Film Production Credit
The film production credit is not available for tax years 2009 and 2010.
INCOME TAXPAYER-Effective for all taxable years commencing after Dec. 31, 2006 and prior to Jan. 1, 2013.
An income tax credit shall be allowed for direct production expenditures made by an eligible film production company.
Qualifications
An eligible film production company must receive approval from the Department of Commerce.
Kansas Department of Commerce
Kansas Film Commission
1000 SW Jackson St, Suite 100
Topeka, KS 66612
785-293-2178
Credit Amount
The credit is 30 percent of the direct production expenditures made in Kansas that are directly attributable to the production of a film in Kansas.
The tax credit shall be deducted from the eligible film production company’s income tax liability for the taxable year in which the expenditures are made by the eligible film production company.
If the credit allowed exceeds the film production company’s income tax liability for the taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used, except that no such tax credit shall be carried over for deduction after the third taxable year succeeding the year in which the costs are incurred.
Limitation of Credit
The amount of tax credits that may be allowed shall not exceed $2 million per tax year.
Procedures to Claim the Credit
You may download Schedule K-86 to claim the film production credit. This schedule must be completed and submitted with the income tax return. You may also call the Department of Revenue voicemail system at 785-296-4937 to request Schedule K-86. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.
Direct Production Expenditure
An expenditure incurred in the state of Kansas in the production of a Kansas film including:
(1) Payment of wages, fringe benefits or fees for talent, management or labor or a person who is a Kansas resident for purposes of the Kansas income tax act;
(2) payment to a personal services corporation for the services of a performing artist, if:
(A) The personal services corporation is subject to taxation under the provisions of the Kansas income tax act; or
(B) the performing artist receiving payment from the personal services corporation pays Kansas income tax; and
(3) any of the following provided by a vendor:
(A) The story and scenario to be used for a film;
(B) set construction and operations, wardrobe, accessories and related services;
(C) photography, sound synchronization, lighting and related services;
(D) editing and related services;
(E) rental of facilities and equipment;
(F) leasing of vehicles;
(G) food or lodging;
(H) airfare if purchased through a Kansas-based travel agency or travel company;
(I) insurance coverage and bonding if purchased through a Kansas-based insurance agent; and
(J) other direct costs of producing a film in accordance with generally accepted entertainment industry practice.
Eligible Film Production Company
A film production company that has received certification from the Department of Commerce.
Film
Any film, video, commercial or television production, as approved by the department of commerce, that is 30 minutes or less in length with an expected in-state expenditure budget in excess of $50,000, or that is over 30 minutes in length with an expected in-state expenditure budget in excess of $100,000. Film shall not include the following:
(1) News or current events programming;
(2) talk show;
(3) production produced primarily for industrial, corporate or institutional purposes, and for internal use;
(4) sports event or sports programming;
(5) gala presentation or awards programming;
(6) infomercial or any production that directly solicits funds;
(7) political advertisement; or
(8) production that is considered obscene.
(d) ‘‘Film production company’’ means a person that produces one or more films.