ARIZONA

PROPOSED LEGISLATION (STILL IN THE HOUSE OR SENATE)

FEBRUARY 28, 2010

Arizona has introduced two bills which together could potentially yield a refundable tax credit of up to 40% of qualified production expenses.  If passed, the first bill would create a 20% refundable tax credit for productions incurring at least 75% of the total qualified production costs in Arizona.  Other requirements for this particular incentive substantially mirror the existing incentive program (which is scheduled to sunset on 12/31/2010) with the exception that the proposed bill adds a per project credit cap of $20 million.  The proposed program also extends the sunset date to 12/31/2015.  The second bill provides for an additional refundable tax credit ranging from 5% to 20% of qualified production expenditures if shot in a qualified production facility.  To qualify for this program the production must have qualified production expenditures of at least $100,000; produce 50% of all principal photography and postproduction within a privately funded production facility; and, conduct at least 80% of principal photography and post production in Arizona.  The amount of the refundable credit is based on the certified infrastructure investment of a privately funded production facility.  Generally, for the production to earn the additional 20% it must shoot in a facility costing at least $75 million; to earn an additional 15% the studio must have cost at least $50 million but less than $75 million; and, to earn an additional 5% the facility cost must have been at least $20 million but less than $50 million.  In addition to the other costs that qualify for this bump, only 10% of resident labor may be included as qualified production expenditure. 

For more information please contact:

Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
jbessacini@castandcrew.com

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