8 Locations Independent Filmmakers Should Consider for Their Next Project

The independent film industry is navigating a dynamic and transformative period. In recent years there have been many changes reshaping the landscape of independent cinema, impacting production, distribution, and audience engagement in various ways.

Independent filmmakers are using more advanced technology to bring their stories to the screen. High-quality cameras, editing software, and essential filmmaking tools are becoming affordable and accessible, allowing indie filmmakers with diverse voices to bring their creative vision to life. And streaming platforms like Netflix, Amazon Prime Video and YouTube (to name a few) have allowed these creators to showcase their work to a wider global audience–in some cases, without the need for a theatrical release. Some film experts predict that independent filmmakers should avoid distributing straight to VOD (Video on Demand)because it’s not in favor of the indie’s goals which are different than established studios and distributors.

While these changes hint at a promising future for independent cinema, challenges still persist forindependent filmmakers trying to secure financing and distribution for their projects.

With limited marketing budgets, it has become difficult for indie films to compete for theater screens, but as we have already explored, film incentives can significantly supplement a film’s financing strategy—sometimes exceeding 40% in certain jurisdictions! Choosing a film location and leveraging the available film incentives unlocks a range of accessible resources. 

With so many states and countries offering a range of incentives, where do indie filmmakers begin? In this post, we’ll take a look at 8 locations, include 6 in North America as well as the UK with low minimums and enticing incentive packages every filmmaker should know about, and Australia (offering equally enticing incentives for producers).

Five US states with attractive incentives for indie filmmakers

The US offers a variety of incentives worth investigating for independent producers. To help you narrow down the best options, it’s important to weigh two crucial factors: the minimum spend requirements and the optimal timing to receive the returns of the incentive.

Today we’ll focus on U.S. states that offer rebates, which tend to result in the quickest monetization; however, states offering tax credits have not been overlooked. While these states may have a longer timeline for credit monetization, their substantial tax incentives, coupled with access to several uplifts, can be equally appealing to indie filmmakers.

Below are five states independent filmmakers should consider for their next shooting location:

Oklahoma

The Filmed in Oklahoma Act of 2021 provides a cash rebate with a base of 20% to projects that film principal photography in the state. This rebate program is available to productions such as films, television series, and commercials with a minimum spend of $50,000. This incentive replaced the previous incentive’s $8 million annual cap with a $30 million cap.

In total, productions may receive a rebate of 20-30%, depending on which available percentage uplift opportunities the project qualifies for. For instance, productions can apply for an additional 5% Soundstage Uplift if 25% of their project is filmed at a certified soundstage facility, or an additional 3% Rural County Uplift if 25% of their project is filmed in a county with less than 250,000 residents.

Each production approved for the rebate program is required to hire a certain number of apprentices based on total production expenditures. Projects with less than $7.5 million in direct qualified production expenditure are required to hire 2 apprentices.

Notable productions that have filmed in Oklahoma and have showcased its diverse landscapes include Martin Scorsese’s ‘Killer of the Flower Moon’ (Apple), Lee Isaac Chung’s critically acclaimed film ‘Minari’ (A24), Tom McCarthy’s ‘Stillwater’ (Focus Features), and television-series ‘Reservation Dogs’ (FX), as well as the soon to be released ‘Twisters’ starring Glenn Powell.

For a deeper dive into Oklahoma’s incentive program and why the location is an ideal destination for indie filmmakers, check out this article on our blog.  Also, Oklahoma offers local incentives in Oklahoma City and the Cherokee Nation, which can be combined with the state incentive.

Mississippi

The Mississippi Motion Picture Incentive Program provides a 25-30% cash rebate on eligible expenditures and payroll incurred in the state. Two requirements of Mississippi's rebate program include a $50,000 minimum of in-state spend and verification that at least 20% of the production crew on payroll are Mississippi residents. The state has set the project cap at $10 million and the program’s annual cap at $20 million.

Productions, such as feature films, television programs, commercials, and animation projects, are eligible for a 25% rebate on eligible expenditures, a 25% rebate on non-resident payroll costs, and a 30% rebate on resident cast and crew payroll costs. In addition, there is a 5% uplift on payroll paid to any member of the cast and crew who is an honorably discharged veteran of the US Armed Forces.

Minnesota

The MN Production Rebate (MNPR) provides a 20% cash rebate to production companies that spend a minimum of $100,000 for eligible in-state production costs, and a 25% tax credit for productions with qualified in-state spend of $1 million (or 60% shoot days outside of the metro).

In addition to the state rebate, Minnesota offers several regional incentives (including the Iron Range Regional Production Incentive Program, an incentive in St. Louis County, and municipal incentives in the cities of Duluth, Austin and Maple Lake) that can provide an additional reimbursement of 10-25% of production costs and post costs on qualifying projects.

Three recent expansions to the Minnesota tax credit include an increase in annual funding to $25 million (increased from $5 million); a sunset date extended for an additional 8 years to 2030; and a 15% credit on non-resident BTL labor (for projects with a minimum spend of $5 million).

Check out our recent Master Series webinar ‘Minnesota: Land of 10,000 opportunities’, featuring Minnesota native, Producer/1st AD Van Hayden ('Genius: MLK/X,’ and ‘Hustle & Flow’) for a comprehensive look into Minnesota’s tax incentives and the promising opportunities it presents to filmmakers.

New Mexico

Under the New Mexico Film Production Tax Credit (FPTC), eligible productions can receive a 25-40% refundable tax credit on direct production costs incurred in the state. Considered one of the largest film tax credits in the country, the FPTC has no minimum spend or project cap, meaning there is no limit on the total amount of funding that can be allocated to individual film projects.

Productions can tap into several additional uplifts offered by the state, including: a 5% credit for qualifying television series or pilots; a 5% credit on the use of qualified production facilities (QPF); and a 10% credit for qualified expenditures outside the Sante Fe and Albuquerque City Halls.

You can learn more about New Mexico’s intriguing film scene, diverse landscapes, and incentive program here.

New Jersey

New Jersey’s Film and Digital Media Tax Credit Program provides a transferable tax credit of up to 30-35% of qualified production expenses incurred in the state with an additional 2-4% uplift on applications with an approved diversity plan. The credit program has a minimum spend of $1 million (or 60% of total production expenses in state) and no project cap. 

Effective 2025, the program will incentivize an additional $100 million in tax credits for New Jersey film-lease partners who have committed to long-term leases or acquisitions of New Jersey production facilities. 

The surge in production activity has sparked infrastructure and workforce development, establishing New Jersey as a prominent filming hub on the East Coast and earning it the nickname ‘Hollywood East.’

International incentives stimulating independent filmmaking  

In addition to these US locations, international jurisdictions also offer excellent incentives for indie filmmakers.

United Kingdom  

The UK offeres some of the most attractive tax credit programs available to filmmakers. recently launched Independent Film Tax Credit (IFTC), designed to support independent film production, offers a generous 53% expenditure credit that equates to a tax relief of approximately 40% for UK-based productions. To qualify for the UK tax incentives, films must have a budget of less than £15 million ($18.7 million USD) and meet certain criteria, such as having a UK writer or director, or be certified as an official UK co-production.

The UK’s approach is becoming the model for how regions can promote investment in independent filmmaking via tax credits. These credits not only stimulate industry growth but also facilitate financing for emerging filmmakers and help independent producers in revitalizing stalled projects.

In a recent Master Series webinar, I was joined by my UK colleague, Lloyd Gunton, to discuss the details of the UK’s new IFTC program, including eligibility requirements, theatrical release obligations, tax credit value, and guidance on the application process.

Canada   

Canada is renowned for its generous film tax incentives, making it an attractive destination for both domestic and international film productions.

Canada offers producers two types of Incentives for Film, Television, Animation, Post and Visual Effects, the Film or Video Production Services Tax Credit / “PSTC” and the Canadian Film or Video Production Tax Credit / “CPTC.” The PSTC requirements do not include “cultural” or specific “creative content” requirements, and basically requires (1) a production company with a permanent establishment in Canada and (2) its primary activity must be the production of film or videos, or the provision of production services, and (3) minimum total budget requirements. The CPTC (which provides a significantly higher incentive benefit to producers) has similar (1) production company and (2) minimum total budget requirements, and also requires (3) the production company to be the exclusive worldwide copyright owner in the production for the 25-year period that begins at the earliest time after the production was completed that it is commercially exploitable, and (4) the production must meet CAVCO's minimum key creative point requirements with regard to Canadian personnel.

The Film or Video Production Services Tax Credit (PSTC) provides eligible production corporations with a tax credit at a rate of 16 per cent of the qualified Canadian labor expenditures incurred in respect of an accredited production, which is stackable with the provincial incentives offered in Canada. Minimum total budgets must exceed $750,000 (ca$1m) for feature films, $75,000 (ca$100,000) per episode for TV projects less than 30 minutes, and $150,000 (ca$200,000) for TV projects above 30 minutes or more.

In many of the Canadian provinces there are similar Production Services Credits on production spend (note the British Columbia incentive is limited to labor expenditures only). The credit amounts vary, ranging from 21.5% to in excess of 45% (and the provincial incentives can be bundled with the Canadian Federal Incentive). Note, the Canadian Content Credit offers a 25% credit at the Federal level, which can be bundled with a similar Provincial credit (with percentages ranging from 25% to 45%).

Australia

Australia also offers a supportive environment for international independent filmmakers with a range of funding opportunities.

Australia’s Location Offset offers a 30% rebate on QAPE and can be increased with an additional 10% rebate when combined with state, territory, and local government incentives. Although it is designed to encourage large-budget productions to film in Australia (with a minimum spend of AUD$20 million), the Offset lacks an annual cap or sunset date, ensuring stability for both international film and TV productions.

Australia’s Post, Digital and Visual Effects (PDV) Offset has been instrumental in encouraging foreign producers to choose Australia as a filming location. The refundable tax credit offers a fixed rate of 30% of Qualifying Australian Production Expenditure (QAPE) related to PDV activity on an eligible film or television project, regardless of where the project is shot. Eligible productions must have a total QAPE of at least AUD$500,000.

To qualify for both Offsets, a production must use one or more Australian providers to deliver post, digital and visual effects for the production. In addition, the project must satisfy specific criteria set by the Australian government, which includes hiring Australian crew members, utilizing local businesses, fulfilling training commitments, and contributing to the industry workforce.

Ready to pick your location? Here's how EP can help

If you are seeking guidance on which jurisdiction, in the US or across the globe, may be the best fit for your production, Entertainment Partners provides a range of resources to simplify that decision. Check out our incentives tools, including the jurisdiction comparison and incentives estimator!

Our in-house team of production experts can guide you through the process, from budget to the monetization of your production incentive. Reach out today!

This article contains general information we are providing on a subject that may be of interest to you. Nothing in this article should be considered tax, accounting, or legal advice. You should consult with your own tax, accounting, or legal advisors regarding the applicability of this information to your specific circumstances.