Selecting the right filming location can make or break your production budget. Film and television production tax incentives remain one of the most powerful ways to stretch every dollar. These incentives are more than just savings - they are strategic advantages to stay competitive in an evolving entertainment landscape.  

Notable incentives updates in effect as of January 2026:

Colorado

Colorado will no longer require withholding, and applicants must issue a 1099 form. 

Illinois

Illinois Senate Bill 1911 has been signed into law, modifying the Film Production Services Tax Credit Act. Some of the changes include a loan out withholding rate of 4.95%, a 30% credit on non-resident salaries up to $500K, and uplifts on salaries paid to Illinois residents in economically disadvantaged areas and several counties around the state. The Illinois state tax incentive program has been extended through December 31, 2038, and will increase the number of qualified non-resident positions as well as the tax credit for in-state labor and vendor spending up to 35%. 

Georgia

As of January 1, 2026, Georgia will allow a 20% tax credit for post-production companies on a $500K spend, with an additional 10% if the project was filmed in the state of Georgia. With a $1M minimum spend in Savannah, productions can apply for a rebate of up to 100K. The Loan Out withholding rate in Georgia is 5.19%.

Kentucky

The Loan Out withholding rate in Kentucky is 3.5% as of 1/1/26.

Louisiana

The Loan Out withholding rate in Louisiana is 3.09%.

Massachusetts

The Loan Out withholding rate in Massachusetts is 5%, and 9% on wages over $1M.

Minnesota

The Loan Out withholding rate in Minnesota is 9.85% for loan outs without a W-9.

Mississippi

The Loan Out max withholding rate in Mississippi is 4.4%.

Montana

The Loan Out withholding rate in Montana is 5.9%.

New Jersey

The Loan Out withholding rate in New Jersey is 6.37%.

New Mexico

The Loan Out withholding rate in New Mexico is 5.9%.

North Carolina

The Loan Out withholding rate in North Carolina is 4%.

Oklahoma

The Loan Out withholding rate in Oklahoma is reduced to 4.5%.

Pennsylvania

The Loan Out withholding rate in Pennsylvania is 3.07% for non-resident disregarded entities.

South Carolina

The Loan Out withholding rate in South Carolina is 2% – unless the Loan Out submits Form I-312.

Texas

Bonus “stackable” incentives for in-state spend in Texas could push effective grant rates up to 31% for certain productions starting September 1, 2026, if the added eligibility criteria (including post production and crew payrolls) are met.

Utah

The Loan Out withholding rate in Utah is 4.5%.

Virginia

The current program is set to expire after 2026. SB 1179, which proposed to make Virginia's film tax credit permanent and increase its annual cap from $6.5 million to $11.5 million, did not pass.

Wisconsin

The Wisconsin Film Office has been reestablished, with a 30% tax credit for qualified productions on resident labor and local spend in-state. Plus, as of January 1, 2026, the state budget allows for $5M in annual tax credits for filmmakers, with a per project cap of $1M. 

Incentives updates to keep an eye on in 2026: 

Pennsylvania

Lawmakers have considered expanding the Pennsylvania Film Production Tax Credit cap from $100 million to $125 million. However, this proposal was vetoed, and advocates expect it to resurface in upcoming sessions. The Loan Out withholding rate in Pennsylvania is 3.07% for non-resident disregarded entities in 2026.

Notable incentives changes in 2025: 

California

California’s Film and Television Tax Credit Program increased to $750 million for the next five years, up from $330 million. The California Film Commission also opened an application window for television series, and saw a 400% spike in applications for tax credits, signifying industry attention.

Louisiana

Louisiana reduced the annual cap for their film tax credit from $150 million to $125 million effective July 1, 2025. The state also removed per project caps and per person wage limits, establishing itself as a competitor in the industry.

Montana

Montana introduced a 30% tax credit for wages paid to Montana veterans and Native American individuals on eligible productions, with a $150,000 per person cap.

Nevada

Nevada legislators proposed (and subsequently rejected) two competing bills to change the state’s existing film tax credit offerings. Over the next 15 years, these bills would have potentially provided $1.5 billion in tax credits to attract film studios and independent filmmakers to Las Vegas. By prioritizing the hiring of Nevadans both on and off camera, advocates had hoped to boost local talent and drive economic growth.

New Jersey

Netflix broke ground on their new production facility in New Jersey and New Jersey also extended their film incentive program through 2049, increasing allowable tax credits up to 40% for in-state studio partners, and revamping their hiring uplifts. As an approved Studio Partner, Paramount is set to occupy more than 285,000 square feet of 1888 Studios’ campus - receiving eligibility for up to 40% for movies and television shows filmed in the state.

New Mexico

New Mexico’s funding cap increased to $130M. New Mexico is an increasingly popular choice among filmmakers due to its diverse geography and generous incentives. With an increased funding cap of $130 million for the fiscal year 2025, New Mexico continued to solidify its status as a prime competitor in the U.S. market for productions.

New York

New York made multiple changes to the state’s film tax credit programs, including removing the Above-the-Line eligibility individual cap and multi-year payout tiers, and adding post-production incentive flexibility. The New York State Independent Film Production Tax Credit Program was also introduced, designed to incentivize independent film production and stimulate the economy in the state. Along with these changes, the Production Plus enhancement has taken effect, allowing production companies with multiple productions in the state to be eligible for an additional 5-10% on qualified expenses.

New York’s Onondaga County also added a production rebate incentive for movies and entertainment development. By offering a rebate on local spending, Onondaga County positioned itself as a competitive alternative to other filmmaking hubs in the state, providing filmmakers with diverse settings ranging from urban landscapes to beautiful natural environments.

Oklahoma

Oklahoma added a post only credit program and also approved a $100K pilot film incentive program, along with a 10% rebate on local spend and production space used during filming, in efforts to establish the city of Broken Arrow as a film production destination. 

Texas

Texas approved a significant boost to the state’s production incentives, allocating $300 million biannually. Supporters, including celebrities like Matthew McConaughey and Woody Harrelson, say this $1.5 billion program will help retain productions in-state. 

Whether your project is in the early planning stages or finalizing its post-production details, utilizing resources like our tax incentives map, which offers the latest state-by-state details for U.S. TV and film incentives, can empower your team to make informed decisions, ensuring a project's success from start to finish.

To maximize your production’s potential, partner with a production tax incentive management expert to streamline the entire tax incentive process and maximize your financial returns. 

✅ If you need support navigating this complicated landscape, we’re here to help!