PRODUCTION INCENTIVES

Massachusetts

Type of Incentive:	Partially refundable, transferable tax credit; 5-year carry forward from year incurred (NOTE: Taxpayer may elect to receive a 90% refund of the credit to the extent credits are first applied to taxes)

Maximum Benefit:	25% of payroll in the state (excluding persons paid ≥ $1,000,000); no 50% test (see below) for payroll credit; 25% of local spend (including salaries ≥ $1,000,000) if either: (i) > 50% of total production expenses are incurred within the state, or (ii) ≥ 50% of principal photography days are within the state

Compensation and Project Caps/ Funding Per Year:	No caps

Project Criteria:	Minimum local spend = $50,000

Sunset/Review:	December 31, 2022

Application Considerations:	Submit initial application (response time varies)

Loan-Out Company Considerations:	Payments to a loan-out corporation (includes independent contractors performing production services), rather than to an individual employee, may qualify for the film credits, even in cases in which the withholding is performed by a payroll service company; however, in such cases, the payroll service company (as opposed to the production company) must register to withhold before the production company files for an application for the credit and perform withholding through the Department’s motion picture production company withholding system pursuant to 830 CMR 62B.2.3. In addition, there is a requirement that the production company, loan-out, and the individual(s) performing services under the loan-out provide an accounting and allocation of the withholding amounts on payments to the loan-out from the production company. Lastly, the loan-out and individual(s) performing the services under such loan-out must properly file Massachusetts tax returns and pay taxes accordingly.

Crew Base Considerations:	4 deep statewide

Film Commission:	Massachusetts Film Office 10 Guest Street, Suite 280 Boston, MA 02135 Phone: 617.423.1155 Nick Paleologos Executive Director Phone: 617.254.6102 Mary Chiochios Director of Operations Phone: 617.254.6105

Additional Exemptions



Sales & Use Tax Relief for Productions Available For details, refer to the Massachusetts Department of Revenue.

Qualified Production Expenditures

In-State Vendors:	YES
Out-of-State Vendors:	YES

Fringes Paid for Qualified Payroll:	YES

Taxes Paid for Qualified Payroll:	YES

* Please read the Qualified Production Expenditures Introduction & Assumptions.

Qualified Compensation Expenditures

Above-the-Line:	Residents:	YES (see Loan-Out Company Considerations above)
Above-the-Line:	Non-Residents:	YES (see Loan-Out Company Considerations above)

Below-the-Line:	Residents:	YES (see Loan-Out Company Considerations above)
Below-the-Line:	Non-Residents:	YES (see Loan-Out Company Considerations above)

* Please read the Qualified Compensation Expenditures Introduction & Assumptions.

Nontraditional Programming

Talk Shows:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	News:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Reality Shows:	YES	Webisodes:	NO

Game Shows:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Animation:	YES

Documentaries:	YES	Commercials:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Industrials:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Music Videos:	YES

Sporting Events:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Interactive Media/ Video Games:	NO

* Please read the Qualified Nontraditional Programming Introduction & Assumptions.

Updated June 7, 2010
For more specific information, please contact the EP Production Incentives Group.

NOTE: These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact the EP Production Incentives Group or your legal or tax advisors to confirm any laws or the effect of incentives on your project.