in the state. Massachusetts is also the only state in the country that allows filmmakers 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. With the spending threshold lowered to $50,000 and with “digital media projects” now eligible.
In 2006, New Jersey sweetened the pot by adding a major component to its incentive package: a 20% tax credit for productions that spend at least 60% of their budget for goods and services (exclusive of post-productions costs) used in the state. Moreover, certain tangible property used during film and television products may be exempt from New Jersey’s 7% sales tax. Such items may include car rentals, certain props, supplies to build sets, and repairs for lighting and camera equipment.
The state offers a 25% tax rebate on all direct production expenditures, including New Mexico labor, that are subject to taxation by the State of New Mexico. The rebate is a refund on the full amount of the expenditure, not just the tax portion. (i.e., if the expense of an item including tax is $100, the rebate is $25). There is no cap or sunset clause, and there is no minimum spend required. The rebate applies to feature films, television, regional, and national commercials, documentaries, video games, and post-production. Actors from out-of-state also qualify, though under a separate tax structure. Requirements for 25% tax rebate include the prohibition of a script that is obscene in nature. Also, the film must contain an acknowledgment that the production was filmed in the State of New Mexico.
As of April, New York State and New York City now offer film production tax credit programs, which combined can provide qualifying film and television productions a fully refundable tax credit equal to up to 35% of production expenditures. For a feature film or television project to be eligible, the production must shoot on a set, on a stage, at a qualified production facility in New York State. These productions will qualify for up to a 30% state tax credit for the work done at the facility. If the facility is within New York City, these productions will also qualify for the additional 5% tax credit from the New York City program.