Tennessee Production Tax Incentives

Overview

  • The Tennessee Entertainment Commission (TEC) offers 25% grant on goods and services procured in state and the 1st $250K in resident labor, as well as a "film and entertainment" (F&E) tax credit worth up-to 50% on the 1st $1M of resident & non-resident labor (requires TEC approval).
  • F&E tax credit applicants can also apply for a point of purchase sales and use tax exemption (9.25-9.75%) for all of the taxable goods and services involved in the production. Each program has their own application form. A pre-production meeting between the production company and TEC is required prior to the start of principal photography.
  • Upon the completion of principal photography, the production company must post a notice, once a week for 3 consecutive weeks, in local newspapers distributed in each Tennessee location where production took place, and submit a notice to the TEC to post on the website.
  • TEC also offers a grant up to 25% on qualified Tennessee expenditures to companies producing original scores for film, television, animation, commercials, gaming and multi-media projects within Tennessee with a minimum spend of $25K.

Eligible project types: Commercials, feature films, pilots, scripted TV

Incentive details

Type
Grant and a non-refundable, non-transferable tax credit
Rate
Grant: 25% / tax credit: 40%
Uplift(s)
Tax credit: additional 10% on qualified payroll paid to TN residents living in tier 2-4 enhancement counties.
Annual Cap
Rolling / TBD
Project Cap
None
Compensation Cap
Grant: $250K / tax credit: $1M (resident & non-resident labor)
Eligible Expenses
Grant: Goods and services used in state and purchased from a Tennessee vendor or paid to a Tennessee resident. Tax credit: Qualified payroll expenses and Tennessee non-payroll expenditures including labor, equipment, goods, services necessary to and primarily used for a qualified production.
Additional Info
Principal photography must begin within 120 days of effective date. The qualifying period ends 12 months from the effective date. costs incurred prior to the effective date are not eligible for the grant.

Requirements

Minimum Spend
Grant: $200K / tax credit: $500K scripted TV & film; $100K non-scripted, video games, animation, & commercials; $50K postproduction
Local Hire Requirement
Yes (both programs); grant requires DL/ID (only), tax credit requires DOR form and DL/ID
Logo/End Credit Acknowledgement Required
Yes (both programs)
Loanout Withholding
None
Application Timing
Applications for the grant program should be submitted no later than 30 business days & for the tax credit program should be submitted at least 60 days prior to the start of pre-production. Applications are approved at the discretion of TEC and Department of Economic and Community Development (ECD), not on a first come, first served basis.
Audit
CPA audit required. CPA report is due to tec with 18 months of the effective date.

How to Apply

Application
Application Timing
Tennessee Film Office

BOB RAINES, EXECUTIVE DIRECTOR, 615-741-3456, [email protected]
Film | Tennessee Entertainment Commission

Helpful Links

Entertainment moves fast—your HR and payroll partner should too.

Vensure Sports & Entertainment simplifies compliance, pay, and onboarding, so you can stay focused on creating great content.

Let’s Talk