A. |
Download the motion picture allocation table to view the remaining amount of tax credits. Commerce cannot pre-approve a total amount of tax credits that exceeds:
|
|
Calendar Year |
Maximum Tax Credit Amount* |
|
2006 |
$30 million |
|
2007 |
$40 million |
|
2008 |
$50 million |
|
2009 |
$60 million |
|
2010 and after |
$70 million |
|
* Beginning in 2008, the Arizona legislature has allocated $180,000 of the cap per year to Commerce for the administration of the program. |
|
The following restrictions also apply to the calendar year cap:
|
|
- Beginning in 2008, five percent of the calendar year cap is reserved for use by qualified companies that produce commercial advertisements or music videos. The five percent set aside can only be used by commercial advertisement or music video production companies. Any tax credits returned to the 5% set aside due to ineligibility or voluntary relinquishment shall be reallocated to another commercial advertisement or music video production company that applied in the same year but is waiting in line for tax credits according to its priority placement number. Any unused portion of the 5% set aside may be allocated in the next calendar year to commercial advertisement or music video production companies.
|
|
- Beginning in 2008, persons or qualified companies that construct eligible infrastructure projects in Arizona can receive a tax credit allocation. The tax credit allocations are computed at fifteen percent of the base investment subject to the following limitations:
|
|
- The combined allocations for soundstage construction shall not exceed $5 million tax credits in any year.
|
|
- single allocation for a support and augmentation facility shall not exceed $3 million tax credits per project.
|
|
- If one or more soundstages are pre-approved in 2008, the combined allocations for construction of support and augmentation facilities shall not exceed $7 million tax credits in 2009.
|
|
- If one or more soundstages are pre-approved in 2008 or 2009, the combined allocations for construction of support and augmentation facilities shall not exceed $9 million tax credits in 2010.
|
B. |
Commerce cannot pre-approve tax credits for an individual application for producing motion pictures that exceeds:
|
|
Calendar Year |
Tax Credit Maximum per Application |
|
2006 |
$5 million |
|
2007 |
$5 million |
|
2008 |
$7 million |
|
2009 |
$8 million |
|
2010 and after |
$9 million |
|
|
C. |
The commercial advertisement or music video production company is not eligible for an allocation of tax credits until the company’s qualified production costs reach $250,000 in twelve consecutive months from the date of pre-approval. Once the $250,000 investment threshold has been met, the company can apply for post-approval and an allocation of tax credits no more than once a calendar month. |
D. |
Commerce shall not post-approve tax incentives to a production that is obscene, depicts sexual activity or sexually exploits a minor as provided under A.R.S. §§41-1517(M); 12-811; 13-3501; 13-3551; 13-3552; 13-3553. Download a copy of the obscenity statutes to view the motion picture content restrictions. |
E. |
There is no limitation on the amount of TPT and use tax exemptions available to a qualified company or motion picture. Nor is there a limit on the total amount of TPT and use tax exemptions available in any calendar year under this program. |
F. |
Tax credits that are voluntarily relinquished may be re-allocated to another qualified company that applied in the same year as the company that relinquished the tax credits, who that is waiting in line for tax credits. |