Film & TV Production Incentive Updates: July 2026

What changed in film and TV production incentives in July 2026? Quite a lot. Hawaii signed legislation (Act 185) raising its base credits to 22–27% and extending the program to 2038. California's Feature Film Window #2 opens August 10, while it's proposed post-production tax credit (AB 2319) continues to advance. Hungary's film rebate resumed without limitation on July 1, while the Czech Republic's audiovisual fund is paused.

Entertainment Partners' global incentives experts track enacted legislation, proposed bills and funding changes across the U.S. and international jurisdictions every month—so your production team doesn't have to.

United States Film Production Incentive Updates: July 2026

Enacted Legislation 

CALIFORNIA

The $750M annual Program 4.0 is fully active and powering a strong surge in feature film production across the state, with first-year results already delivering major economic impact and thousands of jobs. TV Window #1 approvals continue flowing.

Feature Film Window #2 (FY 2026-27) opens soon: 

• Application window: August 10–13, 2026
• Phase II: August 14–17
• Credit allocation: September 21 

Reach out to incentives@ep.com or IncentiveProgram4@film.ca.gov for help with tagged budgets and the Jobs Ratio Calculator.

Sacramento: The local rebate program, designed to stack with state Program 4.0, is active offering up to $250K total reimbursements for FY 2025-26 + full reimbursement of certain city service, permit and police fees, up to caps. 

CONNECTICUT

May 2 budget approval enhanced the state's film and digital media tax credit programs, adding a 20% urban production bonus which stacks to 30–50% in designated filming locations of Bridgeport, Hartford and New Haven, effective July 1.

FLORIDA

• Miami-Dade County: Eliminated local rebate programs due to funding constraints; no details are yet confirmed regarding revival timelines.
• Orange County: Launched a new program in spring 2026 committing $25M over 5 years; 20% rebate on qualifying spend with $400K min for film/TV and $250K min for commercials. The initial application window has closed with the first awards announced in June. The application portal is currently closed; future application periods will be announced on the County’s website.

HAWAII

SB 2580 was signed into law by Gov. Green on July 6, 2026 (Act 185) and is now active. The major modernization delivers higher base credit rates of 22% (Oahu) and 27% (Neighbor Islands,) plus a new 5% uplift for productions hiring at least 80% local Hawaii workforce—bringing effective rates to 27% and 32%.

The legislation also increases caps to $60M aggregate with rollover + $20M per-production (exempt for $60M+ projects), expands eligibility for streaming platforms and series, Gross Excise Tax (“GET”) relief for payroll/loan-outs, and extends the program to 2038—giving productions stronger incentives and long-term certainty.

See EP’s July 8 Tax Alert for GET relief for additional details.

NEW MEXICO

HB 291, addressing tribal leases, partner definitions, and application timing was signed pre-May but effective Jan 1, 2027. The legislation expands the definition of direct production expenditures to include payments to tribal entities for leased facilities or equipment (if subject to tribal tax); revises NM film partner requirements (50% ownership for 1 year post, or IP control for 5 years, or 50% financing); clarifies application must be within 1 year of final qualified expenditure incurred (not paid); and includes additional technical amendments.

NEW YORK STATE

The NYS Independent Film Production Tax Credit Program, which as $100M of annual funding, application window is now open. Applications are accepted from July 13 to November 12, 2026 (pending availability of funds) for productions that will begin principal photography within 180 days of applying.

A shorter concurrent window is available through July 30 for projects that already started principal photography between January 16 and July 12, 2026. Applicants select between Pool 1 (<$10M qualified costs) or Pool 2 (>$10M qualified costs) based on project size. 

VIRGINIA

The VA Motion Picture Production Tax Credit is extended through 2030, effective as of July 1.

Proposed U.S. Legislation   

CALIFORNIA

While production activity is stabilizing and California is showing measurable gains, additional measures aim to further strengthen incentive offerings:

• AB 2319, the standalone post-production-only credit (35–50% refundable on qualified CA post expenses—even if shot elsewhere—with zone and music bonuses) is gaining strong traction: amended May 21, passed Assembly, now advancing in Senate Revenue & Taxation Committee (hearing momentum this week). The bill has full guild support, Mayor Bass endorsement, and a parallel budget funding request; the targeted effective date is January 2027.
• Ongoing 2026-27 budget negotiations include proposed general business tax credit utilization limits ($5M flat or 50–70% of liability), which industry groups are actively lobbying against (seeking film carve-outs to protect the expanded program’s effectiveness). This is part of the Governor’s May Revision budget proposals and related negotiations.
• San Diego County: Efforts for a new local film commission and rebate incentive program continue in the discussion phase.

DELAWARE

HB 364, introducing a new 30% transferable Entertainment Production Tax Credit, is advanced through the House and continuing momentum.

MICHIGAN

Bipartisan House Bills 5991 & 5992 (introduced May 2026) would restore a film/TV/video game/digital media tax credit incentive, targeting 30% on qualifying resident labor/production spend. This legislation, known as the Multimedia Jobs Act, passed the House Economic & Small Business Development Committee in early June; however, it is still pending full passage. Note that EP provided comments and suggestions regarding the withholding tax rules for loan-outs.

NORTH CAROLINA

HB 1116 remains proposed. The bill aims to increase grants from 25% to 30% if 75% filming/expenses occur in Tier 1/2 areas; raise per-project caps to $20M (features) and $25M (TV season); and lift highly compensated individual cap to $4M and per-person compensation qualifying expenses to $4M. Effective for grants upon signature.

International Film Production Incentive Updates: July 2026

Enacted International Legislation

CZECH REPUBLIC 

The Czech Audiovisual Fund temporarily halted intake of new incentive applications effective March 27, 2026, due to budget exhaustion. Already-registered projects and costs incurred up to six months prior remain unaffected and claimable once intake resumes; negotiations with the government are ongoing. The rebate structure (25–35%) remains unchanged.

HUNGARY

Registration for the Hungarian film rebate resumed without limitation on July 1, 2026. The first-half HUF 140B cap has expired with no new cap set for the second half. New applications are being accepted, and previously queued projects are resuming processing, though a substantial backlog means extended timelines are still likely. The 30% base rebate (with uplift potential) and HUF 70B annual funding remain unchanged, and no other provisions of the Film Act have been amended.

IRELAND

Section 481 base + new 8% VFX uplift delivers up to 40% on qualifying VFX spend. The new Unscripted Production Corporation Tax Credit (20%) launched January 2026, and Digital Games Tax Credit is extended through 2031, providing strong certainty for post and unscripted work.

MEXICO

The national 30% transferable income tax credit framework is in phased rollout/early operational stage, following decree and guidelines published in March 2026; applications are via committee process.

A key limitation to be aware of: The per-project cap remains low at MNX 40M (~$2.3M USD) with a 70% local supplier requirement and an annual total cap. Industry feedback is still being solicited per recent industry meetings (MPA). 

Other International Updates

NEW ZEALAND

NZ International Screen Production Rebate (ISPR) expansions are fully operational. This includes a lower minimum spend threshold (NZ$4M for all formats), complete removal of the Above-the-Line compensation cap, and PDV/VFX projects now eligible for the 5% uplift at a reduced NZ$20M threshold. Domestic NZSPR also saw further accessibility boosts effective July 1.

PORTUGAL

SCRI.PT is a new consolidated €350M audiovisual and film industry funding program (2026–2029) that replaces earlier cash rebate/refund models and combines €200M in non-repayable production incentives (RIPAC scheme with grants) + a €150M mutual guarantee credit line for financing support. Regulations were published in mid-June; applications are now open and actively attracting international productions.

UNITED KINGDOM

ID verification is now required for UK Cultural Test applications. Effective June 1, 2026, companies applying for a UK Cultural Test certificate must provide the names, dates of birth, residential addresses, and contact information for all corporate directors as part of the new BFI counter-fraud and economic crime prevention measures.

One ID check covers all companies in which the individual is a director and remains valid for 6 months; directors need to verify their identity no more than twice a year. We are yet to see whether additional information will be required (particularly for non-UK resident directors); however, as many applicant companies have non-UK resident corporate directors, any additional requirements are expected to be limited. Importantly, this requirement does not impact eligibility or qualification for the Cultural Test or AVEC.

Stay informed of changing incentive legislation with the experts at Entertainment Partners

Production incentives don't stand still—and neither does EP's incentives team! Our in-house incentives experts monitor legislative updates, audit precedents, and funding changes across every major production market, every month. Whether you're navigating Hawaii's new Act 185 requirements, structuring spend for California Program 4.0, or evaluating New Zealand's expanded ISPR, EP provides the compliance expertise and payroll infrastructure to maximize your incentive return.

Contact our incentives team at incentives@ep.com, use our Incentives Estimator, or compare jurisdictions side by side to start planning your next production.