Massachusetts film tax incentive

What Massachusetts actually pays

A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

New to the mechanics? Tax credit vs rebate vs grant, Selling a transferable credit and What counts as qualified spend.

What qualifies

Payroll credit (25%): requires at least $50,000 in total MA production expenses within a consecutive 12-month period; covers above-the-line and below-the-line MA-source wages; excludes any employee earning >= $1,000,000. Production expense credit (25%): requires MA production expenses to exceed 75% of total production expenses OR at least 75% of principal-photography days in MA (threshold raised from 50% to 75% effective Jan 1, 2022); may include out-of-state production expenses; excludes payroll already claimed under payroll credit. Sales/use tax exemption available to qualifying productions. No residency requirement; both credits may be claimed.

• Pilot
• Commercial
• Miniseries
• Documentary
• Scripted TV
• Feature Film
• Streaming / SVOD

City, county & regional programs

Local incentives that can stack on top of the state program — but each defines its own qualified spend, caps and residency rules, so their rates can't simply be added to the state percentage. Worth a call before you count on one.

• LEF Moving Image Fund

How to apply

Apply via MassTaxConnect (DOR's online portal at mtc.dor.state.ma.us). On the homepage, choose 'Submit Credit Application' under 'File'. Upload required documentation including the Independent Accountant's Report (Agreed-Upon Procedures). Register the project with the Massachusetts Film Office (registration form at mafilm.org). Production companies must withhold and remit loan-out/independent-contractor withholding (830 CMR 62B.2.3) before filing the credit application.

Common questions

What is the Massachusetts film tax incentive rate?

Massachusetts offers 25% on qualified in-state spend through the Film Industry Tax Incentive. It is a transferable credit. A credit you can sell to a company that owes tax in the state. You rarely get face value — expect a broker discount — so model the net, not the headline.

What is the minimum spend for the Massachusetts film incentive?

$50,000 MA production costs in any consecutive 12-month period. Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

Are there city or county film incentives in Massachusetts?

Yes — LEF Moving Image Fund. Local programs generally stack on top of the state incentive but define their own qualified spend, caps and rules, so their rates can't simply be added to the state percentage.

Is the Massachusetts film incentive transferable or refundable?

Transferable — the credit can be sold, typically below face value, so model the net rather than the headline rate. Refundable — the excess over your state tax liability is paid out in cash.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.