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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.
Tourists visiting Virginia may be familiar with the state’s slogan: “Virginia is for Lovers.” With its beautiful landscapes and supportive film production infrastructure, the Commonwealth of Virginia is for filmmakers, too.
From colonial architecture in Williamsburg to the Norfolk waterfront and capital city corridors of Richmond, the Commonwealth’s varied geography allows productions to capture coastline, countryside, and historic cities without ever crossing state lines.
With its remarkable cinematic range, Virginia has played host to a number of classics, new and old. Films including Dirty Dancing, Lincoln, Loving, and Harriet have all found authentic backdrops and world-class production support in the Commonwealth.
Popular series such as Homeland, The Walking Dead: World Beyond, and Dopesick have also relied on Virginia’s rich landscapes, period settings, and filmmaking resources to bring their stories to life.
Behind these productions is Virginia’s skilled local workforce, strong infrastructure, and the support of the Virginia Film Office, which administers the state’s incentives and helps promote filmmaking across the state.
One of the most vital ways in which the Virginia Film Office supports film production in the Commonwealth is through its administration of Virginia film incentives.
The foundation for the state’s film incentive program was laid in 2010, when lawmakers created both the Virginia Motion Picture Production Tax Credit and the Virginia Motion Picture Opportunity Fund, which provides Virginia film grants.
These two incentive funds were introduced to help Virginia compete with nearby states such as Maryland and North Carolina, which also offer enticing financial incentives for in-state film production.
Over the years, Virginia’s dual production incentive programs have been strengthened to better support job creation, attract higher-budget productions, and grow the state’s film workforce.
Today, the two funds—for both Virginia film tax credits and Virginia film grants—remain as appealing as ever, providing producers meaningful savings on production conducted in the Commonwealth.
So how can filmmakers tap into Virginia film savings? Let’s take a look at how the two programs work and how your next project can qualify.
Virginia film incentives offer two powerful ways for productions to save money when shooting in the Commonwealth.
The state supports filmmakers through both the Motion Picture Opportunity Fund, which provides Virginia film grants, and the Virginia Motion Picture Production Tax Credit Fund, which offers refundable Virginia film tax credits to qualifying projects.
To understand how these incentives work, it helps to clarify the difference between film tax credits and film grants. Grants function as direct payments to production companies for eligible in-state expenditures. Film tax credits, on the other hand, reimburse a percentage of qualified spending after a company files its state tax return.
Because Virginia’s film tax credit is refundable, productions can receive the benefit even if they owe no Virginia income tax, making it especially accessible to out-of-state companies.
While at first it may sound a bit complicated that Virginia offers both a film tax credit and a rebate, in practice it’s actually quite simple. The two Virginia film incentives share nearly identical eligibility criteria, and in many cases a production can qualify under either program.
The primary difference between the two lies in the tax credit’s minimum spend requirement. To receive Virginia film tax credits, productions must incur at least $250,000 in qualified expenses within the Commonwealth. The grant program carries no minimum spend, making it a useful option for smaller or more targeted projects.
Funding levels also differ between the two programs. The Virginia Motion Picture Production Tax Credit Fund is allocated $6.5 million annually, while the Motion Picture Opportunity Fund offers $4 million in available Virginia film grants each year.
Producers do not need to determine on their own which program is the best fit. After reviewing a project’s application, the Virginia Film Office will assess eligibility and guide the production toward the incentive that offers the greatest benefit.
In addition to the film tax credit and rebate, Virginia also has a Sales and Use Tax Exemption that applies to the purchase of production-related supplies and equipment. Hotel stays of 90 days or more are exempt from state sales tax and some local lodging taxes, as well.
Together, these tools form the backbone of Virginia film incentives, giving filmmakers multiple pathways to meaningful savings when shooting in the state.
A wide variety of productions can take advantage of Virginia film incentives, making the Commonwealth accessible to filmmakers across genres and formats. Eligible projects include:
It’s important to note that not every project type is eligible. Unscripted television, including reality programming, talk shows, and game shows, does not qualify for Virginia film tax credits or Virginia film grants.
The Virginia Film Office maintains a full list of ineligible formats, and producers who are unsure about their project’s eligibility can review the complete guidelines on the Film Office’s website.
A broad range of in-state spending can qualify for Virginia film incentives, including both payroll and many physical production costs incurred within the Commonwealth.
Whether a project pursues Virginia film tax credits or Virginia film grants, both programs generally mirror one another in how qualifying expenses are defined.
At the heart of the incentive is a base benefit of 15% on all qualifying expenses, including wages. To better understand how productions can maximize savings, it’s helpful to break out eligible production expenses into two categories: cast and crew payroll and production spend.
All cast and crew payroll can qualify for the base 15% credit. That includes compensation paid to both Virginia residents and nonresidents, and both above-the-line and below-the-line crew.
Importantly, only the first $1 million paid to each individual will qualify for Virginia film incentives.
Additionally, compensation paid to Virginia residents can unlock extra savings. The amount of this additional benefit depends on how much a production spends in the Commonwealth:
Compensation paid to nonresidents is eligible for only the base 15% credit.
In addition to payroll, most physical production expenditures incurred in Virginia qualify for the base 15% incentive.
Eligible spending can include rental fees, location fees, equipment and vehicle rentals, set construction, costumes and props, on-set services, film processing, and post-production work performed in state.
As with payroll, expenditures must be made with Virginia-based vendors and must directly support production activities taking place in the Commonwealth.
Along with the above, Virginia offers two opportunities for productions to boost savings even higher.
If a production films in a state-designated economically distressed area (as determined by the Virginia Economic Development Partnership in conjunction with the Virginia Employment Commission) the base incentive increases from 15% to 20%.
Producers may also claim a 10% bonus tied to workforce development by hiring Virginia residents who are first-time actors or first-time members of a production crew.
This uplift applies only to compensation paid to those qualifying individuals and it must be the individual’s first time receiving compensation as an actor or member of a production crew on a film, ever, anywhere.
Together, these bonuses allow productions to meaningfully maximize the value of Virginia film incentives, rewarding both local hiring and investment in communities across the Commonwealth.
To qualify for Virginia film incentives, productions must meet several program requirements designed to ensure meaningful economic impact within the Commonwealth.
Before approval, producers must submit a package of materials that typically includes a detailed production budget, shooting schedule, proof of financing, hiring plans, and a breakdown of anticipated in-state spending.
Productions must also demonstrate that they have made a best-faith effort to complete at least 50% of principal photography in Virginia.
To verify residency for local hires, a Virginia Residency Form must be submitted for every Virginia resident employee, accompanied by a copy of their valid Virginia driver’s license.
When evaluating a project, the Virginia Film Office considers factors such as local hiring commitments, the number of Virginia residents on payroll, overall economic impact, and how the production aligns with state priorities. In this way, Virginia film incentives are awarded on a selective, case-by-case basis.
All productions receiving Virginia film incentives must include a “Filmed in Virginia” credit (specific text is provided by the Virginia Film Office) along with the “Virginia is for Film Lovers” logo in the final version of the project.
Finally, after filming wraps, productions must submit thorough accounting records, cost reports, and supporting documentation. An audit is required before final tax-credit certificates or grant reimbursements are issued, ensuring that all claimed expenditures meet the state’s eligibility standards.
Applying for Virginia film incentives begins with the Virginia Film Office, which manages the application process and provides all required documentation for both the Virginia film tax credit and Virginia film grants.
Applications must be submitted at least 30 days prior to the start of principal photography, giving the Film Office time to evaluate eligibility and confirm that the project meets the state’s incentive requirements.
To qualify, producers must submit the following materials:
For productions applying to the grant program, all financing must be fully secured at the time of application.
The Film Office will then review the application and determine whether the project qualifies. If approved, the Office will issue an agreement that outlines the incentive amount, reporting requirements, and conditions for receiving benefits.
After approval, productions must enter pre-production within 90 days to maintain eligibility.
At the end of production, producers must submit a final accounting package documenting all qualified expenditures.
For projects receiving the Virginia film tax credit, a post-production audit and cost report review are required before the Film Office issues the refundable credit certificate. For projects awarded Virginia film grants, reimbursements are provided after the state verifies all costs and deliverables.
Whether you're shooting a historic drama, a modern thriller, or a commercial campaign, Virginia film incentives can offer a meaningful boost and bring your project to life.
With the combined strength of the Virginia film tax credit and Virginia film grants, productions can unlock substantial savings while taking advantage of the Commonwealth’s unmatched locations, skilled workforce, and supportive film community.
To explore how Virginia film incentives compare to other states—and to find incentives for your next project—visit Wrapbook’s Production Incentive Center and start planning your most cost-effective production yet.
Virginia’s unique blend of historic townscapes, coastal vistas, and mountain terrain gives filmmakers an expansive visual toolkit. Couple that natural range with generous Virginia film incentives, and the Commonwealth becomes an inviting home for productions looking to achieve more with their budget.
In this guide, we’ll break down everything you need to know about Virginia film tax credits and Virginia film grants, including who qualifies and how to apply for these generous Virginia film incentives, so you can stretch your budget when filming in the Old Dominion.
Before we jump into the details of Virginia film incentives, we invite you to explore Wrapbook’s Production Incentive Center. This comprehensive resource features the latest information on film tax credits, rebates, and grant programs nationwide.
With the State Incentive Map, explore film incentives offered all across the United States. Or take the Incentive Comparison Tool for a spin and see how Virginia film tax credits stack up against offerings elsewhere in the country, including those in neighboring Kentucky, North Carolina, and West Virginia.
By placing every detail of domestic production incentives at your fingertips, Wrapbook’s Production Incentive Center makes it easy to find the right incentive for your next project.
