Utah

Apply PRIOR to the start of principal photography in Utah; commence principal photography within 90 days of the date of application, demonstrate the project is 100% financed and there is a plan for distribution; and meet the minimum in-state spending requirement of at least $500,000. Loan out companies must be registered with the Department of Commerce.

Qualified spend includes: expenditures made in Utah and subject to corporate, business, income, franchise tax, or sales and use tax (notwithstanding any sales and use tax exemption allowed); salaries, wages, per diem (for nonresidents, the per diem amount above the federal rate does not qualify), and fees paid to residents and loan out companies owned by a resident. Utah uses the term “dollars left in the state” to define qualifying expenditures. As such, this term limits the amount that qualifies on payments made to nonresident workers to the income tax paid or withheld from such payments. Payments to a loan out company owned by a nonresident do not qualify for the incentive.

This program is not administered on a first-come, first-served basis. Projects that spend $500,000 to $1 million and see that at least 75% of cast and crew are Utah residents (excluding extras and five principal cast members) may qualify for a 20% cash rebate. Productions spending $1 million or more in-state may earn a 20% tax credit without the cast and crew percentage restriction. There are two options available for a production to earn the additional 5% for a total of 25%. Option 1: meet the minimum in-state spending requirement of at least $1 million and see that at least 75% of the cast and crew (excluding extras and five principal cast members) are Utah residents. Option 2: meet the minimum in-state spending requirement of $1 million and locate at least 75% of principal photography days in rural Utah (outside Davis, Salt Lake, Utah, and Weber counties). While there is a state funding cap of $6.79 million per fiscal year, there is not a limit on the tax credit that may be earned by a project. Credits earned in excess of $2 million may be paid out over multiple years (not to exceed three years). Any unused funds at the end of the fiscal year will roll over to the following year.