Arkansas Production Tax Incentives

Overview

  • Arkansas offers 2 incentives in the form of a transferable tax credit and a rebate, both programs offer a 25% base incentive with a minimum spend of $200K in a six-month period on a feature project ($50K for standalone postproduction) and additional uplifts for full time resident & veteran labor.
  • The total qualifying incentive amount for each expenditure is 30%. Payments for labor are capped at $500K/person. Payments for production and postproduction expenses are recommended (but not required) to be made from the checking account of an Arkansas institution. Cash payments to vendors may not exceed 40% of the total verifiable costs.

Eligible project types: Commercials, documentaries, feature films, interactive media/games, music videos, pilots, scripted TV, standalone postproduction

Incentive details

Type
Transferable tax credit or rebate
Rate
25% base
Uplift(s)
10% for: BTL full-time certified residents of Arkansas; veterans; expenditures paid to a veteran-owned small business for qualified production costs. 5% for BTL employees whose full-time permanent address is located in a Tier 3 or Tier 4 county or expenditures paid to a person or business located in a Tier 3 or Tier 4 county. the total qualifying incentive amount for each expenditure is 30%.
Annual Cap
Tax credit: $4M ; rebate: uncapped
Project Cap
None
Compensation Cap
$500K
Eligible Expenses
Costs incurred in Arkansas during pre-preproduction, production, or postproduction and the first $500K of wages or salaries paid to each resident and nonresident that are subject to Arkansas income taxes. Cash payments to vendors may not exceed 40% of the total verifiable costs.
Additional Info
Payments for production and postproduction expenses are recommended (but not required) to be made from the checking account of an Arkansas institution.

Requirements

Minimum Spend
$200K; $50K (standalone postproduction)
Local Hire Requirement
Yes - declaration of residency form required
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
None
Application Timing
Register with the Arkansas film office and submit an application prior to beginning pre-production. Within 180 days after the last production costs are incurred, the production company must apply for a tax credit certificate.
Audit
CPA audit not required, audit is performed by the Department of Finance and Administration. Within 180 days after the last production costs are incurred, the production company must apply for a tax credit certificate and provide a final expenditure report.

How to Apply

Application
Application Timing
Arkansas Film Office

CHRISTOPHER CRANE, FILM COMMISSIONER, 501-682-7676, CCRANE@ARKANSASEDC.COM

Home - arfilm | Arkansas Film Commission

Helpful Links

Loan Out / Withholding Questions - arfilm | Arkansas Film Commission

Film Proof of Performance

Audit Procedures - arfilm | Arkansas Film Commission

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