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Overview
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Who |
A company that:
- Is primarily (more than 50%) engaged in the business of producing motion pictures including commercial advertisements and music videos,
- Submits an Initial Application for at least 1 commercial advertisement or music video, which is not required to total $250,000 in production costs,
- Has the lawful rights to produce the commercial advertisement or music video,
- Has a physical business office and bank account in Arizona,
- Completes production within 60 days of applying for initial pre-approval,
- Aggregates qualified Arizona production costs to at least $250,000 within 12 consecutive months following initial pre-approval,
- Employs Arizona residents in its motion picture productions. In 2008 thru 2010, at least 50% of the full-time employees working in this state must be Arizona residents, and
- May submit additional commercial advertisement or music video productions during the 12 month certification period.
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What |
Transaction Privilege Tax (TPT) Exemption on:
- Purchased machinery, equipment and other tangible personal property,
- Job printing, embossing, engraving and copying,
- Leased or rented lodging space,
- Sales of catered food, drink and condiments, and
- Construction contracts for buildings and other structures.
Use Tax Exemption - on machinery, equipment and other tangible personal property. Income Tax Credit - a transferable Arizona income tax credit; $2,500,000 available in 2008. |
How |
To become a qualified company and receive motion picture production tax incentives please view the application process, available February 1, 2008. |
Why |
A qualified company may realize the following tax savings:
- TPT exemptions of approximately 6% off of purchases.
- Use tax exemptions of approximately 5% off of out-of-state purchases.
- Income tax credits equal to 20% or 30% of the company’s investment in eligible Arizona production costs.
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When |
Commerce will begin accepting applications for 2008 tax incentives offered under the Motion Picture Program on Friday, February 1, 2008 between the hours of 8:00 am and 5:00 pm. |
General Info- Program Guidelines – Available February 1, 2008
- Program Summary – Available February 1, 2008
- Program Limitations – Available February 1, 2008
- For more detailed information please see below or direct questions to the Program Manager.
Legislative Information NEW!
Email UpdatesCommerce will soon begin the process of drafting rules for the Motion Picture Production Tax Incentives Program and will seek public comment. As soon as rules are adopted, Commerce will place an update on this website and will notify companies and others who have requested information. If you have not yet placed your e-mail address on our list, please click here to send an e-mail requesting notification. Please be sure to identify motion pictures as the program for which you would like notification.
Return to the Arizona Film Office Website
Return to the Motion Picture Tax Incentives home page
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