The Economic Impact of the UK Film Industry - BFI - British Film ...

NAME OF
SCHEME
LOUISIANA Louisiana Motion
Picture Incentive
Program.
MASSACHUSETTS Massachusetts
Motion Picture
Tax Incentive.
NEW JERSEY New Jersey 20%
Tax Credit
Program.
Economic Contribution of the UK Film Industry
TYPE OF TAX
SYSTEM
Transferable
tax credits.
Transferable
tax credit.
Saleable and
transferable
tax credit.
WHAT IT
SUPPORTS
July 2007
HOW DOES IT WORK?
Production only. Investors in certified productions
– which require the setting up of a
local production company and
must have a “viable multi-market
commercial distribution plan” –
spending $0.3m or more in
Louisiana get a transferable 25%
tax credit on in-state spending.
The state will purchase the
credits for 72 cents on the dollar.
An additional 10% credit applies
to payroll costs for state residents
(with individual payments over
$1m excluded) and a 15% credit
to investment in certified
infrastructure projects.
Production only. 20% tax credit on a production’s
total payroll in the state.
Additional 25% tax credit based
on all production expenses in
Massachusetts, provided at least
half the film is shot in the state or
half of the expenses are spent in
the state. Credits can be carried
forward for up to five years or
sold to another corporate
taxpayer. Eligible productions
also exempt from paying sales
tax in the state.
Production
(including post if
done in-state).
Producers who spend 60% of
their below-the-line budget in
New Jersey (exclusive of postproduction
costs) can receive tax
credit in an amount equal to 20%
of the qualified production
expenses. Credit is saleable and
transferable and may be carried
over to subsequent tax years.
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