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Film production is an expensive affair; the average cost to produce and market a major movie is about $100M. Saving even a small percentage of this money would mean millions added to the spending budget for a film. To incentivize production companies to spend more money in their area, different states in the U.S. offer various tax incentives, such as tax credit, grants, and bonuses. However, these film tax incentives are often confusing to navigate since each state has a different set of rules and regulations that come with it. So we’ve put together this article to give you a breakdown of film tax incentives by state.
Tax incentives for production companies were introduced in the 90s and provided a win-win scenario for both production companies and the state. These incentives were created in response to an increasing number of movie productions shifting to other countries, like Canada.
States benefit through movies being filmed in their area because it drives the economy through employment opportunities, revenue, and related infrastructure development. However, the structure and type of tax benefits vary by state.
As a producer, we don’t need to tell you that you spend huge sums of money when shooting your projects. Tax benefits allow you to save money on taxes, get discounts on local goods, and even receive cashback from the state, making a considerable difference to your (ever-shrinking) budget for your next project.
There are several types of incentives offered to production companies, and each state uses a different combination of these incentives to encourage production companies to film in their state.
Film tax incentives differ across every state. When picking a location, weigh the costs and benefits of shooting at a local destination vs. shooting in another state or country.
We’ve included a list of all states in alphabetical order, a link to the application website, and a brief summary of their tax credit details.
Alabama only offers incentives on the first $20 million of qualifying product expenditures. This means that if your film budget exceeds this amount, only the first $20 million spent in Alabama will qualify for the film tax credit.
Qualified expenditures include pre-production, production, and post-production costs incurred in the state, including salaries and wages but excluding marketing and distribution expenses.
The production company must spend a minimum of $150,000 in a year and at least $500,000 on the whole project in the state to qualify for the movie production incentives in Alabama.
This state currently has no film tax incentive program in place.
To be eligible for the tax credit, producers must shoot their film or television show primarily in Arizona, conduct pre- and post-production in the state and hire Arizona workers to work as crew in the production.
15% tax credit will be provided for productions of up to $10 million, 17.5% tax credit for productions of up to $35 million, and 20% tax credit for productions over $35 million. Production companies will be offered an extra 2.5% tax credit on production labor costs related to positions held by Arizona residents. Also, an extra 2.5% is possible if utilizing a local AZ production facility.
The program also provides cash refunds for production companies if the credits are larger than the amount of taxes paid in Arizona.
For tax rebates and credits in Arkansas, qualified expenditures include any costs incurred for development, pre-production, production, or post-production of a qualified production. Eligible types of production include animation, documentaries, feature films, pilots, video games, and scripted television. Reality tv, talk shows, game shows, and commercials are not eligible for any film tax rebate.
To be eligible for production incentives in Arkansas, a production company needs to spend a minimum of $200,000 in the state.
An extra 10% is possible on payroll of honorably discharged veterans of the USA. Max amount of credit earned is 30%
New television series, television pilots, non-independent feature films, miniseries, and movies-of-the-week are all eligible for 20% non-transferable California film production tax credits. At least 75% of their budget must be spent in the state to qualify for California’s tax incentives. If the production company has a budget of above $10 million, they can apply for 25% film production tax credits.
All productions eligible for a 20% film tax rebate are also eligible for a 5% credit uplift if expenses relating to original photography are incurred outside of Los Angeles County’s 30-Mile Studio Zone. Non-independent film productions are eligible to receive 10% credit uplift if they hire qualified local labor, while independent films and relocating TV series are eligible to receive 5%.
CA 4.0 which starts in 2025 will have Refundable Credit options.
Qualified expenditures include production-related payments made by a production company operating in Colorado to any person or business in the state. These payments include payroll, workforce expenses, and vendor expenses.
However, the only caveat is that 50% of the crew base should consist of Colorado residents and show 80% of financing to be eligible for the film tax rebates in Colorado.
A Transferable Tax Credit that mirrors the Rebate program has been approved and funded at $5 million.
All project types are eligible for Connecticut film tax credit, including game shows, talk shows, and reality TV; however, the production company must spend at least $100,000 in the state.
The tax credit the company receives depends on how much they spend in Connecticut. For example, they get a 10% tax credit if their qualifying expenses are between $100,000 and $500,000; 15% for qualifying production expenses up to $1M; and 30% tax credit if qualifying production expenses exceed $1M.
This state currently has no film tax incentive program in place. (However, they do have great local programs).
Most project types are eligible for Georgia film tax credit, including game shows, talk shows, and reality TV.
Production companies get a minimum of 20% tax credit. The state grants an additional 10% credit if the company uses the "Made In Georgia" logo in its film credits. All production and post-production expenses must be in the state. Commercials are not able to apply for the extra 10% logo bump.
All projects are now required to have a mandatory audit
A 22% tax credit is given for filming on the island of Oahu. An additional 5% film tax incentive is given for filming on all neighboring islands.
GET tax of 4% is needed on all vendor and corps to qualify
This state currently has no film tax incentive program in place.
Illinois film incentives include a 30% transferable tax credit on qualified expenditures incurred in the state. Production houses will receive an additional 15% production incentive if they hire individuals from economically disadvantaged areas, where the rate of unemployment is at least 150% of Illinois’s unemployment rate.
Qualified expenditures include tangible, personal property and services purchased from Illinois vendors, and compensation paid to Illinois resident employees and only certain key non-resident positions.
Non-resident Limitation - The following positions are allowable to earn the production credit as non residents: Writer, Director, Director of Photography, Production Designer, Costume Designer, Production Accountant, VFX Supervisor, Editor, Composer, and Actor. For each production no more than 9 non resident approved positions (outside of actors) shall qualify.
Non-resident Actor Limitation - For an accredited Illinois production spending of $25 million or less, no more than 2 nonresident actors' wages shall qualify as an Illinois labor expenditure. For an accredited production with Illinois production spending of more than $25 million, no more than four nonresident actor's wages shall qualify as Illinois labor expenditures. (Does not include Reality Stars).
This state currently has no film tax incentive program in place.
This state currently has no film tax incentive program in place.
The minimum in-state expenditure required to qualify for tax incentives is $250,000 for a feature-length film or a TV show and $20,000 for a documentary. A potential 5% bonus is available on spending in Kentucky “Enhanced Counties”
Qualified expenditures must be made from businesses within the Commonwealth of Kentucky.
Most production types are eligible for the Louisiana film tax credits, including reality shows, video games, and commercials. Productions can potentially earn an additional 5% across the board if they have their production office and film 60% of their photography outside the Orleans Metro Area. Other potential bonuses include a VFX and Local Screen Play bonus.
Some qualified expenditures for the Louisiana film tax credit include expenditure on tangible goods and services in Louisiana.
Qualified expenditures include expenses directly incurred in the state for pre-production, production, or post-production.
Scripted television, feature films, pilots, and commercials are eligible for film tax credit in Maryland. However, 50% of the principal photography must be in the state to receive the tax breaks.
Qualified expenses include total costs incurred in the state of Maryland that are necessary to carry out production activity. All goods and services must be provided by a qualified vendor.
Eligible production types to receive Massachusetts film tax credit include animations, commercials, documentaries, pilots, feature films, reality TV, and scripted television. Game shows, talk shows, and video games are not eligible. However, production companies Must spend 75% of their total budget in MA in order to get the 25% on local spending cost.
Qualified expenditures include pre-production, production, and post-production expenses related directly to the Massachusetts production. Equipment or other tangible personal property rented or purchased outside the state also qualifies as production expenses if proof of being shipped and used in the state occurs.
This state currently has no film tax incentive program in place.
Qualifying expenditures for the Minnesota film tax credit include direct costs incurred in Minnesota.
Most production types are eligible for Mississippi film tax incentives except for game shows and talk shows. Qualified expenditures include production costs paid to Mississippi vendors and companies. Production company or producer must meet certain requirements of having Mississippi connections.
Local residents earn a 30% tax incentive, and honorably discharged veterans get an additional 5%. Non-residents earn 25%. However, a prerequisite is that at least 20% of the production crew must be residents of Mississippi.
For episodic, $10 mllion in funding is available with a rebate % of 35% for residents, 20% for non residents, and 25% for local spending.
Qualified expenditures include production costs paid to Missouri vendors and companies. Labor incurred in the state can earn on the base credit.
Production must employ a required amount of apprentices or veterans based on budget size. Above the Line expenses are capped at an aggregate 25% of local spending
A slew of bonuses are available including 5% extra for the following: if 50% of the budget is in MO, if 15% of spending is in a rural area, if the project paints MO in a positive manner, or if three depts advance a resident.
10% if filming in second, third , or fourth class county. Kansas City, Missouri Does have a local incentive as well
Eligible production types to receive transferable tax credits in Montana include animation, commercials, feature films, pilots, scripted television, and video games. Documentaries, reality television, game shows, and talk shows are not eligible to receive film tax credits.
Qualified expenditures include pre-production and production expenditures incurred in Montana.
A 5% extra tax incentive on all base credits is given if the production company uses “Film Montana” on the screen credits. Also, an extra 5% can be earned on expenditures incurred in an “Underserved Area” or a 10% uplift is possible on expenditures purchased or rented through certain local MT production facilities.
This case-by-case grant applies only to feature films shot in the state, which tell a story about Nebraska. This grant came into effect in July 2021 and does not apply to other production types. 50% of the workforce for the project must be from Nebraska and the project must tell a Nebraska story.
Qualified expenditures include pre-production, production, and post-production expenditures, such as compensation and wages, purchases, and rentals of products or services from any local business. However, Below the Line non-residents do not.
At least 60% of the production budget must be spent in Nevada. Potential bonuses include an extra 5% if 50% of your BTL crew are residents and 5% if using an area that is not consistently used for production.
This state currently has no film tax incentive program in place.
New Jersey film production tax credit offers an additional 2-4% of tax credit on qualified production expenses that apply accompanied by an approved diversity plan.
Qualified expenditures include direct production and post-production expenditures made in New Mexico that are subject to taxation by the state. New Mexico has no minimum spend requirements and no project caps on their tax breaks for the movie industry.
Available bonuses include a 10% rural bonus, 5% on TV series, 5% on features filming at certain approved facilities.
New York film tax credit program offers incentives to feature films,, scripted television, and pilots. As well as separate stand alone incentives for Commercials and post-production only. Productions must film a certain number of days at a qualified production facility based on your budget in order to qualify.
Production Filming in Upstate New York with a budget over 500,000 can qualify for an additional 10% bonus.
Qualified expenses are for tangible property or services used or performed within New York State directly and predominantly in the production of a qualified film. Run time for features must be 75 minutes and TV episodes must be 22-23 minutes without breaks
Most production types except game shows, talk shows, and video games are eligible for these film tax incentives. However, this is a case-by-case program. Feature films must spend a minimum of $1.5 million, and movie of the weeks and TV episodes must spend $500,000 . The production company must have secured at least 75% of its funding before applying for a rebate in North Carolina.
Qualified expenditures include pre-production, production, and post-production costs in North Carolina, including goods, services, compensation and wages, fringe benefits, per diem, living expenses, and stipends.
This state currently has no film tax incentive program in place.
Qualified expenditures include goods and services purchased and consumed in Ohio. Production companies must show proof of commencement of production within 90 days of certification of eligibility for the tax credit.
Oklahoma has the most available bonuses of any state including but not limited to an extra 5% on using local soundstages, 2% if you are a TV pilot, 5% on multi picture deals, 3% on post, up to 3% depending on where you shoot in the state, 5% on filming a slate of projects, 2% on music composition.
A post production incentive is available as well.
Qualified expenditure includes expenses incurred in Oklahoma or production costs paid directly or through an Oklahoma-based entity.
To qualify, at least $1M must be spent on a single project or television series. Regional and Indigenous bonuses are available
Qualified expenditures include costs for production or postproduction incurred in the state, such as the purchase or renting of equipment, food, lodging, real property and permits, compensation, wages, and benefits.
To qualify for the film tax incentives, 60% of the total production expenses must be in Pennsylvania. All crew earn a 25% tax credit, and a bonus of 5% is given if stage filming requirements are met.
Qualified expenditures include pre-production, production, and post-production costs incurred in the state.
Animation, commercials, documentaries, and music videos are eligible for film tax incentives in Rhode Island. As long as the production company meets the minimum in-state spending requirement, any amount of principal photography can be filmed in Rhode Island.
Along with the minimum spend, productions must spend 51% of their principal photography or 51% of the Budget to qualify or they can bypass that rule if they spend $10 million over twelve consecutive months.
Qualified expenditures include pre-production, production, and post-production costs incurred in Rhode Island.
Eligible production types for South Carolina film tax credits are animations, commercials, feature films, pilots, and scripted television. However, the production house must spend at least $1 million within twelve months and at least $1 million per episode for a TV series.
All resident crew members earn a film tax rebate of 25%, and non-resident crew members earn 20% film production tax credits.
Qualified expenditures include goods and services purchased, rented, or leased by the production company from a local supplier in South Carolina.
This state currently has no film tax incentive program in place.
Eligible production types for Tennessee film incentives are commercials, feature films, pilots, and scripted television.
Qualified expenditures include pre-production, production, and post-production costs incurred in Tennessee.
60% of filming days must be shot in the state to qualify for Texas film production tax credits as well as 55% of the cast including extras as well as 70% of the crew must be residents
The resident crew earns a 5% tax credit if the budget is less than $1 million. They earn 10% for a budget between $1 million -$3.5 million and a film tax rebate of 20% for a budget above $3.5 million. The state gives a 2.5% tax credit for any project that completes 25% of its filming days in economically disadvantaged areas.
Qualified expenditures include payments made to Texas companies for goods and services directly used or related to production.
Eligible production types to receive film tax incentives in Utah include animation, documentaries,
feature films, pilots and scripted television. A 5% bonus is available for productions that spend $1 million locally and have 75% of its cast and crew as Utah residents.
A seperate cash rebate can be available to projects with a budget smaller than $500,000 if at least 85% of staff are locals of Utah.
$12 million of funding allocated to rural-based productions
Qualified expenditures for film production tax credits include production expenditures made in Utah that are subject to state taxes.
This state currently has no film tax incentive program in place.
Eligible production types for the tax credit in Virginia are commercials, documentaries, feature films, pilots, scripted television, and video games. To qualify for the film industry tax incentives, at least 50% of the principal photography must be in Virginia.
All crew will get at least a 15% tax credit. A 5% bonus is given to all if the production is filmed in an area of the state which is at an economic disadvantage. A 10% bonus is given to residents if filming in the Commonwealth and spending between $250,000 and under $1 million. A 20% bonus is given to resident payroll if filming in the Commonwealth and spending at least $1 million.
Qualified expenditure for production incentives includes expenses made in Virginia in the form of services or products, including leased products.
The production types eligible for tax incentives in Washington are animation, commercials, documentaries, feature films, pilots, reality TV, and scripted television.
Episodic projects with at least six episodes may qualify for 35% on local spending and payroll. A 10% bonus is available for projects shot in a “rural community” or projects that tell stories about “marginalized communities”
Qualified expenditures include pre-production, production, and post-production costs incurred in Washington.
The production types eligible for tax incentives in West Virginia are web series, commercials, documentaries, feature films, pilots, reality TV, and scripted television.
Potential 4% bonus is available for production companies that employ 10 or more residents as full time workers.
Qualified expenditures include pre-production, production, and post-production costs incurred in West Virginia.
This state currently has no film tax incentive program in place.
This state currently has no film tax incentive program in place.
While applying for these incentives can seem overwhelming, finding the right location to film in can be well worth your time when you could save millions on taxes or other expenses. When budgeting for your next project, take your time and get familiar with the best film incentives in the US. If you ever need help with your application, you can always contact the individual state film boards.
For more specific tax break know-how, take at our posts for Georgia, New York, and California. Or try out our Production Incentives Center for specific answers to your Incentive questions!
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.
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