PRODUCTION INCENTIVES

South Carolina

Type of Incentive:	Cash rebate

Maximum Benefit:	20% of all wages subject to withholding paid to actors (including stunt performers), SC residents, and anyone working on a TV series (excluding persons paid ≥ $1,000,000); 10% wage rebate for non-resident crew up to $3,500 per person (depending on the project, this amount may be negotiated to the full 20% rebate); 30% of qualifying local spend (paid to eligible SC suppliers)

Compensation and Project Caps/ Funding Per Year:	No project caps; annual funding of $10,000,000 for wage rebate and 26% of admissions tax collected for previous year for the supplier rebate, approximately $5,500,000 for fiscal year 2008-2009

Project Criteria:	Minimum local spend ≥ $1,000,000 during tax year

Sunset/Review:	The 15% incentive has no sunset date, but the rates have been increased to 20% and 30% by proviso that must be renewed annually

Application Considerations:	Fee = $500; submit initial application before principal photography commences (response ≤ 10 days)

Loan-Out Company Considerations:	Loan-out companies must be approved and certified by the South Carolina Department of Revenue prior to commencement of filming and must make an irrevocable assignment of the rebate to the production company; loan-out companies must be subject to South Carolina withholding; loan-out corporations are subject to a 2% withholding rate

Crew Base Considerations:	South Carolina Has a crew base of 1.5 crews; SC and NC are covered under the same IA, and crewmembers from either state work under a stipend agreement; South Carolina is a right-to-work state

Film Commission:	South Carolina Film Commission 1205 Pendleton Street, Room 529 Columbia, SC 29201 Tom Clark Phone: 803.737.0498 Fax: 803.737.3104

Additional Exemptions

Hotel Occupancy Tax Relief Available

Sales & Use Tax Relief for Productions Available For details, refer to the South Carolina Film Office.

Qualified Production Expenditures

In-State Vendors:	YES
Out-of-State Vendors:	NO (confirm with local Film Office)

Fringes Paid for Qualified Payroll:	NO (only vacation and holiday qualify)

Taxes Paid for Qualified Payroll:	NO

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

Reality Shows:	NO	Webisodes:	NO

Game Shows:	NO	Animation:	YES

Documentaries:	NO	Commercials:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Industrials:	YES	Music Videos:	YES

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

* Please read the Qualified Nontraditional Programming Introduction & Assumptions.

Updated August 27, 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.