Alaska: not just another pretty place

Information and Resources for Alaska Business

Information about the Alaska Film Industry Tax Credit and how it can benefit Alaska Businesses.
There is also information on a variety of ways your business can participate in this exciting industry.

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  •    Film Production Tax Credit   
  •    List your Services   
  •    List your Location   
  •    Info for CPAs   
  •    Workforce Development   
  •    FAQ   

Alaska’s Film Production Tax Credit

The Alaska Film Production Tax Credit is an economic development incentive designed to encourage the growth of Alaska’s film industry.

What is the incentive? Qualified production expenditures made in Alaska can receive a transferable tax credit of up to 58%. How does the tax credit work? Most film and TV productions will owe little or no taxes to the State of Alaska, so producers need to sell their tax credit to a business that has an Alaska tax liability. To facilitate the sale, Alaska’s Film Production Tax Credits are transferable and covered by a “hold harmless” provision to ensure purchasers receive full value for the purchase.

Why should my business purchase a Film Production Tax Credit? You'll save money on your Alaska taxes and help diversify our economy in the process. Producers sell their tax credits at a discount (typically for 80 to 90 cents on the dollar) but you get the face value when you use the tax credit to pay your Alaska taxes.

Your purchase of the tax credit also helps bring filmmakers to Alaska. Film and TV productions bring "new money" into the state to purchase a wide variety of products and services. Alaska's own fledgling film industry gains employment opportunities and important infrastructure with each production that chooses to film here.

How do I purchase a Film Production Tax Credit? Contact the AFO. We'll put you on the list of interested companies that we provide to producers. Producers can also choose to release contact information with their pre-qualification for the tax credit. The AFO can not broker the transfer of Film Production Tax Credits but may provide information to buyers and sellers of tax credits.

At any given time, there may or may not be producers holding tax credits that they wish to sell. However, we anticipate that over the course of the program, several will be available each year in varying amounts ranging from $30,000 to several million dollars. Alaska's Film Production Tax Credits are valid for three years from date of issue and are fully transferable as well as severable. This means they can be split between different taxpayers and different tax years as needed. This flexibility ensures that Alaska businesses can purchase all or part of a credit to precisely suit their tax obligations.

Because availability of individual tax credits is unpredictable (it's dependent on when filmmakers complete production), it's important to have your company listed with the AFO so that you can work with producers as soon as their credit is issued. Some companies even work with producers well in advance to ensure that a credit will be there when they need it (and to negotiate a better rate).

What happens if I can’t use all of a credit that I purchased? Because there are no limitations on the number of times the credit can be split and/or transferred, simply sell the unused portion to another company within the credit’s 3-year “lifespan.”

Interested in Purchasing Tax Credits?

The information provided below is required to allow the AFO to assist Alaska businesses interested in purchasing tax credits. Information may become publicly available.

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Please provide the following information:
Company Name: 
Company Address: 
City, State and Zip: 
Contact Name: 
Contact e-mail: 
Contact phone: 
General Size of Tax Credit Desired: 
E-mail Address: 
Do you have any questions or suggestions?
Enter your comments: 
             

Crew, Support Service & Talent Listings

The AFPPP can't make specific recommendations to producers about who is available in Alaska to help with their productions. To connect Alaskans and Alaska businesses with productions we have an online listing system.

Where are the listings? Look for the "Find People and Services" section on the left menu section and follow the links.

How do I list myself or my business? You'll need to establish an account. Creating a listing is easy and there is no charge for your listing.

 

Alaska’s Location Library - Get Listed!

The AFPPP maintains a library of locations the producers can look through to help them find just the right spot for their production.

What kind of places can be locations? You never know what a film will be interested in: businesses, homes fields and forests. And remember, it's not just the pretty places they're interested in - often they're looking for a gritty realism.

How do I list my property? First, read the location library FAQ in the menu on the left. then, use the submit location tool at the bottom of the FAQ.

Information for Alaska-licensed CPAs

Expense Verification for Productions - Procedures

Verification of the production's expenses by an Alaska-licensed Certified Public Accountant (CPA) is statutory requirement and a critical means of ensuring that tax credits provided to productions are legitimately earned.

CPAs are required to conduct production expense verifications according to the standards set by the AFO's Agreed Upon Procedures. In addition, to ensure a consistent reporting standard between firms, the AFO created a CPA Verification Form for reporting the CPA's Findings.

Important Forms and Information for CPAs:

    CPA Verification Form (Excel Spreadsheet Version)
    Final Application Form (Excel Spreadsheet Version)
        (Always be sure to download and use the current version of forms when beginning a verification.)

    Agreed Upon Procedures / Compliance Guidance (PDF)

    Questions and Answers about the verification process (PDF)

    Alaska Hire Credit - Residency Information (PDF)

    Alaska Hire Credit - Residency Affidavit (PDF)

    Non-Business Vendor - Residency Affidavit (PDF)

    Link to Alaska Permanent Fund Applicant Database (to verify residency for Alaska Hire Credit)

    List of Communities eligible for the Rural Tax Credit (PDF)

Please contact the AFO for questions about conducting verifications.

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Expense Verification for Productions - getting Listed

Verification of the production's expenses by an Alaska-licensed CPA is required before tax credits are issued. If you are a CPA, here's how to let producers know that you are available to do that work:

To provide verification services for productions, CPAs must meet several criteria:
  1) Hold an Alaska CPA License,
  2) Have an Alaska Business License,
  3) Be located in Alaska, and
  4) Attend the CPA training offered periodically by the Alaska Film Office.

Once CPAs meet the criteria, they are listed in the AFO's Support Services listings in the "ACCOUNTING - PRODUCTION EXPENDITURE VERIFICATION" category.

Please contact the AFO if you are interested in becoming a CPA approved to conduct verifications.

Tax Credits for your clients

I'm a CPA, how do I get my tax clients on the list of potential buyers of tax credits?

Contact the AFO. We'll put your clients on the list of interested companies that we provide qualified producers. Producers often contact potential tax credit buyers as soon as they receive qualification for a tax credit program. The AFO can not broker the transfer of film industry tax credits but may provide information to potential buyers and sellers of tax credits.

At any given time there may or may not be any producers holding tax credits that they wish to sell. However, we anticipate that over the course of the program, several will be available each year in varying dollar amounts ranging from $30,000 to several million. Because Alaska's film industry tax credits are fully transferable, severable and are valid for 3 years from date of issue, Alaska businesses can purchase all or part of a credit to suit their needs.

Because availability of individual tax credits is unpredictable (it's entirely dependent on filmmakers' production schedules and the market for credits) it's important to have your clients listed with the AFO so that you can work with producers as soon as their credits are issued. Some companies even work with producers well in advance of when the credit is issued to insure that one will be there when they need it (and to negotiate a better rate).

Ready to talk to Producers about their tax credits?
Use the online form at the bottom of the "Film Production Tax Credit" tab above, or contact the AFO.

Workforce Development

Under Statute, the AFPPP is charged with certifying Alaska film production internship training programs and promoting the employment of program interns by eligible productions. In addition, the AFPPP works cooperatively with the Alaska Department of Labor & Workforce Development - Workforce Investment Board on the implementation of the Alaska Crew and Cast Advancement Program (AKCCAP).

AKCCAP: The Alaska Workforce Investment Board (AWIB) received legislative funding to provide a "jump-start" for film and television production training programs. AKCCAP consists of a 2-stage program: the first stage provided grants to training providers to develop programs; the second stage will provide Individual Training Accounts (ITAs) to Alaskans to help pay for training.

In March of 2012, six providers received program development grants: Talking Circle Media; Alaska Crew Training, Inc. (2 programs); IATSE Local 918; Affinityfilms, Inc.; KPU Telecommunications; and the University of Alaska Fairbanks - Film Program.
Beginning in June 2012, individuals can submit applications for ITAs. Funding for ITAs is limited and will be provided on a first-come, first served basis until the entire $227,000 available is obligated.

The ITAs will be administered through the Alaska Job Center Network - Career Support and Training Services (CSTS). Individuals interested in receiving funding for film training must complete a one page application. Visit your closest job center to apply or contact these CSTS specialists:

   •  Muldoon Job Center (Anchorage), Lena Mathlaw – 269-4733
   •  YK Delta Job Center (Bethel), Kimberly Weston-Smith – 543-1601
   •  Juneau Job Center, Danny Lakip – 465-5930
   •  Peninsula Job Center (Kenai), Carolyn Vanzant – 283-2922
   •  Fairbanks Job Center, Missy Lizotte – 451-2891

Funds may cover up to $500 in tuition and $1,000 for transportation and lodging for Alaskans who successfully complete training. Funding will be available on a first-come basis until the entire $227,000 available is obligated. Please click here for more information on how to receive funding.

Training Program Certification: Training Program providers may request certification from the Alaska Film Office. Please contact the film office for details and forms.

Frequently Asked Questions from Alaska Businesses

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Questions about movie making:

I provide services that a filmmaker might need, can the AFPPP refer me to them?

Not specifically. However, the AFPPP maintains a crew and service provider listings database that we encourage filmmakers to use. Alaska businesses are encouraged to sign-up and list their business. Listings are free and provide filmmakers their best source of information about Alaska businesses and crew.
Click on the "Crew, Talent and Support Services Provider" tab on the left menu bar, and then click on the "Crew & Service Listings" button - that will take you to our listings database. Once there, look for the "REGISTER NOW!" link, click on it and fill out the online form. The key thing to remember is that Crew listings are primarily for individuals and Support Service listings are for businesses. You can register for both, but they have to be done separately. For more information on how to register, click here.

My business (home, cabin, property etc.) would be a perfect location for a movie, how can I let producers know about it?

Contact the AFPPP. We'll work with you to put your property in our online locations database.

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Questions about Alaska Film Industry Tax Credits:

Why should I purchase an Alaska Film Industry Tax Credit?

You'll save money on your taxes and help diversify Alaska's economy.

Producers sell their tax credits at a discount (typically for 80 to 90 cents on the dollar) but you get the full face value of the credit when you pay your taxes. It is a win-win situation - filmmakers need every resource possible to finance their productions and incentives play a critical role in film financing. Alaska taxpayers are always looking out for ways to reduce their tax burden. Tax credits provide an effective means to bring these two interests together.

Your purchase of the tax credit also helps bring filmmakers to Alaska. Without the incentive provided by Alaska's tax credit, most will choose to go to areas that offer some form of inducement. Most states, Canadian provinces and foreign countries that can "double" for Alaska offer a variety of incentives and rebates. Filmmakers bring "new money" into the state to purchase a wide variety of products and services. Alaska's own fledgling film industry gains employment opportunities and important infrastructure with each production that chooses to film here.

I have an Alaska tax liability, how can I purchase an Alaska Film Industry Tax Credit?

Contact the AFO. We'll put you on the list of interested companies that we provide producers. Producers can also choose to release contact information with their pre-qualification for the tax credit. The AFO can not broker the transfer of film industry tax credits but may provide information to buyers and sellers of tax credits.

At any given time there may or may not be any producers holding tax credits that they wish to sell. However, we anticipate that over the course of the program, several will be available each year in varying dollar amounts ranging from $30,000 to several million. Because Alaska's film industry tax credits are fully transferable, severable and are valid for 3 years from date of issue, Alaska businesses can purchase all or part of a credit to suit their needs.

Because availability of individual tax credits is unpredictable (it's entirely dependent on filmmakers' production schedules and the market for credits) it's important to have your company listed with the AFO so that you can work with producers as soon as their credits are issued. Some companies even work with producers well in advance of when the credit is issued to insure that a credit will be there when they need it (and to negotiate a better rate).

Ready to talk to Producers about their tax credits?
Use the online form at the bottom of the "Film Production Tax Credit" tab above, or contact the AFO.

Can an Alaska Film Industry Tax Credit be transferred to more than one corporation?

Yes, an Alaska Film Industry Tax Credit can be transferred in fractional amounts to multiple transferees.

When does the three year time period begin within which the credit must be used?

The six year time period during which the credit must be claimed begins with the original issue date of the certificate. Take care to note that the six year period is not extended by subsequent transfers.

How does a corporation use the credit?

The credit may be claimed on one or more Alaska Corporation Net Income Tax Returns. The tax period for Income Tax Returns on which the credit is claimed must include at least one day of the six year time period that the credit is valid, beginning with the original issue date of the certificate through the date of expiration. Be sure to attach a copy of the certificate to the tax return on which the credit is claimed.

Can the Alaska Film Industry Tax Credit be used to reduce taxes due from an affiliate of the certificate holder?

Yes, the credit may be claimed against the Alaska corporation net income taxes due of either the current holder as listed on the credit certificate, or against the taxes due of the Alaska consolidated group which includes the current certificate holder.

What can I do to verify that the Alaska Film Industry Tax Credit certificate held by my corporation is valid?

You may confirm the authenticity of a certificate by contacting the Alaska Department of Revenue at (907) 269-6626.

If I purchase an Alaska Film Industry Tax Credit from a producer, is there any risk that the amount of the credit originally awarded can be re-determined?

No, the Alaska film production tax credit may not be reduced after it has been transferred in an arm's-length transaction.

If I purchase an Alaska film production tax credit and it appears that I cannot fully utilize it, can I sell it to another corporation?

Yes, there are no limits on the number of times that an Alaska film production tax credit certificate can be transferred.

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Questions about the Alaska Film Office:

I'd like more information about the AFO, where can I look?

Contact the AFO; we are happy to talk about our program. We also publish an Annual Report to the Alaska Legislature - it has good general information about our activities.

We also encourage you to explore our website (www.film.Alaska.gov). For example, the incentives page has information on the statutes and regulations affecting the program. We appreciate your feedback - let us know if there is something we've missed or should add to the site.

Other Questions?
Contact the Alaska Film Production Promotion Program: Call (907) 269-8190 or e-mail AlaskaFilm@alaska.gov

Alaska - not just another pretty place