Massachusetts offers a 25% payroll credit, a 25% production credit, & a sales tax exemption (ste). productions may apply for the 25% payroll credit (only) if the 75% minimum filming days or 75% of the total budget criteria is not met for the production credit.
The site must be applied for prior to the start of production while the payroll & production tax credits are applied for upon the completion of production and CPA audit. Loanouts must be registered with the state and require 5% withholding.
The tax credit may be claimed by the applicant as a refundable tax credit equal to 90% of face value after filing a tax return and satisfying its tax liabilities or transferred to a third party.
The 12-month qualifying period must be the same for the sales tax exemption and tax credits.
Incentive details
Type
Refundable or transferable tax credit
Rate
25% payroll credit, 25% production credit, sales tax exemption
Uplift(s)
None
Annual Cap
None
Project Cap
None
Compensation Cap
None
Eligible Expenses
Expenses directly incurred in Massachusetts during pre-production, production, & postproduction. Equipment or other tangible personal property rented or purchased outside of Massachusetts qualify as a production expense. Out of state rentals qualify at a pro-rated amount based on use in Massachusetts. proportional cost of equipment or personal property is based on depreciation cost, not purchase price.
Additional Info
Non-Massachusetts based production companies and loanouts must register to do business with the Secretary of State and the Dept. of Revenue (DOR). Production must complete a loanout affidavit/allocation for all loanouts. Projects can obtain a sales tax exemption by filing an application with the DOR prior to the start of production. The entire salary of any employee whose total payments in connection with the production are $1M or greater is excluded from the qualifying aggregate payroll but is eligible for the production credit.
Requirements
Minimum Spend
$50K in a 12-month period
Local Hire
Requirement
75% of principal photography days must occur in Massachusetts or 75% of total production budget must be spent in Massachusetts to qualify for production credit and sales tax exemption.
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
Application Timing
Projects can obtain a sales tax exemption by filing an application with the DOR prior to the start of production. The payroll & production credit application (1 application per project) is filed after all of the Massachusetts production is completed, all vendors are paid, and the audit, if required, is completed.
Audit
CPA audit required for projects with $250K+ of qualified film credit expenses
How to Apply
Application
Application Timing
Projects can obtain a sales tax exemption by filing an application with the DOR prior to the start of production. The payroll & production credit application (1 application per project) is filed after all of the Massachusetts production is completed, all vendors are paid, and the audit, if required, is completed.
Massachusetts Film Office
Meg Montagnino-Jarrett, Director, 857-283-3999, meg.jarrett@mass.gov
Massachusetts Film Office – Massachusetts Film Office
