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Production Incentives News to Know: July 2025

The latest updates about global film and television incentive legislation, including program expansions in California, New York, Western Australia and the UK.
July 9, 2025
Clapboard and US Dollars: EP's Production Incentives News to Know July 2025

United States Jurisdictions

ENACTED US LEGISLATION

ALABAMA

Alabama has enacted Senate Bill 177, introducing several key updates to its entertainment incentive program. Beginning in fiscal year 2026 (October 1, 2025), the annual cap under the Alabama Entertainment Industry Incentive Act of 2009 will increase from $20 million to $30 million. The legislation also adds flexibility by allowing up to $3 million in unused incentives to carry over to the following fiscal year.

Notably, the definition of "qualified productions" in Alabama now includes music albums, with eligible projects ranging from $30,000 to $200,000 in production costs. To support this addition, $2 million of the annual cap will be reserved specifically for music albums starting October 1, 2025. Reflecting on this expanded scope, the Alabama Film Office will be renamed the Alabama Entertainment Office.

CALIFORNIA

California is making a monumental investment in its film and television industry, with lawmakers officially securing a substantial expansion of the state's Film & TV Tax Credit Program, aiming to keep cameras rolling and bring thousands of jobs back to the Golden State. Legislation was signed by Governor Newsom on June 27th and July 3, 2025, ensuring the significant funding increase of $750M was effect as of July 1, 2025, the start of the new fiscal year.

Initial application periods under the new CA 4.0 program:

  • Television Series (New, Relocating, Pilot, Limited, Recurring): The first application of July 7 – 9, 2025 recently closed (Phase 1). Approved applicants should expect to hear from the CA Film Commission July 10th – 14th (Phase 2), with final approvals announced on August 18th.
  • Independent & Non-Independent Feature Films: August 25 – 27, 2025

Key Changes to the California Tax Credit Program:

  • Funding Increase: The annual cap for the program has more than doubled, soaring from $330 million to $750 million. This positions California as one of the most generous states for capped film incentives, aiming to counter competition from uncapped programs like Georgia's and the newly expanded New York program ($800 million annual cap).
  • Enhanced Credit Rates: The base credit will see a significant jump from 20% to 35%. An additional 5% uplift (for a potential total of 40%) remains available for projects that film outside Los Angeles County, actively encouraging production dispersion across the state.
  • Expanded Eligibility: A wider range of productions will now qualify for the tax credit with California spend of $1M or more, specifically including:
    • Animated series and films
    • Multi-camera sitcoms (animated, scripted and large-scale competition shows less than 30 minutes)
    • Large-scale competition shows
    • TV shows with episodes less than 30 minutes

Note: Reality, documentary programming, game shows, talk shows, as well as above-the- line labor expenditures are still excluded.

  • Workforce & Equity Enhancements: To foster diversity and inclusion within the industry, new provisions have been added:
    • 2% Bonus for Trainees: Productions can earn an additional 2% credit by hiring one to four trainees from targeted job programs that serve historically underserved communities. These trainees must be hired in addition to, not in place of, experienced union crew, safeguarding union jobs.
    • Expanded Reporting Requirements: To promote demographic and geographic inclusion, productions must now report on the ZIP codes and veteran status of their workforce, in addition to existing requirements for race, ethnicity, and gender.
  • California Tax Credit Refundability: Effective July 1, 2025, California's tax credit program will offer refundability to all qualified applicants. Previously, this was limited (e.g., Independent Producers could transfer credits) otherwise it was non-refundable/non-transferable and needed a California income tax or sales tax to monetize the credit. 

Note: If you elect refundability, you'll receive 90% of the credit paid out over five years, regardless of tax liability. Those not electing refundability will still need CA income/sales tax liability or utilize existing transfer option for Independent Producers.

GEORGIA

Georgia has enacted two new laws impacting its entertainment and tax landscape. House Bill 111 reduces the individual income tax rate to 5.19%, effective July 1, 2025. Since withholding on payments to loan-out companies for services performed in Georgia is tied to the individual tax rate, those payments will also be subject to the new 5.19% rate. This change applies to all taxable years beginning on or after January 1, 2025.

Additionally, House Bill 475 amends the Georgia Entertainment Industry Investment Act, expanding the definition of "qualified production activities" to include content distributed via paid subscription-based platforms and free ad-supported streaming television channels. It excludes projects recorded on laser disc and user-generated content distributed solely through social media. The Act also authorizes the Department of Economic Development to charge reasonable certification fees. These changes take effect January 1, 2026, for taxable years beginning on or after that date.

LOUISIANA

Louisiana has signed Senate Bill 232 into law, introducing significant updates to modernize and enhance the state’s film incentive program. Effective June 30, 2025, the legislation transfers oversight from the Governor’s Office of Film and Television Development to Louisiana Economic Development (LED), granting LED the authority to manage the program through administrative rules—offering greater flexibility and negotiation power.

Key changes include the elimination of the $20 million per-project cap and the $3 million per-person payroll cap, making the program more attractive to larger productions. While these individual caps have been removed, the overall annual program cap remains at $125 million, and the sunset date is unchanged at 2031.

The legislation also allows for credits of up to 40%, though LED will work with industry stakeholders to develop permanent rules and implement the enhanced credit structure in phases. These changes aim to streamline decision-making, increase the program’s competitiveness for major productions, and generate broader economic impact for the state.

MONTANA

Montana has enacted Senate Bill 326, now in effect with retroactive applicability to income tax years beginning on or after January 1, 2025, bringing substantial enhancements to its film tax credit program.

The annual aggregate cap has been raised from $12 million to $30 million, with $12 million reserved for pre-2025 approvals and $18 million for post-2025 projects. The legislation introduces a new allocation system to distribute credits across various industry segments, including independent films (with budgets of $3 million or less), Montana-domiciled companies (meeting resident job requirements), and productions using qualified in-state facilities. The program is extended through 2045, offering long-term stability. A key provision allows unused allocated credits to be claimed by other entities for a fee, with a 2% fee funding for a new film industry workforce training account designed to develop local talent.

Additional enhancements include a 30% tax credit for hiring Montana residents, veterans, enrolled tribal members, student interns, and for filming on Montana college campuses. Finally, the definitions of “qualified productions” and “qualified post-production activity” have been expanded to include a broader range of media projects, such as documentaries and non-scripted television, further increasing the program’s inclusivity and appeal.

NEW JERSEY 

Governor Murphy signed S4618/A5827 into law on June 30, 2025, strengthening and enhancing the NJ Film & Digital Media Tax Credit Program. These enhancements are effective retroactive to January 1, 2024.

Key New Jersey Modifications:

  • Increased Credit for Studio Partners: The tax credit for NJ Studio Partners (production companies with a 250,000+ sq ft facility for 10+ years) is now 40% of qualified expenses within the NYC 30-mile radius (up from 35%).
  • Doubled Diversity Bonus: The diversity bonus credit has doubled from 2% to 4% of qualified expenses.
  • New 'Promoting NJ' Credit: An additional 4% credit is available for productions that promote and invest in New Jersey’s film industry.
  • Increased ATL Cap (Non-Studio Partners): The 'highly compensated individual' cap for productions other than Studio Partners/Film-Lease Production Companies has increased to $750,000 per individual (up from $500,000). Note: Studio Partners/Film-Lease Production Companies still have a $500,000 cap but can exceed this for ATL wages on projects spending $125M+.
  • Loan-Out Company Wages: Qualified digital media expenses now explicitly include payments to loan-out companies for services in NJ, even if not subject to NJ income tax due to reciprocity, provided the loan-out company is authorized to do business in NJ (for applications submitted after July 10, 2024).
  • Higher Post-Production Credit: The credit for qualified post-production services has increased from 30-35% to 40% if specific requirements are met.

Expanded Definitions:

  • "Film" now includes certain reality shows (with 6+ episode orders from major networks/streamers).
  • "Digital media content" explicitly includes animation, video games, visual effects, and interactive media (VR/AR/MR).

Revised Funding Allocation (FY2025): The program now allocates:

  • $250M for NJ Studio Partners
  • $250M for NJ Film-Lease Production Companies
  • $300M for all other applicants

NEW YORK

Big news for independent filmmakers in New York! New York State has supercharged its film and TV tax credit program for 2025-2026, boosting its total funds to a huge $800 million per year through 2036.

New York State has removed the individual cap on claims for actors, directors, and writers—commonly referred to as above-the-line (ATL) costs. However, ATL costs are still limited to no more than 40% of the total qualified production costs incurred in New York. Additionally, the state has simplified the payout process for the film tax credit by eliminating tiered installment plans. Now, the Production Credit must be claimed in the allocation year, while both the Post-Production Credit and Independent Film Credit should be claimed in the completion year.

Independent film companies now have their own dedicated $100 million fund each year!  Even better, if you get this credit, you can claim the money in the year the project is finished, instead of having to wait until 2027 or later, which means cash in hand much faster.

Note: Unlike the Film Production Tax Credit Program, the $100M of annual funding cannot roll into the next fiscal year’s annual funding for the Independent Film Production Tax Credit Program.

IMMEDIATE ACTION REQUIRED IN NEW YORK

Mark these important dates for your calendar so you do not miss out:

First Application Window

  • When: Monday, July 14, 2025, at 10:00 AM, until Thursday, July 17, 2025, at 4:00 PM
  • Who: For productions that started filming between January 1, 2025, and July 13, 2025. This is your immediate window to apply and get your credit when your project is done!

Second Application Window

  • When: Monday, July 21, 2025, at 10:00 AM, until Thursday, July 24, 2025, at 4:00 PM
  • Who: For productions that start filming between July 14, 2025, and 180 days from when you submit your initial application

The online application and process will soon be released by NYS Empire State Development. Applications are first-come, first-served based on when you sign your initial "Project Summary." You then have 24 hours to upload all other required documents to keep your spot.

Base Credit: 30% back on qualified costs spent in New York.

 Uplifts:

  • +10% if you film in certain upstate New York counties and meet budget/filming day requirements
  • +10% if you do your film's scoring in New York and pay at least five musicians

Production+:

  • + 5%; must be a qualified independent film production company that submits a minimum of 2 applications that meet the threshold requirement of $20 million minimum in qualified production costs in total
  • +10%; must be a qualified independent film production company that submits a minimum of 2 applications that meet the threshold requirement of $100 million minimum in qualified production costs in total

The program is limited to qualified independent film production companies which are independently owned and operated and no more than 50% owned by a publicly-trade entity.

Key Rules to Remember:

  • Initial and ongoing photography must begin within 180 days of the application date
  • Qualified production costs excluding labor cannot exceed $60 million on an initial or final application
  • At least 75% of your production costs (not including post-production) must be for goods used or services performed at a qualified film production facility in New York
  • If your qualified costs at a New York facility are under $3 million, then 75% of your total filming days outside of a facility must be in New York

For additional details see the New York State Independent Film Credit Program.

TEXAS

Senate Bill 22 became law on June 22, 2025, without the Governor's signature, and injects $300 million every two years into the Texas Moving Image Industry Incentive Fund until 2035. This is a substantial increase from the current $200 million biennially (the original Senate version proposed $500 million, but the House amended it to $300 million, which the Senate accepted).

Revised Incentive Structures:

Base grants vary by project type (feature films, TV, digital interactive media, commercials, reality TV) and budget, with minimum spending requirements.

For feature films and television programs:

  • 5% grant for projects with total in-state spending of at least $250,000 but less than $1 million
  • 10% grant for projects with total in-state spending of at least $1 million but less than $1.5 million
  • 25% grant for projects with total in-state spending of at least $1.5 million

For digital interactive media productions:

  • 5% grant for projects with total in-state spending of at least $100,000 but less than $1 million
  • 10% grant for projects with total in-state spending of at least $1 million but less than $1.5 million
  • 25% grant for projects with total in-state spending of at least $1.5 million

For commercials or a series of commercials, educational or instructional videos or series, or reality television programs:

  • 5% grant for projects with total in-state spending of at least $250,000 but less than $1 million
  • 10% grant for projects with total in-state spending of at least $1 million

These base grants can then be supplemented by additional, stackable grants, bringing the total incentive up to a maximum of 31% of total in-state spending.

Additional Incentives (stackable up to 31% total):

  • Texas Heritage: +2.5% for projects promoting family values or Texas
  • Rural Filming: +2.5% for filming 35%+ in counties under 300,000 population
  • Post-production: +1% if 25%+ of spending is in post-production
  • Texas Veterans: +2.5% for productions with 5%+ Texas veteran cast/crew
  • Faith-Based: +2.5% for designated faith-based content

Crew Residency Requirements: The bill adjusts the required percentage of Texas residents in production crews, lowering it to 35% for projects starting between September 1, 2025, and August 31, 2027, with incremental increases up to 50% by 2031.

Content Restrictions: The bill includes provisions allowing the Music, Film, Television, and Multimedia Office to deny grants for projects with inappropriate content or those that portray Texas negatively (e.g., pornography, obscene material, local events, religious services, casino-type video games).

VIRGINIA

HB 1600 was signed into law, thereby appropriating $4 million for the fiscal year ending June 30, 2026 to the Governor’s Motion Picture Opportunity Fund.

WISCONSIN

Wisconsin's film and television industry is poised for a significant revival, as Governor Tony Evers signed the state's biennial budget, which includes a new comprehensive film and television tax credit program. This legislative effort, driven by Senate Bill 231 and Assembly Bill 231, reintroduces competitive incentives to the state after their discontinuation in 2013.

Key Provisions:

  • 30% Tax Credit: Offers a 30% tax credit for both salaries/wages paid to Wisconsin residents for services rendered in the state and for production expenditures incurred within Wisconsin. The credit for wages is capped at $250,000 per employee, excluding the two highest-paid employees for productions over $1M
  • Annual Cap: The total amount of film production and investment tax credits allocated for each fiscal year will be capped at $10 million, with a limit of $1 million per single applicant
  • State Film Office: Establishes a State Film Office within the Department of Tourism to oversee and allocate tax credits, and act as a liaison for productions
  • Refundability: If the credit exceeds a company's tax liability, the state will issue a refund
  • Capital Investment Credit: An additional 30% credit is available for the first three years for purchasing depreciable tangible personal property or improving real property for film production companies
  • Sales and Use Tax Exemption: A credit is also available for sales and use taxes paid on tangible personal property and taxable services used in production

This new program takes effect for taxable years beginning after December 31, 2025.

PROPOSED US LEGISLATION

ALASKA

House Bill 113 is making its way through the legislative process with the goal of re-establishing a film production incentive program, a decade after the state's previous program was terminated in 2015. While not yet law, the bill’s progress signals a strong push to revitalize Alaska’s film industry.

As proposed, the new initiative, titled the Alaska Film Production Promotion Program, would offer a 25% base credit on qualified production expenditures. The credits would be transferable, allowing producers to sell or assign them to entities with Alaska corporate income tax liability, thereby broadening their value.

Additional uplifts include a 5% bonus for wages paid to Alaska residents, 2% for rural spending, and 2% for productions filmed during the off-season (October 1–March 30). The program would have a $20 million annual cap and require a minimum of $100,000 in qualified expenditures within a consecutive 24-month period. If enacted, the program would remain in effect until its proposed sunset date of July 31, 2035.

OREGON

House Bills 3329 and HB 2523 are currently advancing through the Oregon Legislature during the 2025 regular session, both aimed at strengthening the Oregon Production Investment Fund (OPIF) and expanding the state's film and media incentive programs.

House Bill 3329 proposes increasing OPIF’s annual cap from $20 million to $28 million for fiscal years starting on or after July 1, 2025. Meanwhile, House Bill 2523 seeks to raise the maximum reimbursement for a single local project from $1 million to $2 million and extend the sunset date on the tax credit for certified film production development contributions to OPIF.

Key provisions include maintaining the current reimbursement structure—20% for employee wages and benefits for work performed in Oregon, and 25% for other qualified Oregon expenses—while requiring local productions to spend at least $75,000 in actual Oregon expenses and dedicate 80% of their payroll to Oregon residents. These bills collectively aim to boost in-state production and ensure broader economic benefits for local communities.

PENNSYLVANIA

HB 1317 is still in the early stages of the legislative process, having just been introduced and referred to the committee. It will need to pass through the Finance Committee, then the full House, and subsequently the Senate before it can be sent to the Governor for signature. The bill aims to increase the annual cap for the Pennsylvania Film Production Tax Credit from $100 million to $125 million.

VETOED US LEGISLATION

CONNECTICUT

Connecticut's 30% film production tax credit remains unchanged after the legislature rejected Governor Ned Lamont's proposal to reduce it to 25%. This marks the third consecutive year the Governor's attempt to cut the Connecticut credit has been unsuccessful.

HAWAII

The Hawaii Film Credit is safe! Governor Josh Green plans to veto House Bill 796, which would have imposed a five-year sunset on income tax credits, including the Motion Picture, Digital Media, and Film Production Income Tax Credit (Hawaii Revised Statutes §235-17). This action prevents a sunset for the state's film credit, which offers 22% on Oahu and 27% on neighboring islands, with a $17 million per-production cap and $50 million annual aggregate cap.

NEVADA

Nevada's ambitious $1.4 billion film and TV tax incentive package AB 238 has failed, marking the second consecutive legislative session a similar bill has died. The measure, which aimed to allocate up to $95 million in annual tax credits over 15 years to attract major studios like Sony Pictures and Warner Bros. Discovery to a proposed Summerlin Studios campus, did not receive a Senate vote before the legislative session ended earlier this month.

Despite narrowly passing the Assembly 22-20, the bill faced an 11th-hour amendment in the Senate by Sen. Roberta Lange, proposing to transform the tax package into a study on the film industry's economic impact. This amendment also failed to receive a vote, leading to the demise of AB 238.

Proponents argued the incentives would diversify Nevada's economy and create jobs, while detractors countered that tax incentives offer poor returns on investment, preferring funds to be allocated to more essential areas. The bill cannot be reconsidered again until 2027 unless a special session is called by the Governor.

VIRGINIA

SB 1179 proposed several significant and favorable changes to Virginia’s film tax credit program during the 2025 regular session, but did not advance out of the Finance and Appropriations Committee. The bill sought to rename the current Motion Picture Production Tax Credit to the "Content Manufacturing Tax Credit" and, most notably, aimed to remove the program's sunset provision—currently set to expire after the 2026 tax year—effectively making the credit permanent.

It also proposed increasing the annual credit cap from $6.5 million to $11.5 million beginning in fiscal year 2025 and allowing any unclaimed credits to roll over into the following fiscal year. Additionally, SB 1179 intended to broaden the definition of "qualifying expenses" to include costs related to the production of "eligible projects," defined as motion pictures or episodic television series filmed in Virginia. For now, the existing film tax credit program, with its current cap and scheduled expiration, remains unchanged.

Curious to see how these incentives stack up against other states? Head over to the jurisdiction comparison tool to see side-by-side breakdown of up to three locations.

International Jurisdictions

ENACTED INTERNATIONAL LEGISLATION

AUSTRALIA

Effective July 1, 2025 Western Australia (aka Screen West) will streamline its rebate on all qualifying post-production expenditure in Western Australia at 20% to help attract more national and international PDV projects to undertake work there.

Until now, Western Australia has offered a 20% rebate on post-production qualifying expenditure for the first AU$500,000, and 10% further for projects over AU$500,000. This is in addition to the 30% Federal Government Offset, which offers a tax rebate of 30% calculated on qualifying post, digital and visual effects (PDV) production expenditure of at least AU$500,000.

CANADA

The B.C. government formally enacted significant increases to its film and television tax credits (FIBC and PSTC) on May 29, 2025, retroactively effective January 1, 2025. This boosts the basic Canadian content (FIBC) credit to 40% and the basic foreign service production (PSTC) credit to 36%, with a new 2% bonus for major foreign projects over $200 million.

DENMARK

Denmark is set to launch a new 25% tax incentive for international film and TV productions in 2026.

GERMANY

Germany's film incentive programs (DFFF and GMPF) now offer a 30% rebate on German production costs for films and high-end series. This increased rate applies to projects approved from February 1, 2025, following the German Film Law (FFG) amendments effective January 1, 2025.

Additional details available here:

IRELAND

The European Commission approved the modification and extension of Ireland's film tax relief scheme from January 1, 2025, until December 31, 2028. The scheme offers a 32% tax credit, with an enhanced 40% "Scéal Uplift" for small to medium-sized feature films (under €20 million qualifying expenditure) meeting additional criteria.

A new tax incentive for unscripted television productions (20% on eligible expenditures, up to a €15 million cap) is also active.

NEW ZEALAND

On May 16, 2025, as part of the lead-up to the full New Zealand Budget 2025, which was delivered on May 22, 2025, the $577 million in funding was allocated to support film and TV production for International Screen Production Rebate over four years, bringing the total funding for the rebate scheme to $1.09 billion over the forecast period.

The Screen Production Rebate offers the following:

  • 20% rebate for films spending over $15 million and TV projects over $4 million (this is the standard rate)
  • An additional 5% uplift for productions spending over $30 million that meet specific economic and industry criteria

Post-Production, Digital, and Visual Effects (PDV) Grant:

  • Confirmed to be returned to 20%
  • Qualifying expenditure threshold lowered to NZD $250,000 (from a previous higher amount, often cited as $500,000 in past updates), specifically to benefit smaller productions

This budget injection aims to provide certainty and stability to New Zealand's screen sector, making it more competitive on the international stage. 

ROMANIA

After a challenging period, Romania's film cash rebate program has been successfully restructured and relaunched by the Office for Film and Cultural Investments (OFIC). The latest developments indicate that 85% of outstanding debts from previous years have been paid, and a new digitized application system is in place, leading to quicker approvals and a regaining international industry trust.

The program currently offers a 30% rebate on eligible expenses, with a budget of €122 million allocated for 2024-2026, and there are plans to potentially increase the rebate to 40% to remain competitive with neighboring countries.

SPAIN

Continues to attract production with federal rebates of 25%-30%, supplemented by regional incentives (e.g., Canary Islands 45%-50%, Basque region 35%-70%, and Navarre 35%).

UNITED KINGDOM

The UK has transitioned to the new Audio-Visual Expenditure Credit (AVEC). While a transitional period exists, new productions are obligated to claim under AVEC from April 1, 2025. This replaces previous tax reliefs and offers a more streamlined system.

Specific enhancements for Visual Effects (VFX) expenditures, increasing the tax relief to 29.25%, became effective April 1, 2025. The Independent Film Tax Credit (IFTC), also known as Enhanced AVEC, for films up to £15 million, became claimable from April 2025.

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