Film Tax Credit Secrets Revealed
All the fame and fortune of Hollywood don’t come free. It can cost you a fortune to create just one film. A part of that fortune is spent on paying taxes for the location of the film. This can put a significant bumper on your budget. However, there is a way to save some big bucks on the film taxes – through film tax incentives.
Keep reading as we reveal some of the best-kept secrets of the movie industry concerning film incentives and tax credit.
There Is More Than One Type Of Film Tax Incentives
Film tax incentives come in different forms. It is not all about the cash. Film tax incentives can be given in the form of grants, cash rebates, exemption of sales taxes, film tax credit, free locations, free accommodation, and more.
Make sure to check the state you are filming in to know about all the different kinds of film incentives you can get. These incentives can end up saving you a lot of money.
Best States For Film Incentives
The amount of film tax credit and film incentives vary by state. Some of the best states for tax incentives and credits include California, Massachusetts, Illinois, Kentucky, Louisiana, Ohio, Oklahoma, New York, and others.
California Film Tax Credit
On spending a minimum of $1 million, you can get a tax credit of up to 20%. You can also get an incentive of 5% for some specific film expenses.
Massachusetts
With a minimum sending limit of $50,000, you can get a transferable film tax credit f 25% for production and 25% for labor. There are no requirements for residency.
Illinois
You have to spend a minimum amount of $100,000 in this state to be eligible for film incentives. The tax credit is transferable and 30% for production and labor. If you hire local labor from downtrodden areas, you can get 15% more credit.
Ohio
The minimum spending limit is a bit high at $300,000 for eligibility for film tax incentives. There is no requirement for residency, and you can get a transferable tax credit of up to 30%.
Be Mindful Of The Numbers!
Several states, besides the ones mentioned above, offer different percentages of a film tax credit. These percentages are not all for tax credits only. Some states offer percentage incentives only when you use and employ local resources and hire people from underprivileged areas.
Depending on your project, you may not be eligible for the high credits and incentives. So, make sure to research what percentage is being offered as film incentives and in what category. Choose a state that best suits your needs.
Now you know the top secrets of getting the best film tax credit and incentives. You should check on the states and their percentages. See the categories they offer and go for a place that goes well with your budget and your film.
