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Incentives

 

Qualified productions can earn transferable tax credits and tax exemptions for producing their projects (films, television programs, video games, photo-shoots, etc.) in Arizona. Pre-approved projects can earn transferable tax credits based on Arizona expenditures in the following amounts:

  • $250,000 - $1 Million: Eligible for a 20% transferable tax credit.
  • More than $1 Million: Eligible for a 30% transferable tax credit.

The Tax Credits may be used to offset Arizona tax liability, sold, or transferred. Unused tax credit amounts may be carried forward for up to five years. Productions can also receive Transaction Privilege Tax and Use Tax exemptions for Arizona expenditures totaling $250,000 and up.

Build a studio or construct another eligible infrastructure project in Arizona and qualify for transferable tax credits equal to 15% of the eligible Arizona project costs! Some of the requirements include: The facility must be owned and operated by the applicant. The applicant agrees to submit a report to the Arizona Department Commerce upon completion of the project, and Arizona project expenditures for a soundstage are at least:

  • $250,000 within 90 days of pre-approval,
  • An additional $1 million within 12 months of pre-approval, 
  • A total of $5 million within 36 months of pre-approval

Arizona project expenditures for a support and augmentation facility are at least:

  • $250,000 within 90 days of pre-approval, 
  • A total of $1 million within 36 months of pre-approval.

The Tax Credits generated by infrastructure projects may be used to offset Arizona tax liability, or they may be sold, or transferred. Unused tax credit amounts may be carried forward for up to five years.

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.

Qualified companies producing Commercials or Music Videos may realize the following incentives:

  • Income tax credits equal to 20% or 30% of the company’s investment in eligible Arizona production costs.
  • TPT exemptions of approximately 6% off of purchases.
  • Use tax exemptions of approximately 5% off out-of-state purchases.

For more information call 602-771-1193 / (Toll-free) 800-523-6696 or email motionpicture@azcommerce.com for details!