Arizona’s New Television and Film Incentive General Information

Starting in September 2023, Arizona will begin taking applications for a new budget-friendly film incentive which will provide a refundable tax credit for the Motion Picture Industry based on qualified expenses and the construction of qualified production facilities.

This new program:  

• Creates a refundable tax credit on the total amount of qualified production costs that is equal to:
  • 15 percent for a motion picture production company that spends up to $10 million;
  • 17.5 percent for a motion picture production company that spends more than $10 million but less than $35 million;
  • 20 percent for a motion picture production company that spends more than $35 million;
• Allows for additional bumps, as follows:
  • 2.5 percent on below-the-line resident labor costs;
  • 2.5 percent of the total amount of qualified production costs if:
    • The production company uses a qualified production facility in the state to produce the motion picture production; or,
    • The production company films primarily at a practical location produces and films the project primarily in Arizona and performs ALL preproduction, postproduction, and editing at an in-state qualified production facility;
  • 2.5 percent of the total amount of qualified production costs if the production is produced and filmed in association with a “long-term tenant”, as defined, of a qualified production facility;
• Establishes the following amount of tax credits that may be preapproved in each calendar year:
  • 2023, $75 million;
  • 2024, $100 million;
  • 2025 and thereafter, $125 million;
• Limits the amount of tax credits that may be awarded to projects that qualify for the program by filming primarily at a practical location in Arizona, produce and film the motion picture production primarily in Arizona and perform ALL preproduction, postproduction, and editing at an industry-standard facility in Arizona, if such a facility is available, to $25 million in each calendar year;
• Qualifies resident and nonresident above-the-line and below-the-line labor costs;
• Requirements:
  • To qualify for the program a motion picture must do either of the following:
    • Use a qualified in-state production facility to produce the motion picture production; or
    • If the motion picture is filmed primarily at a practical location, produce and film the motion picture production primarily in Arizona and perform ALL preproduction, postproduction, and editing at an industry-standard facility in Arizona, if such a facility is available;
  • Maintain the production company’s production labor positions in Arizona;
  • Include in the credits an acknowledgment that the production was filmed in Arizona;
  • Provide an audited statement completed by an in-state certified public accountant; and,
• Establishes a sunset date of December 31, 2043.

Questions about the new incentives? Call Brett Galley of the Arizona Commerce Authority at 813.943.8489 or e-mail Brett directly at: brettg@azcommerce.com.