Tennessee

It is recommended to apply at least four months PRIOR to the start of principal photography in any location to allow all required documents to be reviewed and finalized; meet with TEC before the start of principal photography; begin principal photography in Tennessee within 120 days from the Effective Date, as defined in the grant contract; incur expenditures in Tennessee within a 12-month period (may be extended) following the Effective Date; post a notice in local newspapers notifying the public of the need to file creditor claims with the production company by a specified date; within 18 months of the Effective Date in the grant contract, submit an independent accountant’s report using Agreed Upon Procedures; and include an embedded Filmed in Tennessee logo. For the grant program, loan out companies must be registered with the Secretary of State and must be tied to a Tennessee resident with a Tennessee driver’s license or ID. For the credit program, loan out companies must be registered with the Department of Revenue.

For the grant program, qualified spend includes payroll and nonpayroll expenditures related to: goods and services used in the state and purchased from a Tennessee vendor or resident during preproduction, production, and postproduction; and the first $250,000 in wages, salaries, fees, per diem, and fringe benefits paid to each resident (whether paid to an individual or a loan out company). Any expenditures incurred before the Effective Date do not qualify. For the credit program, eligible spend includes the first $1,000,000 of qualified payroll for each qualified position per production, per episode. Qualified positions for nonresidents may be limited to up to 30% of total qualified positions. Only amounts that would be included in Box 1 of Form W-2 (if a W-2 were filed) are eligible for the credit

Neither program is administered on a first-come, first-served basis. For the Grant program, the TEC and ECD shall have the sole discretion to award the grant. Qualifying projects may earn 25% on nonpayroll spend and 25% on the first $250,000 of labor costs for each resident. For the credit program, the DOR and ECD will determine if the project is in the best interest of the state. A production company may offset up to 50% of the combined franchise and excise tax liability shown on the return by earning a tax credit equal to 40% of qualified payroll expenses or up to 50% if paid to residents of certain counties. The tax credit also includes an additional sales tax exemption which include state and county taxes on all eligible goods/services ranging from 9.25% – 9.75%. Tax credit applicants may also apply for a sales & use tax exemption certificate.