For purchases of equipment or personal property, the qualifying cost is depreciation cost, not purchase price.Įxclusions include: qualifying payroll included in payroll credit, payroll services fees, loan fees, interest expenses, completion bond expenses, rights and script fees, production insurance expenses, accounting and audit expenses, legal expenses, marketing and advertising, costs/licensing fees for stock footage and archival materials, travel/shipping to and from Massachusetts, overhead expenses, and wrap parties. Equipment or other tangible personal property rented or purchased outside of Massachusetts qualifies as production expenses. ( LOAN OUT GUIDE)Įntire salary of any employee whose total payments in connection with the production are $1 million or greater is excluded from the qualifying aggregate payroll but is eligible for the production credit.Ģ5% of production and pre- and post- postproduction expenses directly related to the Massachusetts production. Personal income tax must be withheld and the production company must file a Loan-Out Affidavit/Allocation Form for each Loan-Out with the credit application. Payments to Loan-Outs qualify for the payroll credit.
Production company and/or payroll services company must be registered with the Department of Revenue for withholding of personal income tax 5% personal income tax must be withheld to qualify for the credit. Fringe benefits apply if included in Massachusetts source income to the recipient. Payments that constitute Massachusetts source income to the recipient. STE form may be emailed to Approval time is normally 3-5 business days. Vendors may also require a copy of DOR’s approval letter. After conditional pre-approval, production company provides vendors with exempt use certificate. Form requires estimated Massachusetts and non-Massachusetts budgets and shoot days and the consecutive 12-month eligibility period for credits and tax exemptions. (Production expenses for this purpose include all qualifying payroll expenses.)Īt least 75% of the production company’s total principal photography days, exclusive of pre- or post-production, must take place in Massachusetts.Īs of January 1, 2022, 50% increased to 75%.Ĭomplete STE form and file with Massachusetts Department of Revenue prior to start of production. Production company’s production expenses in Massachusetts, during the qualifying period, must exceed 75% of all production expenses for the project. Ineligible: Room occupancy taxes, taxes related to equipment purchases, fuel tax. There is no requirement that an accredited film school student must also expend at least $50,000.Ģ5% payroll credit Post Massachusetts productionĢ5% production credit Post Massachusetts productionĮligible: Production expenses including meals. Students from accredited film schools are eligible for a sales tax exemption for production expenses. There are no residency requirements for vendors, crew, actors, etc. NOTE: Additional eligibility requirements apply to Production Credit and Sales Tax Exemption. The qualifying period can cross taxable years.
The 12-month qualifying period must be the same for sales tax exemption and tax credits. Minimum spend: motion picture production company must spend $50,000 or more in Massachusetts qualifying costs during a consecutive 12-month qualifying period.
Ineligible: news, current events, weather and financial market reports talk show game show sporting events awards show or other gala event fundraising production long form production marketing product or service corporate training and in-house corporate advertising video games a production containing obscene material or performance.
#Movie production companies in boston series
Multiple episodes of a TV series or multiple commercials for the same client may be aggregated to qualify. The MassachusettsĮligible: Feature-length film, video, digital media project, a TV series with a maximum of 27 episodes, a commercial for theatrical or TV viewing or as a TV pilot. Massachusetts General Laws and DOR directives prevail over information presented here. For specific requirements, see link to Department of Revenue (DOR) directives and forms. This chart provides general information about film production incentives.
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