Beautiful locations are not the only reason to choose West Virginia for filming. Tax credits, exemptions and other incentives also make West Virginia an attractive place to conduct film industry business.
DISCOUNT VEHICLE RENTALS TO STUDIO PRODUCTIONS
If you are interested in applying for the tax credit program, please contact Pam Haynes or Jamie Cope for details.
LEGISLATION LINK: http://www.legis.state.wv.us/Bill_Text_HTML/2008_SESSIONS/RS/BILLS/hb4684 enr.htm
AMOUNT OF CREDITS: Up to 31% transferable tax credits (with 2-year carry forward) on direct production and post-production in-state spend – see also "Maximum Benefit" below.
CAPS: Minimum in-state spend requirement is $25,000. No per project cap or shooting percentage requirement. $10,000,000 annual funding.
ELIGIBLE PROJECTS: Feature length (in excess of 40 min) theatrical or direct-to-video motion pictures, made-for-television motion pictures, commercials, music videos, commercial still photography, television pilot programs, television series, and television mini-series [all intended for reasonable national or international commercial exploitation]. [INELIGIBLE: news or current affairs programming, weather or market program, interview or talk show, sporting event or show, awards show, gala, production that solicits funds, home shopping program, program that primarily markets a product or service, political advertising, or concert production.]
MAXIMUM BENEFIT: Beginning January 1, 2008, 27% of qualifying local spend and an additional 4% if 10 or more residents employed full time, for a maximum of 31%. Beginning January 1, 2010, the base credit is reduced to 22%, with no change in the incremental increases for local hires, for a maximum of 26%. The additional 4% allowance for 10 full-time employees is determined based on principal production employment levels, rather than pre-production or post-production levels.
PROJECT CRITERIA: Note limitations if the Federal New Markets Credit is accessed.
LOAN-OUT COMPANY CONSIDERATIONS: Loan-out corporations and performing artists receiving payments incurred in WV from such loan-outs must pay WV income tax on said payments.
SUNSET/REVIEW: Review after 3 years, then every 2 years.
QUALIFYING EXPENSES: Expenses incurred in WV or with a WV vendor and directly relate to the approved project:
- talent and crew (wages, fringe benefits, fees for talent, management, or labor to a WV resident)
- personal services corporation for services of performing artist if corporation is subject to WV income tax on those payments and performing artist receiving said payments is subject to WV income tax (Payments made to, or through, payroll services companies will qualify for the credit if specified criteria are met.)
- airfare (if purchased through WV-based travel company)
- insurance coverage and bonding (if purchased through WV-based insurance agent
- equipment rental (if rented through a WV person or company that may offer rental of film-related equipment as part of its operations)
- set construction and operations, wardrobe, accessories and related services
- photography, sound synchronization, lighting, and related services
- rental of facilities and equipment
- leasing of vehicles
- lodging
- food
- story and scenario
- editing and related services
- post-production (editing and negative cutting, Foley recording and sound effects, automatic dialogue replacement (ADR or dubbing), special effects or visual effects, including computer-generated imagery or other effects, scoring and music editing, sound editing, beginning and end credits, soundtrack production, or subtitling)
- other direct costs in accordance with generally accepted entertainment industry practices
DIRECT USE EXEMPTIONS
By applying for a Direct Pay Permit (DPP) with the WV Department of Tax
& Revenue, purchases and rentals in West Virginia of tangible personal
property directly used in an "Entertainment Production Project"
(see definition below) and purchases in West Virginia of services directly
used in an "Entertainment Production Project" are exempt from
the six percent (6%) Consumers Sales and Service Tax. (Note, however,
that food, beverages – alcoholic and non-alcoholic – and motor
fuel are taxable.) Registration with the Tax Department is required, and
with the exception of Sole Proprietors, all vendors must also register
with the WV Secretary of State's Office (for details, click HERE
for details on Doing Business in West Virginia).
[The phrase "Entertainment Production Project" means the physical creation and manufacture of motion pictures, television programs, commercials, music videos, and other similar types of Entertainment Properties.]
LODGING EXEMPTIONS
Exemption from the state Consumers Sales and Service Tax (6%) and exemption
from the Local Hotel/Motel Tax (varies per region) on lodging stays in
excess of thirty (30) consecutive days per person at the same facility.
This is an automatic exemption and available to anyone; registration with
the state is not required.
RIVER ON DEMAND™
Would you like to be able to control the flow of a river for your production?
River On Demand™ allows you to choose between raging whitewater
or calm water. As a complimentary service made possible by the drawdown
of the Summersville Lake by the U.S. Army Corps of Engineers, Huntington
District, the WVFO is able to offer an open filming window on the Gauley
River during November for motion picture and television productions that
require special whitewater releases. Flood control of the region, and
other safety issues, will always take precedence, and advance notice is
always required. On occasion, special releases may occur outside this
window, but many conditions will apply. For more information, contact
the Huntington District at 304-399-5353 (toll free, 866-502-2570) or visit
www.lrh.usace.army.mil, or contact the WVFO to assist with arrangements.
FEE FREE LOCATIONS
Most state-owned property is fee free, but fees may occur in certain circumstances,
including cost recovery (click HERE for
Permits section under Filming Guildelines).
All requests for use of state property should be first submitted to the
WVFO to ensure navigation of the appropriate channels of communication
among state agencies.
DISCOUNT VEHICLE RENTALS TO STUDIO PRODUCTIONS
Enterprise Rent-A-Car's West Virginia locations will provide production
scouts (who have been retained by a motion picture studio) a 50% discount
off retail rates when scouting locations within West Virginia for potential
film productions. And Enterprise will provide volume discounts for any
motion picture studio filming within West Virginia. Contact the WVFO to
assist with arrangements or contact West Virginia's Group Corporate Sales
Manager, Chad DiCocco, at chad.m.dicocco@erac.com.
MISCELLANEOUS ENHANCEMENTS
Depending on the scope of an Entertainment Production Project, the WVFO
may assist with negotiations of "soft" incentives (e.g., discounted
location fees, office space rental, lodging, vehicle rentals, etc.). The
WVFO utilizes an established statewide network of governmental agencies
and economic develop, tourism, and community leaders to secure attractive
rates on many services.
© 2005 WV Division of Tourism - Equal Opportunity Employer - Policy Statement
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