Eligibility Requirements

To be eligible, a claimant must be doing business in the state as a film production company.  "Film production company" means an entity that exclusively creates accredited productions as defined by the Film Production Services Tax Credit.  Claimants can be either new or existing film production companies.

Eligible Expenditures

Claimants can earn Film Production Company Investment Tax Credits for the following:

• 15% of the purchase price of depreciable, tangible personal property and items, property and goods if the sale of the tangible personal property, items, property or goods is sourced to the state;
  

• 15% of the amount spent to construct, rehabilitate, remodel or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2008, and the completed project is placed in service after December 31, 2008; and

• 15% of the amount spent to acquire real property, if the property is not previously owned property, and if the claimant acquires the property after December 31, 2008, and the completed project is placed in service after December 31, 2008

At least 50% of the use of the tangible personal property, item, property or goods must be for the claimant's business as a film production company.

"Physical work" does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications or stabilizing property to prevent deterioration.

"Previously owned property" means real property that the claimant or a related person owned during the two years prioer to doing business in Wisconsin as a film production company, and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person as defined under section 267 of the Internal Revenue Code.

In determining whether to award Film Production Investment Tax Credits to an eligible claimant, the Department of Commerce will consider whether the investment will:

• Occur in Wisconsin without the tax credits;
  

• Enhance economic development in Wisconsin; or
  

• Enhance the potential for increasing the film, video or electronic game industry in Wisconsin.
  

An application for Film Production Company Investment Tax Credits must be submitted to the Department of Commerce prior to the start of the investment project.  There is a non-refundable application fee of two percent of the budgeted production expenditures or $5,000, whichever is less.  The fee must be submitted with the application.

Application Process

The application process begins with the submission of a completed application prior to the start of the principal filming, taping or programming of the production.  The application will enable the department to determine:

• That the applicant meets statutory criteria for certification as an eligible claimant;

• That the project meets statutory criteria for certification as an accredited production;

• That the identified expenditures are eligible for Film Production Company Investment tax credits; and

• The estimated amount of tax credits for which the applicant is eligible.
  

Department staff will review the application and make a recommendation to the Secretary's Office.  The recommendation will include a preliminary estimate on the amount of tax credits for which the claimant is eligible.  The Secretary's Office will:

1. Make a positive determination, in which case the applicant will receive an offer letter detailing the terms and conditions of the Department's proposed participation; or
   
2. Deny the proposal, in which case the applicant will receive a letter outlining the reasons for denial.

There is a non-refundable application fee of two percent of the budgeted production expenditures or $5,000, whichever is less.  The fee must be submitted with the application.

Final Reporting and Release of Film Production Company Investment Tax Credits

At the completion of the project and prior to the department approving the release of any tax credits, a final project report must be submitted to the Department of Commerce.  The final report must document that the estimated eligible expenditures set forth in the claimant's application documents and agreed to by the parties were incurred by the claimant to either establish or operate a film production company and are eligible for release.

The final report must include a statement signed by the director or principal officer of the claimant attesting to the accuracy of the expenditures set forth in the final report.

If requested by the department, the claimant agrees to make available for inspection all documents (or copies) necessary to confirm the expenditures set forth in the final report.

	OTHER LINKS
Film Production Services Tax Credits
Film Production Services Credit and Film Production Company Investment Credit statutes
Film Production Services Tax Credit and Film Production Company Investment Tax Credit Application
Film Wisconsin is a volunteer group dedicated to nurturing and sustaining Wisconsin's film and media industry.  Film Wisconsin advocates for the industry in the global marketplace, providing information and resources on the industry and is a technical assistance organization for individuals and organizations engaged in film, television, advertising, documentary, corporate video, video gaming and still photography production in the state.