Massachusetts Application for Sales Tax Exemption

Application for Sales Tax Exemption
Form STE
2023
Massachusetts

Form STE
Application for Sales Tax Exemption
For calendar year 2023 or taxable year beginning 				

Department of
Revenue

and ending

General Information
Motion picture production company name (“Company”) 	

Federal Identification number

	
Mailing address 	

City/Town 	

State 	

Name of production 	

Expected or actual release or premiere date of this production

Zip

Type of production

● Feature film  ● Television series  ● Documentary  ● Commercial/advertisement  ● Other (explain)
Designated production company representative 	

Telephone 	

E-mail address

	
Massachusetts qualifying period start date 	

Massachusetts qualifying period end date

Name of payroll service provider (if any) 	

Federal Identification number

Mailing address 	

City/Town 	

State 	

Zip

Estimated Production Information
		
Everywhere 			
Massachusetts
	
Start date 		
End date 	
Start date 		
Pre-production
Production
Post-production

	

End date

1	 Type of entity:
● Corporation  ● Trust  ● Partnership  ● Sole proprietorship  ● LLC

2	 Is company or its payroll service provider registered for withholding of Massachusetts personal income tax on salaries paid to its employees?
● Yes  ● No. If No, use our MassTaxConnect application to register for withholding and wage reporting once you have employees subject to
	
Massachusetts withholding.
	

	

3	 Is company (including the parent or an affiliate of the company) in default on a loan made or guaranteed by the Commonwealth (see TIR 06-01)?
● Yes  ● No

4	 Company’s total estimated qualifying production costs everywhere during the period. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4	
5	 Company’s total estimated qualifying production costs in Massachusetts during the period (see instructions). . . . . . . . . . 5	
6	 Total wages and salaries included in line 5, excluding salaries over $1,000,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6	
7	 Wages and salaries of $1,000,000 or over paid to an individual and included in line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7	
8	 Cost of set construction and operation included in line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8	
9	 Location fees and cost of rental or purchased facilities and equipment included in line 5. . . . . . . . . . . . . . . . . . . . . . . . . . 9	
10	 Total other Massachusetts production expenses included in line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10	
11	 Estimate of Massachusetts production expenses included in line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11	
12	 Estimate number of principal photography days of the film. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12	
13	 Estimate number of principal photography days taking place in the Commonwealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13	
I declare under the pains and penalties of perjury that to the best of my knowledge, the information contained herein is accurate and complete.
Signature 	

Date

Mail to: Massachusetts Department of Revenue, Audit Division, 200 Arlington Street, Room 4300, Chelsea, MA 02150, attn. Film Credit Unit.

Form STE Instructions
What is the Sales Tax Exemption?

For taxable years beginning on or after January 1, 2006, Massachusetts allows sales tax exemptions for a qualified motion picture
production company or to an accredited film school student for production expenses related to a school film project. MGL ch 64H, §
6(ww). Production expenses that qualify for the sales tax exemption
under the Act may also qualify for the production expense credit.

bearing on the application of the production expense credit and
the sales tax exemption. Note that once a sales tax exemption application is filed the date of the approval letter from the Department
of Revenue is considered the first date of sales tax exemption use
by the production company and will start the 12 month qualification period unless the production company has already started the
qualification period with qualifying payroll or production expenses.

Who is Eligible for the Exemption?

General Information

Production companies who expend over $50,000 in Massachusetts
production costs during a consecutive twelve-month period are eligible if they meet certain requirements. A motion picture production
company is a company including its subsidiaries engaged in the
business of producing motion pictures, videos, television series, or
commercials intended for a theatrical release or for television viewing. The term “motion picture production company” shall not mean
or include any company which is more than 25 percent owned, affiliated, or con-trolled, by any company or person which is in default
on a loan made by the Commonwealth or a loan guaranteed by the
Commonwealth.

Eligibility Requirements

For taxable years beginning on or after January 1, 2006, Massachusetts allows sales tax exemption for motion picture production
companies who meet certain qualification requirements and for
accredited film school students for production expenses related
to a school film project. Production companies who incur at least
$50,000 of production costs in the Commonwealth and whose Massachusetts production expenses exceed 75 percent of the total production costs or the Massachusetts shoot days are at least 75 percent of the total shoot days are eligible for the sales tax exemption.

Additional Requirements

Note: The following requirements must be submitted electronically
in a standard database spreadsheet format.
Submit with this application a detailed listing of prospective employees and their estimated wages.
This list should include the prospective employees name, social
security numbers, estimated gross wages for the production and
weather they are hired by the production through a loan-out.

What is a Qualifying Period?

The $50,000 qualification period serves as the “determination” period in that the taxpayer must incur in the Commonwealth at least
$50,000 of total production expenses during the consecutive twelve
month period to be eligible for sales tax exemption. In some cases,
the taxpayer may be able to choose between one or more possible
$50,000 qualification periods. However, only one $50,000 qualification period is allowed for each motion picture. A taxpayer may
choose to have a $50,000 qualification period that is less than 12
months, but may not subsequently reopen or extend this qualification period in order to claim more qualifying expenses. In addition,
the $50,000 qualification period must be the same for the payroll
credit, the production expense credit and the sales tax exemption.
Consequently, the choice of the $50,000 qualification period (including choosing a period shorter than 12 months) may have a

Complete the general information section of this application with
the information available at the time of filing. If the working title of
the production or any other information changes prior to filing for
the actual credit, please notify the Department. The qualifying period must be determined at the time of filing and can not change at
any time after the exemption is granted.
Line 1
Indicate the type of entity.
Line 2
A taxpayer or its payroll company must be registered for withholding of Massachusetts personal income tax and must withhold
from its payroll expenses in order for the payments to qualify as
an aggregate payroll expense for purposes of the payroll credit or
to qualify as a Massachusetts production expense for purposes of
the production expense credit. Use DOR’s MassTaxConnect to register. The Commissioner will require withholding whether or not the
amounts paid are to “employees” or constitute “wages” as defined
in MGL ch 62B, § 1.
Line 3
A taxpayer (including an owner, parent or affiliate of the taxpayer) is
not eligible for the payroll or production expense credit or the sales
tax exemption if it is in default on a loan made by the Commonwealth or a loan guaranteed by the Commonwealth.
Line 4
Enter the total overall estimated costs for the production. This
should include both Massachusetts and non-Massachusetts costs.
Line 5
Enter the total Massachusetts costs for the production. This should
include only costs directly attributable to Massachusetts.
Note: Line 5 must be at least 75 percent of line 4 to qualify for the
exemption. If line 5 is not 75 percent of line 4, the production may
still qualify if line 13 is 75 percent of line 12.
Line 6
Enter the total Massachusetts qualifying payroll amount. Only actual payments to employees may be used to determine the qualifying
aggregate payroll, and only in the instance in which the payment
constitutes Massachusetts source income to the recipient. Qualifying aggregate payroll may also include fringe benefits to employees
to the extent such benefits constitute Massachusetts source income. Do not include payroll for salaries of “high salary employees”,
where the employee’s salary is $1,000,000 or more.

Line 7
Enter the Massachusetts wages and salaries of “high salary employees”, where the employee’s salary is $1,000,000 or more.
Line 8
Enter the cost of set construction and other qualified production
costs included in line 5.
Line 9
Enter location fees and cost of rental or purchased facilities and
equipment included in line 5.
Line 10
Enter the total other Massachusetts production expenses.
Line 11
Enter the estimate of all Massachusetts production expenses included in line 5. This should be the total of lines 7 through 10.
Note: The total of lines 6 and 11 should equal line 5.
Line 12
Enter the total number of principal photography days on this production.
Line 13
Enter the total number of principal photography days taking place
in Massachusetts.