Arizona Production Tax Incentives

Overview

  • Arizona offers a refundable tax credit on a tiered basis depending on the amount of total qualified spend in state. An additional 2.5% can be earned: on resident BTL labor; 2.5% filming at a qualified production facility (QPF) or films primarily at a practical location in AZ and performs all prep, post, and editing at a QPF; 2.5% if filmed in association with a long-term tenant (lease of at least 5 years) of a QPF.
  • A non-refundable processing fee equal to 1% of the pre-approved credit amount, not to exceed $100,000, and an additional administration fee equal to 1% of the pre-approved credit amount.
  • The administration fee is refundable if the authority is notified within 90 days from the pre-approval certification date that production will not commence. Production must begin within 9 months of approval.

Eligible project types: Commercials, documentaries, feature films, music videos, pilots, reality TV, scripted TV.

Incentive details

Type
Refundable tax credit
Rate
15% for production costs up to $10M / 17.5% for production costs more than $10M but less than $35M / 20% for production costs more than $35M
Uplift(s)
2.5% on BTL Arizona resident labor; 2.5% if a qualified production facility in Arizona is used of films primarily at a practical location, produces and films the motion picture production primarily in Arizona and performs all pre-production, postproduction and editing at a qualified production facility in Arizona; 2.5% if filmed in association with a long-term tenant (lease of at least 5 years) of a qualified production facility.
Annual Cap
$125M
Project Cap
$25M (projects that qualify by filming at practical location in AZ).
Compensation Cap
None
Eligible Expenses
Production costs that are subject to Arizona taxation and labor incurred in Arizona.
Additional Info

Requirements

Minimum Spend
None
Local Hire Requirement
Production must use a qualified production facility in Arizona to produce the motion picture production or film more than 50% of their project at a practical location in Arizona and perform all pre-production, postproduction, and editing at an industry standard facility in Arizona, if such a facility for those functions is available.  Maintain the motion picture production company’s BTL labor positions in Arizona.
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
No
Application Timing
Production must begin within 9 months of approval. On completion of the motion picture production, the production company must submit a post-approval application that includes a complete and viewable copy of the production and CPA´s audit report.
Audit
CPA audit required.

How to Apply

Application
Application Timing
Production must begin within 9 months of approval. On completion of the motion picture production, the production company must submit a post-approval application that includes a complete and viewable copy of the production and CPA´s audit report.
Arizona Film Office

MATTHEW EARL JONES, FILM COMMISSIONER, MATTHEWJ@AZCOMMERCE.COM
Incentive

Helpful Links

notice-of-adoption_mopic_rule-23-01_corrected-final.pdf
Microsoft Word - HB2156S.1.docx
Incentive

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