Tax Incentives | Screen Actors Guild

Film and TV Tax Incentives

Screen Actors Guild has a long history of fighting for legislative solutions to filming leaving the United States, including sponsoring and supporting state film incentives. It is important to remember that due to legislature schedules, funding allotments and changes in state revenues, state incentive information is subject to change.

To receive detailed information regarding state tax incentives, including minimum local spending requirements, shooting days, salary and refund/rebate caps and other variables, please visit the appropriate SAG Branch Office web page.

SAG is also part of a broad coalition of entertainment unions and guilds that supported a federal tax incentive. Originally passed in October of 2004, the runaway production provision—Section 181 of the U.S. Tax Code provides a tax incentive for films that shoot at least 75% of their total production in the United States.

Specifically, the legislation allows qualifying productions to take advantage of accelerated depreciation, thereby enabling movie producers an immediate write-off of all production costs in the year that they are incurred rather than offset against revenues substantially later. This tax benefit was originally limited to films with a budget of less than $15 million.

The coalition is currently supporting efforts to extend this legislation.

SAG’s Letter to NY Governor Paterson Regarding Film Production Tax Credit

New York (Jan. 19, 2010)— Screen Actors Guild today delivered the following letter to New York Governor David Paterson conveying its thanks for recognizing the importance of the Empire State Film Production Tax Credit by including it in the state budget proposal. January 19, 2010 Honorable David A. Paterson State Capitol Albany, NY 12224 Dear Governor Paterson, Screen Actors Guild joins The New York Production Alliance in conveying our thanks to you for recognizing the importance of the Empire State Film Production Tax Credit by including it in your budget proposal. New York State has shown extraordinary foresight by enacting the Film and Television Tax Incentive Program. Over the past several years, workers in New York's entertainment industry have experienced unprecedented job growth. During a time of severe economic crisis, the industry has essentially created thousands of solid, middle-class, union jobs with benefits. This job growth would not have been possible without the Film and TV Tax Incentive Program. We know that you realize the film and television industry contributes significant economic development benefits to the state’s economy through jobs, tax revenue and on-location production spending and movie/television-related tourism. The five year proposal not only assures the future viability of the program, thereby continuing the Empire State’s competitive edge, but will serve as a catalyst for capital investment, infrastructure development and thousands of related construction jobs. In fact, data shows that for every $1.00 the state spends on the tax credit, it receives $1.90 in return. The return on investment is also instantaneous as film and TV productions infuse a community with money immediately, well before they actually receive the credit from New York State. If New York were to abandon or reduce the film and television production tax credit, it would have tremendous negative economic consequences. This important decision not only affects the union workers, but thousands of other workers who support this industry such as dry cleaners, hotel workers, restaurant workers and lumber yards. Screen Actors Guild remains grateful for your courageous leadership, thoughtful insight and support during this complex financial period. We look forward to working with you, your team and the legislature to ensure this important program is included in the final budget passed by the New York State Legislature. Sincerely, Mike Hodge Screen Actors Guild New York President