United States of America

OUT OF STATE (CALIFORNIA) FILM INCENTIVE PROGRAMS

In recent decades, the landscape of filmmaking in the United States has been significantly influenced by the emergence of various state-level film incentive programs. These initiatives, designed to attract film and television productions, offer a range of financial incentives, tax credits, rebates, and grants to production companies willing to shoot within their jurisdictions. This strategy aims to bolster local economies, create job opportunities, and position states as competitive destinations for the thriving entertainment industry.

The allure of these incentives has transformed the filmmaking industry, prompting producers to carefully consider location options based not only on creative considerations but also on economic incentives. From the bustling streets of New York to the sun-soaked landscapes of California, and everywhere in between, states have tailored their programs to cater to the diverse needs of filmmakers.

At their best, film incentive programs serve as powerful catalysts for economic growth and cultural enrichment. By luring productions to their locales, states stimulate spending on local goods and services, generate employment across a spectrum of industries, and elevate their global visibility through the films and television series produced within their borders. Moreover, these programs often foster the development of local talent and infrastructure, nurturing a sustainable ecosystem for future creative endeavors.

However, the efficacy of film incentive programs is not without scrutiny and debate. Critics argue that while these programs may attract productions in the short term, the long-term benefits may not always materialize as expected. Skeptics point to instances where states have experienced budget shortfalls due to generous incentive packages, leading to questions about their overall cost-effectiveness. Additionally, concerns have been raised about the potential for abuse and manipulation, with some production companies exploiting loopholes in incentive guidelines for personal gain without delivering commensurate economic or cultural benefits to the host state.

Moreover, the competitive nature of these programs has engendered a race to the bottom mentality, with states continually augmenting their incentives to outbid one another. This escalation can strain state budgets and diminish the overall sustainability of the incentives' model.

In conclusion, the United States film incentive programs represent a complex and multifaceted venture with both positive and negative aspects. While they undeniably provide significant economic opportunities and cultural enrichment, their long-term viability and impact remain subjects of ongoing scrutiny and debate. As states navigate the delicate balance between incentivizing creative industries and safeguarding fiscal responsibility, a nuanced understanding of the strengths and limitations of these programs is essential for informed policymaking and strategic decision-making within the filmmaking community.

    • Washington - Rebate - 500K Min Spend - Return - 30% with an Additional 20% - Potential 50% Rebate

    • Nevada - Transferable Tax Credit - 500K Min Spend

    • Utah - Refundable Tax Credit - 500K Min Spend

    • Montana - Transferable Tax Credit - 300K Min Spend

    • New Mexico - Refundable Tax Credit - No Min Spend

    • Arkansas - Transferable Tax Credit/Rebate - 200K Min Spend, 50K (post only)

    • Louisiana - Transferable Tax Credit - 300K Min Spend - Although other states have caught up to Louisiana in terms of tax incentives (with a few being slightly better), the “Pelican State” has almost the most illustrious film history behind California and New York. With their 30% tax incentives and $100,000 minimum, Louisiana has become a hot-spot for everything from Hollywood-level productions like The Curious Case of Benjamin Button to independent films like Ain’t Them Bodies Saints and TV Shows like True Blood and True Detective. Incentive: 30%, plus 10% for resident labor Minimum spend: $300,000

    • Mississippi - Rebate - 50K Min Spend

    • Tennessee - Grant - 200K Min Spend - If you spend $200,000 or more on Qualified Tennessee Spend (QTE), either per episode or per project, you are eligible for a cash rebate in the form of a 25% grant. We aren’t big on red tape or fine print; there’s no per project cap, and this is not a first-come, first-served program subject to our available funds and our discretion. The Tennessee Entertainment Commission (TEC) Production Incentive offers up to a twenty-five percent grant on Qualified Tennessee Expenditures to Production Companies filming in Tennessee. Production companies enter into a Grant Contract with the Tennessee Department of Economic and Community Development (TNECD) upon review and approval from the TNECD Grants Committee. The incentive, funded through the Film/TV Fund, is distributed to Qualified Production Companies through a Grant Contract. Aiming to market the state, and promote job creation and economic development, the program was enacted with the best interests of the State of Tennessee. The TEC and TNECD have the sole discretion of awarding these incentives.

    • Alabama - Refundable Tax Credit / Tax Rebate - 500K Min Spend – 25% of certain production expenditures that are incurred in Alabama plus 35% of the payroll paid to Alabama residents.

    • Georgia - Refundable Tax Credit - 500K Min Spend

    • Kentucky - Refundable Tax Credit - 125K - 250K Min Spend - Kentucky’s film history, like the state, is closely connected with its famous namesake horse-racing event: the Kentucky Derby. If you don’t count all the films that have filmed at least scenes at the famous Churchill Downs, you’ll actually find that its tax incentives are quite strong and ripe for some non-horse-themed thrillers like The Insider, A League of their Own and the Fort Knox-based Stripes. Incentive: 30% (35% for resident labor and economically distressed areas) Minimum spend: $250,000

    • Pennsylvania - Transferable Tax Credit - 60% of Budget Min Spend

    • Maryland - Refundable Tax Credit - 250K Min Spend (25K Small Films)

    • Virginia - Refundable Tax Credit/Grant - 250K Min Spend

    • West Virginia’s 27% tax offering (with an extra 4% for employing at least ten residents full time) is a slight drop, but still nothing to shake a stick at. West Virginia’s minimum of $25,000 also makes low-budget and independent film making a reasonable option not seen elsewhere. West Virginia’s own history includes partial filming of Super 8 and The Silence of the Lambs.

      • Incentive: 27%, plus 4% if employing at least ten residents full time

      • Minimum spend: $25,000

    • Maine - Tax Credit Rebate - 75K Min Spend -

    • Illinois’ 30% tax incentives, combined with an additional 15% for resident labor from underemployed areas, adds up to a pretty solid proposition in a state that has both rural and urban areas to boot.

      • Incentive: 30%, plus 15% for resident labor from underemployed areas

      • Minimum spend: $100,000

    New Mexico’s landscapes as much as it did its tax incentives. A popular western filming state, New Mexico’s 25% film tax incentive is outpaced by its 30% TV, with an additional 5% available for resident crew wage kickers — and the $0 minimum is unquestionably enticing. Projects fully or partially filmed in New Mexico include Terminator: The Sarah Conner Chronicles and The Avengers.

    • Incentive: 25% for film, 30% for TV, plus 5% for resident crew wages if filming at least ten days at qualified facilities (fifteen days if over $30 million)

    • Minimum spend: $0

    Alabama fits squarely into the “not surprised to see it on this list” category, as it seems very difficult to draw film productions to the home of the Crimson Tide. Nonetheless, there have been some successful Alabama ventures like Talledega Nights and non-Nascar films like Big Fish and A River Runs Through It. Of these top ten states, Alabama’s 25% tax incentive and 35% on resident labor with a $500,000 minimum is still pretty good.

    • Incentive: 25% of expenses (35% for resident labor)

    • Minimum spend: $500,000

  • By Utilizing various locations in various states across the US will enhance storytelling and reduce production costs abling us to produce a higher quality indie film.