FILM INCENTIVES OVERVIEW
October 2023 Status on the Arizona Film Incentive Program
Base Credit Allocation
Budget up to $10M = 15%
$10M to $35M = 17%
$35M and up = 20%
To qualify for the base-credit you have to do one of the following:
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Film 50% or more at a Qualified Production Facility.
“Qualified Production Facility” means a structure that is built for film industry purposes, is located in this state, is at least ten thousand square feet and meets generally accepted industry standards, including standards for soundproofing, lighting, air conditioning, and Motion Picture Production quality technology for producing, filming or otherwise creating a Motion Picture Production.
Or
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Film 50% or more on a practical location in Arizona, film 50% or more of the project in Arizona, and do all prep and post at an Industry Standard Facility in Arizona.
“Industry Standard Facility” means a facility that, in the judgment of the Authority, has the required equipment and capabilities to meet the needs of the Motion Picture Production.
Bumps
• 2.5% For all Arizona labor costs.
• 2.5% If you are a long-term tenant of a Qualified Production Facility.
Or
• 2.5% If you film at least 50% at a Qualified Production Facility Or do all your preproduction and post at a Qualified Production Facility
Local Independent Film Example
$5m budget, shot on location in Arizona, local crew and cast equal 25% of budget, produced and edited at an Industry Standard Facility. Earn 17.5% on local people and 15% on balance of local spend.
$750,000 rebate plus $31,250 local hire bump = $781,250
Annual Tax Credit Cap
In calendar year 2023: $75,000,000
In calendar year 2024: $100,000,000
In calendar year 2025, and each year thereafter: $125,000,000
NOTE: For projects that film primarily on Practical Locations (on-location), there’s a yearly cap of $25,000,000 within the total Annual Tax Credit Caps above.