Incentives

Incentives are financial programs that reduce a production’s overall cost burden by offering tax credits, refunds, rebates, grants, or other fiscal benefits in return for spending qualifying amounts locally. These programs are typically provided by state, local, or national governments to encourage film and television production in their jurisdictions.

Use the Incentives element manager in Line Budgeter to track and manage your production tax incentives.

Incentive Types in Line Budgeter

Line Budgeter supports two types of incentives:

• Percentage-based incentives
  These calculate the benefit as a percentage of qualifying expenditures.
  Example: 25% rebate on $400,000 of labor results in a $100,000 incentive.

• Flat-based incentives
  These provide a fixed benefit amount once conditions are met.
  Example: A $75,000 grant is awarded after reaching a $1M minimum spend threshold.

Notes

• Each jurisdiction defines its own rules for qualifying expenditures.
• Documentation and reporting requirements vary and may include audits.
• Multiple incentives can be applied within the same budget if applicable.

Working with Incentives

Percentage-based Incentives
Percentage-based incentives are created in the Percentage-based Incentive table. You can add your own entries or search the incentive library to access an up-to-date list of incentives worldwide. Once added to the table, incentives are applied to the budget in a similar way to Tax & Fringes:

• Sidebar → Incentive Modal — Select a line or group of lines in the budget detail view, then apply individual or grouped incentives from the list of incentives in the Sidebar.
• Batch Incentive Tool — Apply individual or grouped incentives across Major or Minor departments in the budget. Learn more about the Batch Incentive tool.

Figure: Example of Percentage-based incentive application in the Sidebar

Flat-based Incentives
Custom Flat-based incentives are created in the Flat-based Incentive table. Unlike percentage-based incentives, a flat-based incentive is applied to the budget as a special line on the Topsheet in the Budget Totals area:

Figure: Example of Flat-based incentive line on the Topsheet

You can edit a Flat-based incentive in two ways:

• From the Incentive Element table.
• By clicking the incentive icon displayed on the flat-based incentive line on the Topsheet.

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Group Manager

The Percentage-based Group Manager is where all percentage-based incentives are organized and managed. In Line Budgeter, every percentage-based incentive is treated as a group. From this screen, you can:

• Create new incentive groups
• Edit existing groups
• Duplicate groups for reuse
• Delete groups that are no longer needed

When a percentage-based incentive group is selected, the main table automatically populates with the details of that group, allowing you to review or update its settings.

Percentage-based Incentives

Percentage-based incentives calculate a benefit as a percentage of qualifying expenditures. In Line Budgeter, these are managed through the Percentage-based Incentive table.

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Creating a New Percentage-based Incentive

To create a new incentive group:

1. Click the Add button at the bottom of the Percentage-based table.
2. The Percentage Incentive Modal will launch.
   • This modal is divided into two sections: Incentive Group Details & Settings and the Individual Incentives that make up the group.

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Incentive Group Details

• A new group is automatically given a default display name (e.g., Group1).
• This name is what appears when applying the incentive in the budget.
• Additional groups will follow the pattern Group2, Group3, and so on.

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Incentive Group Settings

These settings override all individual incentives in the group and control key parameters such as:

• Floor and Cap limits
• Holdback amount
• Location association for reporting

Note: If you select a base incentive from the Incentive Library, these settings will auto-populate (e.g., Group Floor and Group Cap).

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Adding an Incentive from the Library

1. In the modal, click Search Incentive.
2. Select a Base Incentive to add to the budget. Every group requires one base incentive.
3. Add additional Uplifts if your project qualifies. (Optional).
4. Review the Incentive Group Settings and compare against the program guidelines to ensure accuracy.
5. When all information is correct, press Save.

Your incentive group is now ready for use in the budget.

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Adding a Custom Incentive

1. In the modal, click Add to create a custom incentive.
2. The system assigns a default Incentive Name (e.g., Incentive1).
   • Naming continues as Incentive2, Incentive3, etc.
3. Update the name to something descriptive.
4. Assign a Type – either Base or Uplift.
   • Each group must have at least one Base incentive.
5. Enter the Percent Value of the incentive.
6. Set a Ceiling (Cap) and choose how it is calculated – by Spend or Rebate. (Optional).
7. Define the Calculation Scope – whether the incentive total is determined by Applied Lines or by the Sub-account.
8. Include Tax & Fringes in the calculation by selecting them from the dropdown list. (Optional).
9. Press Save when all fields are complete.

Your custom incentive is now part of the group and ready for use in the budget.

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Editing Incentives

• To edit an incentive, open the options menu for the incentive group in the Percentage-based table.
• Click into any field to update the data.
• When finished, press Save in the modal to apply your changes.

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Deleting an Incentive Group

Rules: Percentage-based incentives are fully deletable from the budget, even while in use.

• If the incentive is in use, the user is prompted with a confirmation warning.
• The user may choose to proceed with deletion regardless by pressing Ok.
• If confirmed, the percentage-based incentive group and all individual incentives within are removed from all applied lines, and the budget calculations are updated accordingly.
• When deleting a percentage-based incentive group that is not in use on any lines in the budget, it is deleted immediately.

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Percentage-based Table Details

Column	Description	Data Type
Group Floor	Sets the minimum spend required before the incentive begins to calculate. Example: A Group Floor of 100,000 means the incentive won’t apply until at least that amount is reached in the budget.	Numerical
Group Cap	Sets a maximum limit on the total value of an incentive group, either as a percentage or a fixed amount. Example: If individual incentives add up to 35% but the Group Cap is 30%, only 30% will be applied.	Numerical
Holdback Amount	Withholds a portion of the incentive from being applied in the budget, based on the set percentage. Optional. Useful for conservative forecasting or when part of the incentive is delayed.	Numerical
Location Associated With	Links the incentive to a specific location for reporting, ensuring the correct amounts appear in location-based budget summaries.	Dropdown
Incentive Group Value	The total amount of the incentive group, based on the combined value of all individual incentives applied in the budget.	Numerical
Use	Toggle this checkbox to enable or disable the selected incentive. Disabled items remain visible in the budget but are excluded from total calculations.	Checkbox
Name	Set the display name of the incentive for use in the budget.	Text
Type	Assign a type to the incentive: either Base or Uplift. Base incentives form the foundation; Uplifts add on top of existing incentives.	Dropdown
Value	Sets the percentage value for the incentive. (Required).	Numerical
Incentive Ceiling	Defines the maximum percentage or amount an individual incentive can reach. This prevents the incentive from exceeding a set limit.	Numerical
Apply To	Determines how the ceiling is calculated — either by Applied Lines or by Sub-account.	Dropdown
Include T&F	Indicates that Tax/Fringes (T&F) are included in the incentive calculation.	Dropdown
Applied Value	The total incentive amount from all budget lines linked to this incentive, before any limits or caps are applied. This is the “full potential value.”	Numerical
Credit	The incentive amount actually applied to the budget total after any limits or caps are considered. This is the “usable value.”	Numerical
Unrealized	The portion of the incentive not applied due to ceilings or limitations. Calculated as Applied Value – Credit. This is the “missed value.”	Numerical

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Options Menu

Clicking the three-dot icon in the Options menu reveals additional actions available for the selected element.

• Rename - renames the selected Incentive.
• Move to Group - moves the selected Incentive to another Percentage-based Incentive Group.
• Delete - deletes the selected Incentive from the group and removes it from the budget.

Flat-based Incentives

Flat-based incentives apply a fixed, predetermined dollar benefit to qualified motion picture or television expenditures. Unlike percentage-based incentives, which scale in proportion to spending, flat-based incentives provide a set amount once eligibility requirements are met, regardless of overall budget size.

In Line Budgeter, these are managed through the Flat-based Incentive table. This table allows you to enter, track, and adjust flat incentive amounts in your budget.

Flat Incentive Table

This table lists all the flat-based incentives in the budget. Each line represents one flat incentive. This table is not directly editable; please use the Options menu to edit an incentive.

Column	Description	Data Type
Use	Indicates if this flat incentive is enabled or disabled. Disabled items remain visible in the budget but are excluded from total calculations.	Checkbox
Account Number	Displays the account number for this flat incentive.	Numerical
Incentive Name	Displays the name for this flat incentive. This name is also used as the Account Name on the Topsheet.	Text
Description	Displays the optional description for the incentive line.	Text
Location	Displays the optional location associated with this incentive line.	Dropdown
Total	Displays the total value of this incentive.	Numerical

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Flat Incentive Modal

Use the Flat Incentive Modal to create or edit a flat-based incentive.

• To create a new incentive, press Add at the bottom of the Flat-based Incentive table.
• To edit an existing incentive, click the three-dot icon in the Options menu and select Edit.

Column	Description	Data Type
Account Number	Denotes the account number for the flat incentive. Shows up on Topsheet.	Numerical
Account Name	Denotes name of the flat incentive. Shows up on Topsheet.	Text
Location Associated With	Links the incentive to a specific location for reporting, ensuring the correct amounts appear in location-based budget summaries.	Dropdown
Use in Budget	Enables or disables the Flat-based incentive in the budget. Defaults to On.	Toggle
Action	Either Include or Exclude the value of the incentive line in the incentive total.	Dropdown
Type	Select a data set to automatically pull values into the incentive. To enter values manually, choose Amount. Available Options: Amount – Custom Value, ATL Total, BTL Total, Budget Total Account – Choose a specific account to reference Phase – The phases defined in the budget Line Type – Line types in the budget Location – Locations defined in the budget Tag – Tags applied in the budget Tax & Fringe – Tax and fringe categories Worksheet ID – Manually entered worksheet ID	Dropdown
Reference	The options in this field depend on the Type selected above. Amount Allows for manual entry or for automatically pulling a total from the Topsheet. Custom Value: Enter any numerical value. ATL Total: Pulls the "Above the Line" total. BTL Total: Pulls the "Below the Line" total. Budget Total: Pulls the overall production total. Phase Select a budget phase (e.g., Prep, Shoot, Wrap) to pull the total amount associated with that phase. Account Enter an account number to pull its total into the incentive line. Line Type Select a line type (e.g., Labor, Purchases, Rentals) to pull the total amount associated with it. Location Select a defined location to pull the total amount associated with it. Tag Select a defined tag to pull the total amount from all associated budget lines. Tax & Fringe Select a tax and fringe to pull the total amount associated with it. Worksheet ID Enter a Worksheet ID to pull the total from the associated worksheet cell.	Dropdown / Text Field
Description	Add an optional description for the incentive line.	Text
Value	A dynamic field that displays either a manual entry or the calculated value from the selected Type and Reference.	Text
Use %	Calculates the total by applying this percentage to the Value. For example, entering 90% will use $900 of a $1,000 value.	Text
Total	Displays the final amount, calculated as Value * Use %.	Numerical
Delete	Deletes the line from the incentive table.	Button

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Creating a New Flat-based Incentive

To create a new flat incentive:

1. Click the Add button at the bottom of the Flat-based table.
2. The Flat Incentive Modal will launch.
3. A new Flat incentive is automatically assigned an Account Number (e.g., 900). You can set a custom Account Number.
4. A new Flat incentive is automatically assigned an Account Name (e.g., Incentive1). You can set a custom Account Name.
5. Associate this Flat incentive to a specific location for reporting, ensuring the correct amounts appear in location-based budget summaries (optional).
6. Press Add to insert a new line to the incentive table.
7. Select an action to either include or exclude the transaction from the incentive calculation.
8. Select from a list of data sets in the Type field that can be used in the incentive (e.g., Phase).
9. Based on the Type selected, choose a Reference for the type (e.g., for Type Phase, select Reference Shoot; the value of Phase: Shoot will display in the Value field).
10. Set an optional Description.
11. Value is either a manual field if Amount and Custom Value are selected. Otherwise, Value displays the total amount based on the Type and Reference columns (e.g., Phase: Shoot = 2,500,500).
12. Use % allows the Value field to be reduced by a percentage if desired (e.g., use only 85% of the Value).
13. Press Save to create the Flat-based incentive.

After the Flat-based incentive is created, it will be displayed both in the Flat-based Incentive table, as well as on the Topsheet in the budget total section at the bottom.

You can add multiple lines; the sum of all line values is the total incentive applied to the budget.

Editing a Flat-based Incentive

• Click the three-dot icon in the Options menu to reveal additional actions available for the selected incentive.
• Select Edit to launch the Flat Incentive Modal.
• Make any necessary changes.
• Press Save to update the incentive and close the modal.

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Deleting a Flat Incentive

Rules: Flat-based incentives are fully deletable from the budget, even while in use.

• If the incentive is in use, the user is prompted with a confirmation warning.
• The user may choose to proceed with deletion regardless by pressing Ok.
• If confirmed, the flat-based incentive is removed from the budget.