Certified Media Production Credit Worksheet For Tax Year

2007

CERTIFIED MEDIA PRODUCTION CREDIT

WORKSHEET INSTRUCTIONS

General Instructions

The recently enacted Certiﬁ ed Media Production beneﬁ t law provided for a credit for Maine income taxes associated with

the income of a certiﬁ ed media production. The process required to receive the tax credit is outlined below.

Required Certiﬁ cates. The qualiﬁ ed media production company must obtain two separate certiﬁ cations from the Department

of Economic and Community Development (“DECD”). The ﬁ rst certiﬁ cate is applied for prior to the start of the media

production. A Media Production Certiﬁ cate is issued to the qualiﬁ ed media production company meeting initial program

requirements. Once the media production certiﬁ cate is obtained, the business may begin the qualiﬁ ed production. Within 28

days after completion of the qualiﬁ ed production, the business must request a Tax Reimbursement and Credit Certiﬁ cate,

also from DECD. Once DECD has determined that the business has successfully complied with all of the requirements for

a certiﬁ ed media production, a Tax Reimbursement and Credit Certiﬁ cate is issued to the business. (For more information

on the Maine Certiﬁ ed Media Production Wage Reimbursement program, see Form 841ME and related instructions.)

Certiﬁ ed Media Production Tax Credit. The income tax credit is claimed on the business’s annual Maine income tax

return after obtaining a tax credit certiﬁ cate from DECD. The credit is available to corporations through Form 1120ME and is

available to individuals owners/members of pass-through entities and sole proprietors through Form 1040ME. If the certiﬁ ed

media production is the only activity in Maine for the business, there will be no income tax due to Maine. If the business earns

other Maine source income, the credit will be apportioned according to the percentage of Maine compensation associated

with the certiﬁ ed media production. Also, if the business is a C corporation and has unitary afﬁ liates, the entire group must

ﬁ le a combined report with Maine on Form CR, which is attached to Form 1120ME. Along with the Maine income tax return

(1120ME, 1040ME) and Tax Credit Certiﬁ cate, the business must also attach a copy of the Media Production Certiﬁ cate

issued by DECD (see 36 M.R.S.A. § 5219-Y(1)). In addition, the Certiﬁ ed Media Production Tax Credit Worksheet (available

online at ) must accompany the Maine income tax return.

Speciﬁ c Instructions

Note: Individual taxpayers skip line 1 and line 2 and enter the amount from Worksheet MPB line 8 on line 3.

Line 1.

Enter the total certiﬁ ed media production compensation for the project period from all locations. “Compensation,”

means wages, salaries, commissions and any other form of renumeration paid to employees for personal services

(see 36 M.R.S.A. § 5210, sub-§ 3).

Line 2.

Enter the total Maine compensation paid by the media production company during the tax year.

Line 3.

Corporate taxpayers enter the result of line 1 divided by line 2 rounded to six decimal places. Individual taxpayers

enter the amount from Worksheet MPB line 8 rounded to six decimal places.

Rev. 11/07

Certified Media Production Credit Worksheet For Tax Year - 2007 Page 2