In July of 2007, Massachusetts Governor Deval Patrick signed into law major revisions to Massachusetts’ Motion Picture Production Incentive Package so that it now offers one of
the highest tax credits with the lowest qualifications of any state or municipal production incentive package in the country. Even before revision, Massachusetts’ incentives
helped make it one of the top five places to shoot in the country according to the industry trade journal Production Guide Magazine. The revisions have only made it better to
shoot here – making Massachusetts now the premier venue for not only movie, but also TV, Commercial, and even “digital media” production.
With the revisions, Producers who either shoot at least half of their movie or spend at least half of their production budget in the Commonwealth - are eligible for a tax credit equal to 25 % of their total spending in Massachusetts on production expenses and payroll, inclusive of any salaries over $1 million. To that, producers also receive a 100% sales tax exemption on any production related items purchased or rented in the state, effectively boosting the potential saving on Massachusetts production expenses (exclusive of payroll) to 30%.
Also, Massachusetts is now the only state in the country that allows producers to take their credits either as a direct rebate at 90% of the face value (guaranteed), or to sell them at market rate - whichever is more favorable. To increase the marketability and value of the credits, the new law also states that credits that have been bought in good faith can not be recaptured by the state.
Of primary importance to the local production community, the new law, also, lowers the qualifying threshold from $250,000 to $50,000 for purposes of both the tax credit and the
sales tax exemption; and has added "digital media projects" to a list of qualified productions that include movies, episodic television, documentaries, and commercials. With a
spending threshold of $50'000 and "digital media projects" now eligible, the new law has not only extended the benefits of the film tax credit to thousands of locally based ,
small independent and documentary filmmakers, but also Commercial production companies who can now combine budgets for the same client in order to meet the qualifying threshold.
After the revisions, Massachusetts’ production tax credits are clearly not just for big Hollywood productions any more.
These valuable credits are available now, but you must meet certain requirements to qualify for them, as well as follow certain procedures to register for
them. We actively assist productions to procure these valuable tax credits when they rent lighting and grip equipment, and contract production services
from us. Click on the following links to see samples of our recent work on the upcoming Brendon Gleeson Feature "Black Irish" (below) and MoodyStreet Picture's feature "The Shuttle".
Put simply, our goal is to ensure the success of your production in any way possible. For more detailed information on the new Massachusetts Production
Tax Credits or what we have to offer, call us at 781-326-5088.
ScreenLight & Grip,