Application for Rebate
There is no third-party audit requirement for the Digital Product and Motion Picture incentive. All incentive audits are completed internally by the Arkansas Department of Finance and Administration(DF&A).
Upon completion of filming or production, or both, in Arkansas, the production company shall file an application for the rebate tax incentive allowed under A.C.A.§15-4-2001 et seq. The application shall include a proof of performance expenditure list that provides the total amount of expenditures that were made in the state in connection with the filming or production, or both, of a film and digital product that complies with the rules and regulations. The production company shall provide documentation for expenditures in accordance with the rules promulgated by the Commission.
(A) The Revenue Division of DF&A shall upon receipt of an application for a tax incentive, including a proof of performance expenditure report from the Commission:
(i) Calculate the total expenditures of the relevant production company for which there are documented receipts for funds expended in the state;
(ii) Calculate the incentive benefit to which the applicant is entitled subject to any conditions of the approved financial incentive agreement; and
(iii) Within one hundred twenty (120) days of the date the Final Expenditure Report was submitted to the Commission, the Revenue Division of DF&A will certify to the Secretary of DF&A the amount of tax incentive due to the production company.
Production Costs Certification
Within one hundred eighty (180) days after the last production costs are incurred, the production company shall apply to the Commission for a production rebate certificate or a tax credit certificate and provide a final expenditure report that includes the amount of the company’s production expenses or costs. Expenditure reports also shall include information as required by the Revenue Division of the Department of Finance and Administration (DF&A) to ensure compliance with the Digital Product and Motion Picture Industry Development Rules. The Commission will forward the Final Expenditure Report with supporting documents with its recommendation for rebate a tax incentive to the Revenue Division of DF&A the Department of Finance and Administration (DF&A). Upon receipt of the Final Expenditure report and supporting documents from the Commission, the Revenue Division of DF&A will review the Commission’s recommendation and verify the amount of rebate the tax incentive recommended.
Supporting documentation includes the use of the excel calculation worksheets provided by AEDC. All subsequent invoices and correlating payments should be submitted in digital form via flash drive to The Film Commission/AEDC.