Production Incentives News to Know: Spring 2025

Film and television production incentives are always changing—and it’s a lot to keep up with. From the introduction of Alaska’s Film Production Promotion Program to the ambitious expansion proposed for California’s film tax credit program, we anticipate some major changes in the production incentive landscape in 2025.

Keeping you informed on the news that matters most, this article highlights noteworthy enacted and proposed incentive legislation across the US and Europe that every producer, production accountant, and filmmaker should know about.

Production incentives to watch: United States jurisdictions

ALABAMA

Alabama’s legislature is advancing Senate Bill 177 and House Bill 373 to update the Entertainment Industry Incentive Act. The proposal raises the annual cap from $20M to $30M starting FY2026 and increases the per-production rebate threshold from $20M to $25M. It allows up to $3M in unspent incentives to roll over annually and reserves $2M each year for music album projects. The Alabama Film Office would be renamed the Alabama Entertainment Office to reflect a broader focus.

ALASKA

House Bill 113 would create the Alaska Film Production Promotion Program, offering a 25% base credit on qualified expenses with uplifts: +5% for Alaska resident wages, +2% for rural spending, and +2% for off-season shoots (Oct 1–Mar 30).

The program has a proposed $20 million annual cap, requires $100,000 minimum spend over 24 months, a CPA report, and an Alaska screen credit. The program would sunset July 31, 2035.

CALIFORNIA

California is advancing legislation to expand its Film and TV Tax Credit Program. Assembly Bill 1138 and Senate Bill 630 propose lowering the TV runtime requirement from 40 to 20 minutes, adding eligibility for animation and large-scale competition shows (over $1M), and raising the credit to 35%-40%. Lawmakers cite the program’s role in protecting jobs, supporting small businesses, and maintaining the state’s entertainment leadership.

Above-the-Line (ATL) costs—like lead actors, directors, and producers—remain excluded, with no amendments yet. Standalone music scoring and post-production services also remain ineligible.

The goal is to fold both bills into the Budget Trailer Bill, with a vote by June 15. If included, the new program—with expanded eligibility, increased credit, and a $750M cap—would take effect July 1, 2025. Otherwise, passage is expected by September, with a January 1, 2026 start, unless an urgency clause allows earlier implementation.

FLORIDA (FORT LAUDERDALE)

Film Lauderdale announced a large-scale addition to its local incentive programs intended to attract television and streaming series projects to Greater Fort Lauderdale. The Scripted Series Program offers a 25% rebate capped at $5M per season with a minimum of $12M in Broward County. Greater Fort Lauderdale and Broward County have the largest percentage rebate for screen production in the state.

GEORGIA

Georgia House Bill 129 reinstating the state’s tax credit for post-production expenditures in film and television, has been signed into law. The bill passed both the Georgia House and Senate in early April 2025 and was subsequently signed by Governor Brian Kemp on April 10, 2025. It is set to take effect on January 1, 2026, and will remain in force through 2031.

Under HB 129, post-production companies that spend at least $500,000 on qualified expenditures in Georgia are eligible for a 20% tax credit. Additional incentives include a 10% bonus if the project was shot in Georgia and a 5% bonus if the post-production work is completed in a rural county. The total amount of credits awarded annually is capped at $10 million.

This legislation aims to bolster Georgia’s film industry, which experienced a downturn during the 2023 writers’ and actors’ strikes. By reinstating the post-production tax credit, the state seeks to attract more projects and investments, thereby strengthening its position as a premier destination for film and television production.

ILLINOIS

Illinois has enacted and proposed several legislative changes to its film, television, and live theater production incentives. The Illinois General Assembly will be busy in this month, in the lead up to their May 31 adjournment date.

Illinois has expanded its Live Theater Production Tax Credit, effective January 1, 2025, to include nonprofit theater organizations, offering a 20% credit on qualified production expenditures, plus an additional 15% for wages paid to Illinois residents in economically disadvantaged areas. To qualify, productions must have a budget of at least $10,000 and meet other criteria, such as a minimum performance length of 75 minutes and a venue capacity of at least 50.

Senate Bill 1897 and House Bill 2870 introduce a tiered Film Production Tax Credit in Illinois. Productions are divided into two categories:

• Category 1: Productions with at least 75% of principal filming days at a qualified production facility and at least 20% of expenditures related to such facilities, eligible for up to a 35% credit on Illinois production spending;
• Category 2: Other qualifying productions with a base 30% credit.

The bills also modify the number of non-resident employees whose wages count as Illinois labor expenditures, refine the definition of “qualified production facility,” and adjust withholding tax rules for nonresident employees working through loan-out companies.

Governor JB Pritzker held a press conference on April 15th with industry stakeholders to announce Illinois' 2024 record breaking film and tv production spend; watch the conference here.

MARYLAND

Maryland’s House Bill 498 and Senate Bill 427 revise the state’s Film Production Activity Tax Credit. Beginning in FY2026, the program will receive $20M in annual funding and will remove the existing $10M cap per project, allowing for greater support of larger productions.

MONTANA

Montana’s Senate Bill 326 introduces major enhancements to the state’s Media Production Credit. A new 30% credit is available for resident veterans and Native American individuals, capped at $150,000 per person.

Eligibility now includes unscripted TV and documentaries. The program’s annual cap increases from $12M to $30M, with $12M allocated for pre-2025 approvals and $18M post-2025, divided among general productions, independent films, facility spending, and Montana-domiciled companies. Productions must conduct at least 60% of principal photography in-state, and credits must be claimed in the year of the spend. The program’s sunset date is extended through December 31, 2045.

NEVADA

Nevada legislatre is reviewing Senate Bill 220, which proposes a 34-acre film and production campus at UNLV’s Harry Reid Research & Technology Park. The bill would raise the state’s annual film tax credit cap from $10M to $98M over three years, maintaining that level for 15 years. The bill is projected to create 3,000 construction jobs, 8,800 permanent jobs, and $33.3 billion in economic output over 18 years. It also launches the Creative Technology Initiative to support industries like video game design, aerospace, and healthcare tech.

Assembly Bill 238 proposes the Summerlin Studios project with Sony Pictures, Warner Bros. Discovery, and Howard Hughes Holdings. The bill includes a $120M tax credit over 15 years starting in 2028, with $25M for independent productions. It’s expected to generate nearly 18,000 jobs. Workforce development features include vocational training, a UNLV facility, and guaranteed student internships. Together, SB220 and AB238 represent a major push to grow Nevada’s film and television sector.

NEW MEXICO

New Mexico's Senate Bill 460, introduced in February 2025, proposes reinstating a state-backed loan program for independent film projects. The bill would allow the State Investment Council to offer 0% interest loans covering up to 80% of a project’s anticipated tax credit, limited to productions filmed entirely in New Mexico with mostly local crews and no major studio or streaming affiliations.

NEW YORK

Governor Kathy Hochul signed the $254 billion FY 2025–2026 New York State budget on April 28, 2025. The budget includes several key enhancements to the Empire State Film Tax Credit:

• Extension Through 2036: The film production and post-production tax credits are extended by two years, now running through 2036.
• Simplified Payout: For initial applications submitted after January 1, 2025, the tiered payout structure is eliminated. Credits will be issued in the taxable year of the allocation.
• “Production Plus” Incentive: Adds a 10% bonus for companies submitting at least two applications after Jan. 1, 2025, totaling $100M+ in qualified production costs.
• New Independent Film Credit: Establishes a $100 million annual Empire State Independent Film Production Credit offering 30% on qualified costs, with criteria encouraging in-state activity.
• Above-the-Line Cap Flexibility: Removes some restrictions on ATL cost caps, giving productions more budgeting flexibility for key talent.
• Loan-Out Withholding Removed: The proposed 6.85% withholding on payments to loan-out companies were rejected and not included in the final budget.

These updates aim to increase New York’s competitiveness and support jobs and economic activity across the state’s entertainment industry. Additional information can be found here.

OKLAHOMA (BROKEN ARROW CITY)

The Broken Arrow City Council has approved a $100,000 pilot film incentive program to attract production and boost local economic growth. As a film-friendly certified city, Broken Arrow now offers Oklahoma’s second-largest municipal film incentive, behind only Oklahoma City. The program will help Visit Broken Arrow, and the City assess its impact and explore long-term funding strategies.

PENNSYLVANIA

Senator Camera Bartolotta introduced SB137 to raise Pennsylvania’s Film Production Tax Credit cap from $100M to $125M starting in FY2025–26. The proposal addresses demand that often depletes funds mid-year, deterring productions. Allegheny County Council also passed a resolution urging the state to raise the cap to $300M, reflecting strong local support.

TEXAS

Texas Senate Bill 22 proposes a tiered grant program for film, TV, and digital media, with a maximum grant cap of 31% of in-state spending. Base grants vary by project type and budget:

Feature Films, TV (non-reality), Visual Effects:

• $250K–$1M: 5%
• $1M–$1.5M: 10%
• $1.5M+: 25%

Digital Interactive Media

• $100K–$1M: 5%
• $1M–$1.5M: 10%
• $1.5M+: 25%

Reality TV

• $250K–$1M: 5%
• $1M+: 10%

Commercials & Other:

• $100K–$1M: 5%
• $1M+: 10%

Bonus grants (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 $300K
• Postproduction: +1% if 25%+ of spend is in post
• Texas Veterans: +2.5% for 5%+ Texas veteran cast/crew
• Faith-Based: +2.5% for designated faith-based content

Texas Residency Phase-In Requirements:

• 35% for projects starting Sept. 1, 2025 – Aug. 31, 2027
• 40% for Sept. 1, 2027 – Aug. 31, 2029
• 45% for Sept. 1, 2029 – Aug. 31, 2031
• 50% starting Sept. 1, 2031

Funding: $500 million every two years through 2035 via the Texas Moving Image Industry Incentive Fund.

House Bill 5000 supports infrastructure growth by expanding “media production facility” to include property renovations and requires 60% of production in Texas.

House Bill 5440 tightens eligibility with a 70% Texas residency requirement, $100K minimum spend, and grants up to 30% based on economic impact.

International incentives news: Ireland, Portugal and Romania

IRELAND

Ireland is expanding its screen production incentives under Budget 2025, introducing two key updates to support the industry. A new 20% tax credit is now available for unscripted television productions—including reality shows, game shows, and lifestyle content—covering up to 80% of eligible costs, capped at €15M, and subject to a cultural test.

PORTUGAL

Portugal has introduced new and enhanced production incentives in 2025, strengthening its appeal as a competitive location for both independent and large-scale film projects. The PIC Portugal Cash Rebate offers a 25%–30% refundable rebate for domestic and international productions that pass a cultural test, with minimum spending thresholds of €500K for fiction and €200K for documentaries or post-production, capped at €1.5M per project.

For larger international productions, the PIC Portugal Cash Refund provides a 30% refund on the first €2M spent and 25% thereafter, requiring a minimum spend of €2.5M and capped at €6M per film or season, or €3M per episode, with an annual fund of €20M. Additionally, productions filming in Madeira, the Azores, or sparsely populated mainland areas may be eligible for a regional uplift, increasing the rebate or refund rate up to 40%.

ROMANIA

Romania has officially reinstated its national film incentive program, offering a 30% cash rebate on eligible local expenditures for qualifying productions. Managed by the Office for Film and Cultural Investments (OFIC), the program is active through December 31, 2026, with an annual budget of €55M. It has shifted from a “first come, first served” model to a “first into production” approach, requiring projects to begin within 60 days of receiving an eligibility certificate and start principal photography within nine months.

Applications can be submitted here, with full guidelines available here.

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