ARIZONA MOTION PICTURE INCENTIVE
Arizona's Motion Picture Production Program (MPPP) is a refundable tax credit program that allows production companies the opportunity to recapture a percentage of qualified production expenses spent in Arizona to produce more than 50% of their movie, television show, commercial, or music video at a Qualified Production Facility and/or at a Practical Location beginning January 1, 2023.
Overall, the program certification process involves (3) steps: applying for pre-approval, filing a 9th-month notification report, and applying for post-approval.
Links to the MPPP Rules & Guidelines and ACA Account Portal are provided below. We recommend that you REVIEW the HIGHLIGHTS section of the Motion Picture Production Program and Frequently Asked Questions (FAQs) below, BEFORE APPLYING.
Snapshot
TAX CREDIT ALLOCATION
Base Credit for Qualified Production Costs
Up to $10M (15%)
$10M to $35M (17.5%)
Over $35M (20%)
$100M (Qualified Production Facility)
$25M (Practical Location)
Additional Credit Bumps
2.5% of Labor Costs (Use of Arizona Resident Labor (Below-the-Line) “Production Labor” means all laborers working on a production that are not talent, writers, producers, or management.
2.5% of Production Costs (Qualified Production Facility Use) One of the following must occur:
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Use a Qualified Production Facility to produce the production in Arizona
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More than 50% of the production is filmed at a Practical Location in Arizona with all preproduction, postproduction, and editing completed at a Qualified Production Facility in Arizona
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Produced and filmed in association with a Long-term Tenant of a Qualified Production Facility in Arizona. “Long-Term Tenant” means a person that enters into a lease of at least five years for the use of a Qualified Production Facility.
Calendar Year 2024 - $100M
$75M (Qualified Production Facility)
$25M (Practical Location)
Calendar Year 2025 and each year thereafter - $125M
$100M (Qualified Production Facility)
$25M (Practical Location)
How to apply
You'll need to create an account in the ACA Electronic Application System before you can apply. Please use the instructions below to assist you.
Create An Account
To create a new account, click the link to “Request Username & Password”
- Fill out the requested information under “REQUEST A USERNAME TO APPLY FOR INCENTIVES”
- For “Industry” select Arts, Entertainment, and Recreation
- For "Primary Program of Interest," select The Arizona Motion Picture Production Program
Once you submit this form, the financial incentives team will create your account, and send you an email from the ACA Help Desk with your unique username and a temporary password (please check spam or junk mail).
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Login To Submit Pre-Approval Application
Login to the ACA's Electronic Application System with this username and temporary password (both are case-sensitive). You will then be prompted to create your own "new password."
Once logged in, you're now ready to apply - click “Incentives.” Select Motion Picture Production.
- Complete the Motion Picture Production: Initial Application for Pre-Approval.
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If you have any questions, please feel free to contact our Senior Program Manager, Financial Incentives, Cindy Grogan at 602-845-1221 or CindyG@AZCommerce.com.
HIGHLIGHTS MPPP
Provided below is a summarized version with additional guidance to serve as an industry synopsis ONLY. Please read the complete Rules & Guidelines here.
Eligible Projects
Movies, Television, Commercials, Music Videos.
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Fees
Application Fee: 1% of the pre-approved credit amount, not to exceed $100,000 (non-refundable)
Administrative Fee:1% of the pre-approval credit amount (The administration fee is refundable if the Authority is notified within 90 days from the pre-approval certification date that production will not commence.)
HOW TO QUALIFY (ELIGIBILITY)
To Qualify for the Base Tax Credit, production companies must EITHER:
1) Use a Qualified Production Facility in Arizona to produce the production
“Qualified Production Facility” means a structure that is built for film industry purposes, is located in this state, contains dedicated soundstage space that is at least ten thousand (10,000) contiguous square feet which may be partitionable, and meets generally accepted industry standards, including standards for soundproofing, lighting, air conditioning, and Motion Picture Production quality technology for producing, filming, or otherwise creating a Motion Picture Production.
OR
2) Film more than 50% of their project at a Practical Location in Arizona AND perform all Preproduction, Postproduction, and Editing at an Industry Standard Facility in Arizona, IF such a facility for those functions is available.
“Qualified Production Facility” means a structure that is built for film industry purposes, is located in this state, contains dedicated soundstage space that is at least ten thousand (10,000) contiguous square feet which may be partitionable, and meets generally accepted industry standards, including standards for soundproofing, lighting, air conditioning, and Motion Picture Production quality technology for producing, filming, or otherwise creating a Motion Picture Production.