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Incentives

Production Incentives Database

Incentive Type Credit/Rebate Combo
Spend 9-29%
Above the Line Residents 10-17%
Below the Line Residents 10-17%
Bonus Additional 10% of total QPE if QP activities are done on St. Croix
Bonus Additional 10% of total QPE if the Territory Certified Production includes a Qualified Virgin Islands Promotion (contact film office)
Project Criteria Minimum spend of $250,000
Minimum of 20% local resident hires (including crew, extras, actors and maximum of three (3) paid interns.
Above-the-line-crew member speak at local school or university.

Cash Rebate- Qualified Production spend must take place on the islands and be performed by a Territory Certified Production(TSP).

Transferrable credit - If 20-25% of total workforce (including paid interns) are VI residents, allowable credit is 10% of actual compensation paid in connection with the Territory Certified Production (TCP) during a tax year.
If 25.1-30% of total workforce (including paid interns) are VI residents, allowable credit is... +Read More
Loanout Registration Required No
Loanout Withholding No
Annual Funding Caps 2,500,000
Project Caps 500000
Sunset Date None
Audit Requirements
CPA required audit
Getting Started
Must schedule a Pre-Application meeting with US Virgin Islands Economic Development Authority and Department of Tourism to discuss project, processes, timelines, list of CPAs’, etc.
If moving forward, obtain a certificate of good standing from the Lt. Governor’s office and be incorporated
Application fee - $500 dollars
32 business Days of processing and application process approvals
After that the final approval is through the Economic Development Authority (EDA) who then has 25 business days to approve or reject application.

FYI a Company can apply after filming has started but no later than 30 days after commencement

Screen Credit Required
Yes
Company Registration
Yes
Sales Use Tax Relief
No
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Tax credits can be transferred or sold to a Virgin Islands taxpayer who wants to reduce their tax liability.
Standard amount is $.60 on the dollar
Carry Forward- 5 years. Can only make a single transfer or sell tax credits
Additional Information
Cash Rebate and Credit can be used together

Cash Rebate on Qualified Production Spend (QPE)
Annual and Project Cap listed is for Cash Rebate.
Resident Production Companies are eligible for tax incentives and rebates up to a maximum of 3 projects per annum with a maximum of incentives and credits equal to $1,050,000, if they meet all requirements.

Reduction in hotel tax rates may be applied to both resident and non-resident production companies:
Minimum QPE of $250K AND over 150 room nights, Production company shall pay hotel tax rate of 8%
QPE spend of $250,001-$500,000 AND over 250 room nights, Production company shall pay hotel tax rate of 6%
QPE spend of $500,001-$750,000 AND over 350 room nights, Production company shall pay hotel tax rate of 4%
QPE spend of $750,001-$1,000,000 AND over 450 room nights, Production company shall pay hotel tax rate of 3%
QPE spend of $1,000,001 AND over 1000 room nights, Production company shall pay hotel tax rate of 1.5%
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Transferrable Credit (labor)
Compensation Cap - $500,000

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Additional separate transferrable credit available for Interactive media
15% on QPE and resident labor


Last updated: 05/02/2019

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 clientservices@mediaservices.com.