Revolution Resource Center

Tax Incentives

Movie production incentives are tax benefits offered state-by-state throughout the United States to encourage in-state film production.

These incentives are designed to attract filmmakers and production companies to a particular location by offering them certain tax benefits or rebates on eligible expenses incurred during production.

Impact of a movie being produced in a particular state

Producing a film in a particular U.S. state can significantly impact various aspects of the production process, the local economy, and the region's overall cultural and tourism landscape. Here are some of the key impacts:

Film Tourism and Branding:  

Transferable Non-Refundable Tax Credits: A transferable film tax credit can be sold or brokered to another company that has a tax liability in the given state.

Film Tax Rebates: Film tax rebates are paid to production companies by the state, usually as a percentage of the company's qualified expenses. They are similar to grants, but they are taxable.

Bonuses: These are additional perks offered to producers, such as shooting at locations free of cost, special permissions for filming in public places, hiring local staff, or discounts while buying from local businesses.

Refundable Tax Credit: This is applicable only on tax credits. The state repays production companies' excess production credits after all income tax is paid.

Grants: The state issues a tax-free payment to production companies for filming.  

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