5 Best States Offering Film Tax Credits in USA
The American film industry has been a powerhouse for decades, with Hollywood standing as the epicenter of cinematic creativity. However, in recent years, various states across the country have implemented enticing film tax credit programs to lure filmmakers away from traditional hubs like California.
These incentives aim to stimulate local economies, create job opportunities, and establish new film production centers. In this article, we will explore the five best states offering film tax credits in the USA
Film Tax Credits by State
1. New Jersey Film Tax Credits
New Jersey's film tax credit program, managed by the New Jersey Economic Development Authority, offers a 30% or more transferable tax credit on qualified expenses. Businesses located in specific counties in New Jersey may qualify for additional credits, including a 2% diversity bonus.
Located adjacent to major film hubs like New York City and Philadelphia, New Jersey provides cost-effective alternatives for filmmakers with its diverse range of landscapes.
Note: Want to know if your company is eligible for film tax credit in New Jersey? Fill out our 2-minute questionnaire now!
2. New York Film Tax Credits
New York's film tax credit program, administered by the Empire State Development Corporation, provides up to 30% tax credit on qualified production expenses within the state. An additional 10% credit is available for productions filmed in certain upstate counties.
The state boasts diverse landscapes and urban settings, making it an attractive destination for filmmakers seeking versatile locations.
3. Georgia Film Tax Credits
Georgia's film tax credit program, overseen by the Georgia Department of Economic Development, offers a substantial 20-30% transferable tax credit on qualified expenditures.
Known as the "Hollywood of the South," Georgia's warm climate, diverse landscapes, and modern cityscapes have made it a significant player in the film industry.
4. Louisiana Film Tax Credits
Louisiana's film tax credit program, managed by the Louisiana Entertainment Office, provides up to 40% transferable tax credit on qualified production expenses.
To begin with, there is a foundational 25% base credit accessible. Furthermore, an additional 10% credit is available specifically for screenplay productions in Louisiana.
Lastly, projects have the potential to secure an extra 5% credit if the production occurs outside of the New Orleans Metro Statistical Area. This multi-tiered structure offers filmmakers a range of incentives to enhance their project's financial benefits.
The state's unique cultural tapestry, historic architecture, and diverse landscapes make it an ideal location for a variety of film genres.
5. California Film Tax Credits
California's Film & Television Tax Credit Program 3.0, administered by the California Film Commission, offers tax credits ranging from 20-25% on qualified expenditures.
Filmmakers can benefit from a credit uplift of either 5% or 10% by strategically incorporating aspects such as out-of-zone filming, visual effects, and the utilization of local hire labor. This credit uplift provides an additional financial advantage for projects, incentivizing thoughtful decisions in filming locations, the integration of visual effects, and the engagement of local talent.
With an established infrastructure, a world-class talent pool, and iconic locations, California remains a vital hub for the entertainment industry.
As the film industry evolves, states across the country are actively competing to attract filmmakers with lucrative tax incentives and supportive infrastructure. New York, New Jersey, Georgia, Louisiana, and California are some of the states that have emerged as leaders in this cinematic revolution, each offering unique advantages to filmmakers.
The competition among these states ultimately benefits the film industry as a whole, fostering creativity and growth across the nation.