Why These Film Tax Credits?
To compile this list, we evaluated each state based on the size of the film tax credit, additional credit uplifts, minimum spending thresholds, and the ease of accessing incentives. Each state has either a robust incentive program, an emerging program, or has recently invested in expanding its incentives.
Understanding these essential details for each state will help you make an informed decision about where to shoot your next project.
Georgia
Georgia is one of the top destinations for filmmakers. Dubbed Hollywood of the South, the state offers generous tax incentives, drawing productions such as James Gunn’s Superman and Netflix’s Stranger Things. Georgia’s film tax credit program began in 2005 and has expanded significantly, with no set expiration date or ‘sunset’ provision.
The state offers a 20% transferable tax credit and an additional 10% for including the Georgia logo on approved projects. It does require a minimum spend of $500,000, which can be met by a single project or multiple projects under a single production company. All the qualified expenditures must occur within the state from a Georgia vendor. There is no annual cap on the state’s incentive program, so it can easily accommodate multiple projects simultaneously.
Beyond the financial incentives, Georgia’s range of landscapes (from bustling cities to rural environments) allows producers to stretch the budget and increase the film’s production value. The Georgia film tax incentive was established close to 20 years ago. Since then, the state has developed a robust network of talent, crew, rental houses, and sound stages to support both small and large projects. There are also minimal residency requirements, so producers can hire out-of-state department heads such as the production designer or director of photography.
The financial perks, diverse shooting locations, and production infrastructure make Georgia a prime choice for major studios and independent filmmakers.
New York
New York City is an iconic destination for filmmakers. From the streets of Manhattan to the rural landscape of upstate New York, the state offers various landscapes that can stand in for nearly any location. Numerous high-profile productions, such as Saturday Night Live and New Amsterdam, benefit from this program. New York’s film tax credit law passed recently in 2023 and won’t be up for renewal until 2034, making it a reliable option for long-term productions.
New York offers a 30% refundable tax credit on qualified production expenses. Certain productions with a budget of $500,000 or more can also receive an additional 10% depending on qualified in-state labor expenses or the county where filming occurs. The minimum qualifying spend varies on the type of production and the location, generally ranging from $250,000 to $1 million. However, it’s worth noting that the state’s tax incentives are capped at $700 million annually, so competition can be stiff.
Like Los Angeles and Georgia, New York has a highly skilled production workforce and cutting-edge post-production facilities. Best of all, New York State also offers a fully refundable tax credit at 30% of qualified post-production costs. New York’s film tax incentives and top-tier infrastructure make it a prime destination for producers.
Louisiana
Known for its unique Southern charm, Louisiana has quickly become one of the country’s premiere production hotspots. High-profile films such as David Fincher’s The Killer and Five Nights at Freddy’s have solidified the state’s reputation as a marquee production destination. Louisiana’s production tax credit program was set to expire in 2024, but the state passed a law in 2023 to extend the program until 2031.
Louisiana offers a base tax credit of 25% of all qualified in-state expenses. Producers can apply for an additional 10% if a Louisiana native wrote the project’s screenplay. Louisiana also offers an additional 5% tax credit for productions that film outside of the metro New Orleans area. This brings the total possible tax credit to 40%.
For Lousiana screenplay productions, the minimum spend is $50,000, while the minimum qualifying spend for all other productions is $300,000. Producers should be mindful that Louisiana’s motion picture production program is highly competitive, with the state issuing a cap of $150 million in tax credits per fiscal year. Therefore, securing these credits may require early planning and application.
Interestingly, Louisiana’s cost of living is lower than the national average, which can translate to lower costs for food and lodging. These savings allow producers to allocate more of the production budget toward enhancing the film's production value. This, along with the low minimum spending requirements, makes Louisiana an attractive option for independent filmmakers looking to maximize their budgets.
New Mexico
New Mexico has quickly become a rising star in film production, offering one of the country’s most competitive tax incentive programs. Netflix, one of the state’s production partners, has invested heavily in the state, building a state-of-the-art production hub in Albuquerque. New Mexico’s film tax credits were updated in 2023, with the cap set to increase by $10 million on an annual basis until 2029.
New Mexico offers a 25% base tax credit, with the potential to reach a 40% cap through various uplift incentives that producers can also leverage. For example, a 10% tax credit is available for all qualifying production activities that occur at least 60 miles outside of the Santa Fe and Albuquerque areas. Additional 5% uplifts are available for television series that meet the state’s criteria or for productions that use qualified production facilities within the state. Most notably, New Mexico’s film tax credits have no minimum spend requirements, making its incentives accessible to productions of all sizes. As of 2024, the annual cap stands at $120 million.
New Mexico’s consistent climate also allows for production throughout the year, offering more flexibility than many other states. Furthermore, the state’s film-friendly communities, tribal production partnerships, and significant investment in production infrastructure make New Mexico one of the most attractive and cost-effective places to shoot in the United States.
California
The Golden State, home to Hollywood, is the global epicenter of the entertainment industry. With its unparalleled production infrastructure, diverse filming locations, and a deep talent pool, California will always be a top destination for filmmakers. Blockbuster productions such as Joker: Folie A Deux and season 2 of Euphoria have utilized the California film and TV tax credit program to offset their budgets. Renewed in 2023, California’s film tax credit program, dubbed Program 4.0, is set to expire in 2030.
California offers different types of film tax credits based on the production’s scope and circumstances. Independent films are eligible for a 25% transferable tax credit, provided they meet the minimum budget requirement of $1 million. A separate 20% non-transferrable tax credit is available for feature films and TV shows with a minimum budget of $1 million (per episode for television pilots and series). Additionally, California provides a 25% non-transferable tax credit for TV series that are willing to relocate to the state after the first season. Producers can also leverage an additional 5 to 10% in uplifts for expenditures related to out-of-zone filming, visual effects, and local labor hires.
California’s film tax program is capped at $330 million annually. The proximity to major film studios in Los Angeles means fierce competition for these tax credits. The application window is open only three days a year, so producers should plan well in advance if they wish to apply.
Illinois
Illinois stands out with its striking blend of urban skylines and vast rural landscapes, offering filmmakers a versatile range of settings. Chicago, in particular, has a long history of film production and continues to grow as a major film and TV production hub, thanks to recent hits like The Bear and Dark Matter. Illinois’ film tax credit bill was recently renewed in 2023 and will remain in effect until 2033, ensuring continued support for filmmakers.
Illinois offers a 30% transferable tax credit based on qualified production costs within the state. An additional 15% uplift is available if production spending includes wages for workers in economically disadvantaged areas. The minimum qualifying spend is $50,000 for projects with a runtime under 30 minutes, and the minimum requirement for projects 30 minutes or longer is $100,000. Unlike some states, there is no annual cap on Illinois’ film production tax credit, offering more flexibility for producers with less competition for film tax credits.
With significantly lower minimum spending requirements than major production hubs such as Los Angeles or New York, Illinois is particularly appealing for independent producers. Combined with Chicago’s top-tier production capabilities, the state provides a cost-effective alternative without the steep costs of bigger markets.
Nevada
At a glance, Nevada might not seem like an obvious production destination for filmmakers. However, upon closer inspection, it becomes clear that Nevada’s approach to film tax credits offers unique benefits that producers can’t find elsewhere. A bill to expand the program was shelved in 2023. However, a recent KTNV report suggests that major studios like Sony and Warner are planning to invest in Nevada production but are awaiting new legislation.
The Nevada film tax incentive program offers a base of 15% in transferable tax credit on all qualifying production expenditures. Productions can earn an additional 5% uplift if more than 50% of the below-the-line crew members are Nevada residents. Another 5% is available if more than half the production days occur outside Clark County. The minimum qualifying spend is $500,000, and the state requires at least 60% of the overall budget to be spent in Nevada. Currently, Nevada allocates $10 million annually for film tax credits, which can limit availability for larger projects but remains an attractive option for smaller productions.
One of Nevada’s standout features is its quick turnaround for issuing tax credits. Tax credits are issued within 45 days, which is significantly faster than most other states. Nevada’s lack of state income tax and business-friendly tax laws also offer asymmetrical financial benefits to motion picture production companies. While the tax incentive percentage may not be as high as other states, these combined factors make Nevada an ideal location for certain filmmakers.
Colorado
With its breathtaking landscapes and iconic cities, Colorado has been home to major productions like The Hateful Eight and Furious 7. The current film tax incentives cater to smaller productions. However, in recent months, the state has taken significant steps to expand its film tax credit program and position itself as a more sought-after production destination. In June 2024, Colorado passed a new bill that expanded and extended the film tax incentives until 2029.
Colorado currently offers a 20% tax credit on qualified costs, with an additional 2% uplift for productions that utilize local infrastructure or shoot in rural or underserved areas. In order to qualify for Colorado’s film tax incentive, productions must hire at least 50% local cast and crew. The minimum qualifying spend is $100,000 for in-state production companies and $1 million for out-of-state productions. In contrast, commercial and video game productions have a minimum spending requirement of $250,000. The annual cap for the program is $5 million; therefore, the initial application process is highly competitive.
While the tax incentive program is still growing, recent legislative changes could soon make it a hotspot for independent and multi-year productions. Producers who take advantage of this evolving program early on might be able to reap long-term benefits.
Kentucky
Kentucky is a hidden gem when it comes to film tax incentive programs in the US. Thanks to its expanding incentive program and a wide range of filming environments, the state has been able to attract big names. Just last year, Ethan Hawke directed the feature film Wildcat in Kentucky, claiming how filming “in Kentucky proved to be the best thing that could have happened for the film.” There is no specified end date for the current bill.
Kentucky offers a generous 30% refundable film tax credit on qualified in-state expenditures. The film office also offers an additional 5% uplift for productions filming in an enhanced incentive county. For feature films and TV series, the minimum qualifying spend is $125,000 for Kentucky-based companies and $250,000 for out-of-state companies. Documentary projects have lower thresholds, starting at $10,000 for local companies and $20,000 for out-of-state productions. The Kentucky Entertainment Incentive Program allocates $75 million annually in film tax credits, allowing the state to accommodate higher-budget films.
Given the lucrative financial opportunities and low minimum expenditure requirements, Kentucky is bound to attract more producers in the coming years. The state’s combination of scenic landscapes and budget-friendly incentives makes it a compelling choice for filmmakers looking to stretch their budgets without compromising quality.
New Jersey
New Jersey is rapidly becoming one of the most attractive states for film production on the East Coast due to its revitalized tax incentive program. The film and digital media tax credit program has expanded multiple times since its inception (most recently in 2023), highlighting the growing demand for New Jersey’s film tax credits. New Jersey’s film tax credit scheme was first introduced in 2005 and will remain in effect until 2034, ensuring continued support for filmmakers.
New Jersey offers a whopping 35% film tax credit on qualified expenses. The state also provides a 2% to 4% uplift in the form of a diversity tax credit for films that employ women or minority persons. Productions must meet a $1 million minimum spend and ensure that 60% of total production expenses are incurred within the state. The state allocates $100 million annually for film tax credits, making it suitable for independent films and major studio productions.
New Jersey’s film incentive program also allows production companies to apply for a Studio Partner or Film-Lease Partner designation. This program is designed to encourage the development of long-term, multi-project production facilities within the state. To qualify, a film production company must control a facility of at least 250,000 square feet or for a minimum of ten calendar years. Projects with this designation can access an increased base tax credit of up to 40%, with a separate annual allocation of $150 million.
With its expanding film tax incentives and commitment to nurturing long-term productions, New Jersey is poised to attract even more filmmakers and production companies in the years to come.
