How to Get Film Tax Credits by State: A Producer's Money-Saving Guide 2025
The more successful the villain, the more successful the picture.
-Alfred Hitchcock
How to Get Film Tax Credits by State: A Producer's Money-Saving Guide 2025
Would you turn down a chance to save up to 40% on your next film production? Smart producers can get these exact savings through state film tax credits and incentives.
The landscape of film tax credits by state has changed dramatically since 2021. At least 18 states have expanded their film tax incentives, which creates amazing opportunities for savings. Producers can find great deals ranging from Georgia’s uncapped 20% transferable tax credit to New Mexico’s impressive 40% maximum credit.
These film tax credits and incentives might seem complex at first glance. That’s why we created this complete guide to help you understand how film tax credits work in different states. Our guide shows you exactly how to unlock these money-saving opportunities, whether you’re working on a major feature film or an independent production.
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The Film Incentives Landscape in 2025
Film tax incentives have altered the map in the last few years. This creates new opportunities and challenges for producers. Making smart financial decisions in 2025 depends on learning about these changes in state tax incentives for the film industry.
Current trends in state film tax credits
Film tax incentives are gaining ground across the United States. The COVID-19 pandemic affected the industry, and film incentive programs now have fresh support. At least 18 states have implemented or expanded their offerings. These incentives cut production costs by a lot, usually ranging from 20% to 40% of qualifying in-state expenditures.
California wants to raise its annual tax credit cap from $330 million to $750 million. This would make California the state with the second-largest capped film incentive program. New York leads with a $700 million allocation. Georgia keeps its edge with an uncapped tax credit program that pulls many productions away from traditional filming spots.
Tax incentives for film production now play a crucial role in choosing production locations. Productions can move easily, and financial factors drive decisions more than creative or practical ones. States without good incentives are losing filming activity fast.
Recent changes to major incentive programs
Many states changed their incentive movie programs through 2024 and early 2025:
New Mexico raised its funding cap to $130 million to become a top filming spot for NM film productions
New Jersey grew its program to $300 million for general applicants and added $250 million for studio partners
Minnesota raised its tax credit cap from $5 million to $25 million and extended it for 8 years
Texas increased its filming grant budget from $45 million to $200 million
Colorado changed from a cash rebate to a refundable tax credit for productions starting after January 1, 2024
Missouri brought back its Film Tax Credit Program with a 20% base credit that can reach 40% with qualifying boosts
Some changes cut benefits though. Louisiana will lower its annual cap from $150 million to $125 million starting July 1, 2025. Budget concerns have led some states to cap their previously uncapped programs. This shows the ongoing debate about these incentives’ economic value.
Producers need to stay up-to-date with program rules. New incentives often include specific rules about diversity initiatives, local hiring, and infrastructure investments that can affect eligibility.
The competitive landscape between states
States compete harder than ever for film productions. Industry experts call it a “race to the top” in incentive offerings. States that count Above-The-Line (ATL) costs as qualified spend with few compensation limits attract big-budget productions better.
Georgia has earned its nickname “The Hollywood of the South” with a 30% transferable tax credit and no annual funding cap. Productions can get an extra 10% by showing Georgia’s promotional logo, reaching up to 40%. This generous program pulls many major studio productions from California.
New Mexico offers a 25-40% refundable tax credit and qualifies ATL costs up to $40 million. Mid-to-large budget features love this mix of high returns and ATL qualification. The Oscar-winning “Oppenheimer” chose to film there for these reasons, taking advantage of the New Mexico tax credit.
Traditional production centers feel the pressure. Los Angeles has lost ground in film and television employment, dropping from 35% in 2022 to 27% in 2023. California’s national market share fell from over 54% to 46%.
California now takes bold steps to win back productions that left for other states. Beyond raising the cap, stakeholders want to boost the percentage to 30%. They also plan to include ATL costs, unscripted TV, and post-production projects.
Smart producers must look beyond the basic percentage when assessing each state’s offering. They need to think about refundability, transferability, and specific requirements that might affect their production type.
Top-Tier States for Film Production Tax Credits
Three states stand out for their exceptional tax credit programs in the film industry. These production powerhouses attract filmmakers through strategic collaborations that maximize financial benefits.
Georgia: The Hollywood of the South
Georgia’s incredible journey to become a film production game-changer started in 2008. Governor Sonny Perdue signed legislation that created one of America’s most producer-friendly incentive programs. The state keeps things simple with a 20% transferable tax credit on productions spending at least $500,000. You can get an extra 10% by adding Georgia’s peach logo to the credits as part of the Georgia Entertainment Promotion.
Georgia’s film tax credit shines because it’s straightforward and dependable. The program has no annual funding cap or sunset clause, which gives producers the certainty they need for long-term planning. This unlimited approach has helped Georgia become the country’s third-largest producer of film and TV.
The numbers tell an amazing story. The film industry spent just $93 million in Georgia in 2007 before the incentive. This number jumped to over $2 billion by 2016. The state’s direct spend reached $4.4 billion in 2022. The government’s estimates show that film production created a $7 billion economic boost through jobs and tourism in 2016 alone.
Georgia’s program stands out because:
Both resident and non-resident workers’ payrolls qualify for the credit
No salary caps on individuals paid by 1099, personal service contracts, or loanouts
Post-production of Georgia-filmed projects qualifies if completed in-state
Transferable credits that can be sold to Georgia taxpayers at a slight discount
The program’s success comes with questions. The state invested about $1.35 billion in film credits last year. Some economic studies suggest returns are less than 20 cents per dollar.
New Mexico: Breaking down the 25-40% credit system
New Mexico has built its reputation as a filmmaker’s paradise with a competitive tiered incentive structure. The state starts with a base refundable tax credit of 25% on qualified production expenditures. The program really shines with its potential bonuses, making it one of the best states for film industry incentives.
Productions can stack up additional tax credits through several options. TV series or pilots can earn an extra 5% by meeting specific criteria, including orders for at least six episodes with a New Mexico budget of at least $50,000 per episode. Using qualified production facilities like soundstages or standing sets can add another 5%.
The state sweetens the deal with a 10% bonus for shooting in areas at least 60 miles outside of Santa Fe and Albuquerque. Qualifying below-the-line non-resident crew can earn a 15% credit, capped at 20 positions.
The program’s annual cap sits at $120 million for fiscal year 2024 and will grow to $160 million by FY28. Companies like Netflix, NBC Universal, and 828 Productions have earned special “Film Partner” status, giving them access to unlimited funds.
This approach makes New Mexico particularly attractive for TV series and productions willing to venture outside major cities. Credits can reach up to 40% of qualified expenses, making it a top choice for new Mexico movies and productions.
New York: Navigating the Empire State's incentives
New York leads the pack among states with capped programs. Its film production tax credit helps maintain the state’s historic position as a production hub. The program offers a fully refundable 30% credit on qualified production costs, with $700 million in annual funding through 2034.
Big-budget productions over $500,000 can grab an extra 10% credit on qualified labor expenses in specific upstate counties. This setup encourages productions to look beyond New York City’s five boroughs.
The program has clear requirements. Projects shooting mainly in Westchester, Rockland, Nassau, Suffolk, or New York City’s five boroughs need a minimum budget of $1 million. Productions must also do 75% of their facility work at qualified production facilities to get full benefits.
New York offers something special – a separate post-production credit for projects filmed elsewhere but finished with New York-based companies. Since January 2023, applicants must submit diversity plans with specific hiring goals for underrepresented groups.
The program might be more structured than Georgia’s unlimited offering, but New York’s substantial funding and upstate incentives help it compete strongly against emerging production hubs.
Emerging States With Competitive Film Incentives
States beyond the major production hubs are making waves with competitive film incentives. These up-and-coming locations give cost-conscious producers fresh backdrops and great tax benefits.
Kentucky film tax credit program overview
Life as a freelance documentary filmmaker lets you pick y
Kentucky has become a serious player in the film incentives world with its strong Kentucky Entertainment Incentive (KEI) Program. The state gives a fully refundable tax credit of 30% on qualifying expenses and non-resident payroll costs. Producers get a better deal of 35% credit for resident payroll costs. You can get an extra 5% boost by filming in Enhanced Incentive Counties, which means you could see returns of up to 35% on qualified spending.
The program’s yearly budget is $75 million as of January 2022, and each project can get up to $10 million. This high funding lets Kentucky work with bigger productions while staying financially stable.
Kentucky stands out because of its reasonable minimum spending rules. Kentucky-based companies only need to spend $125,000 for feature films and TV programs, while out-of-state companies need $250,000. Documentary projects have it even easier—local companies need just $10,000 and out-of-state productions $20,000.
“Film Lexington,” a new resource hub that helps producers on location, opened its doors. The area’s production numbers kept growing through 2023-2024, and about 19 projects got approved for Lexington and Central Kentucky. The region also got LEX Studios, a 50,000 square foot facility with three sound stages.
Oklahoma's growing incentive package
Oklahoma changed its film scene with the Filmed in Oklahoma Act of 2021, which created one of the country’s best incentive programs. You start with a 20% cash rebate that can go up to 30%. You can get these extra boosts by:
Working in rural communities
Filming in small municipalities
Using Oklahoma soundstages
Making TV shows and multi-film deals
Doing post-production work in state
Using Oklahoma music
The numbers tell quite a story—film spending in Oklahoma jumped by $161.3 million yearly after they raised the annual rebate budget from $8 million to $30 million in 2021. This boost moved Oklahoma’s program from 26th to 18th largest in the U.S..
Oklahoma’s facilities have grown a lot. The state now has four certified soundstages with more than 1.3 million square feet of stage space and 279,000 square feet for production. Big productions did well here—”Killers of the Flower Moon” got over $16 million in two big payments, and “Tulsa King” landed the biggest single payment of over $14 million.
The Cherokee Nation Film Office started its own incentive for shoots within tribal lands. Productions need to spend at least $50,000 in Oklahoma with $25,000 of that in Cherokee Nation territories.
Montana's underutilized opportunities
Montana might have stunning scenery, but filmmakers haven’t tapped into its full potential yet. The state’s media production tax credit starts at 20% for production costs and can reach 35% with extra credits.
The Big Sky Film Grant program builds partnerships with filmmakers and creates local film jobs. Productions must shoot at least 50% of their principal photography in Montana. Senate Bill 540 gave the program a makeover in 2023, putting more focus on rural areas.
Montana’s incentive system works like this:
25% back on resident crew pay
15% for non-resident crew pay
30% for Montana university student pay
10% more for campus filming and equipment rentals
5% extra for spending in underserved areas
The state sets aside $12 million yearly for tax credits, and you can apply again starting November 12, 2024. While not the biggest program out there, Montana’s incentives work great for productions that want the state’s unique look.
The Montana Film Office, 50 years old, shows off the state as a prime spot and helps throughout production. Their experienced team connects you with talent, crews, locations, and support services.
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Choosing the Right Incentive Type for Your Production
Your production’s bottom line depends heavily on choosing the right film incentive mechanism. A good financial strategy requires you to know the differences between transferable credits, refundable incentives, and grant programs.
When transferable tax credits make sense
Production companies can sell unused credits to businesses that have tax liability in the issuing state. This works best if you don’t have much tax liability where you’re filming. These credits usually sell for 80-90% of their face value. Market conditions and broker involvement determine the exact rate.
Transferable credits work best for:
Productions filming in states like Georgia that have strong buyer markets
Big budget projects that can handle the 10-20% discount on sales
Companies that can wait to get their money, since sales happen after production ends
Georgia shows how well this works. They have an uncapped transferable tax credit system giving 20% on qualified expenditures. You get an extra 10% for including the state’s promotional logo. California takes a similar approach. They give a 25% transferable tax credit to independent films with budgets up to $10 million.
Benefits of refundable credits for independent films
The state pays you directly with refundable tax credits after you file your tax return. These credits give you more value than transferable ones because you get dollar-for-dollar reimbursement instead of a discounted amount.
Independent filmmakers get several key benefits:
You don’t need to find credit buyers, which saves on broker fees and discounts
You get your money faster than non-refundable options
You can plan your budget better with predictable cash flow
States with refundable credits have better production economics. Take New York as an example. Lenders there often loan against the entire credit amount. But with transferable credits, they only advance funds based on the discounted value.
New Mexico offers a great example. Their base refundable tax credit starts at 25% on qualified expenditures. This can go up to 40% if you film in rural areas and use qualified facilities.
Grant programs for smaller productions
Small productions often do better with direct cash grants. These grants are straightforward and don’t require you to file state tax returns.
Grant programs help:
Short films and documentaries with small budgets
Student filmmakers and first-time directors
Projects that have cultural or artistic value but might not make much money
Film Independent gives out more than $845,000 each year in cash and production services. Individual filmmaker grants range from $3,000 to $50,000. Their Amplifier Fellowship stands out. It gives six Black artists $30,000 each with no strings attached, plus year-round support.
Filmmakers Without Borders keeps things flexible. They offer different levels of funding: development ($250-$1,000), production ($500-$5,000), and post-production ($250-$2,500). The best part? You never have to pay these grants back.
The right incentive type depends on your specific situation. Companies with multiple projects might want to mix and match different incentives across states to get the most financial benefit.
Location-Based Decision Making
Film producers need to look beyond the highest tax incentives when picking shooting locations. Smart producers know that locations shape both the creative output and money matters. They must balance many factors beyond just tax credits.
Balancing creative needs with financial incentives
Creative vision and money create natural tension in picking locations. Studies show that productions can face budget increases of 10-15% because of unexpected location issues. Kentucky’s film tax credit might give great returns, but producers must review if the location works for their story.
Period pieces and ethnographic films need authentic locations despite better money deals elsewhere. A Montana filmmaker put it well: “We shot on Native American reservations because I wanted to shoot the film where the story came from”.
Montana’s film commissioners get this balance. They moved from complex tax incentives to an easy rebate grant program. Their goal is “getting cash into the hands of films that need it quickly”. Now producers can stay true to their vision while getting financial perks.
Evaluating infrastructure and crew availability
Places with great tax credits but poor infrastructure can turn into budget disasters. Before filming in a state with good incentives, producers should check:
How close they can rent gear
Whether soundstages exist for building sets
What catering options exist
How to find background performers
Local crew options matter too. Georgia’s Reel-Crew™ directory lets producers search and find skilled local talent and vendors. This cuts down travel and housing costs. Local pros bring regional knowledge and connections, which saves money on out-of-state crew expenses.
Film commissions are a great way to get location ideas, process guidance, and help with government agencies. They give accurate details about infrastructure. These commissions want to bring productions that hire local crews, rent equipment, book hotels, and use other services.
Cost of living considerations for extended shoots
Long production times magnify how location costs affect more than just incentives. Louisiana’s lower living costs mean less money spent on food and lodging. This lets producers put more cash into making the show better.
Hotel costs vary a lot between places. Cast members usually spend $1,470 weekly on hotels. Food costs hit about $50 per person daily for relocated crews. Productions face extra costs when filming away from studio hubs:
City permit fees average $800
Insurance needs ($1 million minimum in NYC)
Moving between filming spots
COVID-19 has created new location challenges. Productions now deal with shorter workdays (10-hour “French hours” instead of 14), different start times, and health teams. Even smaller productions need health coordinators with 10-15 staff members.
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Maximizing Oregon Film Tax Credit and Similar Programs
Oregon does things differently from other states when it comes to film incentives. The state uses a cash rebate system instead of tax credits. Producers can save money while filming in this state’s diverse landscapes by understanding how this system works.
Understanding Oregon's unique rebate structure
The state runs two main incentive programs that work together to give maximum benefits. The Oregon Production Investment Fund (OPIF) gives a 25% rebate on goods and services from Oregon-registered vendors and a 20% rebateon Oregon-based payroll. The Greenlight Oregon Labor Rebate (GOLR) adds another 6.2% on payroll, which means productions can get up to 26.2% back on wage expenses.
The OPIF program has a yearly cap of $20 million. No single project can get more than half of the available funds in a fiscal year. The cash rebate system pays funds straight to producers after spending verification, unlike tax credits that need to be sold at a discount.
Oregon doesn’t have sales tax, which saves even more money. The total economic benefit can go beyond 30%.
Qualifying expenses in Oregon
Productions need to spend at least $1 million in Oregon to qualify for the main OPIF and GOLR programs. Feature films, television series, documentaries, animated features, post-production, and interactive games can all qualify.
The qualifying expenses include:
Cast and crew payroll (up to $1 million cap for above-the-line wages)
Equipment rentals from Oregon-registered companies
Location fees, permits, and accommodation costs
In-state post-production services
Every applicant needs a written diversity, equity, and inclusion policy. They must also have a written procedure to handle harassment or discrimination claims.
Combining with local incentives
Smaller productions can use the Local Oregon Production Investment Fund (L-OPIF). It offers similar rebate percentages but needs only $75,000 in minimum spend. Oregon resident producers or Oregon-headquartered companies can qualify if 80% of speaking cast and crew are Oregon residents.
The Regional Oregon Production Investment Fund (R-OPIF) helps productions filming outside Portland. It gives two options: $200 per day for each person traveling outside the Portland Metro Zone (with limits of $10,000 daily and $50,000 total), or an extra 10% on top of the OPIF award. This extra percentage applies to projects that spend at least half their production days outside Portland.
Your production can get the most financial benefits by planning early. Make sure to contact the Oregon Film office to review your budget before applying.
Special Considerations for Different Production Types
Each production format comes with its own set of challenges to get state film incentives. The right understanding of these differences can boost your project’s financial rewards.
Feature film vs. television series incentives
States often treat feature films and TV series differently in their incentive programs. California splits its annual USD 330 million funding among TV projects, TV series that relocate, and both independent and non-independent features. TV series get better deals too. Those that move to California in their first production year can claim a 25% credit on qualified spending, while most productions get 20%.
TV series also tend to get better long-term benefits than feature films. Take New Mexico – it gives an extra 5% credit to TV series that have at least six episodes ordered and spend $50,000 per episode. Illinois has its own approach. It caps qualifying non-resident actor wages at two performers for projects under $25 million, but lets larger projects claim four non-resident actors.
Documentary and independent film opportunities
Independent filmmakers face their own hurdles, but many incentive programs have special perks just for them. California gives independent films with budgets over $1 million a better deal – a 25% credit on the first $10 million in qualified costs.
Independent productions benefit most from rebates because they get cash faster than transferable credits. The money usually arrives 60-90 days after finishing principal photography. Mississippi stands out by offering special documentary incentives with much lower minimum spending requirements.
Commercial and music video incentive options
Shorter productions now qualify for state incentives too. Colorado welcomes TV commercials and music videos in its program, right next to traditional productions. Texas does something similar through its Texas Moving Image Industry Incentive Program.
Commercial incentives focus more on local economic benefits than telling stories. Many states have opened up their programs. Illinois added some interesting options to its incentive program in 2023 – game shows, national talk shows, and contest-based reality programs can now apply.
Creating a Multi-State Incentive Strategy
Smart producers use multiple state film incentives at the same time to maximize their production budgets. They split production across different jurisdictions strategically. This approach helps them access more funding than a single state program could provide.
When to split production between states
Production splits between multiple states work best when:
You can vary risk by investing in smaller projects across different locations to maximize state-specific benefits
Your script has diverse settings that could be filmed in states with complementary incentive programs
One state gives excellent incentives but lacks the infrastructure needed for certain specialized scenes
You’re filming in a state with a capped program that’s close to its annual limit
The decision to pursue multi-state filming should balance creative requirements with financial chances. To name just one example, shooting mountain scenes in Colorado (20% rebate) and urban sequences in Georgia (30% transferable credit) might give both visual authenticity and optimal incentives.
Coordinating applications across multiple jurisdictions
Multi-state incentives need meticulous planning. Each program has unique application deadlines, spending requirements, and qualification criteria. Here’s how to coordinate:
Research specific timing requirements for each state’s program
Establish separate accounting systems to track qualified expenditures by jurisdiction
Build relationships with film offices in each location before production
Hire an incentive management specialist to streamline the process
You must track different spending thresholds—ranging from $50,000 in Mississippi to $1 million in New York. You’ll also need to guide through varying residency requirements for crew members.
Case study: Productions that successfully used multiple incentives
“306 Hollywood,” an independent documentary, shows a successful multi-state incentive strategy. The filmmakers combined $215,000 in grants with $250,000 in equity financing. They supplemented this with $185,000 from their production company. Their approach focused on long-term career sustainability rather than immediate financial returns. They maximized visibility through strategic distribution.
This balanced funding approach—drawing from different geographic sources—created better financial flexibility than depending on any single incentive program.
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Ready to Get Some Tax Credits?
Film incentives help producers maximize their production budgets effectively. The benefits are now accessible to more people, from Georgia’s uncapped 30% transferable credit to New Mexico’s 40% maximum rebate. These changes have altered the map of film production and created new hubs beyond the traditional centers.
Producers need to plan carefully and get a full picture to create successful incentive strategies. Each state’s program has its own advantages – refundable credits work well for independent films, while larger productions might benefit more from transferable credits. Success comes from matching your project’s needs with the right incentive type and location.
States keep updating their programs to remain competitive. Producers need to track program changes and requirements closely. Those who understand these incentives, plan ahead, and build strong relationships with state film offices can save substantial costs.
Film incentives are just one factor in choosing a location. The best results come from balancing creative needs, strong infrastructure, and total production costs with available incentives. Smart planning and strategic decisions can turn state film incentives into a major financial advantage for any production.
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