Transferablecredits can be sold to other companies doing business in the state which is why insurers and other large financial institutions have been big buyers of the credits.
It was implemented a decade ago to give production companies the opportunity to receive up to 35% in transferable tax credits, provided that all vendor and crew expenditures are made in the state.
Transferable federal tax credits are aimed mostly at real estate developers, who are rewarded for preserving historical landmarks and building low-income housing.
In the 13 states that offer transferable film tax credits, a brokerage industry has quietly cropped up that allows unused credits to be sold to unrelated industries.