Image of film production crew of about ten people at work with gradient purple to red color overlay

Motion Picture Production Tax Credit

Program Overview

Beginning January 1, 2023, the Motion Picture Production Program (HB2156) creates new income tax credits for film production companies in Arizona. The new refundable tax credit ranges from 15.0%-20.0% for base production costs, plus an additional 7.5% for other production costs, depending on the criteria met by the company.

Qualified Production Costs
Base Credit

Less than $10,000,000

15.0%

$10,000,001 – $34,999,999

17.5%

More than $35,000,000

20.0%

The legislation allows for a maximum of $125 million in refundable income tax credits when the program is fully implemented, of which up to $25 million may be used for productions that qualify for the program by filming primarily on location in Arizona.

Additional Credits

In addition to the base production cost credits, your company may qualify for additional credits for costs not otherwise covered under the base production expenses.

Additional 2.5% of qualified production costs, if the production uses a qualified production facility 1 or films at a practical location 2 and performs all pre-production, post-production and editing at a qualified facility in Arizona.

1 A qualified production facility is a structure built for film purposes in the state, is at least 10,000 sq ft and meets accepted industry standards for creating a motion picture

2 Practical location is defined as a location that does not use an industry standard sound stage or production facility

Additional 2.5% of qualified production costs, if the film is produced by a long-term tenant (with a lease of five or more years) of the qualified production facility.

Additional 2.5% of production labor costs for Arizona residents (defined as holding positions other than talent, writers, directors, producers or management).

A region with breathtaking advantages for film production businesses.

5,000+ films and TV shows have been filmed in Arizona since 1913

Here are just a few…

Source: Arizona Commerce Authority

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Greater Phoenix has an abundance of high-skilled talent

Production companies that hire Arizona talent may qualify for an additional 2.5% credit for production labor costs.

#1  |  Most innovative university

#1  |  Public university in Arizona

98%  |  Program completion rate

ASU’s Media and Immersive eXperience Center (MIX)

The state-of-the-art facility opened to hundreds of students in film, video production and digital technology in August 2022.

It includes a screening room, enhanced immersion studio, sound stages, ideation studio, fabrication lab, community space and meeting space for production and post-production programs in digital media technology, worldbuilding, experience design and gaming.

The Sidney Poitier New American Film School at ASU

ASU’s recently renamed Sidney Poitier New American Film School has been educating students for more than two decades in Filmmaking Practices, Film & Media Production and Narrative & Emerging Media.

The School operates in three locations, the MIX Center in Mesa, ASU’s Main campus, and the ASU California Center in downtown Los Angeles.

University of Arizona School of Theatre, Film and Television

Through its School of Theatre, Film and Television (TFTV), UArizona offers degrees in Film & Television, Production and Theatre Arts.

TFTV was ranked 7th among public universities and 25th overall on The Wrap’s 2021 Top 50 Film Schools.

Dreamscape Immersive

ASU has partnered with Dreamscape Immersive, the world’s leading virtual reality company, to form a new partnership called Dreamscape Learn.

Dreamscape Learn will add VR experiences to in-person and online courses, beginning with introductory biology and eventually expanding to other classes.

Additional Dreamscape investors and partners include WarnerMedia, Viacom, Disney, IMAX, AMC, Steven Spielberg and Hans Zimmer.

East Valley Institute of Technology

EVIT offers a courses in video production to high school students wanting to learn all aspects of visual media productions including filmmaking, event production, public services announcements and documentaries.

Arizona Film Ready Crew Initiative (AZFRCI)

Launched in July 2022 by the Arizona Commerce Authority, this program boosts Arizona’s film and digital industry workforce by providing hands-on training for Production Assistants (PA).

The real-world training program is free to participants and teaches on-set protocols and knowledge, workplace safety and how to perform common PA tasks, including the handling of expensive production equipment often required in this position.

RESOURCES

Arizona Film Office

The Arizona Film Office, overseen by the Arizona Commerce Authority, has created a database of crew, talent and support services available in the state, as well as contacts with each local film office.

Arizona Production Companies

Arizona has 208 production companies located in the state, working on pre-production, post-production, multimedia services and filming.

Phoenix Film Foundation

A non-profit promoting independent films and providing educational programs in addition to operating the Phoenix Film Festival, the Phoenix Film Society, the International Horror and Sci-Fi Festival and the Arizona Student Film Festival.