Film Accounting Glossary
Rebate
What is a rebate?
Also called cash rebate, or production rebate.
A rebate is an incentive paid as cash directly to the production from a jurisdiction's fund, rather than delivered through the tax system as a credit.
Because there is no tax return, no credit sale, and no broker, a rebate is the simplest incentive to model and monetize, but rebate funds are often capped and awarded first-come. Payment still follows an audited final cost report, so the cash arrives well after wrap.
Example
A 25% cash rebate on $6M of local spend pays $1.5M directly from a jurisdiction's fund, with no tax return, no credit sale, and no broker. Simplest to model, but rebate funds are often capped and awarded first-come, and payment still follows an audited final cost report.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The financing plan, usually as the cleanest form of soft money, still arriving months after wrap.
Common mistake
Assuming a rebate program has funds available. Rebate pools are often capped and awarded first-come, so approval timing matters as much as eligibility.
Related questions
- How is a rebate different from a tax credit?
- A rebate is paid in cash directly from a jurisdiction's fund with no tax return involved, so there is nothing to sell and no broker discount.
- When is a production rebate paid?
- After wrap, once an audited final cost report has been reviewed, so it still has to be cash-flowed or borrowed against during the shoot.