Secondary Incentives
Hold on set!
Incentive Type:
Qualifying Production Types
Music Videos, Commercials, Web Series, Scripted TV, Soundtrack, Broadway, Feature Film, Visual Effects, Post Production, Miniseries, MOW
Sunset Date
None
Wrapbook's Rule to Remember
Tax credits can be transferred or sold to a Virgin Islands taxpayer who wants to reduce their tax liability. Standard amount is $.60 on the dollar with a carry forward 5 years. Productions can only make a single transfer or sell tax credits.
Basic Incentive Information
- Spend9%
- Above the Line Residents10-17%
- Above the Line Non-ResidentsN/A
- Below the Line Residents10-17%
- Below the Line Non-ResidentsN/A
- Minimum Spend$250,000
- Funding Cap$2,500,000
- Project Cap$500,000
- Loan Out RegistrationNo
- Loan Out WithholdingNo
- CPA Audit RequiredYes
- Screen Credit RequiredYes
In order to get the maximum return listed in ranges, check out Additional Bonuses.
Project Criteria
There is a minimum of 20% local resident hires (including crew, extras, actors and maximum of three paid interns.
An above-the-line-crew member must speak at a local school or university.
For the cash rebate, the qualified production spend must take place on the islands and be performed by a Territory Certified Production (TCP).
For the transferrable credit, if 20-25% of total workforce (including paid interns) are VI residents, the allowable credit is 10% of actual compensation paid in connection with the TCP during the tax year. If 25.1-30% of the total workforce are VI residents, the allowable credit is 15%. If 30.1% or greater of the total workforce are VI residents, the allowable credit is 17%.
Contact the film office for more details.
Additional Bonuses
Contact the film office for more details.
How to Apply
If productions choose to move forward, they must obtain a certificate of good standing from the Lt. Governor’s office and be incorporated.
The application fee is $500, and the approval process should be completed within 32 business days. After that, the final approval comes from the Economic Development Authority (EDA), who then has 25 business days to approve or reject the application.
A company can apply after filming has started— but no later than 30 days after.
Contact the film office for more details.
Additional Information
The annual and project caps listed are for the cash rebate.
Resident production companies are eligible for tax incentives and rebates up to a maximum of 3 projects per annum with a maximum of incentives/credits equal to $1,050,000 if they meet all requirements.
A reduction in hotel tax rates may be applied to both resident and non-resident production companies as follows: productions with a spend of $250,000 AND over 150 room nights pay a hotel tax rate of 8%; productions with a spend of $250,001-$500,000 AND over 250 room nights pay a hotel tax rate of 6%; productions with a spend of $500,001-$750,000 AND over 350 room nights pay a hotel tax rate of 4%; productions with a spend of $750,001-$1,000,000 AND over 450 room nights pay a hotel tax rate of 3%; productions with a spend of $1,000,001 AND over 1000 room nights pay a hotel tax rate of 1.5%.
A separate transferrable credit is available for interactive media. This credit offers 15% on qualified expenditures and resident labor.
Contact the film office for more details.
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Disclaimer
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this page is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.