As an accountant to film companies and professionals in the US we are expert in film industry tax exemptions and reliefs. One of the major tax reliefs available to film companies is the Film Production Tax Credit, which allows a tax credit of 30% on qualified costs incurred in New York State for eligible productions.
In order to qualify for Film Production Tax Credit your production must be one of the following:
- Feature films
- Episodic Television series
- Television pilots and presentations
- Television movies and miniseries
The credit covers related property and services used or purchased in New York State. This includes:
- crafted and technical services;
- technical and crew production;
- expenses for facilities, props, makeup, wardrobe, and production;
- costs of set construction; and
- pay for background talent.
Under the Film Production Tax Credit there are two types of eligibility: Level 1 and Level 2. In order to qualify under level 1 eligibility: productions must cost less than $15million, and should be produced by a company owned less than 5% by a publicly traded entity.
In order to qualify under the level 2 eligibility your production must cost over $15million, and are produced by a company owned more than 5% by a publicly traded entity.