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| Fi15. A "box rental" occurs when an employee of a production company charges the company a weekly fee for the use of his or her own tools. For instance,a makeup person may charge the production company a weekly fee for the use of the brushes,mirror |
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Because a qualifying expenditure must be "subject to taxation in this state",box or kit rentals will be eligible for the film production credit,provided that the employee in question receives compensation for his or her provision of tools or other equipment to the production company that is reported on the employee's W-2 form,or on a separate Form 1099,and is subject to Michigan income tax. This requirement holds whether the employee is employed directly by the production company,or indirectly through a loan-out company. Provided that the taxability requirement stated above is met,it is not necessary for the employee to charge the production company sales tax on the rental fee. Also,it makes no difference for credit eligibility purposes whether some or all of the supplies provided pursuant to the box rental may be fully expended during the course of the production.
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