EP NowStoreAcademySupportProduction LotProducts by Country
Industry News Home

A Record Number of US States Expand Filmmaking Incentives in 2022

Your guide to the latest news in production incentives and film programs to come from the 2022 legislative session.
August 25, 2022

Joseph Chianese

EP Blog-WIDE-Expanded US Incentives 2022-2

A significant number of production incentives were boosted this year. States from all regions of the country are expanding their incentives and industry programs to encourage thriving filmmaking communities and grow local economies. To help your production make sense of all the changes, Entertainment Partners has compiled some of these legislative updates so you can determine if your project qualifies, and which states are the best fit.

New Jersey: Senate Bill 4094

The year kicked off with SB 4094 being signed into law, which increased the New Jersey Film & Digital Media Tax Credit Program to 35% in specific counties, and 30% for the rest of the State. The bill also increased the annual limitation on digital media content production tax credits from $10M to $30M.

Also, beginning in FY 2025, the bill allows an additional $100M in tax credits for NJ film-lease partners (e.g., a taxpayer that has made a commitment to lease or acquire all or part of a NJ production facility for a period of five or more successive years, and commits to spend an annual average of $50M of qualified film production expenses over the period of at least five to 10 years).

Illinois: Senate Bill 157

SB 157 was signed into law on April 19, 2022, allowing certain non-resident wages to qualify. Qualifying wages now include non-resident Directors, Writers, Directors of Photography, Production Designers, Costume Designers, Production Accountants, VFX Supervisors, Editors, Composers, and Actors.

  • Regarding Actors, on qualified productions spending $25M or less, no more than 2 non-resident actors qualify. For qualified productions spending more than $25M, no more than 4 non-resident actors qualify.
  • There is a new $500K Compensation Cap (increased from $100K) on qualified resident and non-resident wages.

In addition, the Illinois Production Workforce Development Fund, administered by the Illinois Film Office, provides grants to qualified training programs with an emphasis on developing employment pathways for minorities and women. Grants will be financed through a tax credit transfer fee.

To learn more about these incentives, and how companies like Chicago-based Cinespace Studios are helping to foster the development of industry in Chicago and across Illinois, watch our recent Master Series webinar featuring Ashley Rice, President and Co-Managing Partner of Cinespace Studios.

New York: NYS Budget/Senate Bill 8009C and Assembly Bill 9009

On April 9, 2022, the NYS Budget & SB 8009C was approved and signed into law, modifying the Empire State Film Production and Post-Production Credit, extending the program to December 31, 2029. Additionally, tax credits issued on or after January 1, 2023 shall be reduced by one-half of one percent.

Also effective January 1, 2023, companies applying for the credit must file a diversity plan with the governor's office outlining specific goals for hiring a diverse workforce.

In addition, AB 9009 was signed, creating a 25% Digital Gaming Media Production Credit. This credit extends through December 31, 2027, and includes:

  • Annual Funding Cap of $5M
  • Project Cap of $1.5M per year

Georgia: House Bill 1437 & Senate Bill 435

On March 31, 2022 HB 1437 & SB 435 were pushed to 2023. These bills would have capped the program at $900M annually, and changed the 20-30% transferable tax credit to a non-transferable/non-refundable tax credit.

Note, 20% of qualified expenditures include materials, services and labor and any other purchases, rentals, and services need to align with the Georgia vendor rule.

An additional 10% uplift is offered to productions that include the Georgia promotional logo/end title credit or pre-approved alternative marketing promotion in their completed project.

Oregon: House Bill 1524

On March 24, 2022, the passage of HB 1524 increased percentages of the Oregon Production Investment Fund (OPIF) from 10% to 20% on Oregon-based payroll, and 20% to 25% on Oregon based goods and services.

Projects with a minimum spend of $1M can combine the OPIF with the Greenlight Oregon Labor Rebate of 6.2%, for a rebate of 26.2% on Oregon-based payroll.

Guillermo del Toro recently worked with Portland-based Shadow Machine, a stop-motion production company, on his forthcoming film 'Pinocchio'. For a deeper dive into Oregon’s production community and production incentive programs, read our interview with Tim Williams, Executive Director at Oregon Film.

pinocchio new.jpg
'Pinocchio' (2022) / Netflix

Utah: Senate Bill 49

On March 24, 2022, SB 49 became law, amending the Utah film production incentive program, and granting $12M of funds related to "Rural Productions" (as defined by the Utah Film Office) for fiscal years July 1, 2022 through June 30, 2024. This funding is in addition to the unrestricted funding of $6M for each fiscal year after June 30, 2022.

Qualified productions receive a 20-25% refundable tax credit through this program with the following requirements:

  • 20% given for qualified expenditures (i.e., direct production expenditures made in Utah that are subject to Utah taxes), plus
  • 5%, if the production company: 1) verifies $1M or more of expenditures were made in the state of Utah; and 2) meets the definition of 'significant percentage of cast and crew from Utah' which shall be no less than 75% of the total in-state hires of cast and crew, excluding extras, and 5 principal cast members, or
  • 5%, for a state-approved production in which at least 75% of the total number of production days occur within certain counties.

Note, the maximum Utah Refundable Tax Credit is 25%.

Washington: House Bill 1914

On March 31, 2022, HB 1914 was enacted, increasing funding for the Motion Picture Competitiveness Program to $15M annually with productions receiving a 15% to 35% rebate.

Up to 30% is received on qualified expenses for pre-production, production, and post-production that takes place within the state, with a minimum spend of $500K for film and $300K for TV. There is an additional uplift of 5% for qualified in-state spending for an episodic series with a minimum of 6 episodes.

The incentive program begins accepting applications in Q1 of each year and projects that are fully funded are invited to submit an application to the Washington Filmworks’ Board to review.

Colorado: House Bill 1408

On June 3, 2022, House Bill 1408 modified the Colorado performance-based incentive program for film & television production, expanding it as follows:

  • Allows the executive director to authorize the approval or issuance of an incentive in an amount that exceeds the current statutory limit of 20% of qualifying local expenditures · Appropriates $2M to the office of the governor from the Colorado office of film, television, and media operational account cash fund for FY23 (7/1 – 6/30/23)
  • Creates a film incentive task force to study how to make the performance-based incentive for film production in Colorado more effective

The funding for the entire program caps at $9.25M.

Pennsylvania: House Bill 1342

Pennsylvania recently finalized their $45.2B budget for 2022-23, increasing the film tax incentive annual cap from $70M to $100M and allocated $5M to “Pennsylvania Film Producers.”

The bill also states that the new $100M cap “shall remain at the amount allocated for fiscal years beginning after June 30, 2022, and ending before July 1, 2025”.

Pennsylvania offers a 25-30% transferrable tax credit which includes the following:

  • 25% is allotted for expenditures that include preproduction, production, and postproduction costs. Check out the list of qualified expenditures to see exactly what does and does not qualify.
  • 5% is allotted for productions that meet the minimum state filming requirements at a Qualified Production Facility.

Maryland: House Bill 641 & Senate Bill 536

HB 641 created the Theatrical Production Tax Credit Act, which establishes a refundable tax credit equal to 25% of qualified total direct production expenditures for certain theatrical production entities.

  • Limits qualifying salary, wages or other compensation to each worker receiving $100K or less per week
  • Qualifies resident and nonresident above-the-line and below-the-line labor costs
  • Limits the amount of tax credits that may be issued in any one year to $5M per fiscal year (July 1 – June 30)
  • Limits the number of credits that may be issued to a single theatrical production to $2M
  • Establishes a sunset date of June 30, 2027

Effective July 1, 2022, this act shall be applicable to all taxable years beginning after December 31, 2021, but before January 1, 2027.

Senate Bill 536 amends the Maryland Film Production Activity Tax Credit program by expanding eligibility to include digital animation projects, effective July 1, 2022.

Production crew on outdoor shoot.jpg

Tennessee: Tennessee Entertainment Commission (TEC) Production Incentive and Senate Bill 2897

On June 1, 2022, SB 2897 was passed, appropriating $2.2M to the Tennessee Film and Television Incentive Fund for the 2023 fiscal year (July 1 – June 30).

Also, on April 12th, 2022, Tennessee's Entertainment Commission, Department of Revenue, and Department of Economic and Community Development announced a new franchise and excise tax credit program. This program is designed to promote job creation and economic development.

The standard credit generates up to 40% on resident and non-resident payroll expenses, with a 10% uplift on payroll expenses for Tennesseans living in economically distressed areas.

Companies approved as a qualified production can apply for a tax credit generated through resident and non-resident Tennessee payroll expenses and apply for a point of purchase sales tax exemption certificate on non-payroll expenses.

Qualified productions include scripted and unscripted television, feature films, video game development, animation, commercials, and audio/visual post-production.

Hawaii: House Bill 1982

In June, HB 1982 was passed amending the Motion Picture, Digital Media, and Film Production Income Tax Credit. A few of these amendments include:

  • Increased the tax credit from 20% to 22% for qualified production costs incurred by a qualified production in any county with a population of over 700K residents
  • Increased the tax credit from 25% to 27% for qualified production costs incurred by a qualified production in any county with a population of 700K residents or less
  • Increased the total tax credits that may be claimed by each production from $15M to $17M
  • Reduced the minimum amount of required qualified production expenditures from $200K to $100K

Delaware: Senate Bill 252

On June 30, 2022, SB 252 was signed into law, enstating the Delaware Motion Picture and Television pilot program that will reimburse up to 30% (refundable tax credit) on production, preproduction, or postproduction expenditures incurred.

These expenditures must be directly used in the production of digital entertainment. The program has a funding cap of $1M for the 2023 fiscal year (July 1 – June 30, 2023). Regulations and guidelines for the Motion Picture and Television Refundable Tax Credit pilot program are expected to be released shortly.

Rhode Island: House Bill 7123

On June 27, 2022, HB 7123 became law and modified the Rhode Island Motion Picture Production Tax Credit and Musical and Theatrical Production Tax Credit programs. The annual funding cap for the motion picture production tax credit was increased to $30M for calendar year 2022, and $40M for calendar year 2023 and 2024.

For the Musical and Theatrical Production Tax Credit, the bill amended the definition of “Pre-Broadway production” to include live stage productions performed in qualified production facilities having a presentation scheduled for Broadway's theater district in NYC.

Virginia: House Bill 30

On June 22, 2022, HB 30 was passed, and appropriates $4.15M for the 2023 fiscal year and $5.15M for the 2024 fiscal year (July 1 – June 30) to the Governor's Motion Picture Opportunity Fund. In addition to Virginia’s refundable tax credit program, the Governor's Motion Picture Opportunity Fund offers discretionary grants to production companies and studios.

From workforce development programs to uplifts for filming in economically distressed areas, there are opportunities for all types of productions. So, whether you're an independent producer shooting your first feature or a studio creating the third season of a television series, state officials are working together to increase their budgets to welcome your stories, crew members, and cast. No matter what direction you’re headed, the production incentives team at EP is here to help you navigate questions on these and any of the newest production incentives in other states. Connect with us today and let’s get you on your way to rolling cameras!

Related Content

black and white filmmaker logo

Credits Where Credits Are Due

5/7/2024
Scott Macaulay looks at the state of film tax incentives in 2024.
More
Cameraman filming outside in a field

HMRC Announces Changes to Claiming UK Creative Sector Tax Incentives

4/26/2024
What productions should know about the increased disclosure requirements under the UK's Audio-Visual...

Production Incentives Update: December 2023

12/20/2023
Notable dates and modifications to production incentive programs in California, India and Spain.
BBS-Radio-TV-logo

The Cathy Durant Show: Featuring John Hadity

11/9/2023
Cathy interviews guest, John Hadity, EVP of Incentive Operations who oversees the film financing...
Film crew on location filming outdoors

Production Incentives Update: September 2023

9/27/2023
Insights on recent changes to production incentive programs in D.C., Kentucky, Montana, Ohio and Ontario.
director looking at a woman on a camera monitor

Is New Jersey the New Hotspot for Filming on the East Coast?

5/14/2024
From attractive tax incentives to creative advantages, find out why the Garden State is emerging as a...
Master Series Thumbnail–UK indie film tax credit

Boost Your Budget with the Independent Film Tax Credit

5/9/2024
Learn how to maximize UK incentive dollars with the new IFTC!
Entertainment Partners Logo Thumbnail-square

BSO and CMPA Launch New BSO-CMPA Black Producer Accelerator Program

4/2/2024
New Black Producer Accelerator Program focuses on increasing representation and supporting the career...
Los Angeles Times logo-sq

Georgia Film Tax Credit Bill Fails

4/1/2024
Georgia lawmakers kill effort to cap film tax credits as production hub continues to rival California.

Japan's Latest Film Tax Incentive Sets the Stage for Global Productions

3/13/2024
From Miyazaki to Godzilla, Japan is entering a cinematic renaissance and poised to attract international...

What Does the UK’s New Independent Film Tax Credit (IFTC) Mean for Productions?

3/7/2024
As the UK government strengthens its support for productions, find out what the latest changes to the...

Entertainment Partners Hosts 'An Independent Producer's Survival Guide' in Park City

2/27/2024
Joe Chianese, EP’s SVP & Production Incentives Practice Leader, brings independent filmmakers and industry...

Do the Math: Production Accountant Shortage Equals New Hollywood Careers

1/17/2024
“Accounting is usually not the way in” to the film business, says Nancy Rae Stone of the California Film...

Production Incentives Update: October 2023

10/26/2023
Learn about recent legislation changes boosting tax incentives in Colorado, Florida, Virginia and ...
Entertainment Partners Logo Thumbnail-square

NFTS and Entertainment Partners (EP) Establish Partnership to Support the Future of Film and Television Production

10/5/2023
By supporting the National Film and Television School through this new partnership, Entertainment Partners...
Newsroom-Advanced-Television-Logo-Thumbnail

NFTS, Entertainment Partners establish partnership

10/5/2023
EP the entertainment payroll and production technology company joins as a prominent new Patron of the...
British-Cinematographer-Logo-Thumbnail

NFTS and Entertainment Partners (EP) establish partnership

10/5/2023
The National Film and Television School (NFTS) announces a new partnership with Entertainment Partners...

Minnesota Becomes Land of 10,000 Opportunities with New Incentive Launch

9/29/2023
Minnesota introduces a new tax incentive program to renew the state’s status as a dynamic location for...
Georgia Incentives Panel_sq

GA Incentives Insider: Your Questions Answered

9/27/2023
Brian Shanaghan, Audits Manager at the Georgia Department of Revenue (GA DOR), addresses the industry's...
Expert Advice_Sam Collett

Spotlight: Sam Collett, UK Production Accounting and Incentives Expert

9/19/2023
Meet the Senior Partner at FLB Accountants, an Entertainment Partners company specializing in UK media and...
Master Series_UK Incentives Panel_Square

What's Changing in UK Production Incentives

9/15/2023
Learn about the recent changes to the UK Creative Sector Tax Credits and how they might impact your next...
EP Blog_SQUARE_UK cultural test

Understanding the UK Cultural Test

9/12/2023
Find out whether your film or TV show will pass the UK’s Cultural Test, a key step in qualifying for the...
EP Blog_SQUARE_EP Paymasters

Meet the Paymasters

9/5/2023
This National Payroll Week we celebrate the hard-working payroll professionals behind Hollywood's...

Payroll & Finances

PayrollResidualsSmartStartSmartTimeProduction PortalEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP Residency

Manage Multiple Productions

AssetHubSmartHub

Additional Services

Academy
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2024 Entertainment Partners. All rights reserved.