The Mississippi Motion Picture Incentive Program
The Mississippi Motion Picture Incentive Program provides a
cash rebate on eligible expenditures and payroll and provides sales and use tax
reductions on eligible rentals/purchases. This program is available for
nationally distributed motion pictures, television programs, DVDs,
documentaries, short films, commercials, video games, including
animation and production utilizing new technology. National distribution
includes theatrical, broadcast, festival screening, streaming video, and
internet delivery.
There is a $50,000 minimum Mississippi investment (local
spend) per project. There is a $10 million per project rebate cap. There is a
$20 million annual rebate cap. (The Mississippi state fiscal year is July
1-June 30.) There is no minimum requirement for production days or percentage
of production spend.
Mississippi Investment Rebate (25%)
A production is eligible for a 25% rebate of their base
investment (local spend) in Mississippi. The base investment is based on
production expenditures paid to Mississippi companies in the business of
providing a particular service or equipment.
Resident Payroll Rebate (30%)
A production is eligible for a 30% cash rebate on payroll
paid to resident cast and crew whose wages are subject to Mississippi Income
Tax Withholding and for that portion of their salary for the project up to and
including $5 million. (To qualify, the employee must live in Mississippi, or
maintain a home here and spend more than 6 months in the state.) For purposes
of this program, payroll means salary, wages, or other compensation including
related benefits paid to employees upon which Mississippi income tax is due,
has been withheld, and has been paid.
Non-Resident Payroll Rebate (25%)
A production is eligible for a 25% cash rebate on payroll
paid to non-resident cast and crew whose wages are subject to Mississippi
Income Tax Withholding and for that portion of their salary for the project up
to and including $5 million. For purposes of this program, payroll means
salary, wages, or other compensation including related benefits paid to
employees upon which Mississippi income tax is due, has been withheld, and has
been paid.
Bonus Rebate for Veterans (5%)
A production is eligible for a 5% cash rebate on payroll
paid to honorably discharged veterans of the United States Armed Forces whose
wages are subject to Mississippi Income Tax Withholding. For purposes of this
program, payroll means salary, wages, or other compensation including related
benefits paid to employees upon which Mississippi income tax is due, has been
withheld, and has been paid.
The Mississippi Income
Tax Withholding Rate is 3-5%.
The tax rate for loan
outs is 5%. This must be paid for loan-outs to qualify.
SALES & USE TAX INCENTIVES
Sales and Use Tax Reduced Rates
Production equipment and machinery used directly in the
filming and/or editing of a project may be taxed at the reduced rate of 1.5%,
as stated in Section 27-65-11 and Section 27-65-17 of the Mississippi Code of 1972.
The following production equipment is eligible for this reduced rate:
- Audio
equipment
- Camera
equipment
- Editing/Post-production
equipment
- Lighting
equipment
- Projection
equipment
- Sound
equipment