state vehicles used in production exempt from licensing for 180 days. Out-of-state equipment used in production exempt from property tax for 180 days. Apr-06
Nebraska After 30 days. Apr-06
Nevada After 30 days. No state income tax. Apr-06
New Hampshire No state sales tax. No property tax on equipment/machinery. No state income tax. No permit fees. Apr-06
New Jersey Income Tax Credit of up to 20% of production expenses when at least 60% of total production expenses are spent in New Jersey. Filming must commence within 150 days of credit application approval. Exemption from 6% tax on tangible property, machinery and equipment. After 14 days. Loan Guarantees for projects spending 50% of below-the-line budget and 70% of production days in New Jersey. Guarantee cannot exceed 30% of financing cost or $1.5 million, whichever is less. Apr-06
New Mexico Income Tax Rebate of 25% of eligible New Mexico production and post-production costs including wages. Must choose income tax credit OR sales tax exemption for each expenditure. Film Investment Program – interest-free loans/equity investment up to $15M per project. No state sales tax. Not to be used in conjunction with the 25% tax rebate. Type 16 Nontaxable Transaction Certificates (NTTCs) work much like grocery-store coupons. A certificate is presented at the point of sale and no gross receipts tax (sales tax) is charged. (Used primarily for commercials and public service announcements). Exemption from state and local tax on production related costs. After 30 days. Mentorship Program provides 50% wage reimbursement to productions providing on-the-job training to NM crew. No location fees for state property. Oct-08
New York Income Tax Credit of 30% of eligible production expenditures including payroll. Production must film at least 75% of total stage work on a qualified New York soundstage. Funded at $60M per year until 2012. New York City provides additional 5% tax credit up to $30M annually for filming in New York City. Separate fund of $42M for commercial producers provides same 10% credit without soundstage qualification. Manufacturing exemption of 4% tax including fuel and utilities. New York City provides free permits and free police and also offers a discount card to productions that provides a minimum 10% discount and other special offers at more than 200 local vendors including production services, hotels, car rentals and parking. Jun-08
North Carolina Income Tax Credit of 15% of North Carolina production expenditures including payroll. Requires minimum spending of $250K and capped at $7.5M per project. Productions with tax burden exceeding 15% spending rebate will have difference picked up by state. 1% cap on 6.5% tax for production related expenses. Apr-06
North Dakota After 30 days. Apr-06
Ohio After 30 days. Apr-06
Oklahoma Film Enhancement Rebate provides cash rebate of 5-15% of Oklahoma production expenditures depending on percentage of Oklahoma residents on BTL crew (5% rebate for 0-24% Oklahoma crew, 10% for 25-49%, 15% for 50+%). Requires minimum budget of $2M and Oklahoma spending of $1.25M, completion bond, distribution agreement within one year and Oklahoma screen credit. Appropriation capped at $5M/year. Must choose between rebate OR sales tax exemption. State and local sales tax exemption on production related goods and services. After 30 days. Tax Credit for Oklahoma Film Projects – Oklahoma taxpayers receive income tax credit of 25% on film profits when profits are reinvested in another film project. Tax Credit for Facilities Construction – gives companies 10-25% income tax credit when building production facilities in Oklahoma. Credit cannot exceed tax liability and is non-transferable. Apr-06
Oregon Production Investment Fund offers 10% rebate on Oregon production expenses; minimum $1M in spending to qualify, capped at $250K per film and $30K per episode for TV series. Labor Rebate Fund rebates 6.2% of wages from which Oregon income tax was withheld to projects spending at least $1M. Vendor Rebate gives a 10% discount on goods/services from registered Oregon vendors to projects spending at least $1M. No state sales tax. After 30 days. Apr-06
Pennsylvania Income Tax Credit of 25% of Pennsylvania production expenses (including payroll) when at least 60% of total production expenses are spent in Pennsylvania. Credits are transferable and can be carried forward for three years. Total credits can not exceed $75M in any fiscal year. Exemption from 6% tax on production related goods and services. After 30 days. No location fees for state property except for actual costs incurred by affected department or agency. Oct-07
Rhode Island Motion Picture Tax Credit provides 25% credit for Rhode Island production expenses including wages. Must film primarily in Rhode Island and have budget of $300K. Investment Tax Credit to RI residents investing in Rhode Island based production. Credit is 15% for budget between $300K – $5M and 25% if budget over $5M. After 30 days. Apr-06
South Carolina Payroll Tax Rebate of 20% of total (not South Carolina) payroll when spending in South Carolina exceeds $1M. Rebate cannot exceed withholding on South Carolina income tax. Rebate applies to all crew, cast and extras earning less than $1M and subject to South Carolina withholding tax. Spending Rebate of up to 30% of South Carolina spending if total spending is $1M or more. Funded by appropriation of 13% of admissions tax. ($4-5M/year). Exemption from state and local tax on film-related expenses if spending $250K or more in a 12-month period. After 30 days or if spending 250K or more. No location fees for state property. Production Company Credit of 10% of total South Carolina investment if investment is more than $500K in calendar year. Investor Tax Credit of up to 20% of investment in SC film or facility. Oct-06
South Dakota After 28 days. No state income tax. Apr-06
Tennessee Incentive Test Fund of $10M will provide 13% rebate of Tennessee BTL spending if out-of-state company spends more than $500K in Tennessee. In-state company must spend more than $200K to qualify. Rebate increases to 15% if using 25% Tennessee cast and crew. Rebate increases to 17% if using $20K of Tennessee music. Rebate of 7% sales tax to production companies spending $500K in 12 months. After 30 days. No state income tax. No location fees for state property. No state or local permit fees. All truck permits, fees and fuel taxes waived except for overweight and/or oversized vehicles. Oct-06
Texas Moving Image Industry Incentive Program returns 5% of TX spending for film/TV projects spending at least $1M and commercials/video games spending at least $100K in Texas. 80% of production must be completed in Texas and 70% of crew/cast must be Texas residents. Capped at $2M for films, $2.5M for TV, $200K for commercials and $250K for video games. Grant increases to 6.25% if 25% of production occurs in underused area. Exemption from state and local sales tax on production-related expenses. After 30 days. No state income tax. Jun-07
Utah Industrial Assistance Fund provides 10% rebate (12% if project set in Utah) of production dollars spent in Utah. Fund capped at $1M/year. Rebate capped at $500K for feature film, $250K for TV movie, $100K per episode for TV series. Rebate only 8% if Utah return on investment drops below $3.50. Exemption from 4.75% sales tax on production related expenses. After 30 days. Apr-06
Vermont Film Production Grant Program provides 10% reimbursement of Vermont spending for productions spending over $1M in Vermont. Grants are first-come, first-serve and are capped at $1M annually. Salaries over $1M are excluded from the spending calculation. Exemption from 5% sales tax on production related expenses. After 30 days. Tax liability of nonresident performers subject to income tax derived from business conducted in Vermont is limited to the amount they would pay in their home state. Oct-06
Virginia Incentive program in place but up to the discretion of the governor’s office. $200K in funding available. Exemption from 4.5% tax for production-related expenses. After 90 days. No location fees for state property. Sep-08
Washington Competitiveness Fund provides up to 20% rebate of in-state expenditures if spending $500K (film), $300K (TV) or $250K (commercial). Fund is $3.5M with a cap of $1M per project. Exemption from 6.5% tax on production-related expenses including rental vehicles. After 30 days. No state income tax. Seattle permits only $25 per day including rental of city-owned property. Indie Vendor Deal provides 30-70% discounts from participating vendors for projects with budgets between $500K-$3M Apr-06
West Virginia 31% transferable tax credits on direct production and post-production in-state spend. No per project cap. $10M in funding available. Applies to film, television, commercials, videos and still photography. Sep-08
Wisconsin Effective July 2007: Tax Credit of 25% of direct production expenditures for films, TV, video games and commercial production. Investment tax credit of 25% for investing in WI based productions. Income tax credit of 15% for film, TV and electronic game production businesses that make a capital investment by starting a business in Wisconsin. July 2007: Exemption for machinery, equipment and services used in production and post. No tax for all services contracted by out-of-state production companies. Free use of state-owned property, no-fee permits and dedicated “traffic control” police unit free of charge available on a city-by-city basis. Jun-06
Wyoming After 30 days. No state income tax. Participating Wyoming businesses offer a 10% discount to productions. Apr-06
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