Incentives Overview

Thanks to the AZ film community’s efforts, we now have a state incentive providing a refundable tax credit for the Motion Picture Industry based on qualified expenses and for the construction of qualified production facilities. Here are the details:

Annual Tax Credit Cap

In the calendar year 2023: $75,000,000
In the calendar year 2024: $100,000,000
In the calendar year 2025, and each year thereafter: $125,000,000

  • NOTE 1: $25,000,000 is the cap allowed in a calendar year for filming at Practical Locations meaning the balance is only applicable for studio construction and/or filming occurring at the studios
  • NOTE 2: Unused credits will roll up to the following calendar year

Credit Allocation

Up to $10M = 15% $10M to $35M = 17% $35M and up = 20%

What Happens Next?

Bumps

Arizona Labor = 2.5%
Qualified Production Facility = 2.5%
Post-Production at Qualified Production Facility = 2.5% Long Term Tenant (aka TV Show) = 2.5%

The law goes into effect on January 1, 2023; however, the funds in this law go through the AZ Department of Revenue. For that reason, the rules and applications won’t be available until September 2023. The benefit to this prolonged wait time is that it affords us time to work with the AZ Commerce Authority (ACA) as a voice for film workers and local businesses.

The AFDMC and various state film offices have already had an initial meeting with the ACA. We are working to get a seat at the table to represent the AZ film community and film workers in crafting rules to benefit all of us.

Legislation is traditionally written to be amended, and rules are made to guide it before implementation. Through conversations and reviews, the AFDMC hopes to use our extensive industry knowledge to help guide the ACA throughout the implementation process.

We will continue to update the film community and are developing a way to accept any suggestions from those who’d like to give input. To receive updates, sign up for the AFDMC email list at azfdmc.org.

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