Film Production Incentives: the Massachusetts Advantage
Massachusetts provides filmmakers with a highly competitive package of tax incentives: a 25% production credit, a 25% payroll credit, and a sales tax exemption.
Any project that spends more than $50,000 in Massachusetts qualifies for the payroll credit. Spending more than 50% of total budget or filming at least 50% of the principal photography days in Massachusetts makes the project eligible for the production credit and a sales tax exemption.
Program requirements are straightforward. There are no annual or project caps. No residency requirements. No extended schedule of credit payouts.
The payroll credit includes above- and below the line; the production credit includes out-of-state production expenses.
Credits can be cashed out with the Commonwealth of Massachusetts at 90% of face value after satisfying tax liabilities, or can be transferred at market rate. Credits can be used for up to 5 tax years.
The incentive program is managed by an experienced team at the Massachusetts Department of Revenue.
DOR REPORTING – IMPORTANT NOTICE
Please note that, by statute, the Department of Revenue is required to issue an annual report, which is a public record, that will contain the following information: (i) the identify of each taxpayer receiving an authorized tax credit and from which tax credit program the credit was received; (ii) the amount of the authorized tax credit awarded and issued for each taxpayer and each project, if applicable; and (iii) the date that the authorized tax credit was awarded and issued for each taxpayer and each project.
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