Tax Credits - Maine

http://www.filminmaine.com/incentives/default.aspx

Maine Attraction Certified Media Wage Reimbursement and Income Tax Credit FAQs
What is included in the program?
The Maine Attraction Film Incentive program, approved in 2006, includes two
components.
1. A wage reimbursement program for certified media productions.
2. An income tax credit program for investment in certified media productions.

What does the Certified Media Wage Reimbursement offer to producers?
The program offers producers of a certified media production or productions a partial
reimbursement of eligible employee wages. Generally, companies are reimbursed 10% of the
amount paid as wages for non-Maine residents and 12% of the amount paid as wages for
Maine residents. For more information on how to apply for reimbursement of eligible wages,
see the Maine Revenue Services web site at www.maine.gov/revenue/forms/credits/2006.htm

What does the Certified Media Income Tax Credit offer?
A certified media production company may qualify for a non-refundable credit equal to
the Maine income tax otherwise due on taxable income related to the certified media
production. For more information on this program, contact the Maine Film Office. Also,
for a copy of the Certified Media Production Credit Worksheet, visit the Maine Revenue
Services web site at www.maine.gov/revenue/forms/credits/2006.htm.
What is a Certified Media Production?
Under this law, an eligible media production is a single-medium or multimedia feature
film, television show or series, video, commercial, photographic project, interactive
computer or video game or other program intended for a national audience and fixed on
film, video tape, computer disk, laser disc or other delivery medium that can be viewed or
reproduced and that is exhibited in theaters or by individual television stations or groups
of stations, television networks or cable television stations or via other means or licensed
for home viewing or use.

Which media productions are not eligible for the Certified Media Production tax
incentives?
(1) A news, current events or public programming show or a program that includes
weather or market reports;
(2) A talk show;
(3) A sports event or activity;
(4) A gala presentation or awards show;
(5) A finished production that solicits funds; or
(6) A production produced by a media production company if records, as required by
18 United States Code, Section 2257, are to be maintained by that media
production company with respect to any performer portrayed in that production.
Does my project have to spend a certain amount in Maine to be eligible?
Yes. A project must spend $250,000 or more on production related expenses in Maine.
But it doesn't have to be on a single project. For example, a production company that
creates two certified projects, each spending $125,000, would be eligible as long as those
projects were produced during a 12-month consecutive period.

What expenses count towards the $250,000 expenditure requirement?
Specific expenses directly incurred during the creation of a media production qualify
towards the requirement. This term includes wages, salaries, commissions and any other
form of remuneration for personal services of individuals employed in the production on
which taxes have been paid or accrued; the cost of construction, operations, editing and
related services, still and motion photography, sound recording and synchronization,
lighting, wardrobe and accessories; and the rental of facilities and equipment, including
location fees.

What expenses do not count towards the $250,000 expenditure requirement?
Expenses incurred in marketing and advertising a media production or in printing or
otherwise disseminating a media production do not qualify.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!