KPM Film Credit Advisors can help you navigate the potentially challenging Massachusetts film tax credit program. Massachusetts provides filmmakers with a highly competitive package of tax incentives: a 25% production credit, a 25% payroll credit, and a sales tax exemption. We are based in Massachusetts and know the MA film tax incentive regulations. Below are some simple guidelines to help you decide if the Massachusetts film credit is right for you.
Massachusetts Film Tax Credits and Information
|Type of Incentive||Tax credit; refundable at $0.90 per dollar; transferable|
|Benefit Details||25% production credit for qualified spend in state. 25% payroll credit for qualified labor incurred in state. Must spend more than 50% of total production expenses in MA or shoot more than 50% of principal photography in MA to qualify for production credit.|
|Minimum Local Spend||$50,000|
|Loan-Out Company Considerations||Payroll services company must register for MA withholding and transmit all required withholding to the DOR. Loan Out Affidavits must be filed with application for all loan outs in qualified spend.|
|Additional Exemptions||Sales Tax Exemption|
|Qualified Production Expenditures||Incurred in State; In-State Vendors; Out-of-State Vendors; Fringes Paid for Qualified Labor; Taxes Paid for Qualified Labor. Contact us for more details.|
|Qualified Labor||Resident and Nonresident; Above the Line and Below the Line, Labor <$1,000,000 available for payroll credit, labor >$1,000,000 available for production credit. Contact us for more details.|
|Sunset Date||January 1, 2023|
|Film Commission||Massachusetts Film Office
Lisa Strout, MA Film Office Director
Want to learn more about the Massachusetts Film Tax Credit?
Massachusetts offers a great film credit program. At KPM Film Credit Advisors, we can help you decide if the Massachusetts state tax credit is right for your production. We provide a vast array of tax services including strategic planning, due diligence, and SOC reports. Contact our team at KPM Film Credit Advisors at (781) 849-5357 today.
NOTE: This content has been prepared by Kevin P. Martin & Associates, P.C. for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact us to confirm any laws or the effect of incentives on your project.