Post Pandemic Shift in Film Incentives by States
Incentives are a huge part of the film industry. Incentives offered by states can mean the difference between a movie being filmed in one state or another. Recently, there has been a shift in the incentives offered by states across us. Some states are now offering more incentives while others are scaling back their offers.
Film Incentives?
Incentives are money offered to producers, directors, and writers to shoot their movies in that state. They are meant to spur economic growth and job creation in the state.
Film incentives can be seen as tax breaks for productions that shoot in the state where the incentives are offered. The production can take advantage of these tax breaks without having to pay income tax on the money they spend. Production can also get additional credits, which is cash paid out to the crew and the production.
In some states, the incentives are offered only to large productions, while other states offer them to all productions regardless of size. These state tax breaks usually come with various requirements. Filmmakers must first apply for the incentive and are given the opportunity to win the state tax credit by meeting the required criteria.
New Incentives by States after the Pandemic
1. California Film Incentive
Film and Television Tax Credits continue to benefit California commerce and workforce with each new version of this tax credit program. More than 30 films have already signed up for the program this year—11 from major studios and 19 independents. $439.2 million is expected to be generated by these films to support a slew of actors, crew workers, and in-state suppliers.
Local companies and employees in California are benefiting from these initiatives. In addition to boosting the state’s economy, this initiative encourages tourists to come to the Golden State and see the fuss for themselves. Our hotels and restaurants are bursting at the seams, bringing in even more money for our state.”
2. Georgia Film Incentive
Films, television series, biographies, commercials, and music video projects are all eligible for a 20% tax credit under the Georgia Entertainment Industry Investment Act of 2022.
This indicates that film incentives are a key factor in the production process. We found that as the level of incentives increases, so does the number of productions. There was also a strong positive correlation between the percentage of production and the number of jobs created in an area.
Incentives provided through grants, tax credits, and rebates are shown to create the most jobs.
