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, 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 an $8 million per project rebate cap. There is a $20 million annual rebate cap. 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 in Mississippi, including, but not limited to:
Per diems and housing allowances;
Legal, payroll, and insurance costs when purchased from a Mississippi vendor
The rental or purchase of equipment (1) from a Mississippi production company/vendor providing equipment rented from an out-of-state company, or (2) from an out-of-state equipment company that has established a local office or has contracted with a local representative in Mississippi; and
Payments made to local travel agencies for airfares directly related to the project in Mississippi where travel is to/from Mississippi, Baton Rouge, New Orleans, Memphis, or Mobile.
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 $1 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 and has been withheld.
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 $1 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 and has been withheld.
Contracts must be provided that show total compensation, and Mississippi Income Tax Withholding must be made for a loan-out to qualify. The Mississippi Income Tax Withholding Rate is 3-5%.
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 equipment
- Lighting equipment
- Projection equipment
- Sound equipment
- Computer equipment used for animation, editing, or special effects
[We are working with the Mississippi Department of Revenue to clarify the application for the sales and use tax reduction on equipment.]