![]() ![]() When picking a location, weigh the costs and benefits of shooting at a local destination vs. Transferable Refundable Tax Credit: The production company can transfer their tax credits to a local company to reduce or eliminate their tax liability.įilm tax incentives differ across every state.The state repays production companies' excess production credits after all income tax is paid. Refundable Tax Credit: This is applicable only on tax credits. ![]() Bonuses: These are additional perks offered to producers, such as shooting at locations free of cost, special permissions for filming in public places, hiring local staff, or discounts while buying from local businesses.They are similar to grants, but they are taxable. Film Tax Rebates: Film tax rebates are paid to production companies by the state, usually as a percentage of the company's qualified expenses.Grants: The state issues a tax-free payment to production companies for filming.Here’s a breakdown of the most common film industry tax incentives: There are several types of incentives offered to production companies, and each state uses a different combination of these incentives to encourage production companies to film in their state. Tax benefits allow you to save money on taxes, get discounts on local goods, and even receive cashback from the state, making a considerable difference to your (ever-shrinking) budget for your next project. Why do film tax incentives matter to producers?Īs a producer, we don’t need to tell you that you spend huge sums of money when shooting your projects. However, the structure and type of tax benefits vary by state. States benefit through movies being filmed in their area because it drives the economy through employment opportunities, revenue, and related infrastructure development. These incentives were created in response to an increasing number of movie productions shifting to other countries, like Canada. ![]() Tax incentives for production companies were introduced in the 90s and provided a win-win scenario for both production companies and the state. ![]()
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