Form Tsa - Film Credit Transfer Or Sale Application

Form TSA Instructions

What is the Film Payroll/Production Credit?

Certificate Number

Enter the certificate number issued by the Massachusetts Depart-

For taxable years beginning on or after January 1, 2006 and be-

ment of Revenue for the credit that is being transferred.

fore January 1, 2023, Massachusetts allows two credits for motion

picture production companies who meet certain qualifications and

Amount of Film Credit Transferred

requirements.

Box 1. Enter the total amount of film credit being transferred.

Transfer, Sale or Assignment of the credit?

Box 2. Enter the amount paid by the transferee for the film credit.

A taxpayer subject to the personal income tax under chapter 62 or

the corporate excise under chapter 63 may transfer, sell or assign

Transfer or Sale Information

either the payroll or production expense credit, in part or in whole, to

If the transferee distributes or assigns any portion of the credit to its

one or more other taxpayers that are subject to the personal income

partners, members or owners, the transferee must complete a Film

tax under chapter 62 or taxpayers subject to the corporate excise

Credit Transfer or Sale Application. A separate application is neces-

under chapter 63.

sary for every individual or business transfer. Upon approval of the

application, the Department of Revenue will issue a Transfer or Sale

Any holder of the credits, including a motion picture production

Film Credit Certificate indicating the amount of credit transferred.

company, transferee, buyer or assignee, that wants to make a sale,

transfer or assignment of the credits (the “transferor”) shall obtain a

Tax Return Filing

certificate to transfer, sell or assign the credits before making a trans-

The certificate number and amount of credit must be entered on the

fer to another taxpayer. The transferor must submit to the Commis-

appropriate line of the Massachusetts tax return. Transferees receiv-

sioner a statement in the form prescribed by the Commissioner that

ing this Transfer or Sale Film Credit Certificate must also enter the

details the amount of tax credit being sold, transferred or assigned

appropriate Transfer or Sale certificate number and amount of credit

and any other information required by the Commissioner. Potential

on the appropriate line of their Massachusetts tax return.

transferors that have an outstanding tax obligation with the state in

Questions or concerns relating to the Film Credit Transfer or Sale Ap-

connection with any motion picture for any prior taxable year are not

plication should be directed to the Film Credit Unit at 617-887-6725.

eligible to transfer, sell or assign the credits. Transferees that have

an outstanding tax liability are subject to offsets prior to application

Mail completed application to: Massachusetts Department of Rev-

of the credit against their current tax liability. Transferees, buyers or

enue, Audit Division, 200 Arlington Street, Room 4300, Chelsea,

assignees may use and carry forward the credits to any of the five

MA 02150, Attn.: Film Credit Unit.

taxable years subsequent to the first taxable year the credits were

allowed to the initial transferor. Transferring, selling or assigning a

credit does not extend the five-year carry forward period.

Form Tsa - Film Credit Transfer Or Sale Application - 2012 Page 2

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