Arkansas’ program is administered on a case-by-case basis. The Executive Director of AEDC retains sole discretion to determine which projects are selected and the amount of incentives available to each selected project.
Incentives:
The Arkansas Digital Product Motion Picture Incentive will either be in the form of a rebate or a tax credit. The two incentives mirror each other in percentages.
Requirements:
PRIOR to beginning preproduction activities in Arkansas, register with the film office and submit an application along with an estimate of expenditures; meet the minimum spending requirement of at least $50,000 within a six-month period in connection with a postproduction project, or $200,000 within a six-month period in connection with the production of one feature project; and apply for a production rebate certificate no later than 180 days after the last production expenses are incurred. Financial incentive approval must be given prior to incurring any expenses in Arkansas.
Qualified Spend:
Qualified spend includes: costs incurred in Arkansas in the pre-preproduction, production, or postproduction of a qualified production; the first $500,000 of wages or salaries paid to each resident and nonresident that are subject to Arkansas income taxes; pension, health and welfare contributions; and, stipends and living allowances. Payments for production and postproduction expenses are recommended (but not required) to be made from the checking account of an Arkansas institution. Cash payments to vendors may not exceed 40% of the total verifiable costs.
Summary:
The Arkansas Digital Motion Picture Incentive will be provided in the form of either a tax credit or a rebate. The two Incentives mirror each other in percentages: 25% base incentive for goods, services, and NR labor. An additional 10% incentive is available for payroll of below-the-line employees who are: Full-time certified residents of Arkansas; Veterans; expenditures paid to a veteran-owned small business for qualified production costs. An additional 5% incentive for either: The payroll of below-the-line employees whose full-time permanent address is located in a Tier 3 or Tier 4 county in the annual ranking of counties established by the Arkansas Economic Development Commission under Arkansas Code §15-4-2704; or expenditures paid to a person or business for qualified production costs associated with a state-certified production project located in a Tier 3 or Tier 4 county in the annual ranking of counties established by the commission under Arkansas Code §15-4-2407; producing a qualified multi-project production.The incentive program is scheduled to sunset on June 30, 2031.
The total qualifying incentive amount for each expenditure is 30%.