Virginia Film Office


				Incentives
					Current funding is already committed. However, applications for projects slated to begin production after July 1, 2011 are being accepted. Virginia's motion picture incentive package is comprised of two separate performance-based incentive funds. Awards will be made to qualified film, television, documentary or commercial projects based on several factors including length of filming in the Commonwealth, jobs created, trainees hired and Virginia goods and services purchased. THE GOVERNOR'S MOTION PICTURE OPPORTUNITY FUND The fund provides a grant or rebate to qualified projects. Filmmakers must have all of their funding in place and apply for this grant before production begins. This fund has a $2 million appropriation for the biennium beginning July 1, 2010. For a complete list of guidelines, click here. Virginia's new refundable tax credit program will take effect January 1, 2011. The funding level is $2.5 million. Additional state incentives include an exemption from state sales tax, as well as an exemption from hotel taxes for stays of 30 days or more in some localities. In most cases, state-owned locations are provided free of charge. The Film Office assists in negotiating other free or low cost locations that have historically resulted in significant savings to productions shooting in the state. For more information, contact Becky Beckstoffer at 800.854.6233 or bbeckstoffer@virginia.org. SALES AND USE TAX EXEMPTION Virginia is committed to helping contain production costs. Therefore most of the expenses incurred in the purchase of production-related supplies or equipment is exempt from the state's 5% sales and use tax. This exemption is realized at the time of purchase and can be obtained by simply submitting a form to the merchant at the time of purchase. No paperwork needs to be filed upon completion of production and no rebates will be sent at the end of the tax year. The exemption is received immediately. Listed below are some of the major items covered by the Sales and Use Tax Exemption: Developing film including movie film Transporting charges that are separately stated Hotel and motel rooms that are occupied by a guest for 90 or more consecutive days Repair services for which a separate charge is made Camera film Materials used to construct costumes Materials used to construct props and scenery Equipment rentals Design supplies Heating and Air conditioning used on the set Scripts Musical scores Storyboards Tapes Drafting and art tables and supplies. How you can use the Sales and Use Tax Exemption: Download the "Commonwealth of Virginia Sales and Use Tax Certificate of Exemption" Give a copy of the form to each Virginia vendor you The vendor will not charge sales tax on any allowable items that you purchase, lease or rent for your Virginia project. The vendor should keep a copy of the form on file and you should only need to submit it one time. However, it's a good idea to keep extra copies with you HOTEL TAX EXEMPTIONS State Sales Tax Exemption After 90 days, those staying in a Virginia hotel or motel will be exempt from paying the state's 5% sales tax on the entire stay. You will pay the taxes to the hotel until your stay exceeds 90 days. After that time, you will no longer be charged state sales tax and the amount you have already paid will be credited back to your hotel or motel bill. Lodging Taxes Many counties and cities in Virginia charge an additional lodging tax, often referred to as a transient occupancy tax, and the laws governing these taxes vary greatly by locality. As a general rule, however, most localities will exempt residents of hotels and motels from the tax after a stay of 30 days or more. To find out the specific regulations of the locality in which you are planning to stay, contact the local film liaison for that area, or the Virginia Film Office. For more information about all of Virginia's tax regulations, contact: Bland Sutton Virginia Department of Taxation Post Office Box 27185 Richmond, Virginia 23261-7185 bland.sutton@tax.virginia.gov Phone - (804) 371-2332 FAX - (804) 371-2355 Website: www.tax.virginia.gov