Selecting where to film largely depends on budgetary factors, and tax incentives are a powerful tool for stretching production budgets.

Film and tv production tax incentives are more than just budget savers; they are strategic assets that can greatly expand a production's capabilities. 

Notable incentives updates in effect for 2025:

New York’s Onondaga County added a production rebate incentive for movies and entertainment development. By offering a rebate on local spending, Onondaga County is positioning 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.

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 continues to solidify its status as a prime competitor in the U.S. market for productions.

New Jersey and Oklahoma added post only credit programs. By offering credits to productions that complete their post-production processes in New Jersey and Oklahoma, both states are working to build and reinforce robust, full-cycle production environments within their respective states.

Louisiana will reduce the annual cap for their film tax credit from $150 million to $125 million effective July 1, 2025.

Incentives updates to keep an eye on in the year ahead: 

California legislators have proposed two bills to expand and enhance the state's film and TV tax credit program. The new bills, AB 1138 and SB 630, would:

• Increase the effective rate of the program
• Expand eligibility for types of productions, focusing on those leaving the state
• Expand pathways for underrepresented communities into production jobs

New York’s Governor Hochul introduced potential changes to the state’s tax credit program with the FY26 budget proposal:

• Remove the tiered payout structure for new applicants when paying out tax credits
• Extend the program an additional two years through 2036
• Create a separate $100M incentive for independent studios
• Make changes to the post-production tax credit minimum spend thresholds
• Remove the individual cap on above-the-line qualified costs
• Impose Loan Out withholding of 6.85%, effective when the law is passed
• Introduce a Production Plus Program under the film/TV program to incentivize reoccurring production in NYS

Nevada legislators have proposed two competing bills to change the state’s existing film tax credit offerings. Over the next 15 years, these bills would potentially provide $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, they aim to boost local talent and drive economic growth.

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. film and tv production tax incentives, can empower your team to make informed decisions, ensuring a project's success from start to finish.

Know where you’re shooting your next project? Partner with a production tax incentive management expert to streamline the entire tax incentive process, maximize your financial returns, and guarantee a smooth audit free from unexpected issues.

✅ If you need support navigating this complicated landscape, we’re here to help! Check out our production tax incentive management services or reach out directly to our team here.