Two terms that are important are Qualifying Local Expenditure and Qualifying Payroll Expenditure.
Qualifying local expenditure is any money spent by the production with registered businesses. This may include the:
• cost of a story and scenario to be used for a film
• cost of set construction and operations, wardrobe, accessories, and related services
• costs of photography, sound synchronization, lighting, and related services
• costs of editing, post-production, music and related services
• rental of facilities and equipment (including location fees)
• leasing of vehicles, food, and lodging
• airfare purchased through a local travel agency or company
• insurance and bonding purchased through a locally-based insurance agent
• other direct costs
Qualifying payroll expenditure is any money used by the production for the wages and salaries of talent, management and (crew) labor of local residents.
You’ll need to determine how you are going to recognize and manage these elements.