Motion Picture Competitiveness Program Contributors (B&O) Tax Credit
Persons who make cash contributions to an approved Motion Picture Competitiveness Program are eligible for a business and occupation (B&O) tax credit effective June 7, 2006. (Second Substitute Senate Bill 6558)
The Motion Picture Competitiveness Program (MPCP) is intended to revitalize the state's economic, cultural, and educational standing in the motion picture market by providing financial assistance for motion pictures filmed in Washington.
Requirements for the B&O Tax Credit
- Contributions must be made before the credit is claimed
- Credit cannot be claimed before July 1, 2006 (for monthly filers this is the June 2006 return)
- Credit cannot exceed the B&O tax due for the reporting period
- Credit may be claimed in the current year or carried over for up to three succeeding years
- No refunds of credits will be approved
- No application is necessary for the tax credit. Note: adequate records must be kept for the Department to verify eligibility of the credit
- Persons claiming the credit are required to file electronically (e-file) with the Department for all returns, forms, and any other information required. Visit our website at http://dor.wa.gov and click on the Online Services tab
- No credit may be earned for contributions made on or after July 1, 2011
The maximum credit that may be earned for each calendar year for a person is limited to the lesser of:
- $1 million; or
- Through calendar year, an amount equal to 100 percent of the contributions made by the person to a MPCP during the calendar year.
The maximum total amount of credits that will be allowed statewide during a calendar year is $3.5 million. Credits are available on a first-in time basis. If the maximum credit allowance is reached, we will send notices to persons claiming the tax credit allowing 30 days for them to pay the tax due.
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