SC Code Section 12-6-3570 allows credits against Income Tax for 20% of investments in qualified motion picture projects or qualified motion picture production or post-production facilities.
Qualified motion picture projects (TC-25)
A motion picture project is a product intended for commercial use that produces a master negative motion picture for theatrical or television release in the United States. The project must incur at least $250,000 of costs in South Carolina. At least 20% of total filming days of principal photography, not less than 10 filming days, must be filmed in the state. The South Carolina Department of Parks, Recreation, and Tourism (SCDPRT) will certify the motion picture project as eligible for the credit based on the recommendation of the South Carolina Film Commission.
To be a qualified South Carolina motion picture project, you must first provide all documentation of the credit requirements to the SCDPRT. Then, submit the credit documentation and a record of the allocation of credits to the SCDOR to be registered as a qualified project.
You may claim an Income Tax credit for 20% of your cash investment in a company that develops or produces a qualified South Carolina motion picture project. The credit is limited to $100,000 in total for a project. You cannot claim more than one credit in connection with the production of the project.
Credits for investors in a motion picture equity fund are allocated first to the fund, based on 20% of its cash investment in a qualified project. The credits are then distributed to equity fund members based on their percentage of interest in the fund.
Cash invested must have been spent on services performed in the state, tangible personal property first used in the state, and/or real property located in the state.
Complete Part I to calculate the credit for a qualified project.
Qualified motion picture facility
A motion picture production facility is a location in South Carolina that contains soundstages designed for film and television production for both theatrical and video release. The production facility site must include:
• production offices
• construction shops/mills
• prop and costume shops
• storage areas
• parking for production vehicles
These locations must complement the production needs and orientation of the overall facility purpose. Television stations, recording studios, or facilities mainly used to produce videos, commercials, training films, or advertising films do not qualify as motion picture production facilities. To qualify for the credit, the South Carolina investment in a production facility must be at least $2 million, not including land costs.
You may claim an Income Tax credit for 20% of your investment in a company that constructs, converts, and/or equips a motion picture production or post-production facility. The total amount of credit that can be claimed by all taxpayers cannot be greater than $5 million. You can only claim this credit once in connection with a single production facility and once in connection with a single post-production facility.