Virginia

Tax credit program: apply to the Film Office at least 30 days PRIOR to the start of principal photography in Virginia and begin production activity within 90 days of approval of the application; make a best faith effort to film at least 50% of principal photography in Virginia; meet the minimum in-state spending requirement of at least $250,000; and submit final accounting documents within 120 days after the completion of principal photography. Grant program: apply at least 30 days PRIOR to the start of principal photography; publish a joint public announcement with the Governor; demonstrate 100% financing is in place at the time the grant is requested; and commence physical production within 12 months after submitting the application. Both programs require preproduction to begin within 90 days following the approval of the application.

For both programs, qualified spend includes: goods and services leased or purchased in Virginia from a Virginia vendor (for goods with a purchase price of $25,000 or more, the eligible amount is the purchase price less the fair market value at the time the production is completed); and the first $1 million of salary paid to each resident or nonresident or their loan out company. For the grant program, certain negotiated deliverables can be considered for eligibility. The Credit Allocation Letter of Intent will indicate the beginning and ending dates for qualifying expenses.

This program is not administered on a first-come, first-served basis. Virginia offers a refundable tax credit equal to 15% or 20% of qualifying expenditures in Virginia including the first $1 million of salary for each individual whether a resident or nonresident. An additional refundable credit equal to 10% of the total aggregate payroll for Virginia residents may be earned when total production costs in Virginia are at least $250,000 but not more than $1 million. This additional credit is increased to 20% of the aggregate payroll for Virginia residents when total production costs in Virginia exceed $1 million. A production may also earn an additional 10% of payroll paid to Virginia residents employed for the first time as actors or crew members. Nontaxable fringe benefits do not qualify for the two additional resident credits but may qualify for the base credit. If a production continues for more than one year, a separate application for each tax year the production continues must be submitted. Virginia also offers a discretionary grant program, an exemption from the state sales & use tax, currently 5.3%, and a state lodging tax exemption on hotel or motel stays of 90 or more consecutive days.