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- Appendix D
1.611 -Film (or Motion Picture) Credit
|1.611||Film (or Motion Picture) Credit
Credit is transferable; see Corporate item 2.614 for details. Individual income tax filers engaged in the making of a motion picture are allowed two credits:
a) Payroll credit: This is a credit for the employment of persons within the Commonwealth in connection with the filming or production of 1 or more motion pictures in the Commonwealth within any consecutive 12 month period. The credit is equal to 25 percent of the total aggregate payroll paid by a motion picture production company that constitutes Massachusetts source income, when total production costs incurred in the Commonwealth equal or exceed $50,000 during the taxable year. The term "total aggregate payroll" may not include the salary of any employee whose salary is equal to or greater than $1,000,000.
b) Non-payroll production expense credit: Individual income tax filers are also allowed a credit equal to 25 percent of all motion picture related Massachusetts production expenses, not including the payroll expenses used to claim the aforementioned payroll credit. To be eligible for this credit, either Massachusetts motion picture production expenses must exceed 50 percent of the total production expenses for a motion picture or at least 50 percent of the total principal photography days of the film take place in the Commonwealth.
These tax credits are refundable at 90% of the approved credit amounts, or the amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer to any of the 5 subsequent taxable years. Additionally, all or any portion of tax credits issued may be transferred, sold or assigned to other taxpayers with tax liabilities under chapter 62 (the individual income tax) or chapter 63 (the corporate or other business excise taxes). For applications submitted prior to January 1, 2007, film tax credits were capped at $7,000,000 for any one motion picture production has; for applications submitted on or after January 1, 2007, there is no cap. Also, the sunset date for the film incentives statute has been extended from January 1, 2013 to January 1, 2023. See TIR 07-15 for more information.
Note that these credits are transferable, or refundable at 90% of face value.
Origin: St. 2007, c. 63; M.G.L. c. 63.
|IRC||Federal Internal Revenue Code (26 U.S.C.)|
|U.S.C||United States Code|
|M.G.L.||Massachusetts General Laws|
|Rev. Rul.; C.B.||Revenue Ruling; Cumulative Bulletin of the U.S. Treasury|
|ESTIMATES||All estimates are in $ millions.|
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