For filmmakers, shoot location is one of the most important decisions of an entire production.
Tax incentives from individual states can make this choice easier while simultaneously generating huge revenue for state governments. According to ProdPro, via the Hollywood Reporter, the likes of Illinois, New Mexico, Georgia, New York, California, and New Jersey spend hundreds of millions—and sometimes billions—of dollars on incentives for film and TV productions. “There are approximately 30 states that offer tax credits now,” says Jeff Deverett, a Canadian film producer and professor at San Diego State University. “It’s kind of like free money. It’d be crazy to leave that on the table.”
But what should filmmakers know about tax incentives before applying? Read on to learn more about these credits and how they should factor into your preproduction considerations.
Which states offer the best tax incentives for filmmakers in 2025?
Deverett advises independent filmmakers to look for tax rebates that include “a very low minimum threshold” of spend in the state, which means the state welcomes films being made on smaller budgets.
California and Georgia may have the country’s most well-known incentive programs, but plenty of other states offer enticing credits. Michele Miller, vice president of production tax incentives at the production software company GreenSlate, says that North Carolina’s 25% rebate on in-state expenses is a “very attractive program” for filmmakers. She also highlights Massachusetts’ 25% tax credit on production expenses and labor in the state.
New Mexico’s film tax credit is also 25%, with added incentives for television pilots and the use of certain production facilities that could make it go as high as 40%. New York’s 30% tax credit has brought in more and more productions, especially as the state has increased its annual incentive cap from $700 million to $800 million per year—$100 million of which is earmarked for indie projects.
States like New York, California, and Georgia will increase the percentage they give back to projects if productions are shot in more remote parts of the state. The film commissions want productions to be more “regional,” bringing jobs and spending to locations outside New York City, Los Angeles, and Atlanta, says Deverett. “They give you extra money because they want to spread the wealth around.”
In Georgia, Miller says that projects shot in Savannah not only “obtain the Georgia state tax incentive but can get an uplift up to $25,000” by shooting in the city.
New Jersey also looks set to become a popular destination for filming, with an up to 40% tax credit depending on the type of production. “Netflix recently signed a deal and broke ground on an almost billion dollar studio [in central New Jersey],” says Miller. “So [the state] is in it for the long haul. They’re putting a lot of infrastructure in place to ensure that productions choose New Jersey.”
Some states, like Arkansas, Maine, Oklahoma, Montana, and Oregon, “provide tax credits just on postproduction,” adds Miller. “So you can shoot in one state, obtain the tax credit there, then go to another state that offers a postproduction-only option and obtain a tax credit there.”
What filmmakers should know about tax incentives
Deverett is at pains to point out that filmmakers shouldn’t just select a location because it has the biggest tax credit. “You have to let the movie determine where you shoot it. If you’re shooting a movie and you need a certain setup that’s only available in New Mexico, you should go to New Mexico,” he says. “You don’t want to compromise the integrity of the movie. The movie comes first.”
There are certain ways to trick audiences with locations. If your film needs an ocean, “lakes can double as oceans,” says Deverett. “You can do an establishing shot and then use a smaller city to double for a bigger city. You can do an establishing shot in New York, then shoot the rest of the movie in Canada.”
But filmmakers who are tempted to shoot in states that don’t have a large film industry or infrastructure need to ensure they’ll be able to hire crew members there, or that they can transport people in without blowing their budgets. They also need to check that the state has the facilities and resources they require for their specific project, such as a large enough studio and up-to-date postproduction equipment.
Because navigating incentives can be overwhelming, Deverett suggests “hiring an accountant or tax specialist, or even [going] to the local film commission that [is] offering the credit” for guidance.
Miller warns that some “productions get dinged because they don’t have the particular receipt or agreement on file. Do the research. Reach out to resources. Talk to other producers or people who have filmed in those states. Make sure you have a strong accounting team, who knows what is at stake and can stay on top of things.”
