South Carolina Motion Picture Project Certification

Article ID: 33962  

Question
South Carolina Motion Picture Project Certification

Answer

A taxpayer may claim a credit in an amount equal to thirty-three percent of the value of a taxpayer's investment in the construction or conversion, or equipping, or any combination of these activities, of a motion picture production facility or post-production facility in this State. No credit is allowed unless the total amount invested in the motion picture production facility is not less than two million dollars, exclusive of land costs, or the total amount invested in a post production facility is not less than one million dollars, exclusive of land costs. Documentation sufficient to provide confirmation of this threshold must accompany the application for the credit. Any unused credit may be carried forward to fifteen succeeding taxable years. The total amount of credit, which may be claimed by all taxpayers with respect to the construction, or conversion, or equipping, or any combination of these activities, of a single motion picture production facility or post-production facility may not exceed five million dollars. A taxpayer may claim the credit allowed by this section only one time in connection with a single motion picture production facility and one time in a single post-production facility. "Taxpayer" with respect to a motion picture production facility and post-production facility means the investor who invests in the company that constructs, converts, or equips a qualified South Carolina motion picture production facility.

Purpose of Certification.  This form certifies to the Department of Revenue that at least $1 million of cash costs directly in SC have been incurred to produce a master negative motion picture for theatrical or television exhibition in the US.

This form certifies that at least 20% of the total filming days of principal photography, but not fewer than 10 filming days is filmed in SC.

Who May Execute the Certification.  An authorized representative of the project owner may execute the Certification. The project owner is the entity that makes the direct investment in the motion picture project, owns the project's assets and incurs the expenses related to the project. A representative of the project owner would include: a principal officer of a corporation, a general partner of a partnership or a member of a Limited Liability Company.

Definitions: 

"Motion Picture Project" means a product intended for commercial exploitation that incurs at least $1 million of costs directly in this state to produce a master negative motion picture for theatrical or television exhibition in the United States and in which at least 20% of the total filming days of principal photography, but not fewer than 10 filming days is filmed in South Carolina.

"Qualified South Carolina Motion Picture Project" means a motion picture project that has registered with the South Carolina Department of Revenue after all the statutory requirements have been met.


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