TAX CREDITS AND INDY FILM MAKERS PARTNER TO CREATE CONTENT AND OPPORTUNITY
How filmmakers utilize the tools available to insure returns to their investors.
The film industry is a vital part of the entertainment sector and the economy. However, producing films requires significant investments, and the costs can add up quickly. In recent years, many states in the US have introduced tax incentives for filmmakers to attract productions to their states. These incentives have proven to be a successful tool for funding films and generating economic growth. In this article, we will look at some of the states with the best current film incentives and explore how these incentives help secure private investment for new film production.
Tax incentives can take the form of tax credits, rebates, or exemptions on various expenses related to film production. They can be applied to qualified in-state spending, including salaries for cast and crew, equipment rental, and other production expenses.
Tax incentives for filmmakers are an important tool in funding films. They not only help
filmmakers cut costs and attract private investment, but they also provide an
economic boost to the state in which the film is produced.
The incentives help reduce the overall cost of production for filmmakers, making it easier for them to get financing and increasing the likelihood of making a profit.
Here are a few of the current offerings to filmmakers (at the time of this writing):
Georgia - Known as the "Hollywood of the South," Georgia offers a 20% tax credit for productions that spend at least $500,000 in the state. Recent productions include "The Falcon and the Winter Soldier" and "The Walking Dead." https://www.georgia.org/industries/film-entertainment
Louisiana - Louisiana offers a 25% tax credit for in-state expenditures for films with budgets over $300,000. Recent productions include "Queen Sugar" and "Black and Blue." https://www.louisianaentertainment.gov/
New Mexico - New Mexico offers a 25-30% refundable tax credit for in-state spending, as well as a 50% reimbursement for post-production costs. Recent productions include "Breaking Bad" and "Better Call Saul." https://nmfilm.com/
California - California offers a 20% tax credit for productions that spend at least $1 million in the state. Recent productions include "Stranger Things" and "Big Little Lies." https://www.film.ca.gov/
New York - New York offers a 30-35% tax credit for productions that spend at least $1 million in the state. Recent productions include "Succession" and "The Marvelous Mrs. Maisel." https://esd.ny.gov/industries/film-television-production
Hawaii - Hawaii offers a 20-25% refundable tax credit for productions that spend at least $200,000 in the state. Recent productions include "Hawaii Five-0" and "Jurassic World." https://filmoffice.hawaii.gov/
Massachusetts - Massachusetts offers a 25% tax credit for in-state expenditures, as well as an additional 5% if the production films outside of the Boston area. Recent productions include "Little Women" and "Defending Jacob." https://www.mass.gov/orgs/massachusetts-film-office
Pennsylvania - Pennsylvania offers a 25% tax credit for in-state expenditures, with an additional 5% for productions that use a qualified production facility. Recent productions include "Mindhunter" and "The Irishman." https://www.pa.gov/film-office/
Illinois - Illinois offers a 30% tax credit for in-state expenditures, with an additional 15% for hiring local crew. Recent productions include "Chicago Fire" and "The Exorcist." https://www2.illinois.gov/dceo/Pages/Film.aspx
North Carolina - North Carolina offers a 25% refundable tax credit for in-state spending, with an additional 5% for productions that hire a majority of local crew. Recent productions include "Outer Banks" and "The Hunger Games." https://filmnc.com/
Kentucky - Kentucky offers a 30% refundable tax credit for in-state spending. Recent productions include "The Walking Dead: World Beyond" and "American Animals." https://www.kentuckyfilmoffice.com/
Oregon - Oregon offers a 20% cash rebate or tax credit for in-state spending, with an additional 16.2% for hiring local crew. Recent productions include "Portlandia" and "Grimm." https://oregonfilm.org/
Colorado - Colorado offers a 20% cash rebate for in-state spending, with an additional 5% for hiring local crew. Recent productions include "Top Chef" and "The Hateful Eight." https://coloradofilm.org/
In conclusion, tax incentives for filmmakers are an important tool in funding films. They not only help filmmakers cut costs and attract private investment, but they also provide an economic boost to the state in which the film is produced. States that offer attractive incentives have seen a surge in film production and job creation in the film industry. For filmmakers looking to produce their next project, it's worth considering states with strong film incentives to maximize their chances of success.
Rick Balentine
Producer/Composer
Temple Gate Films
Rick Balentine is a founding partner with Temple Gate Films LLC, a film production company based in Charlotte, North Carolina. He can be reached at rick,balentine@templegatefilms.com