State-by-state production incentives
Montana
| Montana | |
| Incentive Type | Refundable tax credit |
| Incentives Highlights | 14% of the first $50,000 paid to each resident, plus 9% of all qualified production expenditures made in MT (excluding labor). MT has no sales tax and lodging taxes of stays for 30 days or longer are refunded. |
| Eligible Projects | Films, television, pilots, series, documentaries and commercials -except advertising for tobacco products |
| Minimum Spend | None |
| Production Cap or Annual Cap | No project caps – per hire cap of $50,000. Residents only. |
| Application/Reporting Requirements | Projects must apply to the MT Film Office prior to the start of principal photography for pre-qualification. The show must provide an end roll credit to the state. $500 fee when filing tax return. |
| Loan-Out Reg Required? | Yes |
| CPA Audit? | No |
Montana Film Office
Sten Iversen, Manager
siversen@mt.gov
t: (800) 553-4563
t: (406) 841-2876
f: (406) 841-2877
www.montanafilm.com
OVERVIEW
Montana has packaged all of its incentive offerings as STUDIO 406; these include a refundable tax credit equal to 14% of the first $50,000 paid to each Montana resident, as well as a 9% refundable tax credit on all additional production company expenditures made in-state (excluding labor). There is no cap and no minimum spend requirement. Per diem paid to employees while in-state does qualify for the 9% expenditure credit, as does travel purchased through a Montana travel agent. FICA, FUI and SUI, however, do not qualify. Workers compensation, health insurance and payroll
processing fees qualify if paid to an in-state vendor.
Montana also offers these free services to filmmakers: script breakdown, location scouting, office furniture and machines, as well as traffic control signage.
Montana does not have a sales tax; the 7% accommodations and lodging taxes are refunded for stays of more than 30 consecutive days.
DETAILS
Qualifying productions include feature, commercial, documentary, and magazine advertising (other than advertising for tobacco products). Projects produced with money received for tobacco placement do not qualify. Goods and services obtained from out-of-state, or services provided by out-of-state residents do not qualify.
The production company must apply to the Montana Film Office prior to the start of principal photography. The film office will reply to the application within 30 days of submission. If the production is a feature-length film, the end credits must acknowledge that the production was filmed in Montana. Within 60 days of completion of principal photography, the production company must submit a report of all Montana expenditures and compensation paid to Montana residents. A fee of $500 is charged by the state to administer the tax credit and is due when the production files its tax return.
Both the employment production credit and the expenditure credit may be claimed as a credit against either corporate or individual taxes. If the employment credit exceeds the tax liability, it may be refunded or carried forward for the four succeeding years. If the qualified expenditure credit exceeds the tax liability, it must be refunded.
Montana has a strong local crew base with over 300 freelance crew members and all major production support service available. Databases are available on-line for production crew and support services at www.montanafilm.com.