Film Tax Credit Application - Film in PA 2025

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The amount of Film Tax Relief (FTR) is based on the UK core expenditure, up to a maximum of 80% of the total core expenditure incurred by the film production company (FPC). An FPC can claim FTR on the lower of either: 80% of total core expenditure; or. the actual UK core expenditure incurred.
Films that qualify are eligible for a tax credit equal to 25% of the productions total Qualified Pennsylvania Production Expenses. An additional 5% tax credit, for a total credit of 30%, is available for productions that meet the minimum state filming requirements at a Qualified Production Facility.
Filmmakers and investors may qualify for tax breaks under 26 U.S.C. 181 (Section 181), for any qualified film or television production. To benefit, you must make the tax election in the first taxable year in which you begin to pay or incur production costs.
What is the S481 film tax credit? The S481 tax credit is a refundable corporation tax credit on qualifying productions produced by qualifying production companies where the total cost of production exceeds 250,000.
26 U.S. Code 181 - Treatment of certain qualified film and television and live theatrical productions. A taxpayer may elect to treat the cost of any qualified film or television production, and any qualified live theatrical production, as an expense which is not chargeable to capital account.
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Film tax incentives typically come in the form of tax credits equal to a percentage of a film or television productions qualified in-state spending and/or exemptions from sales tax on qualified transactions.
Film Relief was an incentive scheme designed to promote investment in film by granting individual investors tax relief on their investment. This relief was often referred to as Section 481 relief.

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