PRODUCTION INCENTIVES

Virginia

Type of Incentive:	Cash rebate; in addition, a 15% to 20% refundable tax credit (with bonuses for local and first-time hires) will be available beginning on January 1, 2011

Maximum Benefit:	Discretionary cash rebate

Compensation and Project Caps/ Funding Per Year:	$2 million has been appropriated for the rebate for the biennium beginning July 1, 2010; $2.5 million will be available for the refundable tax credit program to take effect January 1, 2011

Project Criteria:	Performance-based incentive that provides cash rebate at the Governor’s discretion, taking into consideration length of filming, job creation, trainees hired, goods and services purchased

Sunset/Review:	None

Application Considerations:	Contact Film Office

Loan-Out Company Considerations:	Currently none to note

Crew Base Considerations:	2 deep statewide; Virginia is a right-to-work state

Film Commission:	Virginia Film Office 901 East Byrd St. Richmond, VA 23219 Rita McClenny Phone: 800.854.6233 Fax: 804.545.5531

Additional Exemptions

Hotel Occupancy Tax Relief Available

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

Qualified Production Expenditures

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

Fringes Paid for Qualified Payroll:	YES

Taxes Paid for Qualified Payroll:	NO

* Please read the Qualified Production Expenditures Introduction & Assumptions.

Qualified Compensation Expenditures

Above-the-Line:	Residents:	NO
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:	NO	News:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Reality Shows:	YES	Webisodes:	YES

Game Shows:	NO	Animation:	YES

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

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

Sporting Events:	NO	Interactive Media/ Video Games:	NO

* Please read the Qualified Nontraditional Programming Introduction & Assumptions.

Updated July 29, 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.