Ohio Film Office  |  Tax Credit Overview and Frequently Asked Questions

What is the Ohio film incentive?

Tax credits are designed to replace tax liability. Therefore, to receive a tax credit, the production company must file an Ohio tax return when the production is completed. The allowable credit can be taken against the financial institutions tax, the personal income tax or the commercial activities tax.

Who qualifies for the Ohio Motion Picture tax credit?

The tax credit is available to eligible production companies or entities that are registered to do business in Ohio, producing a tax credit eligible production, with a minimum $300,000 per project spend in Ohio. A tax credit eligible production may be produced by an individual, corporation, partnership, limited liability company, or other form of business association producing an eligible production as defined in ORC 122.85(A)(5)-(9).

An eligible production company must meet all requirements provided in the Ohio Revised Code and Ohio Administrative Code as applicable.

How much money is available through the Ohio Motion Picture Tax Credit?

$40 million in Motion Picture Tax Credits is available beginning July first each year. Applications may be submitted at any time. Applications are reviewed and approved in two rounds each fiscal year. . The first round of credits shall be awarded not later than the last day of July of the fiscal year, and the second round of credits shall be awarded not later than the last day of the ensuing January. The amount of credits awarded in the first round of applications each fiscal year shall not exceed twenty million dollars plus any credit allotment that was not awarded in the preceding fiscal year and carried over.

How big does my production have to be to be eligible for the Ohio Motion Picture Tax Credit?

The entire amount of your spending in Ohio must be at least $300,000 to be eligible for tax credits.

How does the tax credit work?

The program provides a refundable tax credit certificate to be taken against the financial institutions tax, the personal income tax or the commercial activities tax. The credit is based on eligible production expenditures (EPEs) in Ohio (see below).

What's an Ohio Motion Picture Tax Credit Certificate?

Upon completion of filming, the production entity must submit documentation of qualifying expenditures and any other documentation required by the Ohio Film Office. Once this process has been completed, the Ohio Film Office will issue an Ohio Motion Picture Tax Credit Certificate stating the final amount of tax credit the production is eligible to receive.

When can an applicant receive the Tax Credit Certificate?

The entire project must be completed and ready for distribution. Once the project is completed, the applicant may apply to the director of development services for a refundable credit. The applicant must submit an audit report prepared by an independent certified public accountant (CPA) along with the name and address of each production contractor with which the production company contracted for services and the amount of eligible expenditures paid or incurred under the contract with respect to the production. The CPA must certify that the requirements of the program are met. A form for use by the CPA is provided at the time the project is certified as a tax credit eligible production. The Ohio Film Office will review the reports and issue a Tax Credit Certificate if funds are available.

I just found out about the incentive program and I've nearly completed filming. Can I still apply?

Yes, as long as expenditures were made after June 3, 2009. Expenditures made prior to the project receiving certification as a tax credit eligible production will not qualify as eligible expenditures.

How are payroll expenses treated?

In general, payroll processing expenses are eligible expenditures if the company performing the services is an Ohio business and completing the work in the state.

How are wages for cast /crew, fringe benefits and per diems treated?

Cast and crew wages means pretax wages paid to individuals employed as cast or crew of the tax credit-eligible production, including the contract amount of loan-out talent and any other employment contracts. Cast and crew also includes “above the line” personnel such as producers, directors, writers, and actors. Wages also includes the dollar value of employer contributions to Ohio resident pension plans, health and welfare benefits, holiday, and vacation pay to the extent such pay is included in wages. Generally, per diems are not eligible expenditures because they are typically not taxable.

Does the purchase of production insurance qualify as an eligible expenditure?

The purchase of such insurance will qualify as an eligible expenditure so long as the insurance is purchased from an Ohio based broker/ agent.

Are interest expenses associated with production financing considered eligible expenditures?

Yes, provided that the financing is obtained from a bank or other lender with a brick and mortar storefront and at least one full-time employee and one year of physical presence in Ohio. Additionally, all loan services must be performed in Ohio and at market rate of interest is charged. Capitalized interest does not qualify.

Is above the line talent covered as well as below the line?

Yes. Wages paid to above the line personnel such as producers, directors, writers, and actors are "direct production expenditures" eligible for the 30 percent credit amount. Wages paid to below the line personnel such as technical crew members are also qualified.

Does the purchase of air fare qualify as an eligible expenditure?

The purchase of airfare will qualify as an eligible expenditure so long as the airfare is purchased from an Ohio based travel agent and the travel is originating from or destined to an airport physically located in the state of Ohio.

Is there a fee?

Upon approval and certification by the Director of Development that the project is a tax credit eligible production, the applicant shall receive an invoice for a non-refundable application fee in an amount equal to one percent (1%) of the estimated value of the tax credit as calculated in Section 5 of the application (up to a maximum of $10,000). The fee shall be due and payable within 45 days of receipt of the invoice and notice of the Director's certification of the project. If the fee is not received in full and on time, it will result in automatic rescission of the project’s tax credit award. OAC 122:21-1-03(B).

What is the 90 Day Report?

An applicant is required to provide the Ohio Film Office with a 90-day progress report to maintain eligibility, if the project is not completed within 90 days. If the production of a motion picture or Broadway theatrical production does not begin within ninety days after the date it is certified as a tax credit eligible production, the director shall rescind the certification unless the director finds that the production company shows good cause for the delay, meaning that the production was delayed due to unforeseeable circumstances beyond the production company's control or due to action or inaction by a government agency. Upon rescission, the director shall notify the applicant that the certification has been rescinded.

The Film Office may from time to time inquire into the progress of the production during the pendency of the project. If tax credits are not being used, we request they return to the program as timely as possible for use by another project.

What if I need to amend the application?

Prior to receiving an award of eligibility letter, contact the Ohio Film Office to request changes. Depending on the changes, the office may ‘unlock’ the pending application or ask for an amended application. Only the applicant may make changes to the project information.

When the Ohio Film Office has tax credits available and is ready to review your project to determine eligibility, the applicant will be contacted about any deficiencies in the application to see if they can be cured.

Can I change information on my application after I have received my eligibility letter?

After eligibility is awarded, the applicant should file a revised application online with a revised budget, revised total, and Ohio expenditures, and identify the new credit they are seeking and contact the Ohio Film Office. Approval of additional credits does not receive priority review and is subject to tax credit availability. If you are approved for an additional credit, you will receive written notification authorizing the additional credits.

Updated contact information should be sent in an email to: AskOhioFilm@development.ohio.gov

A change in applicant name or legal entity is not allowed.

Project substitutions or name changes are not allowed.

Who receives the tax credit certificate?

The tax credit certificate is issued to the applicant production company after the entire project is completed or the end of the run for a Broadway theatrical production.

When is the tax credit issued?

After completion of the tax credit eligible production. A tax credit eligible production is not considered complete until the submission of a completed certified public accountant’s report, evidence of project completion, and verification of Ohio Film logo in credits or on playbill. Upon acceptance of the accountant's report as provided in rule 122:21-1-04 of the Administrative Code, the director will issue a credit certificate in an amount equal to thirty percent of the lesser of the budgeted eligible production expenditures stated in the application and the director's certification of the tax credit-eligible production or the actual eligible production expenditures incurred and certified by the independent certified public accountant.

The director shall issue a tax credit certificate to each of the company's production contractors identified in the certified public accountant’s report. The certificate shall state the amount of the eligible expenditures on which the credit is based and the amount of the credit.

Is the tax credit certificate transferable?

Transfers of the tax credit are no longer allowed under the program on or after October 17, 2019.

Can I obtain a tax credit for payroll processing services performed outside of Ohio?

No. Only services performed entirely within Ohio qualify for the tax credit.

Would it qualify if the payroll processing company had an employee in Ohio to handle the data transfer?

No. The payroll processing business would qualify only if the payroll services were entirely performed in Ohio.

Does the answer change if the payroll processing business is the "employer of record" for the employees whose payroll is being processed?

No. The nature of the transaction remains substantially that of payroll processing because the true employer of the employees whose payroll is being processed is the film production company.

Where do I indicate "payroll taxes" and "union pension health and welfare" on the application? Do I include it as part of wages or indicate the amounts under "other"?

Cast and crew wages means pretax wages paid to the Ohio-resident individuals employed as cast or crew of the tax credit eligible production, including the contract amount of loan-out talent and any other employment contracts. For purposes of Ohio law, wages also include the dollar value of employer contributions to Ohio resident pension, health and welfare benefits, holiday, and vacation to the extent included in wages.

Does production insurance purchased from an out-of-state insurance company through an Ohio- based broker/agent qualify as a "direct production expenditure"?

Yes. The law specifically provides credit for this type of expense as long as the company is "Ohio- based."

If we bind insurance through a local broker, does that qualify?

Insurance qualifies if it is associated with one of the eligible production expenditure categories (i.e. insurance on equipment).

Is a production company's interest expense associated with production financing eligible for an Ohio Motion Picture Tax Credit?

Yes, provided that: 1) The financing is obtained from a bank or other lender with a brick and mortar storefront and at least one full-time employee and one year of physical presence in Ohio; 2) All loan services are performed in Ohio; and 3) An appropriate rate of interest is charged to the production company.

If so, does capitalized interest qualify?

No. Only current expenditures qualify for the tax credit and under capitalized interest payment is deferred to a future date. Does interest that continues to accrue post-Ohio activity qualify? Only interest actually paid prior to the request for certification will qualify.

What process and procedures should be followed when a production company underestimates its budget and seeks an increase to a previously approved tax credit?

Production companies should submit a supplemental application with a revised budget, revised total, and Ohio expenditures, and identify the new credit they are seeking. The application should be clearly designated as a “Supplemental Application”.

How will additional tax credits be granted?

Approval of additional credits is not automatic and subject to availability. The state will respond with a letter authorizing additional credits if the request is approved.

Will expenditures made before the state authorized the additional tax credit amount qualify for credit?

Yes, so long as the expenditures are made after the project was certified as a tax credit eligible production. If additional credits are approved, the project retains its initial date of certification as a tax credit eligible production.

Are per diem expenses, living allowances, and car and meal allowances eligible for film production credits?

No. They are generally not subject to taxation as the law requires.

How do I report my eligible expenditures to the state and request my tax credit certificate?

The independent certified public accountant report due to the Director of Development under division (D) of section 122.85 of the Ohio Revised Code shall certify to the Director that the applicant's reported costs of a tax credit- eligible production are eligible production expenditures as defined in section 122.85 of the Ohio Revised Code. In addition, the independent certified public accountant shall:

1. (1) Complete the Ohio Motion Picture Tax Credit CPA Report that was emailed to the production company;
2. (2) Certify to the Director that the loan-out talent contractors are registered with the Ohio Secretary of State to do business in Ohio;
3. (3) Review and certify to the Director all contract and expense items greater than or equal to $1,000, and review and certify to the Director no less than 50 percent of the contracts and expense items less than $1,000;
4. (4) Certify to the Director that all eligible production expenditures for the tax credit eligible production were incurred after the production was certified as a tax credit eligible production to the production complete date; and
5. (5) Certify to the Director that the goods and services claimed as eligible production expenditures were performed and consumed in Ohio:

The costs of the certified public accountant's report is not an eligible production expenditure.

Within 60 days of receipt of the independent certified public accountant's report, the Director shall review and provide a written notice to the applicant accepting the report or identifying any deficiencies in the report, and if the report is accepted, identifying any disallowance of expenditures claimed and providing the reason for any disallowance. If the report does not satisfy the reporting requirements, the applicant shall have 30 days after the notice date to cause the independent certified public accountant to remedy the identified deficiencies. Also, within 30 days of receipt of the Director's notice of any disallowed expenditure, the applicant may request reconsideration and provide additional documentation in support of the report. The Director shall consider all relevant information submitted and respond in writing. Upon reconsideration, the Director's determination shall be final.