Tuesday, February 5, 2008

Wisconsin’s Film Tax Credits – More on the Film Production Company Investment Credit.

Returning to the series on Wisconsin's Film Tax Credits, below I describe in more detail additional aspects of the Film Production Company Investment Credit. This credit can be claimed for certain expenditures by Film Production Companies subject to the following limitations:

(1) The credit for 15% of the purchase price of depreciable, tangible personal property can only be claimed if the tangible personal property is purchased after December 31, 2007 and is used for at least 50 percent of its use in the claimant’s business as a film production company.

(2) The credit for 15% of the cost to acquire, construct, rehabilitate, remodel or repair real property can be claimed if the physical work to do so occurs after December 31, 2007 or the completed project is placed in service after December 31, 2007.

(3) To claim the credit, the property must not be property previously owned by the claimant and the property must have been acquired or placed in service after December 31, 2007.

(4) Importantly, the credits can only be claimed if the Department of Commerce certifies, in writing, that the credits claimed are for expenses related to establishing a film production company in Wisconsin.

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