A Production Accountant’s Guide to Managing U.S. Film and TV Tax Incentives

Film and television tax incentives can transform a project’s budget. Tax incentives processes can be complex though and making mistakes can mean missing out on significant savings. 

Incentives expert Michele Miller, GreenSlate’s VP of Tax Incentives & Accounting Services, recommends 7 key strategies and tips to help avoid common mistakes and maximize the chances of a successful application. 

Below is Michele’s practical, easy-to-digest breakdown of the steps production accountants can take. 

1. Understand Eligibility Requirements

   Not every project or expense may qualify for tax incentives. Each U.S. state has different minimum spend thresholds, labor rules, and other unique qualifiers. For example, in Georgia productions are required to meet certain in-state spending accounts and hire local vendors. Be sure to review the eligibility criteria in the state where filming will happen. 
   
   

2. Don’t Miss the Window - Apply Before Production Begins 

   One of the most frequent pitfalls is missing the pre-approval window. Most tax incentive programs require submission and approval of the application before production kicks off. Expenses incurred prior to approval are often not eligible towards the incentives. Always check deadlines in the state of production, and document receipt of approval before spending. 
   
   

3. Keep Robust Documentation

   States need documentation of eligible expenses. Required records typically include detailed invoices, payroll records, proof of local vendors or suppliers, proof of payments, and even meal receipts. Failure to keep organized records can result in delayed audits and ultimately delayed payments.
   
   Bonus tip: Create a tax incentives checklist in advance to ensure that every production department is aligned and paperwork is in order for seamless tax incentives applications. 
   
   

4. Be Audit-Ready 

   Several states, like New Mexico, require a certified audit of the production’s qualified spend. Productions often underestimate the time and effort needed to prepare for this audit. Be proactive and align with experts, like GreenSlate’s tax incentives specialists. Payroll errors can invalidate a claim or prolong timelines, so ensuring practices comply with union and state rules is crucial. 
   
   

5. Understand Credit Structures

   Knowing the difference between refundable and transferable credits is essential. Some credits can be sold (transferable) while others provide cash refunds if you owe less than the credit’s value (refundable). With a non-transferable credit, it can only reduce local tax liability. Understanding which applies to your project informs post-production planning, and cash flow management. Double-check terms in each jurisdiction, and factor in processing timelines for rebates and credits into budget planning. 
   
   

6. Stay In-the-Know 

   Tax incentive programs across the nation change regularly. Some programs sunset without much notice, and others adjust spend thresholds from year to year. Get into the habit of reviewing official state program websites and checking GreenSlate’s blog to ensure compliance with the most current and relevant laws. 
   
   

7. Look for Local Bonuses

   Many states offer boosts for hiring in-state residents or spending in rural regions. Be sure to explore these options early - they can meaningfully increase your total incentives, but only if documented and applied for. 

Follow These Strategies and Get Ahead 

This information is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax advisor should be consulted.