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 and sales tax exemption. 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.
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 purchases and equipment rentals.
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 a dedicated and 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.
Questions? We’re here to help: email@example.com or (617) 973-8400.