PRODUCTION INCENTIVES

Tennessee

Type of Incentive:	Grant and refundable credit

Maximum Benefit:	17% of qualifying local spend (from Film Commission) and an additional 15% refund (including P&A) for qualifying local headquarters (from Department of Revenue)

Compensation and Project Caps/ Funding Per Year:	All personnel salaries and fees capped at $250,000 for the film and television production incentive; funded by gifts, grants, donations and appropriations by the General Assembly, with approximately $8,100,000 available as of January 4, 2010

Project Criteria:	Minimum local spend within 12 months of Certificate of Conditional Eligibility = $500,000 if headquartered outside the state, and $150,000 if within; declaration of residence required for qualifying TN payroll; the Commission has discretion to deviate from these requirements when a production is determined to have a beneficial impact on the State; $1,000,000 local spend to qualify for the headquarters rebate from the Department of Revenue

Sunset/Review:	None

Application Considerations:	Conftact film office before submitting initial application; submit initial application before production commences (response ≤ 30 days); submit final application package within 15 months from the date the Certificate of Conditional Eligibility is issued,

Loan-Out Company Considerations:	Any corporation doing business in Tennessee is required to register with the Department of Revenue and the Secretary of State; note that Tennessee has no state income tax

Crew Base Considerations:	Typically based in Memphis, Nashville, Knoxville or Chattanooga metropolitan areas; crew directory available; Tennessee is a right-to-work state

Film Commission:	Tennessee Film, Entertainment and Music Commission 312 Rosa L. Parks Avenue, 9th Floor Nashville, TN 37243 Phone: 615.741.3456 or 877.818.3456 Fax: 615.741.5554 Perry Gibson Executive Director

Additional Exemptions

Hotel Occupancy Tax Relief Available

Sales & Use Tax Relief for Productions Available For details, refer to the Tennessee Film, Entertertainment & Music Commission.

Qualified Production Expenditures

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

Fringes Paid for Qualified Payroll:	YES (see qualified expenditures listing for more details -- contact local Film Office)

Taxes Paid for Qualified Payroll:	YES (see qualified expenditures listing for more details -- contact local Film Office)

* Please read the Qualified Production Expenditures Introduction & Assumptions.

Qualified Compensation Expenditures

Above-the-Line:	Residents:	YES
Above-the-Line:	Non-Residents:	NO

Below-the-Line:	Residents:	YES
Below-the-Line:	Non-Residents:	NO

* Please read the Qualified Compensation Expenditures Introduction & Assumptions.

Nontraditional Programming

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

Reality Shows:	YES	Webisodes:	YES

Game Shows:	YES	Animation:	YES

Documentaries:	YES	Commercials:	YES

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

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.