Southern Film Incentives: State Benefits and Opportunities

Incentive Type: Refundable, Non-Transferable Tax Credit

Incentive Amount: 35% (residents), 25% (non-residents)

Minimum Spend: $500k

Bonus: N/A

Audit Requirements: CPA audit required

Application: Productions must apply no later than 30 days prior to the start of any activities in Alabama. Principal photography must begin within 90 days of application approval.

Sales Use Tax Relief: Yes

Hotel Occupancy Tax Relief: Yes

Sunset Date: 12/31/2028

Incentive Type: Credit/Rebate Combo

Incentive Amount: 25-30%

Minimum Spend: $200k; $50K (post only)

Bonus: 10% for expenditures purchased from a local small business vendor owned by honorably discharged veterans of the United States Armed Forces. 10% for payroll of honorably discharged veterans of the United States Armed Forces.

Audit Requirements: The final expenditure report and all qualified production costs shall be subject to an audit by an outside certified public accountant licensed in the state.

Application: Prior to beginning preproduction activities in Arkansas, productions must register with the film office, and submit an application along with an estimate of expenditures. Productions must apply for a production rebate certificate no later than 180 days after the last production expenses are incurred.

Sales Use Tax Relief: No

Hotel Occupancy Tax Relief: No

Sunset Date: 06/30/2032

While there is currently no statewide tax incentive, major metro areas like Duval County (Jacksonville), Hillsborough County (Tampa) and Miami-Dade County, Broward County (Fort Lauderdale), Palm Beach County and Pinellas County (St. Petersburg/Clearwater) offer a variety of grants and rebates for film and TV productions.

Incentive Type: Transferable, Non-Refundable Tax Credit

Incentive Amount: 20-30%

Minimum Spend: $500k

Bonus: 10% additional Georgia Entertainment Promotion (‘GEP’) Tax Credit available for projects that include an embedded Georgia logo on approved projects and a link to the Georgia Film Office on the promotional website. (not applicable for commercials). The Project must be distributed and fill out the Film office provided Distribution Form. Once verified the 10% tax credit is awarded.

Audit Requirements:

• Audit is required and MUST be applied for; CPA agreed-upon-procedure reviews are available in Georgia.- Projects First Certified by DECD on or after 1/1/21, with credit amount that exceeds $2,500,000.00.
• Projects First Certified by DECD on or after 1/1/22, with credit amount that exceeds $1,250,000.00.
• All Projects First Certified by DECD on or after 1/1/23.

Application: To apply for the 20% certification for feature films, television pilots, television series and music videos a production company must:

• Complete the 20% certification application for each project
• Provide proof of funding
• Attach a final shooting script and also provide story boards for commercials and music videos

To apply for 10% GEP Uplift certification for feature films, television pilots, television series and music videos each project must:

• Complete the 20% certification application per project
• Attach a final shooting script and storyboards for music videos
• Complete the 10% GEP Uplift application

Audit application must be submitted within one year of completion of principal photography. The audit may commence any time once the application has been submitted and the audit fee paid.

Sales Use Tax Relief: Yes

Hotel Occupancy Tax Relief: Yes

Sunset Date: None

Incentive Type: Non-Transferable, Refundable Tax Credit

Incentive Amount: 35% (residents), 30% (non-residents)

Minimum Spend: $125K-$250K (film/TV); $10K-$20K (documentaries)

Bonus: 5% on expenses incurred in an Enhanced Incentive County

Audit Requirements: Attestation from a licensed CPA is required

Application: Applications for film production incentives must be approved by the Kentucky Economic Development Finance Authority (KEDFA) and its monthly meeting. Filming or production must begin within six months of filing a final application with KEDFA.

Sales Use Tax Relief: Yes

Hotel Occupancy Tax Relief: Yes

Sunset Date: None

Incentive Type: Non-Transferable, Refundable Tax Credit

Incentive Amount: 25-40%

Minimum Spend: $300K; $50K (Louisiana screenplay productions)

Bonus: VFX Bonus- If at least 50% of the VFX budget is expended for services performed in Louisiana by an approved Qualified Entertainment Company (QEC), or a minimum of $1 million in qualified VFX expenditures are made in Louisiana, an additional 5% credit may be allowed on the qualified VFX spend only.

Audit Requirements: For applications for initial certification or requests for final certification received on or after January 1, 2016, Louisiana Entertainment shall directly engage and assign a CPA to prepare a production expenditure verification report on an applicant’s cost report on production expenditure. The applicant will be assessed Louisiana Entertainment’s actual cost for the production expenditure verification report fee and shall make all records related to the tax credit application available to Louisiana Entertainment and the CPA. Eligible expenditures are creditable for 12 months prior to the date of application and 24 months after Initial Certification.

Application: Productions must complete and submit an online application with supporting documents and fees to the Office of Entertainment Industry Development, to receive an initial certification. The final certification process commences after the completion of production.

Sales Use Tax Relief: For applications for initial certification the fee for filing an application shall be equal to 0.5% of the amount of the incentives or exempted taxes, with a minimum of $500 and a maximum of $15,000.

Hotel Occupancy Tax Relief: No

Sunset Date: 6/30/2031

Incentive Type: Rebate

Incentive Amount: 25-30%

Minimum Spend: $50K

Bonus: N/A

Audit Requirements: No

Application: Production companies must submit an application to the Mississippi Film Office/MDA. The application must be submitted before the beginning of production for the Mississippi portion of the project.

Sunset Date: 6/30/2031

Incentive Type: Rebate

Incentive Amount: Up to 25%

Minimum Spend: $1.5M (film); $500K (TV, per episode); $500K (made-for-TV film); $250K (commercials)

Bonus: N/A

Audit Requirements: NC-licensed independent certified public accountant to perform audit at cost to the production.

Application: Productions must first complete the “notification of intent to film” form. After verifying the production qualifies, the NC Film Office will then send a link to the formal NC Department of Commerce Film and Entertainment Grant Application.

Sales Use Tax Relief: No

Hotel Occupancy Tax Relief: Occupancy tax refunded and waived for stays of 90 consecutive days in same room, under same name

Sunset Date: None

Incentive Type: Rebate

Incentive Amount: 20-30%

Employee Wage Rebate: A Qualified Production is eligible for a wage rebate up to 25% for the persons employed in conjunction with the South Carolina production. The wages of all South Carolina residents are eligible for the maximum 25% rebate. The wages of all non-resident performing artists, including stunt performers, and crew are eligible for a 20% rebate.

Minimum Spend: $1.M

Bonus: Productions may also qualify for a sales tax exemption of 6-8.5%.

Audit Requirements: None

Application: Productions can contact the film office for an application once a project has a completed script, is green-lit, and has all necessary funding or funding commitments in place. The Department of Parks, Recreation & Tourism will notify the production company in writing by sending them a “Qualifying Production Letter” as to whether or not the production has been approved for incentives.

Sunset Date: None

Incentive Type: Grant Rebate, Non-Refundable/Non-Transferable Tax Credit, Point of Purchase Sales Tax Exemption, Hotel Occupancy Tax

Incentive Amount: 25-30%

Tax Credit: Tennessee offers a qualified production credit that can cover up to 50% of franchise tax liability. This credit is for film and entertainment producers who operate in Tennessee and meet the requirements of the state code.

Grant Rebate: Qualified expenditures include production costs spent in Tennessee during pre-production, principal photography and post-production. Payments to state vendors or residents for goods or services associated with the production are included.

Minimum Spend: $50K (post-production); Grant Rebate $200K (film/TV pilot); $500K (scripted TV series/per episode)

Bonus: N/A

Audit Requirements: Yes

Application: It is recommended production submit initial required forms at least 4 months before the start of principal photography. See Guidelines and Instructions for Application for more information. Eligible production types for Tennessee film incentives are commercials, feature films, pilots, and scripted television. Qualified expenditures include pre-production, production, and post-production costs incurred in Tennessee.

Sunset Date: None