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10 states offering big incentives for filmmaking
Creating a film is one of the most expensive expressions of art, with the to make. Of course, feature films cost even more. Many times, movies are financed from various sources such as bank loans, private financing, and grants. Becoming familiar with tax credits can help save productions money, making a large film project a bit more attainable.
In order to boost in-state movie productions鈥攚hich often help the local economy鈥攅ach state across the U.S. offers tax benefits to filmmakers. The incentive packages vary from state to state, but many include production rebates, which reduce the costs of making movies, TV shows, and commercials, in some states. For independent filmmakers, the incentives also help entice potential investors. Soft money (funds that don鈥檛 need to be paid back) is oftentimes more appealing to investors as the risk of a low return on investment is a possibility.
California recently took efforts to signed a bill that grants the state鈥檚 TV and film industry a surplus of $330 million in tax credits. This is in addition to the $330 million that the state already shells out to Hollywood for its current incentives program.
Due to the COVID-19 pandemic, in production between June 1, 2020, and May 31, 2021. Film release dates got pushed back and film crews were forced to adapt to new ways of working鈥攁nd quickly. The industry however is bouncing back and in full force with some states expanding their film incentive tax credits.
researched filmmaking incentives state-by-state鈥攆rom minimum spending per production to resident and nonresident tax incentives鈥攁nd listed 10 of the states that are most financially beneficial to the filmmaking industry. Incentives in each state may include TV, commercial, or music video productions, which were taken into account when building this list.
California
Hollywood has long been considered the film mecca of the U.S. as its mild climate and diverse landscapes are ideal for outdoor filming. Filmmaking is one of the state鈥檚 biggest, most profitable industries, for California employees. In the past five years, the state generated close to , with an estimated cost of $1.5 billion to taxpayers through California鈥檚 Film and Television Tax Credit 2.0 Program.
Although there are efforts to focus on filming in the Los Angeles area, includes an additional tax credit for nonindependent film projects that film In 2006, San Francisco created its own film incentive program called the , which offers eligible productions a on fees paid to the city for scripted or nonscripted TV episodes, documentaries, or feature films.
Georgia
Georgia may be known for being one of the biggest international airline hubs in the nation, but another industry is becoming a profitable industry for the Peach State. In 2020 alone, despite worldwide production shutdowns, Georgia still managed to . Georgia was the first state to develop a 鈥渂est practices鈥 outline during the COVID-19 pandemic for TV and film production, an effort created by the Georgia Film Office. Some popular productions filmed in Georgia include 鈥淎vengers: Endgame,鈥 鈥淭he Hunger Games: Catching Fire,鈥 and 鈥淏lack Panther.鈥
Illinois
A solid selection of cast and crew members, diverse location options for filming, and a recently expanded tax incentive program makes Illinois an ideal state for filmmakers. for eligible candidates, including both resident and nonresident compensation. Previously, the incentive only covered $100,000 for resident filmmakers. The new legislation goes into effect in July 2022.
This legislation could . The Illinois Film Production Tax Credit Act with a credit offer of 30% for eligible spending. Over the years, several productions have been filmed in Illinois including 2022鈥檚 鈥淭he Batman,鈥 where parts of the Gotham City scenes were shot in Chicago.
Kentucky
When it comes to , the state offers advantageous film incentives, making it one of the most affordable places in the U.S. for filming. was created in 2009, and at the time, film incentives were approved for 20% of spending. In 2015, lawmakers increased the amount to 35% for Kentucky residents and 30% for out-of-state workers. Over the years, productions such as 鈥淢om and Dad鈥 starring Selma Blair and Nicholas Cage and 鈥淭he Stand-In鈥 with Drew Barrymore have been filmed in Kentucky.
Louisiana
Louisiana鈥檚 mild temperatures and high-value tax incentives have helped the state鈥檚 film industry to create new jobs and businesses. Louisiana also provides diverse filming locations in addition to massive soundstages and several post-production facilities. There鈥檚 even , which is advantageous to the workers as well as the local economy. From Shreveport to New Orleans, some productions that have been filmed in Louisiana include 鈥淨ueen Sugar,鈥 鈥淣CIS: New Orleans,鈥 and 鈥淕irls Trip.鈥
Massachusetts
The , which provides a 25% tax credit on production costs, is scheduled to expire at the end of 2022. Productions that spend $50,000 or more in the state meet eligibility requirements for a 25% tax credit. And if filmmakers spend more than $50,000 on a production, they will receive an additional 25% payroll tax credit. Despite the proposed changes to the program, those in favor of the tax credit are pushing to make it permanent as many claim it brings jobs to the local economy. Over the years, Massachusetts has been a hidden gem for filmmakers. Movies filmed in the state include Greta Gerwig鈥檚 鈥淟ittle Women鈥 and 鈥淐ODA,鈥 which took home the Academy Award for Best Picture in 2022.
New Mexico
New Mexico has become a booming destination for filming, with millions of dollars pouring into the state鈥檚 economy with generous tax incentives. when they shoot projects in New Mexico. The Land of Enchantment also scored a huge win when Netflix announced plans to . Although infrastructure plans are still being finalized, there鈥檚 been documented reports that it鈥檚 a goal to have the studio completed by 2023. Netflix鈥檚 upcoming action-thriller 鈥淭rigger Warning,鈥 starring Jessica Alba, is one of the latest films shot in New Mexico. The 鈥淏reaking Bad鈥 spin-off 鈥淏etter Call Saul鈥 saw its sixth season also filmed in the state.
New York
New York has often been a booming place for filmmakers. The state sets aside specifically to entice filmmakers. Up until 2026, if a film production budget exceeds $500,000, it is eligible for a 10% tax credit on labor expenses in most counties. Production companies may also be eligible for a 30% tax credit for production costs in New York state, but they can receive if post-production took place outside of the city in upstate New York.
Large production companies are taking notice. In September 2021, streaming giant Netflix opened , which includes six soundstages in addition to editing suites. Other companies scheduled for construction of new facilities include Broadway Stages and Steiner Studios, which would lead to more employment opportunities and boost business for local restaurants that would benefit from additional diners in the areas.
Washington
Washington state may have one of the smallest film incentive programs in the country but lawmakers are hoping to change that. would boost the Motion Picture Competitiveness Program funding from its . This bill would also allow businesses to support Washington鈥檚 creative economy and promote film, commercial, and TV projects. Several filmmakers worked in Washington state to round out their productions, including titles such as 鈥10 Things I Hate About You鈥 and 鈥淭he Ring.鈥
West Virginia
West Virginia may not exactly evoke images of Hollywood glam, but it鈥檚 one of the states in the nation that鈥檚 becoming more appealing to filmmakers. This is partly due to the , which provides financial incentives to filmmakers working on productions in the state, such as bringing back . With this tax credit, filmmakers could spent on films, TV shows, and music videos in West Virginia that cost $50,000 or more to create. West Virginia previously had a tax credit that ended in 2018 after a government audit concluded the credit provided 鈥渕inimal economic impact.鈥 Supporters of the incentives, however, have expressed there are economic development benefits that can be brought to communities. Parts of the Oscar-winning classic 鈥淪ilence of the Lambs鈥 was filmed in West Virgina.