As we all know, much — even most — of the film activity in the New England market has been driven by strong state film tax incentives that draw production to our region. The success of the Massachusetts tax credit is undeniable, having brought unprecedented film work to our local since its inception in 2006.
Many of you are very familiar with the Bay State’s tax credit from working on the countless projects that have come through in the past 14 years. The Massachusetts credit has a minimum spend of $50,000 with no caps on budgets. There is a 25% payroll incentive for all crew, with 50% of budget or 50% of principal photography being invested in Massachusetts. There is no residency requirement, and credits are transferable and partly refundable.
The program has been a tremendous success, but it has not been without its political detractors. Even now, we are fighting to eliminate the sunset clause (set to expire in December of next year) in order to make the credit permanent and ensure the continuing success of our industry in Massachusetts. On April 26, the House unanimously voted to approve a budget amendment to eliminate the sunset. The Senate will take up the matter in its budget session in late May. You will be called upon again to show your support as the Senate votes on its budget before going to the governor’s office. Thank you for your strong advocacy in keeping this tax incentive going!
Massachusetts is not alone in offering a film incentive program, as evidenced by film, television and commercial work in its neighboring states. Here is a brief summary of the existing film credits in our New England states and links to the film offices that promote them.
Vermont and New Hampshire
Currently, the only states that do not offer direct film incentives are New Hampshire and Vermont. Vermont has a long history of filming, including a host of favorites like Beetlejuice and Baby Boom. The state lost its film credit and office several years ago, but will hopefully see more production as studios continue to look to New England as a filming destination. While New Hampshire does not offer a film credit, it does have advantages not many states can equal: beautiful locations, along with no sales tax, make it a highly desirable location to shoot.
New Hampshire Film Bureau: Matthew Newton, bureau chief
Connecticut
Connecticut offers a very competitive incentive, with a minimum spend of $100,000 and no maximum. The credit covers 10–30% payroll for all crew, depending on the budget. In order to qualify, productions must spend 50% of their principal photography days or post-production budget in the state. Salaries are capped at $20 million in the aggregate. There have been changes made for theatrical films over the years (streaming vs. theater exhibition), so producers need to verify eligibility based on the type of project.
The Office of Film, Television & Digital Media: George Norfleet, director
Maine
The minimum spend per project in Maine is $75,000 — with no annual caps or sunset date. There is a wage rebate of 12% to residents and 10% to non-residents, up to $50,000 per employee. The expense tax credit is 5% (non-refundable, non-transferable tax credit for non-wage expenses incurred in Maine. Additionally, there are tax exemptions for accommodations for a continuous stay of 28 days or more.
There is now a proposal from Picture Maine' to boost the state’s film credit by increasing the spend reimbursement to 25%, with an added “cultural test” percentage for certain areas, and increasing wage reimbursements to 20% for non-residents and 25% for residents, with caps of $75,000 per employee. They also seek to institute a per-project cap, and no reimbursement for non-local above-the-line workers. These alterations could make the credit more attractive, while also benefiting residents who work in the industry. Read more here.
Rhode Island
One of the first New England states to offer an incentive, Rhode Island’s credit has a minimum spend of $100,000, with a cap of $7 million per project, with a $20 million annual funding cap. The incentive includes 30% payroll credit for all crew. Terms are that at least 51% of principal photography or 51% of the production budget must be spent in Rhode Island, or spending a minimum of $10 million in the state in a 12-month period. The production must also make an effort to hire local staff. Rhode Island offers a transferable but non-refundable incentive credit, and the program has a sunset date of July 1, 2027.
Rhode Island Film & TV Office: Steven Feinberg, executive director
Keep an eye out for how you can assist when our local industry needs our help in keeping our television and film markets strong in New England.
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