Production Incentives Database
| Incentive Type | Non-Transferable Refundable Tax Credit |
| Spend | 15-20% |
| Above the Line Residents | 15-35% |
| Above the Line Nonresidents | 15% |
| Below the Line Residents | 15-35% |
| Below the Line Nonresidents | 15% |
| Bonus 1 | 5% if the production is filmed in an economically distressed area of the Commonwealth |
| Bonus 2 | 10% of the total aggregate payroll for Virginia residents when the total production costs in the Commonwealth are at least **$250,000 but not more than $1 million** |
| Project Criteria | $250,000 minimum qualifying expenses; make a best effort to film at least 50% of principal photography in the Commonwealth. |
| Loanout Registration Required | No |
| Loanout Withholding | No |
| Annual Funding Caps | $6,500,000 per fiscal year for Tax Credit/ $6,000,000 for Grant |
| Project Caps | None |
| Minimum Spend | $250,000 |
| Sunset Date | 01/01/2019 |
Virginia Film Office
901 East Byrd Street,Richmond, VA, 23219-4048
Also Applies To:
| Animation |  |
| Commercials | |
| Documentaries | |
| Game Shows |  |
| Interactive | |
| Industrials | |
| Music Videos | |
| News | |
| Sports | |
| Reality TV | |
Audit Requirements
A financial review by a CPA licensed by the Commonwealth is required.
Getting Started
Submit an application to the Virginia Film Office at least 30 days prior to the beginning of production; include a copy of the script, production budget and the proposed production schedule. Applicants must enter into a memorandum of understanding with the Virginia film Office. The project must go into pre-production within 90 days of the application’s approval.
Where a motion picture production continues for more than one year, a separate application for each tax year the production continues must be made.
Where a motion picture production continues for more than one year, a separate application for each tax year the production continues must be made.
Screen Credit Required
Yes
Company Registration
No
Sales Use Tax Relief
Yes
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Upon completion of the production submit the required documentation to the Virginia Film Office; if satisfied, the Film Office will send a Certification Letter indicating the tax credit amount; file a Virginia income tax return with required documentation in order to receive the tax credit payment.
Additional Information
Bonus 3
20% of the total aggregate payroll for Virginia residents when the total production costs in the Commonwealth are at **least $1 million**
Bonus 4
10% of the total aggregate payroll for Virginia residents employed for the first time as actors or crew members in connection with the production of a film in the Commonwealth
Compensation Cap: The first $1 million of salary, per employee, is considered a qualifying expense
The VA film office actually has a Grant and a Tax credit program. They follow extremely similar requirements. The Grant-The Governor's Motion Picture Opportunity Fund (GMPOF) offers discretionary grants to production companies and studios. For grant consideration the application must be submitted 30 days prior to the start of principal photography and the applicant must demonstrate that 100% of the anticipated financing is in place. In addition, a condition of receiving the grant is a joint public announcement between the production company and the Governor. The project must begin physical production within 12 months following application submission to the Virginia Film Office. The Biggest difference is the Grant does not require a minimum spend.
$6 million is available per biennium for the GMPOF.
There is yet another per employee bonus as well: Virginia Resident First-Time Industry Employee Credit- production companies may claim a credit equal to 10 percent of the total aggregate payroll for Virginia residents who are employed as first time actors or first time members of a production crew in connection with a production in Virginia. It must be the employee’s first time receiving compensation and wages as either an actor or as a member of a production crew on a film, ever, anywhere, and the employee must be a Virginia resident.
For goods with a purchase price of $25,000 or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed.
20% of the total aggregate payroll for Virginia residents when the total production costs in the Commonwealth are at **least $1 million**
Bonus 4
10% of the total aggregate payroll for Virginia residents employed for the first time as actors or crew members in connection with the production of a film in the Commonwealth
Compensation Cap: The first $1 million of salary, per employee, is considered a qualifying expense
The VA film office actually has a Grant and a Tax credit program. They follow extremely similar requirements. The Grant-The Governor's Motion Picture Opportunity Fund (GMPOF) offers discretionary grants to production companies and studios. For grant consideration the application must be submitted 30 days prior to the start of principal photography and the applicant must demonstrate that 100% of the anticipated financing is in place. In addition, a condition of receiving the grant is a joint public announcement between the production company and the Governor. The project must begin physical production within 12 months following application submission to the Virginia Film Office. The Biggest difference is the Grant does not require a minimum spend.
$6 million is available per biennium for the GMPOF.
There is yet another per employee bonus as well: Virginia Resident First-Time Industry Employee Credit- production companies may claim a credit equal to 10 percent of the total aggregate payroll for Virginia residents who are employed as first time actors or first time members of a production crew in connection with a production in Virginia. It must be the employee’s first time receiving compensation and wages as either an actor or as a member of a production crew on a film, ever, anywhere, and the employee must be a Virginia resident.
For goods with a purchase price of $25,000 or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed.
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 incentives@mediaservices.com.
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 incentives@mediaservices.com.