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Massachusetts Production Incentive Research

Massachusetts Film Tax Incentives

Research Massachusetts' film production incentives, 25% payroll credit, 25% production expense credit, qualification tests, transferability, official sources and production resources.

25% Payroll Credit
25% Production Expense Credit
$50K Minimum MA Production Spend
Oct. 2026 Last Verified
Research Notice: This page is an independent research resource and is not legal, tax, accounting, financial or investment advice. Massachusetts incentive laws, tax rules and certification procedures can change. Confirm material production and financing decisions with the Massachusetts Department of Revenue, the Massachusetts Film Office and qualified professional advisors.
✓ Last Verified: October 2026
Program Overview

Massachusetts Film Incentive Tax Credit

Massachusetts currently offers two principal film incentives: a 25% payroll credit and a 25% production expense credit for qualifying motion-picture productions.

To qualify for the payroll credit, a production company generally must incur at least $50,000 in total Massachusetts production expenses during a consecutive 12-month period.

To qualify for the production expense credit, current Massachusetts law and the 2026 Form FP instructions provide two alternative tests: Massachusetts production expenses must exceed 75% of total production expenses, or at least 75% of the production's principal photography days must take place in Massachusetts.

Massachusetts film credits are generally transferable. Eligible production companies may instead elect a state refund equal to 90% of the remaining credit after the credit is applied against Massachusetts tax liability, subject to current filing rules.

View Official Program Details →
Massachusetts Program at a Glance
Payroll Credit 25% of qualifying Massachusetts payroll
Production Credit 25% of qualifying Massachusetts production expenses
Minimum Spend At least $50,000 in Massachusetts production expenses during a consecutive 12-month period
Production Test More than 75% Massachusetts production expenses or at least 75% of principal photography days in Massachusetts
High Compensation Payroll credit generally excludes employees receiving $1M or more in total compensation
Credit Type Transferable; eligible production companies may elect a 90% refund of remaining credit
Carryforward Generally up to five years
Program Status Permanent under current Massachusetts law
Last Verified October 2026
Quick Program Snapshot

Massachusetts Film Incentive at a Glance

Massachusetts combines separate 25% payroll and production-expense credits with a transferable structure and a straightforward statewide qualification framework.

Payroll Credit
25%

Qualifying Massachusetts payroll may receive a 25% tax credit.

Production Expense Credit
25%

Qualified Massachusetts production expenditures may receive a separate 25% credit.

Minimum Production Spend
$50K

Productions generally must incur at least $50,000 in Massachusetts production expenses during a consecutive 12-month period.

Production Test
75%

The production expense credit generally requires either more than 75% of total production expenses in Massachusetts or at least 75% of principal photography days in Massachusetts.

Credit Type
Transferable

Certified credits may generally be sold or transferred under Massachusetts tax rules.

Carryforward
5 Years

Unused film credits may generally be carried forward under current rules.

Payroll Limitation
$1M

The payroll credit generally excludes employees receiving $1 million or more in total compensation.

Refund Option
90%

Eligible production companies may elect a refund equal to 90% of remaining film credit after application against Massachusetts tax liability.

How It Works

Understanding Massachusetts' Film Tax Credits

Open each topic for a plain-English overview of major Massachusetts incentive features.

Qualifying Massachusetts payroll expenditures may receive a 25% tax credit, subject to the program's payroll thresholds and compensation rules.
Qualified Massachusetts production expenditures may receive a separate 25% credit when the production satisfies the state's qualification tests.
A production generally must incur at least $50,000 in total Massachusetts production expenses during a consecutive 12-month period to qualify for the film credit program, including the payroll credit.
A production may qualify for the production expense credit when Massachusetts production expenses exceed 75% of total production expenses.
A production may alternatively qualify when at least 75% of its principal photography days take place in Massachusetts.
The payroll credit generally does not apply to an employee receiving $1 million or more in total compensation for the production.
Film Tax Credit applications submitted with at least $250,000 of qualified film-credit expenses must include an Independent Accountant's Report using Agreed Upon Procedures or an audit. The AUP must be performed by a Massachusetts CPA under current Form FP instructions.
Massachusetts film credits may generally be transferred or sold, subject to current Department of Revenue rules and procedures.
Eligible production companies may elect to have the Department of Revenue refund 90% of any remaining film credit after the credit is applied against Massachusetts tax liability. A taxpayer electing the refund cannot split that credit between a partial refund and a partial transfer or carryforward.
Eligible Production Types

Productions That May Qualify

Massachusetts supports multiple motion-picture formats, subject to current statutory definitions and qualification rules.

01
Feature Films
02
Television Series
03
Television Pilots
04
Documentaries
05
Commercial Productions
06
Qualified Digital Productions
Producer Checklist

What Producers Should Confirm

These issues can materially affect Massachusetts eligibility and final credit value.

Confirm that the production expects to incur at least $50,000 in Massachusetts production expenses during a consecutive 12-month period.
Determine whether the project will qualify for the production expense credit through the Massachusetts production-expense test or the principal-photography-days test.
Confirm which goods, services, rentals, facilities and production expenses qualify before applying the 25% production credit.
Review current employee, loan-out, withholding and payroll treatment before including compensation in the credit base.
Identify highly compensated employees early. The payroll credit excludes payments to an employee whose total payments connected with the motion picture are $1 million or more. Those high-compensation amounts may potentially be considered in the production-expense credit calculation if otherwise eligible and not used for the payroll credit.
If selling the credit, model transfer pricing, timing, transaction costs and buyer requirements separately.
If using the state refund mechanism, model the current 90% refund of remaining eligible credit and confirm filing procedures and timing before relying on proceeds.
Maintain complete payroll, vendor, production and cost-report records to support the final credit filing.
Confirm Massachusetts tax treatment, entity structure, monetization and production assumptions with qualified legal, accounting and incentive advisors.
Application Process

How the Massachusetts Film Credit Process Works

Massachusetts requires producers to document qualifying payroll, production expenses and final credit eligibility.

1
Model Massachusetts Spend Estimate qualifying payroll, production expenses and whether the project expects to satisfy the 75% production-expense or principal-photography-days test.
2
Track Payroll & Costs Maintain detailed Massachusetts payroll, vendor and production-spend records throughout the project.
3
Confirm Qualification Verify the $50,000 Massachusetts production-expense threshold and the applicable 75% production-expense or principal-photography-days requirement.
4
Prepare Tax Credit Filing Complete the required Massachusetts documentation and tax forms through the current filing process.
5
Claim, Transfer or Refund Use the certified credit under the current Massachusetts transfer, five-year carryforward or 90% refund rules.
Production Across Massachusetts

Massachusetts Production Regions

Massachusetts offers historic cities, coastline, small towns, universities, industrial settings, forests and distinctive New England locations.

Massachusetts Combines Boston Infrastructure With Statewide Location Variety

Boston anchors the state's production ecosystem, while the Cape, North Shore, Western Massachusetts and historic communities provide very different visual environments within a relatively compact state.

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Greater Boston

Urban architecture, universities, hospitals, historic districts and experienced production crews.

Production Resources →

North Shore

Historic coastal towns, harbors, period architecture and classic New England streetscapes.

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Cape Cod & Islands

Beaches, waterfront communities, marinas and distinctive coastal environments.

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Central Massachusetts

Industrial cities, colleges, historic towns and varied suburban and rural settings.

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Western Massachusetts

Mountains, forests, farmland, small towns and scenic New England landscapes.

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Massachusetts Film Incentive FAQ

Frequently Asked Questions

Massachusetts currently offers a 25% payroll credit and a separate 25% production expense credit for qualifying motion-picture productions.
Productions generally must incur at least $50,000 in total Massachusetts production expenses during a consecutive 12-month period to qualify for the film credit program, including the payroll credit.
A project generally must either have Massachusetts production expenses exceeding 75% of total production expenses or conduct at least 75% of principal photography days in the Commonwealth.
The payroll credit excludes payments to an employee whose total payments connected with the motion picture are $1 million or more. Producers should review whether those amounts may instead qualify as production expenses under current rules.
Yes. Massachusetts film credits may generally be transferred or sold, subject to current Department of Revenue rules.
Yes. Unused film credits may generally be carried forward for up to five years under current rules.
Eligible production companies may elect a refund equal to 90% of the remaining film credit after application against Massachusetts tax liability, subject to current filing requirements.
The Massachusetts Department of Revenue administers the tax credit, while the Massachusetts Film Office provides production and industry support.
Research Notice: Massachusetts film incentive laws, qualified expenditures, payroll rules, refund procedures and filing requirements can change. This page is an independent research resource and is not legal, tax, accounting, financial or investment advice. Confirm material decisions with the Massachusetts Department of Revenue, the Massachusetts Film Office and qualified professional advisors.
Compare Production Locations

Considering Massachusetts Against Another State?

Compare Massachusetts' 25% payroll and production credits, $50,000 production-spend threshold, 75% qualification tests, transferable structure, 90% refund option and production infrastructure with other U.S. film incentive programs before deciding where to shoot.

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