Eligibility Requirements

An Accredited Production must:

• be a film, video, broadcast advertisement or television production, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filiming or taping of the production begins exceeds $50,000; or
  

• be an electronic game for which the aggregate salary and wages included in the cost of production for the period ending 36 months after the month in which the principal lprogramming, filming or taping of the production begins exceeds $100,000.
  

Accredited Productions do not include the following:

• News, current events or public programming or a program that includes weather or market reports;

• A talk show;

• A production with respect to a questionnaire or contest;

• A sports event or sports activity;

• A gala presentation or awards show;

• A finished production that solicits funds;

• A production for which the production company is required under 18 U.S.C. 2257 to maintain records with respect to a performer protrayed in a single media or multimedia program; and

• A production produced primarily for industrial, corporate or institutional purposes

In determining whether to accredit a production, the Department of Commerce will consider whether the production will:

• Occur in Wisconsin without the tax credits;

• Enhance economic development in Wisconsin;

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

• Hurt the reputation of the State of Wisconsin.
  

Eligible Expenditures and Credit Amounts

Claimants can earn Film Production Services Tax Credits for the following:

• 25% of the salary, wages or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of Wisconsin at the time they were paid and who worked on an accredited production in the state, not including the salary, wages or contract payments paid to any individual who was paid more than $250,000.  The total amount of the credits that a claimant may claim in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages or labor-related contract payments paid to each eligible individual.  A Wisconsin resident is a person with the intent to live in Wisconsin permanently or indefinitely.
  

• 25% of the production expenditures paid by the claimant in the taxable year to produce an accredited production.  "Production expenditures" means expenditures that are incurrred in Wisconsin and directly used to produce an accredited production.
  

Eligible production expenditures include set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging and any other similar expenditure as determined by the Department of Commerce.

Eligible production expenditures do not include salary, wages or labor-related contract payments.

No credits may be claimed for the purchase of tangible personal property or items, property or goods, if the sale is not sourced to the state.

At least 35% of the total budget for the accredited production has to be spent in Wisconsin in order to claim Film Production Services Tax Credits.

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 Services 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 Services Tax Credits

At the completion of the project and prior to the approval of 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 proposed budget and application documents and agreed to by the parties were incurred by the claimant to produce the accredited production and are eligible for release.

The final report must include documentation of:

• Eligible salaries, wages and labor-related contract payments; and

• Eligible production expenditures

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 available for inspection by the department.

	OTHER LINKS
Film Production Company Investment 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.