Lights, Camera, Rebate! How to Maximize Film Incentives Without Losing Your Mind.
A Step-by-Step Guide to Navigating Film & TV Production Incentives Like a Pro
Managing film incentives can feel a little like directing a big-budget action sequence—you’ve got moving parts, tight deadlines, and a whole lot riding on getting it right. But fear not! Whether you’re a seasoned producer or a newbie trying to unlock those sweet state incentives, here’s a behind-the-scenes look at how to approach the incentive process from beginning to end.
Spoiler alert: it’s part art, part science, and a whole lot of staying organized.
🎬 Step 1: Zooming Into Action
First things first, schedule a Zoom with the state or regional film office. Yes, before the cameras roll, before the casting, and definitely before day one of production. This is where you get the lay of the land on what’s eligible, what’s not, and what deadlines you need to tattoo on your brain (or at least your Google Calendar). This is where you ask your questions about the incentivebut don’t forget to share about the story you are getting ready to tell…the team may know a certain location or crew member you need to hire.
👥 Step 2: Assemble the Incentive Avengers
Don’t go at it alone! Bring in other producers, sometimes a Line Producer, UPM and occasionally a rockstar Controller or Accountant who’s fluent in incentive speak. After this initial meeting, figure out who’s going to own the incentive process for the project. It’s gotta be someone who’s sticking around ‘til the bitter end (so don’t just pawn this off on whoever's available—choose wisely!).
📊 Step 3: Budget Breakdown Bonanza
Time to nerd out with Movie Magic Budgeting. Break the budget down into bite-sized, incentive-friendly chunks. Think ATL (Above the Line) vs. BTL (Below the Line), Resident vs. Non-Resident Labor, Qualified vs. Non-Qualified Expenses. (BTW: ATL = Above the Line, not Atlanta, although that’s a fun mix-up.)
One example. Create a group called ATL Non-Resident Labor. Once you have the group created, go in and select an estimate of how many out-of-towners you plan to fly out and put up in hotels. So in one instance you have 20 cast members, and after speaking with the director and producer its’s fair to estimate that you are probably going to fly in the top seven at the very least. With this knowledge, you can tag those seven with the group you have setup.
🧮 Step 4: Crunch Those Numbers
Once your groups are set up, you can pull totals to figure out your estimated qualified spend. Heads up: depending on the state, you might have certain expenses that will qualify in one state but not the other. Some states might not consider airfare, per diem, and contingency funds to be ineligible. You can consider counting about 50% of contingency towards eligibility (a conservative estimate, but it keeps you out of trouble later).
📝 Step 5: Application Time
Now you’re ready to submit that sweet, sweet application. Some states have rolling deadlines, while others only accept submissions once or twice a year. Don’t get caught off guard; timing can make or break your ability to qualify. Once approved you may have a window of time to begin so its important to understand in depth what the approval really means.
🔍 Step 6: Bring in the Audit Squad
Once your project is approved, ask the film office for a list of recommended auditors. Get them involved early, like, really early. A bimonthly check-in with your auditor during production will save you from a world of hurt during post.
💸 Step 7: Payroll Pick ‘Em
Choose a film and TV payroll company that will work great for your specific project. Companies like GreenSlate or Wrapbook have easy-to-use interfaces and can make onboarding pretty streamlined. Make sure your payroll partner understands the specific rules of your incentive state. Classifying loan-outs and ensuring vendor compliance are easy to mess up; don’t assume the payroll company is handling it all correctly. Its ok to setup a call with your payroll partner and review some of the requirements witht them so you don’t miss out on specific charges.
🧑💻 Step 8: Master the Software and Execute On Time
Once you have your payroll platform in place, it’s a good idea to train your team—early and often. Set a clear workflow with deadlines. Want everyone paid by the following Thursday? Make timecard deadlines due Monday at noon with reminders to those who did not submit to go out that afternoon.
💳 Step 9: No More Cash Chaos
Cash is out, digital cards are in. Digital Petty Cards or (P-Cards) like Cashet or PEX can make tracking thousands of transactions a walk in the park or as close as you can get to a walk in the park. Train everyone on how to use their P-cards and capture receipts like a boss. This is way better than hunting down an art director for a crumpled gas receipt two months later. Avoid paying per diem to actors and crew via cash if you can. Even a simple zelle/venmo payment is better than an envelope of cash when it comes to an audit.
🗂 Step 10: File Like a Filmmaker
Organization is your best friend. Create a folder structure that is easy to duplicate and navigate. For P-Cards, you might create folders by card number and week-ending date (e.g., CARD1234 > WE0901). Use Dropbox, Google Drive, or whatever works—but use something.
📘 Step 11: Choose Your Accounting Software
Your payroll company might have built-in accounting tools that will suffice, or you can go with something like QuickBooks to keep everything in one place. Just make sure it integrates with your other systems and your team is trained up.
🧑🎤 Step 12: Extras Made Easy
Paying background actors? Use platforms like Run A Better Set or Everyset to make this process digital and accurate. If it’s just a few folks, you can onboard them through payroll like regular crew members.
🧾 Step 13: Vendor Management 101
Set up a dedicated email for vendor paperwork (e.g., filmnameaccounting@gmail.com). Once you have this email setup be sure to communicate to Dept heads and coordinators of this email. If someone forgets and sends the vendor invoice to a Producer or Accountant it could easily get lost. Consider using software solutions like Conduiit to streamline the vendor approval process and keep track of your backup!
📅 Step 14: Schedule Review Rituals
Decide in advance when you’ll review payroll, cost reports and incentive updates. Weekly? Biweekly? Monthly? Get those Zoom links out, and keep the whole team in the loop. Don’t wait until chaos hits—by then, it’s too late.
💡 Step 15: Incentive Software = Your Secret Weapon
Use incentive software to save you $$$$. Tools like Incentiviiz are game-changers. They’ll flag potentially qualifying transactions missing key documentation and help you stay compliant. Upload your general ledger weekly, link your backups, and tackle red flags while your full team is still around.
🎞 Step 16: Don’t Forget About Post
Will any post-work qualify for incentives? Decide early. If yes, pay those vendors upfront, so you’re not stuck waiting to begin the audit process. Once post wraps and no additional qualifying costs are expected, reach out to your state contact to get the audit rolling.
🤝 Step 17: Wrangle the Final Few – The Audit
Now it’s time to tag-team with your auditor, the state department, and (ideally) a savvy assistant. If you’ve set solid systems in place, this final stretch will feel like a victory lap. If not… well, let’s just say audits don’t have a “fix-it-in-post” option.
🎬 Wrap-Up
Managing Film incentives can be a tricky thing, but if you start your film or tv show off right with the proper systems and software, you can make it slightly less painful. And hey, who doesn’t love a little extra money to bring their creative vision to life?
Have questions or want to nerd out over incentives? Let’s talk in the comments! 👇