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Production Incentives Database

Incentive Type Transferable, Partially Refundable Tax Credit
Spend 25%
Above the Line Residents 25%
Above the Line Nonresidents 25%
Below the Line Residents 25%
Below the Line Nonresidents 25%
Project Criteria 25% payroll credit: $50,000 minimum instate spend during a consecutive 12-month

25% production credit and a sales tax exemption: spend more than 75%( for the prod credit and tax exemption) of the total budget or film 75% (for the prod credit and tax exemption) or more of the principal photography days in Massachusetts.
Loanout Registration Required Yes
Loanout Withholding Yes, 5%
Annual Funding Caps None
Project Caps None
Minimum Spend $50,000
Sunset Date None
Audit Requirements
For projects over $250,000 an independent audit from a Massachusetts CPA is required or the Agreed Upon Procedures Form can be completed by the production's CPA.
Getting Started
Massachusetts offers three tax incentives:
1) Payroll expense credit
2) Production expense tax credit
3) Sales tax exemption

Apply to the Department of Revenue for a Sales Tax Exemption prior to making purchases in Massachusetts.

Screen Credit Required
Company Registration
Sales Use Tax Relief
Hotel Occupancy Tax Relief
Local Vendors Qualify
Outside Vendors Qualify
Claiming Incentive
Upon project completion in Massachusetts fill out Massachusetts Film Office Production Completion Form; file for Tax Credits with the Department of Revenue; include required documentation.
Additional Information
Compensation Cap: Compensation to persons earning $1 million or more is not eligible for the payroll expense credit, however the earnings can be submitted for the production expense tax credit.

Massachusetts tax credits can be cashed out with the Commonwealth of Massachusetts at 90% of face value after satisfying tax liabilities, or can be transferred at market rate.

Credit has a carry forward of 5 years

A Loan-Out Affidavit/Allocation Form must be completed for each artist loan-out company.

Multiple episodes of a television series or multiple commercials for the same client may be aggregated to qualify for the tax credit.

The 12-month qualifying period must be the same for sales tax exemption and tax credits; the qualifying period can cross taxable years.

Last updated: 06/01/2024

Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at [email protected].