Looking for your next filming location? Tax credits and incentives can go a long way towards making the most of your production budget. Here’s the most significant announced state film & TV production tax credit updates for April - May, 2023.
New York
Big improvements are coming to New York’s Film & TV production tax incentive program.
After weeks of negotiation, the Governor & Legislators voted to pass Assembly Bill NY A.B. 3009, which will:
- Extend the Empire State film production and post-production credits for five years, through 2034
- Increase the annual aggregate cap from $420 million to $700 million, beginning in tax year 2024
- Include “Above the Line” expenses within the enhanced portion of the upstate credit computation
- Increase the Upstate cap from $5 million to $15 million
This is great news for all filmmakers that plan to shoot their projects in New York, and will certainly ramp up production business within the state.
Arizona
Beginning January 1, 2023, the Motion Picture Production Program (HB2156) created new income tax credits for film production companies in Arizona, which continues to draw motion picture crews to the state.
The program would offer qualified productions the following tax credit:
- 15% of qualified expenses for production costs up to $10M
- 17.5% of qualified expenses for production costs more than $10M but less than $35M
- 20% of qualified expenses for production costs more than $35M
- An additional 2.5% for Arizona resident payroll costs
- An additional 2.5% if the project is produced and filmed in association with a Long-Term Tenant of a Qualified Production Facility
- An additional 2.5% if the production company either: Uses a qualified production facility in Arizona to produce the project, or films primarily on location, produces and films the Motion Picture Production primarily in Arizona and performs all pre-production, post-production, and editing at a qualified production facility in Arizona
The program can pre-approve up to $75M tax credits in the calendar year 2023, $100M in the calendar year 2024, and $125M in the calendar year 2025 and each year after that.
An audit completed by a certified public accountant, who is licensed in Arizona and who is approved by the Arizona Film Office, must certify the total amount of qualified production costs submitted for the tax credit. Each project must include in the on screen credits an acknowledgment that the production was filmed in Arizona.
The goal of the program is to create a competitive production industry presence and market in the state that will develop a substantial production industry workforce and encourage major capital investment in qualified production facilities in Arizona.
Maryland
The state is expanding its film production tax credit and temporarily increasing the credit’s annual aggregate cap.
The details:
- Under House Bill 270 which was passed by the Senate as of April 10th, beginning in fiscal years 2024 through 2026, the program’s aggregate amount of film production tax credit certificates that the Secretary of Commerce may issue will increase to $15 million.
- Then for fiscal year 2027 and each year afterwards, the amount will be $12 million.
What does this mean exactly?
There will be more money available each year for projects filmed in Maryland. Many more projects will be able to benefit from their tax incentive program, which currently offers films a 25% refundable tax credit on qualifying in-state spend & labor (27% for TV Series)!
New Mexico
As of April 7th, 2023, New Mexico has:
- Increased benefits of the New Mexico film tax credit
- Raised the cap for films not by NM film partners
- Expanded credits for nonresidents
- Enhanced the benefit for filming in rural locations
The above amendments apply to film production companies that commence principal photography for a film or commercial audiovisual product on or after July 1, 2023.
Missouri
Missouri has stepped up their film and entertainment tax credit game by approving a bill that supporters say will be an economic driver for the state.
Bill MO S.B. 94 offers film and entertainment tax credits in Missouri as part of the “Show MO Act,” which is capped at $16 million per year for both film and series production.
The newly instituted tax credit program would offer qualified productions the following:
- 20% of qualified expenses
- An additional 5% tax credit for projects filmed at least 50% in Missouri
- An additional 5% tax credit for meeting criteria like filming 15% of a movie in a rural or blighted area
- An additional 5% tax credit if the script positively markets the state or an area of the state
Proponents say that projects like Ozark and Superstore which are set in Missouri, but were not actually filmed in the state, would now have stronger rationale to actually be shot on location.
In addition, the final application submitted to the state will be required to be accompanied by an independent Missouri based certified public accountant report attesting to the qualifying totals in the final application.
The tax credit shall be allowed for tax years beginning January 1, 2023, and is set to sunset on December 31, 2029.
Want the latest updates on film and television tax credits?
Follow GreenSlate and our VP of Production Tax Incentives Michele Miller on LinkedIn, and check out the GreenSlate State Incentives Tax Map.
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