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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
While many incentive updates have been signed into law and made official (those above), there are also still several proposed changes written into bills which are currently under consideration.
The items below are all proposals, not enacted changes. None of these changes are official yet. If these bills pass, however, they will meaningfully alter specific incentive programs, and so they’re worth watching.
California lawmakers are considering two significant new incentive proposals.
AB2319 would create a standalone post-production tax credit—a 35% to 50% refundable credit for qualified post-production expenses, with additional bonuses for work completed outside the Los Angeles 30-mile zone and for music scoring.
AB2319 passed its first committee hurdle in April and is advancing through the legislature.
AB2403 would establish California's first-ever commercial production tax credit—a 20% to 30% credit depending on where in the state the work is performed. Funded at $15 million annually and administered by the California Film Commission, the program would run from January 1, 2027 to January 1, 2032.
The AICP has made this bill its primary legislative focus, arguing that commercial work provides critical year-round employment for California's crew base.
Separately, efforts are underway to create a new county film commission and production rebate program in San Diego. Nothing is formalized yet, but this is a region to continue watching as Southern California competes for production.
Delaware has historically been one of the few states with no permanent film tax credit program. That may be about to change.
HB364 would establish a new Delaware Entertainment Production Tax Credit, a 30% transferable tax credit with a $500,000 minimum spend.
The new Delaware incentive would be issued on a case-by-case basis, require an independent audit, and have a five-year carry-forward provision with an annual funding cap of $10 million. The program would sunset June 30, 2031.
Hawaii has been working to update its film incentive for several years, and 2026 has brought a fresh round of proposals.
SB2580 would increase annual funding to $60 million, remove the $17 million project cap for productions with at least $60 million in qualified spend and extend the program's sunset date to January 1, 2038.
SB2578 would replace the existing Hawaii Film Office with a newly structured Hawaii Film Commission.
A third proposal, SB2796, would lower the General Excise Tax (GET) rate for entertainment companies as well as exempt employee compensation from the GET, a change that would meaningfully reduce costs for productions in the state.
As part of Governor Wes Moore's broader economic competitiveness initiative (the DECADE Act), companion bills HB898 and SB388 would eliminate the $10 million per-production cap for the state's Film Production Activity Tax Credit.
Advocates argue that removing the project cap would make Maryland significantly more attractive for larger productions that have been priced out of the program.
SF4634 would raise Minnesota's base film credit from 25% to 40%, with an additional 5% available for projects that meet specific conditions, including employing a Minnesota resident in a key creative role, filming outside the seven-county metro area, or hiring a majority of Minnesota residents as below-the-line crew.
The bill would also lower the minimum spend threshold for certain projects and move the program's sunset to December 31, 2030.
Two bills currently on the Missouri House floor—HB2058 and HB2142—would modify the state's Show MO Act by combining its two separate $8 million annual funds for film and television into a single $16 million fund. The bills would also allow tax credit recipients to carry over unused credits for up to five tax periods and move the program's sunset to December 31, 2035.
HB4215 would lower the minimum spend requirement for standalone post-production projects in Oklahoma from $50,000 to $20,000, a change that would open the program to a wider range of smaller post-production projects.
Section 181, a federal tax provision which allowed companies to immediately deduct $15 million to $20 million in production costs, expired at the end of 2025. Wrapbook has a full breakdown of what the Section 181 sunset means for producers.
Efforts to reinstate Section 181 are ongoing. The bipartisan CREATE Act, which would do just that, currently sits in the House.
At the same time, a push to create a more substantial and traditional federal production incentive—one that would compete with the tax breaks offered by other countries—is gaining momentum.
Senator Adam Schiff, a prominent advocate for a federal film incentive, has argued for a baseline 15% national credit modeled on California's state program. Schiff’s proposal has drawn support from the MPA, IATSE, the Association of Film Commissioners International, and a growing coalition of advocacy groups including FilmUSA and the Coalition for American Production.
A federal incentive would not replace state and local programs, but it would stack with them, potentially transforming the financial calculus for domestic production across the board.
While there is cautious optimism that a federal incentive will advance as part of broader tax legislation, for the moment producers should continue to plan around state and local programs.
The domestic incentive landscape is moving fast.
New programs, enhanced credits, and pending legislation are creating real opportunities for productions of all sizes — from Alabama's new 45% rebate for small-budget productions to Illinois's record-setting expansion, to the prospect of a federal incentive returning to the table.
To stay current on every program, track new legislation, and compare incentives for your next project, visit our Production Incentive Center. And for a deeper look at how individual state programs work, explore Wrapbook's state-by-state guide to film industry tax incentives.
The production incentive landscape never stands still.
Last year brought some of the most significant changes to domestic incentives in years. California more than doubled its annual film and TV tax credit fund. Texas overhauled its incentive program, boosting funding and grant percentages. And New York added new bonuses while creating a dedicated $100 million fund for independent productions.
2026 is picking up right where 2025 left off.
We're barely halfway through the year, and there are already major enacted changes to track, plus a wave of pending legislation that could reshape the incentive landscape before the year is out.
In this guide, we'll cover all the latest production incentive updates, the proposals worth watching, and the ongoing effort to bring a federal incentive back to life. Let's get into it.
A lot has already happened across the U.S. production incentives landscape in 2026.
The updates below reflect official changes to production incentive programs across the country as of May 2026. Because program guidelines, funding availability, and pending legislation can shift quickly, producers should always confirm the most current details directly with the relevant film office or state agency before applying.
Alabama is expanding access for smaller productions.
Governor Kay Ivey recently signed HB379, which amends the state's Entertainment Industry Incentive Act of 2009. Effective October 1, 2026, the bill creates an additional incentive tier for small-budget qualified productions, offering a 45% rebate on payroll paid to Alabama residents for productions with total expenditures between $100,000 and $499,999.
The bill also reduces the minimum expenditure threshold for soundtrack and music video productions from $50,000 to $30,000, with an adjusted rebate cap for those project types.
California's Film Tax Credit Program 4.0 application schedule for the upcoming fiscal year (July 2026 through June 2027) is now available. Productions planning ahead should confirm the relevant application windows for their project type directly with the California Film Commission, as windows are short and project-type specific.
Beyond the state program, two local updates are worth noting.
In February, Mayor Daniel Lurie and the San Francisco Film Commission updated the city's long-running film incentive.
Qualified productions can now receive a 10% rebate on production-related goods and services purchased or rented from San Francisco businesses on the first $1 million spent, and a 20% rebate on anything spent above $1 million. Productions can also qualify for a 100% rebate on eligible costs paid directly to San Francisco City departments, including permits, police services, and use of city property.
San Francisco’s rebate can be combined with California's state film tax credit to maximize savings.
In April, FilmLA launched a new Low Impact Permit Pilot Program, reducing city permit fees for small productions.
Qualifying productions must have fewer than 30 cast and crew members, shoot for a maximum of three consecutive days, and use no more than three locations. For those that qualify, application fees drop from $931 to $350 and notification fees drop from $250 to $156 per location. L.A. Fire Department spot check fees of $285 are also waived.
Florida still doesn't have a statewide production incentive, but several regional programs across the state are actively supporting production. The newest addition to that list is Orange County.
This spring, Orange County launched the Orange County Film Incentive Program, backed by $25 million over five years ($5 million annually through FY2030).
The program offers two cash rebates. The TV and Film Production Incentive provides a 20% rebate capped at $1 million on a minimum $400,000 local spend. The TV Commercial Incentive provides a 10% rebate capped at $50,000 on a minimum $250,000 local spend.
The program began accepting applications on Monday, April 27 and will accept applications until May 27, 2026.
For a full breakdown of every regional Florida film incentive currently available, check out Wrapbook's guide to Florida film incentives.
Georgia reinstated its Postproduction Company Film Tax Credit in January. Post-production facilities can now claim a 20% base credit on a minimum of $500,000 in qualified local spend, even if the underlying footage was shot outside Georgia.
There's an additional 10% uplift if the project was filmed in Georgia, and a 5% uplift for post work completed in a qualifying rural county. The program is funded at $10 million annually for facilities spending over $500,000 in qualified expenditures and $1 million annually for smaller facilities spending between $100,000 and $499,999.
It's a significant move for a state that has been working to reverse its recent production slowdown. Georgia's overall film credit remains one of the strongest in the country with no annual funding cap and no ATL cap. The new post-production credit fills a meaningful gap.
The Savannah Regional Film Commission also expanded its rebate program in January, adding a new Tier 1 designed to attract independent productions.
The new tier offers a 10% rebate to productions that spend at least $500,000 in Chatham County and have an overall budget of at least $1 million. Rebates are capped at $100,000 per project.
As before, film projects and television pilots spending over $1 million in Chatham County (Tier 2) as well as qualified television series can also qualify for Savannah’s 10% rebate. The rebate is stackable with Georgia’s state film tax credit.
Illinois made waves in December 2025 with the signing of SB1911, which made significant enhancements to the Illinois film tax credit program.
The update extended the state's film tax credit program until December 31, 2038 and raised the base transferable tax credit rate for Illinois resident labor and Illinois production spend from 30% to 35%.
For nonresident labor, the program now allows productions to include up to 13 qualifying nonresident crew members (up from nine) with a 30% base credit on labor for qualified nonresidents. Additionally, companies must now withhold tax from loan-outs (current rate of 4.95%) and the bill also introduced a handful of new bonuses.
On Earth Day in April, Illinois provided additional guidance on the state’s new 5% bonus for certified green productions. Productions certified through the Illinois Film Office must meet benchmarks for reducing waste, emissions, and energy use.
Combined, Illinois can now offer credits of more than 55% for productions that maximize available bonuses. That’s a big boost in a state that reported a record $703 million in film production spend in 2025, supporting an estimated 18,000 industry jobs on productions including The Bear, Chicago Fire, and The Chi.
For a full breakdown of Illinois’s current incentive program, visit Wrapbook's guide to the Illinois film tax credit.
Iowa returned to the incentive landscape in January with a carefully structured two-year pilot program running through 2027.
The program offers a 30% cash rebate on qualified in-state production spending, with a $500,000 minimum spend and $4 million in funding. Third-party CPA review is required.
This is Iowa's first incentive program since its original program was suspended in 2009. Applications for the first cycle closed March 16, 2026.
Lawmakers in the Bluegrass State recently passed SB324, which will allow unused portions of Kentucky's $75 million annual film credit funding to carry forward into subsequent years rather than expiring.
The new law also expands the list of production types eligible for Kentucky’s film tax credit to include video games, music videos, and commercials.
Furthermore, it sets the minimum spend requirement for commercials at $200,000 as well as raises the minimum spend requirement for Kentucky-based companies to $200,000. Companies not based in Kentucky producing a feature, television program, music video, or video game must spend $400,000 in the state for those projects to qualify.
Also worth noting, qualified labor now includes expenses such as payroll fringes, which were previously excluded.
In March, the Maine Film Office launched the Film in Maine Reimbursement Grant, a one-time pilot program funded through the Maine Office of Tourism, Outdoor Recreation and Film.
The grant offers reimbursements of 20% to 25% across qualifying labor and non-payroll expenses, with a maximum award of $350,000 per project and a total program pool of $700,000. To qualify, productions must spend at least $1 million in Maine and demonstrate at least 60% secured financing. The deadline to apply for the grant is May 15, 2026.
The state bill (LD 1957) that would have overhauled Maine's incentive structure to align with the grant's higher reimbursement rates did not pass this session, but advocates are hopeful the effort will be revived next year.
For a complete breakdown of all Maine film incentives, including the legacy wage rebate and expense tax credit, visit Wrapbook's guide to Maine film incentives.
In early March, New Mexico passed HB291, amending key aspects of the state's film tax credit program. These changes will take effect on January 1, 2027.
For New Mexico Film Partner productions (those committed to a ten-year facility lease in the state) the cap on qualifying expenditures for nonresident performing artists, directors, producers, writers, and editors will increase from $5 million to $10 million per production.
For non-Film Partner productions, the bill tightens nonresident below-the-line crew eligibility by introducing a tiered scale that limits the number of eligible nonresident crew positions based on the production's total New Mexico budget.
The new law also increases program funding by $10 million per fiscal year, up to $160 million in FY2029 and beyond, providing long-term certainty for productions planning multi-year commitments in the state.
Producers planning projects in New Mexico should review the updated program details with the New Mexico Film Office.
SB1510, passed in early April, added commercials to the list of qualified productions under Oregon's production incentive programs.
Effective July 1, 2026, commercial production work can qualify for both the Greenlight Oregon labor rebate and the Oregon Production Investment Fund (OPIF).
For commercial productions spending under $1 million in Oregon, the L-OPIF (Local OPIF) requirements apply and the project must be intended for distribution beyond local and regional markets. Productions spending over $1 million must employ at least 50% Oregon residents as crew and shoot at least three days in Oregon.
Together, the Greenlight Oregon and OPIF programs can return up to 26.2% to qualifying commercial productions.
In April, Virginia passed HB400 and SB612, extending the sunset date for the state's motion picture production tax credit from taxable year 2026 to taxable year 2031.
This five-year extension should help give producers more certainty when planning long-lead projects in the Commonwealth.
Wisconsin officially entered the incentive landscape in January with its new film tax credit program.
The program offers a 30% transferable tax credit on qualifying in-state expenditures for productions that spend at least $100,000 in the state (or $50,000 for projects under 30 minutes). Credits are capped at $1 million per project and the incentive is funded at $5 million annually.
In April, AB884 clarified what constitutes qualifying production expenditures and adjusted rules around the salaries of highly compensated employees and credit transferability.
Wisconsin's return to the incentive market is worth watching as it's a new program in a state with strong natural and urban locations and a growing production community.
Domestic production incentives update frequently. Clearly, it can be a lot to keep track of. Wrapbook's Production Incentive Center is designed to help.
This comprehensive resource features full breakdowns of production incentive programs all across the country. A State Incentive Map lets you track programs across every jurisdiction at a glance. The Incentive Comparison Tool makes it easy to see how different programs stack up side-by-side. And the Production Incentive Finder helps you identify the right program based on your project's specifics.
Wrapbook’s Production Incentive Center puts accurate, up-to-date information at your fingertips, so you can navigate U.S. production incentives with confidence.
Now, let's take a look at the proposed, not-yet official, incentive updates we're currently monitoring.
