Showtime’s’ 'Homeland’ Gets Tax Credits to Film in Virginia

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

By Che Odom

The Showtime television show “Homeland” will be eligible for up to $6.5 million in state tax credits for shooting its seventh season this year in Virginia.

The credits, as well as $700,000 of grant money available from the governor’s Motion Picture Opportunity Fund, are essential to luring producers to the state, Andy Edmunds, director of the Virginia Film Office, told Bloomberg BNA.

“Completely essential, the phone would not ring otherwise,” Edmunds said. “Incentives are a fundamental part of the budgeting process for content manufacturing companies.”

“Homeland,” which stars Claire Danes and Mandy Patinkin, will receive credits and grant money commensurate to the amount of spending and jobs it creates in the state. The deal is effective July 11, when the arrangement was announced by Gov. Terry McAuliffe (D) in a news release, and will run through May 2018.

In addition to the incentive funds, the state also has a sales and use tax exemption that applies to the purchase of production-related supplies and equipment. Hotel stays of a limited period are also exempt from state sales tax and some local lodging taxes.

“Homeland” is leaving New York, where it filmed its sixth season.

Impact on State

Virginia’s film industry is growing, state officials say. In April, McAuliffe announced that the upcoming feature film “Juanita,” starring Alfre Woodard and Blair Underwood, would be filming in the state. The production company is eligible to receive credits and up to a $550,000 grant from the Governor’s Motion Picture Opportunity Fund.

The exact amount of each is based on several factors, including the number of Virginia workers hired, Virginia goods and services purchased, and deliverables including Virginia tourism promotions.

The economic impact of Virginia’s content manufacturing industry in 2015 was $615.6 million, providing $24.3 million in state and local tax revenue for the Commonwealth. It also brought in 3,883 full time jobs.

To contact the reporter on this story: Che Odom at COdom@bna.com

To contact the editor responsible for this story: Jennifer McLoughlin at jmcloughlin@bna.com

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