Fallbrook is currently tracking and providing analysis for 34 individual U.S. state film and television incentive programs.  Programs are generally structured within four groups: transferable tax credits, refundable tax credits, non-refundable tax credits, and rebates, with the largest programs being either transferable or refundable tax credits. A transferable credit requires that a buyer purchase the credit after it has been certified by the applicable government authority in order to monetize it, while a refundable credit is paid directly by the state treasury upon the filing of a tax return (after offsetting unpaid tax liability, if applicable).

Transferable tax credit sale prices are state-dependent and range from the low $.80s to a high of around $.95 (California). Fallbrook maintains a stable of Fortune 1000 taxpayers in all transferable tax credit states.

Tax incentive rates range from 15% to 40%, with most major programs averaging around 30%.

Virtually all states now require that independent CPAs perform audits (actually referred to as Agreed Upon Procedures or AUPs) prior to final certification of tax credits.

Expenditures that qualify for earning tax credits vary from state to state, with unique provisions that require tracking as legislation and policies change, which happens frequently.

Timeframes for monetization are usually faster with transferable credits or rebates than refundable credits, which require tax return preparation and then state treasury processing. Timelines are tracked from state-to-state and time of year often affects monetization timing.

While many states impose caps on their programs, these days the caps do not seem to be causing major issues and cap space availability is generally predictable by analysts. However, New York is still recovering from over-extending future allocations and has increased its cap to try to process existing claims. Also, New Jersey will likely begin running out of cap space in the near to mid-term. 

Security over U.S. tax incentives is usually accomplished by public records filings known as UCC Financing Statements. In addition, some states allow productions to designate payment of tax credit proceeds to a financial institution.