{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.12_03.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.12_03.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.12_03.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.12_03.html"}],"law_id":77683,"edition_id":1,"section_id":77683,"structure_id":13153,"section_number":"58.1-439.12:03","catch_line":"Motion picture production tax credit","history":"2010, cc. 419, 599; 2014, c. 730; 2017, cc. 108, 425; 2020, cc. 966, 967.","full_text":"A\n\nFor taxable years beginning on and after January 1, 2011, but prior to January 1, 2027, any motion picture production company with qualifying expenses of at least $250,000 with respect to a motion picture production filmed in Virginia shall be allowed a refundable credit against the taxes imposed by \u00a7 58.1-320 or 58.1-400 in an amount equal to 15 percent of the production company’s qualifying expenses or 20 percent of such expenses if the production is filmed in an economically distressed area of the Commonwealth. The Virginia Economic Development Partnership Authority shall designate which areas of the Commonwealth are deemed to be economically distressed areas. The credit shall be computed based on all of the taxpayer’s qualifying expenses incurred with respect to the production, not just the qualifying expenses incurred during the taxable year. The refundable tax credits allowed under this section are for one tax year only. Where a motion picture production continues for more than one year, a separate application for each tax year the production continues must be made. The grant of a refundable tax credit for a motion picture film production does not create a presumption that the production will receive a refundable tax credit for subsequent tax years. Effective on January 1, 2013, for purposes of eligibility for refundable tax credits, a motion picture film production shall include digital interactive media production.\n\t\t\t“Qualifying expenses” means the sum of the following amounts spent in the Commonwealth by a production company in connection with the production of a motion picture filmed in the Commonwealth:1\n\nGoods and services leased or purchased. For goods with a purchase price of $25,000 or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed.2\n\nCompensation and wages, except in the case of each individual who directly or indirectly receives compensation in excess of $1 million for personal services with respect to a single production. In such a case, only the first $1 million of salary shall be considered a qualifying expense. An individual is deemed to receive compensation indirectly when a production company pays a personal service company or an employee leasing company that pays the individual.B\n\n1. In addition to the refundable credit authorized under subsection A, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents employed in connection with the production of a film in the Commonwealth when total production costs in the Commonwealth are at least $250,000 but not more than $1 million. This additional credit shall be equal to 20 percent of the total aggregate payroll for Virginia residents employed in connection with such production when total production costs in the Commonwealth exceed $1 million.2\n\nIn addition to the credits authorized under subsection A and subdivision B 1, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents employed for the first time as actors or members of a production crew in connection with the production of a film in the Commonwealth.C\n\n1. For purposes of this section, in the case of an episodic television series, an entire season of episodes shall be deemed to be one production.2\n\nNo credit shall be allowed under this section for any production that (i) is political advertising, (ii) is a television production of a news program or live sporting event, (iii) contains obscene material, or (iv) is a reality television production.D\n\n1. The issuance of refundable tax credits under this section shall be in accordance with procedures, qualifying criteria, and deadlines established by the Department and the Virginia Tourism Authority. The qualifying criteria established by the Virginia Tourism Authority shall take into account whether the production involves physical production within the Commonwealth of Virginia, the number of residents of Virginia that will be employed in the production and the level of compensation they will be paid, the extent to which the production will contribute to the support and expansion of existing production companies in Virginia, the extent to which the production will impact existing local businesses and the local economy, the extent to which the production will involve existing and new companies located in Virginia, and other relevant considerations. The taxpayer shall apply for a credit by submitting such forms as prescribed by the Virginia Tourism Authority, prior to the start of production in Virginia.2\n\nAny taxpayer seeking credits under this section must enter into a memorandum of understanding with the Virginia Tourism Authority that at a minimum provides the requirements that the taxpayer must meet in order to receive the credits, including but not limited to the estimated amount of money to be spent in Virginia, the timeline for completing production in Virginia, and the maximum amount of credits allocated to the taxpayer.3\n\nOnce the taxpayer has satisfied all of the requirements in the memorandum of understanding to the satisfaction of the Virginia Tourism Authority and completed production in Virginia, the Virginia Tourism Authority shall certify the final tax credit amount to the taxpayer and to the Tax Commissioner. In addition, such certificate shall specify the fiscal year in which such tax credit may be refunded by the Department of Taxation. The tax return filed for the taxable year in which the Virginia production activities are completed shall contain information specifying the amount of tax credit and shall specify the fiscal year in which such tax credit may be refunded. The return must state the name of the production, provide a description of the production, and include a detailed accounting of the qualifying expenses with respect to which a credit is claimed.4\n\nThe Virginia Tourism Authority shall report to the Tax Commissioner on an annual basis the amount of tax credits that have been authorized for each fiscal year and the amount of tax credits that may be claimed for the current fiscal year by each taxpayer.5\n\nNo interest shall be paid pursuant to § 58.1-1833 on any tax credit issued by the Department under this section.E\n\nA taxpayer allowed a credit under this section must maintain and make available for inspection any information or records required by the Tax Commissioner. The taxpayer has the burden of proving eligibility for a credit and the amount of the credit. The Tax Commissioner shall consult with the Virginia Tourism Authority in order to determine the amount of qualifying expenses.F\n\nFor purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company may be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.G\n\nThe total amount of credits allocated to all taxpayers under this section shall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the 2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year thereafter.H\n\nThe Department of Taxation, in consultation with the Virginia Tourism Authority, must publish by November 1 of each year for the 12-month period ending the preceding December 31 the following information:1\n\nLocation of sites used in a production for which a credit was claimed;2\n\nQualifying expenses for which a credit was claimed, classified by whether the expenses were for goods, services, or compensation paid by the production company;3\n\nNumber of people employed in the Commonwealth with respect to credits claimed; and4\n\nTotal cost to the Commonwealth’s general fund of the credits claimed.\n\t\t\t\tNotwithstanding any provision of § 58.1-3 or any other law, such information shall be published by the Department, even if such information is not classified, so as to prevent the identification of particular taxpayers, reports, or returns and items.I\n\nThe Tax Commissioner shall develop guidelines implementing the provisions of this section, including but not limited to the definition of “qualifying expenses” and setting forth the recordkeeping requirements applicable to production companies claiming this credit. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","order_by":null,"text":{"0":{"id":278644,"text":"For taxable years beginning on and after January 1, 2011, but prior to January 1, 2027, any motion picture production company with qualifying expenses of at least $250,000 with respect to a motion picture production filmed in Virginia shall be allowed a refundable credit against the taxes imposed by \u00a7 58.1-320 or 58.1-400 in an amount equal to 15 percent of the production company’s qualifying expenses or 20 percent of such expenses if the production is filmed in an economically distressed area of the Commonwealth. The Virginia Economic Development Partnership Authority shall designate which areas of the Commonwealth are deemed to be economically distressed areas. The credit shall be computed based on all of the taxpayer’s qualifying expenses incurred with respect to the production, not just the qualifying expenses incurred during the taxable year. The refundable tax credits allowed under this section are for one tax year only. Where a motion picture production continues for more than one year, a separate application for each tax year the production continues must be made. The grant of a refundable tax credit for a motion picture film production does not create a presumption that the production will receive a refundable tax credit for subsequent tax years. Effective on January 1, 2013, for purposes of eligibility for refundable tax credits, a motion picture film production shall include digital interactive media production.\n\t\t\t“Qualifying expenses” means the sum of the following amounts spent in the Commonwealth by a production company in connection with the production of a motion picture filmed in the Commonwealth:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":278645,"text":"Goods and services leased or purchased. For goods with a purchase price of $25,000 or more, the amount included in qualifying expenses is the purchase price less the fair market value of the good at the time the production is completed.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":278646,"text":"Compensation and wages, except in the case of each individual who directly or indirectly receives compensation in excess of $1 million for personal services with respect to a single production. In such a case, only the first $1 million of salary shall be considered a qualifying expense. An individual is deemed to receive compensation indirectly when a production company pays a personal service company or an employee leasing company that pays the individual.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":278647,"text":"1. In addition to the refundable credit authorized under subsection A, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents employed in connection with the production of a film in the Commonwealth when total production costs in the Commonwealth are at least $250,000 but not more than $1 million. This additional credit shall be equal to 20 percent of the total aggregate payroll for Virginia residents employed in connection with such production when total production costs in the Commonwealth exceed $1 million.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"B2"},"4":{"id":278648,"text":"In addition to the credits authorized under subsection A and subdivision B 1, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents employed for the first time as actors or members of a production crew in connection with the production of a film in the Commonwealth.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"5":{"id":278649,"text":"1. For purposes of this section, in the case of an episodic television series, an entire season of episodes shall be deemed to be one production.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"C2"},"6":{"id":278650,"text":"No credit shall be allowed under this section for any production that (i) is political advertising, (ii) is a television production of a news program or live sporting event, (iii) contains obscene material, or (iv) is a reality television production.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"D"},"7":{"id":278651,"text":"1. The issuance of refundable tax credits under this section shall be in accordance with procedures, qualifying criteria, and deadlines established by the Department and the Virginia Tourism Authority. The qualifying criteria established by the Virginia Tourism Authority shall take into account whether the production involves physical production within the Commonwealth of Virginia, the number of residents of Virginia that will be employed in the production and the level of compensation they will be paid, the extent to which the production will contribute to the support and expansion of existing production companies in Virginia, the extent to which the production will impact existing local businesses and the local economy, the extent to which the production will involve existing and new companies located in Virginia, and other relevant considerations. The taxpayer shall apply for a credit by submitting such forms as prescribed by the Virginia Tourism Authority, prior to the start of production in Virginia.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D2"},"8":{"id":278652,"text":"Any taxpayer seeking credits under this section must enter into a memorandum of understanding with the Virginia Tourism Authority that at a minimum provides the requirements that the taxpayer must meet in order to receive the credits, including but not limited to the estimated amount of money to be spent in Virginia, the timeline for completing production in Virginia, and the maximum amount of credits allocated to the taxpayer.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"D3"},"9":{"id":278653,"text":"Once the taxpayer has satisfied all of the requirements in the memorandum of understanding to the satisfaction of the Virginia Tourism Authority and completed production in Virginia, the Virginia Tourism Authority shall certify the final tax credit amount to the taxpayer and to the Tax Commissioner. In addition, such certificate shall specify the fiscal year in which such tax credit may be refunded by the Department of Taxation. The tax return filed for the taxable year in which the Virginia production activities are completed shall contain information specifying the amount of tax credit and shall specify the fiscal year in which such tax credit may be refunded. The return must state the name of the production, provide a description of the production, and include a detailed accounting of the qualifying expenses with respect to which a credit is claimed.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"10":{"id":278654,"text":"The Virginia Tourism Authority shall report to the Tax Commissioner on an annual basis the amount of tax credits that have been authorized for each fiscal year and the amount of tax credits that may be claimed for the current fiscal year by each taxpayer.","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"11":{"id":278655,"text":"No interest shall be paid pursuant to § 58.1-1833 on any tax credit issued by the Department under this section.","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"E"},"12":{"id":278656,"text":"A taxpayer allowed a credit under this section must maintain and make available for inspection any information or records required by the Tax Commissioner. The taxpayer has the burden of proving eligibility for a credit and the amount of the credit. The Tax Commissioner shall consult with the Virginia Tourism Authority in order to determine the amount of qualifying expenses.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D5","next_prefix":"F"},"13":{"id":278657,"text":"For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company may be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"14":{"id":278658,"text":"The total amount of credits allocated to all taxpayers under this section shall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the 2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year thereafter.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"15":{"id":278659,"text":"The Department of Taxation, in consultation with the Virginia Tourism Authority, must publish by November 1 of each year for the 12-month period ending the preceding December 31 the following information:","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"H1"},"16":{"id":278660,"text":"Location of sites used in a production for which a credit was claimed;","type":"section","prefixes":["H","1"],"prefix":"1","entire_prefix":"H1","prefix_anchor":"H1","level":2,"prior_prefix":"H","next_prefix":"H2"},"17":{"id":278661,"text":"Qualifying expenses for which a credit was claimed, classified by whether the expenses were for goods, services, or compensation paid by the production company;","type":"section","prefixes":["H","2"],"prefix":"2","entire_prefix":"H2","prefix_anchor":"H2","level":2,"prior_prefix":"H1","next_prefix":"H3"},"18":{"id":278662,"text":"Number of people employed in the Commonwealth with respect to credits claimed; and","type":"section","prefixes":["H","3"],"prefix":"3","entire_prefix":"H3","prefix_anchor":"H3","level":2,"prior_prefix":"H2","next_prefix":"H4"},"19":{"id":278663,"text":"Total cost to the Commonwealth’s general fund of the credits claimed.\n\t\t\t\tNotwithstanding any provision of § 58.1-3 or any other law, such information shall be published by the Department, even if such information is not classified, so as to prevent the identification of particular taxpayers, reports, or returns and items.","type":"section","prefixes":["H","4"],"prefix":"4","entire_prefix":"H4","prefix_anchor":"H4","level":2,"prior_prefix":"H3","next_prefix":"I"},"20":{"id":278664,"text":"The Tax Commissioner shall develop guidelines implementing the provisions of this section, including but not limited to the definition of “qualifying expenses” and setting forth the recordkeeping requirements applicable to production companies claiming this credit. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H4"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for Corporations","identifier":"13","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253497,"object_type":"structure","relational_id":13153,"identifier":"13","token":"58.1\/I\/3\/13","url":"\/58.1\/I\/3\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 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Coalfield employment enhancement tax credit","url":"\/58.1-439.2\/","token":"58.1\/I\/3\/13\/58.1-439.2","metadata":false},{"id":63351,"structure_id":13153,"section_number":"58.1-439.3","catch_line":"Repealed","url":"\/58.1-439.3\/","token":"58.1\/I\/3\/13\/58.1-439.3","metadata":false},{"id":58298,"structure_id":13153,"section_number":"58.1-439.4","catch_line":"Day-care facility investment tax credit","url":"\/58.1-439.4\/","token":"58.1\/I\/3\/13\/58.1-439.4","metadata":false},{"id":66742,"structure_id":13153,"section_number":"58.1-439.5","catch_line":"Agricultural best management practices tax credit","url":"\/58.1-439.5\/","token":"58.1\/I\/3\/13\/58.1-439.5","metadata":false},{"id":81908,"structure_id":13153,"section_number":"58.1-439.6","catch_line":"Worker retraining tax credit","url":"\/58.1-439.6\/","token":"58.1\/I\/3\/13\/58.1-439.6","metadata":false},{"id":60296,"structure_id":13153,"section_number":"58.1-439.6:1","catch_line":"Worker training tax 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credit","url":"\/58.1-439.12_02\/","token":"58.1\/I\/3\/13\/58.1-439.12_02","metadata":false},"next_section":{"id":82387,"structure_id":13153,"section_number":"58.1-439.12:04","catch_line":"Tax credit for participating landlords","url":"\/58.1-439.12_04\/","token":"58.1\/I\/3\/13\/58.1-439.12_04","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.12:03\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapters 419<\/a> and 599<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2014, chapter 730<\/a>; in 2017, chapters 108<\/a> and 425<\/a>; in 2020, chapters 966<\/a> and 967<\/a>.<\/p>","references":[{"id":54670,"section_number":"30-309","catch_line":"MEI Project Approval Commission; membership; terms; compensation and expenses; definition","order_by":null,"url":"\/30-309\/"},{"id":77955,"section_number":"30-310","catch_line":"Review of incentive packages","order_by":null,"url":"\/30-310\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":83093,"section_number":"58.1-1833","catch_line":"Interest on overpayments or improper collection","order_by":null,"url":"\/58.1-1833\/"},{"id":57817,"section_number":"58.1-3","catch_line":"Secrecy of information; penalties","order_by":null,"url":"\/58.1-3\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":253567,"object_type":"law","relational_id":77683,"identifier":"58.1-439.12:03","token":"58.1\/I\/3\/13\/58.1-439.12_03","url":"\/58.1-439.12_03\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.12_03\/","token":"58.1\/I\/3\/13\/58.1-439.12_03","dublin_core":{"Title":"Motion picture production tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.12:03","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For taxable years beginning on and after January 1, 2011, but prior to January 1, 2027, any motion<\/span> picture production company with qualifying expenses<\/span> of at least $250,000 with respect to a motion<\/span> picture production filmed in Virginia shall be allowed a refundable credit against the taxes imposed by \u00a7 58.1-320<\/a> or 58.1-400<\/a> in an amount equal to 15 percent of the production company’s qualifying expenses<\/span> or 20 percent of such expenses if the production is filmed in an economically distressed area of the Commonwealth. The Virginia Economic Development Partnership Authority shall designate which areas of the Commonwealth are deemed to be economically distressed areas. The credit shall be computed based on all of the taxpayer<\/span>’s qualifying expenses<\/span> incurred with respect to the production, not just the qualifying expenses<\/span> incurred during the taxable year. The refundable tax credits allowed under this section are for one tax year only. Where a motion<\/span> picture production continues for more than one year, a separate application for each tax year the production continues must be made. The grant of a refundable tax credit for a motion<\/span> picture film production does not create a presumption<\/span> that the production will receive a refundable tax credit for subsequent tax years. Effective on January 1, 2013, for purposes of eligibility for refundable tax credits, a motion<\/span> picture film production shall include digital interactive media production.\n\t\t\t“Qualifying expenses<\/span>” means the sum of the following amounts spent in the Commonwealth by a production company in connection with the production of a motion<\/span> picture filmed in the Commonwealth: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Goods and services leased or purchased. For goods with a purchase price of $25,000 or more, the amount included in qualifying expenses<\/span> is the purchase price less the fair market value of the good at the time the production is completed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Compensation<\/span> and wages, except in the case of each individual<\/span> who directly or indirectly receives compensation<\/span> in excess of $1 million for personal services with respect to a single production. In such a case, only the first $1 million of salary shall be considered a qualifying expense. An individual<\/span> is deemed to receive compensation<\/span> indirectly when a production company pays a personal service company or an employee leasing company that pays the individual<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. In addition to the refundable credit authorized under subsection A, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents<\/span> employed in connection with the production of a film in the Commonwealth when total production costs in the Commonwealth are at least $250,000 but not more than $1 million. This additional credit shall be equal to 20 percent of the total aggregate payroll for Virginia residents<\/span> employed in connection with such production when total production costs in the Commonwealth exceed $1 million. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In addition to the credits authorized under subsection A and subdivision B 1, such production company shall be allowed an additional refundable credit equal to 10 percent of the total aggregate payroll for Virginia residents<\/span> employed for the first time as actors or members of a production crew in connection with the production of a film in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. For purposes of this section, in the case of an episodic television series, an entire season of episodes shall be deemed to be one production. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No credit shall be allowed under this section for any production that (i) is political advertising, (ii) is a television production of a news program or live sporting event, (iii) contains obscene material<\/span>, or (iv) is a reality television production. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. The issuance of refundable tax credits under this section shall be in accordance with procedures, qualifying criteria, and deadlines established by the Department<\/span> and the Virginia Tourism Authority. The qualifying criteria established by the Virginia Tourism Authority shall take into account whether the production involves physical production within the Commonwealth of Virginia, the number of residents<\/span> of Virginia that will be employed in the production and the level of compensation<\/span> they will be paid, the extent to which the production will contribute to the support and expansion of existing production companies in Virginia, the extent to which the production will impact existing local businesses and the local economy, the extent to which the production will involve existing and new companies located in Virginia, and other relevant considerations. The taxpayer<\/span> shall apply for a credit by submitting such forms as prescribed by the Virginia Tourism Authority, prior to the start of production in Virginia. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any taxpayer<\/span> seeking credits under this section must enter into a memorandum<\/span> of understanding with the Virginia Tourism Authority that at a minimum provides the requirements that the taxpayer<\/span> must meet in order<\/span> to receive the credits, including but not limited to the estimated amount of money to be spent in Virginia, the timeline for completing production in Virginia, and the maximum amount of credits allocated to the taxpayer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Once the taxpayer<\/span> has satisfied all of the requirements in the memorandum<\/span> of understanding to the satisfaction of the Virginia Tourism Authority and completed production in Virginia, the Virginia Tourism Authority shall certify the final tax credit amount to the taxpayer<\/span> and to the Tax Commissioner<\/span>. In addition, such certificate shall specify the fiscal year in which such tax credit may be refunded by the Department<\/span> of Taxation. The tax return filed for the taxable year in which the Virginia production activities are completed shall contain information specifying the amount of tax credit and shall specify the fiscal year in which such tax credit may be refunded. The return must state the name of the production, provide a description of the production, and include a detailed accounting of the qualifying expenses<\/span> with respect to which a credit is claimed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The Virginia Tourism Authority shall report to the Tax Commissioner<\/span> on an annual basis the amount of tax credits that have been authorized for each fiscal year and the amount of tax credits that may be claimed for the current fiscal year by each taxpayer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> No interest shall be paid pursuant to § 58.1-1833<\/a> on any tax credit issued by the Department<\/span> under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A taxpayer<\/span> allowed a credit under this section must maintain and make available for inspection any information or records required by the Tax Commissioner<\/span>. The taxpayer<\/span> has the burden of proving eligibility for a credit and the amount of the credit. The Tax Commissioner<\/span> shall consult with the Virginia Tourism Authority in order<\/span> to determine the amount of qualifying expenses<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation<\/span> (S corporation<\/span>), or limited liability company may be allocated to the individual<\/span> partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The total amount of credits allocated to all taxpayers<\/span> under this section shall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the 2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year thereafter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Department<\/span> of Taxation, in consultation with the Virginia Tourism Authority, must publish by November 1 of each year for the 12-month period ending the preceding December 31 the following information: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Location of sites used in a production for which a credit was claimed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Qualifying expenses<\/span> for which a credit was claimed, classified by whether the expenses were for goods, services, or compensation<\/span> paid by the production company; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Number of people employed in the Commonwealth with respect to credits claimed; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Total cost to the Commonwealth’s general fund of the credits claimed.\n\t\t\t\tNotwithstanding any provision of § 58.1-3<\/a> or any other law<\/span>, such information shall be published by the Department<\/span>, even if such information is not classified, so as to prevent the identification of particular taxpayers<\/span>, reports, or returns and items. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The Tax Commissioner<\/span> shall develop guidelines implementing the provisions of this section, including but not limited to the definition of “qualifying expenses<\/span>” and setting forth the recordkeeping requirements applicable to production companies claiming this credit. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMOTION PICTURE PRODUCTION TAX CREDIT (\u00a7 58.1-439.12:03)\n\nA. For taxable years beginning on and after January 1, 2011, but prior to\nJanuary 1, 2027, any motion picture production company with qualifying expenses\nof at least $250,000 with respect to a motion picture production filmed in\nVirginia shall be allowed a refundable credit against the taxes imposed by \u00a7\n58.1-320 or 58.1-400 in an amount equal to 15 percent of the production\ncompany’s qualifying expenses or 20 percent of such expenses if the\nproduction is filmed in an economically distressed area of the Commonwealth. The\nVirginia Economic Development Partnership Authority shall designate which areas\nof the Commonwealth are deemed to be economically distressed areas. The credit\nshall be computed based on all of the taxpayer’s qualifying expenses\nincurred with respect to the production, not just the qualifying expenses\nincurred during the taxable year. The refundable tax credits allowed under this\nsection are for one tax year only. Where a motion picture production continues\nfor more than one year, a separate application for each tax year the production\ncontinues must be made. The grant of a refundable tax credit for a motion\npicture film production does not create a presumption that the production will\nreceive a refundable tax credit for subsequent tax years. Effective on January\n1, 2013, for purposes of eligibility for refundable tax credits, a motion\npicture film production shall include digital interactive media production.\n\t\t\t“Qualifying expenses” means the sum of the following amounts\nspent in the Commonwealth by a production company in connection with the\nproduction of a motion picture filmed in the Commonwealth:\n\n 1. Goods and services leased or purchased. For goods with a purchase price of\n $25,000 or more, the amount included in qualifying expenses is the purchase\n price less the fair market value of the good at the time the production is\n completed.\n\n 2. Compensation and wages, except in the case of each individual who directly\n or indirectly receives compensation in excess of $1 million for personal\n services with respect to a single production. In such a case, only the first\n $1 million of salary shall be considered a qualifying expense. An individual\n is deemed to receive compensation indirectly when a production company pays a\n personal service company or an employee leasing company that pays the\n individual.\n\nB. 1. In addition to the refundable credit authorized under subsection A, such\nproduction company shall be allowed an additional refundable credit equal to 10\npercent of the total aggregate payroll for Virginia residents employed in\nconnection with the production of a film in the Commonwealth when total\nproduction costs in the Commonwealth are at least $250,000 but not more than $1\nmillion. This additional credit shall be equal to 20 percent of the total\naggregate payroll for Virginia residents employed in connection with such\nproduction when total production costs in the Commonwealth exceed $1 million.\n\n 2. In addition to the credits authorized under subsection A and subdivision B\n 1, such production company shall be allowed an additional refundable credit\n equal to 10 percent of the total aggregate payroll for Virginia residents\n employed for the first time as actors or members of a production crew in\n connection with the production of a film in the Commonwealth.\n\nC. 1. For purposes of this section, in the case of an episodic television\nseries, an entire season of episodes shall be deemed to be one production.\n\n 2. No credit shall be allowed under this section for any production that (i)\n is political advertising, (ii) is a television production of a news program or\n live sporting event, (iii) contains obscene material, or (iv) is a reality\n television production.\n\nD. 1. The issuance of refundable tax credits under this section shall be in\naccordance with procedures, qualifying criteria, and deadlines established by\nthe Department and the Virginia Tourism Authority. The qualifying criteria\nestablished by the Virginia Tourism Authority shall take into account whether\nthe production involves physical production within the Commonwealth of Virginia,\nthe number of residents of Virginia that will be employed in the production and\nthe level of compensation they will be paid, the extent to which the production\nwill contribute to the support and expansion of existing production companies in\nVirginia, the extent to which the production will impact existing local\nbusinesses and the local economy, the extent to which the production will\ninvolve existing and new companies located in Virginia, and other relevant\nconsiderations. The taxpayer shall apply for a credit by submitting such forms\nas prescribed by the Virginia Tourism Authority, prior to the start of\nproduction in Virginia.\n\n 2. Any taxpayer seeking credits under this section must enter into a\n memorandum of understanding with the Virginia Tourism Authority that at a\n minimum provides the requirements that the taxpayer must meet in order to\n receive the credits, including but not limited to the estimated amount of\n money to be spent in Virginia, the timeline for completing production in\n Virginia, and the maximum amount of credits allocated to the taxpayer.\n\n 3. Once the taxpayer has satisfied all of the requirements in the memorandum\n of understanding to the satisfaction of the Virginia Tourism Authority and\n completed production in Virginia, the Virginia Tourism Authority shall certify\n the final tax credit amount to the taxpayer and to the Tax Commissioner. In\n addition, such certificate shall specify the fiscal year in which such tax\n credit may be refunded by the Department of Taxation. The tax return filed for\n the taxable year in which the Virginia production activities are completed\n shall contain information specifying the amount of tax credit and shall\n specify the fiscal year in which such tax credit may be refunded. The return\n must state the name of the production, provide a description of the\n production, and include a detailed accounting of the qualifying expenses with\n respect to which a credit is claimed.\n\n 4. The Virginia Tourism Authority shall report to the Tax Commissioner on an\n annual basis the amount of tax credits that have been authorized for each\n fiscal year and the amount of tax credits that may be claimed for the current\n fiscal year by each taxpayer.\n\n 5. No interest shall be paid pursuant to § 58.1-1833 on any tax credit\n issued by the Department under this section.\n\nE. A taxpayer allowed a credit under this section must maintain and make\navailable for inspection any information or records required by the Tax\nCommissioner. The taxpayer has the burden of proving eligibility for a credit\nand the amount of the credit. The Tax Commissioner shall consult with the\nVirginia Tourism Authority in order to determine the amount of qualifying\nexpenses.\n\nF. For purposes of this section, the amount of any credit attributable to a\npartnership, electing small business corporation (S corporation), or limited\nliability company may be allocated to the individual partners, shareholders, or\nmembers, respectively, in proportion to their ownership or interest in such\nbusiness entities.\n\nG. The total amount of credits allocated to all taxpayers under this section\nshall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the\n2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year\nthereafter.\n\nH. The Department of Taxation, in consultation with the Virginia Tourism\nAuthority, must publish by November 1 of each year for the 12-month period\nending the preceding December 31 the following information:\n\n 1. Location of sites used in a production for which a credit was claimed;\n\n 2. Qualifying expenses for which a credit was claimed, classified by whether\n the expenses were for goods, services, or compensation paid by the production\n company;\n\n 3. Number of people employed in the Commonwealth with respect to credits\n claimed; and\n\n 4. Total cost to the Commonwealth’s general fund of the credits claimed.\n \t\t\t\tNotwithstanding any provision of § 58.1-3 or any other law, such\n information shall be published by the Department, even if such information is\n not classified, so as to prevent the identification of particular taxpayers,\n reports, or returns and items.\n\nI. The Tax Commissioner shall develop guidelines implementing the provisions of\nthis section, including but not limited to the definition of “qualifying\nexpenses” and setting forth the recordkeeping requirements applicable to\nproduction companies claiming this credit. Such guidelines shall be exempt from\nthe provisions of the Administrative Process Act (§ 2.2-4000 et seq.).\n\nHISTORY: 2010, cc. 419, 599; 2014, c. 730; 2017, cc. 108, 425; 2020, cc. 966,\n967.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}