Qualified Production Expenditures

“Qualified production expenditure" means a development, preproduction, production, or postproduction expenditure made in the District that is:

  1.  Directly attributable to the production or distribution of a qualified production;
  2.  For the production or distribution of a qualified production;
  3.  In accordance with generally accepted entertainment industry practices; and
  4.  Not a qualified personnel expenditure. 

Qualified production expenditures include, but are not limited to, the following:

Purchase of tangible or intangible personal property or services related to:

  • production equipment
  • production software
  • postproduction work
  • postproduction equipment
  • postproduction software
  • set design
  • set construction
  • set operations
  • props
  • lighting
  • wardrobe and accessories
  • makeup and hairdressing
  • photography and sound synchronization, lighting and related services and materials
  • editing and related services, including film processing, transfers of film to tape or digital format, sound mixing, computer graphic services, special effects services, and animation services
  • catering
  • food and lodging
  • rental of facilities in the District and equipment used in the District
  • establishment of office space in the District
  • rental of soundstages or studios
  • music, if performed, composed, or recorded by a District musician or published by a person or company domiciled in the District
  • location fees and related services, excluding services provided by the District government
  • leasing of vehicles directly attributable to the production or distribution of a qualified production
  • transportation within the District of Columbia
  • any purchase or rental of equipment relating to the duplication or market distribution of any content created or produced in the District                                                                                      

 Qualified Personnel Expenditures: Salaries/Wages/Compensation:

  • An expenditure made in the District of Columbia directly attributable to the preproduction, production, or postproduction of a qualified production and is a payment of wages, benefits, or fees to above-the-line or below-the-line crew members and includes a payment to a personal services corporation or professional employer organization for the services of qualified personnel as above-  the-line or below-the-line crew members. There is a $ 500,000 cap applied to above-the-line compensation.
  • Any other production expense made in the District that is approved by the OCTFME.