Tax Incentives by State: Where to Film for Maximum Savings
Film production is a costly endeavor, with location rentals and logistics often making up a large portion of any project’s budget. Fortunately, many states across the US offer film tax incentives to attract productions and strengthen their local economies. For producers and location scouts searching for film locations in Los Angeles, New York, Chicago, Miami, or Atlanta, understanding these tax incentive programs can unlock major savings—sometimes reducing production costs by 20–40% or more.
Below, we’ll explore the US film tax incentive programs in five of the most popular production hubs and explain how they can impact your next shoot.
California: The Traditional Hollywood Hub
California’s iconic status as the heart of Hollywood makes it one of the busiest film production centers in the USA. To keep productions local, the state offers competitive tax incentives.
Key Benefits:
- Up to 25% tax credit on qualified expenditures
- Extra 5% credit for filming outside Los Angeles’ 30-mile zone
- 3% additional credit for hiring diverse cast and crew
- Sales tax exemptions on rentals and equipment purchases
Eligibility:
- Minimum spend of $1 million for features and TV
- $500,000 per episode for TV pilots and series
Why Producers Choose California: From desert landscapes to bustling cities, California offers unmatched versatility. Incentives encourage productions to explore beyond Los Angeles, making it an attractive option for filmmakers seeking variety while keeping costs competitive.
Best For: Large-scale productions, diverse location needs, and projects emphasizing inclusive hiring.
New York: The East Coast Production Powerhouse
New York is one of the most generous states when it comes to film incentives, making it a go-to for productions that want both financial advantages and iconic backdrops.
Key Benefits:
- 30% tax credit on qualified production costs
- Extra 10% credit for post-production completed in-state
- Credits are transferable or sellable
- No annual cap (subject to program funding)
Eligibility:
- Minimum $500,000 spend for features
- Minimum $300,000 per episode for TV
- At least 75% of principal photography must occur in-state
Why Producers Choose New York: From Manhattan skyscrapers to upstate countryside, New York provides unparalleled variety. Its transferable credit system gives productions extra flexibility.
Best For: Mid-to-large productions, urban or rural settings, and post-production-heavy projects.
Georgia: The “Hollywood of the South”
Georgia has rapidly become a leading U.S. production hub, thanks to its aggressive tax credit program and Atlanta’s state-of-the-art soundstages.
Key Benefits:
- 20% base tax credit
- Additional 10% credit for including Georgia’s promotional logo
- No annual funding cap or expiration date
- Credits are transferable
Eligibility:
- Minimum spend of $500,000
- Must use Georgia vendors and crew when available
Why Producers Choose Georgia: With credits up to 30%, major studio infrastructure, and lower base costs than Los Angeles or New York, Georgia consistently attracts blockbuster films and streaming projects.
Best For: All budget levels, productions seeking stability, and projects needing soundstage facilities.
Florida: Sun, Beaches, and Scenic Diversity
While Florida doesn’t currently have a broad statewide tax credit program like Georgia or New York, some counties and cities—including Miami and Orlando—offer local incentive programs. These programs vary, but often include rebates, grants, or fee waivers.
Key Advantages:
- Warm weather allows year-round outdoor filming
- Local incentives in Miami and other cities can offset costs
- Diverse backdrops: beaches, Everglades, Art Deco districts, and modern skylines
Why Producers Choose Florida: Even without a strong statewide program, productions—especially commercials and music videos—flock to Miami for its unique look and consistent weather.
Best For: Commercials, music videos, fashion shoots, and productions with tight schedules.
Illinois: Chicago and the Midwest Advantage
Illinois, led by Chicago, is a strong Midwest hub that attracts productions with generous incentives and versatile cityscapes.
Key Benefits:
- 30% tax credit on Illinois production spend
- Extra 15% credit for hiring local residents in key positions
- Credits are transferable
- Program currently extended through 2032
Eligibility:
- Minimum $100,000 spend for features and TV
- At least 60% of principal photography must be in Illinois
Why Producers Choose Illinois: Chicago’s architecture allows it to double for New York, Gotham-style cities, or Midwestern neighborhoods. With one of the lowest entry thresholds, Illinois is especially appealing for independent films.
Best For: Urban-set stories, indie films, and productions looking to stretch budgets in a major city.
Comparing Incentive Programs
- Highest Rates: Georgia and Illinois both reach 30%.
- Lowest Threshold: Illinois at $100,000.
- Most Flexible: New York’s transferable credits.
- Most Competitive: California’s lottery system.
- Best for Commercials & Music Videos: Miami and other Florida cities.
Strategic Tips for Location Managers
- Look Beyond Credit Percentages – Factor in crew costs, location fees, and logistics.
- Plan Around Deadlines – Some programs operate in cycles, so apply early.
- Prioritize Compliance – Each program has strict requirements on vendors, residents, and reporting.
- Explore Transferable Credits – Especially helpful for smaller production companies.
- Think Long-Term – Build relationships in states with consistent, reliable programs.
Conclusion
When choosing where to shoot, balancing incentives with your creative and logistical needs is key. While Georgia and New York stand out for their generous programs, California’s diversity, Illinois’ affordability, and Florida’s scenic appeal all offer unique advantages.
For producers and scouts searching for film location rentals in Los Angeles, New York, Chicago, Miami, or Atlanta, understanding the tax incentive landscape can mean major savings and smoother productions. Always consult with entertainment attorneys or tax experts before finalizing your production plan to ensure you maximize benefits while staying compliant.