Global Production Incentives Update: March 2025

Spring is almost here and legislative sessions are underway! In this post, learn about important enacted and proposed changes that will impact production incentives across North America, Europe, Australia and other international territories. Let's dive in!

UNITED STATES JURISDICTION UPDATES

Enacted Legislation

GEORGIA

The Georgia Department of Revenue (GDOR) is implementing significant changes to the film tax credit audit process, effective January 1, 2025. These updates aim to streamline audits, making them more efficient, predictable, and cost-effective while addressing industry concerns.

The revised process will enhance clarity, reduce audit expenses, and ensure timely credit certification. The first round of revisions will be released in early 2025, with additional updates, including reductions in test sampling, expected soon from the GDOR.

Savannah has increased its local 10% cash rebate cap for film and television productions. The cap for feature films has been raised from $100K to $175K, the cap for television projects has been increased from $250K to $300K.

The Savannah rebate can still be stacked with Georgia's 30% transferable tax credit. More details can be found at the Savannah Economic Authority.

LOUISIANA

2024 tax reform reduces Louisiana’s annual funding to $125M and lowers the loan-out withholding tax to 3%. These changes align the incentive program with the state’s new flat individual tax rate.

Proposed Legislation

ALABAMA

Proposed legislation in Alabama aims to double the state's incentive offering, raising the annual cap from $15 million to $30 million dollars. The proposal would also allow unspent incentives (capped at $3 million dollars) to be carried over to the next year.

CALIFORNIA

Governor Gavin Newsom’s 2025-26 budget proposal increases the California Film and Television Tax Credit Program 4.0 annual cap from $330 million to $750 million for fiscal years 2025-26 through 2029-30.

Detailed in the Revenue Estimates section of the budget summary, this expansion aims to attract more productions to California, boosting economic activity and job creation. Legislators, the California Production Coalition, and others are also exploring and proposing ways to enhance the incentive’s effectiveness, including raising the percentage to 30% and expanding eligibility to ATL, unscripted TV, and post-production/VFX-only projects.

The California Film Commission's (CFC) next application window for Television Series (New, Relocating, Pilot, Limited, Recurring) ran from February 24-26, with Phase II from February 27-March 3 and approvals on March 31. 

The CFC has announced an additional application window for the Film and Television Tax Credit Program to support productions following recent wildfires, from March 31-April 2, Phase II from April 3-7, and approvals on May 5, 2025.

CONNECTICUT

Connecticut has proposed legislation to add a $50 million annual cap on the total tax credits available under its film production, entertainment infrastructure, and digital animation programs.

HAWAII

Hawaii has proposed legislation to increase the annual funding cap from $50 million to $60 million per calendar year and extend sunset date to December 31, 2038.

It also mandates that projects with annual production costs exceeding $1 million submit a sworn statement verified by a qualified CPA.

ILLINOIS

Illinois has proposed legislation for a 30% tax credit on labor costs for actors portraying women in STEM roles. STEM-related roles in film & TV include scientists, engineers, mathematicians, and inventors.

The additional amount applies to each resident actor and up to two non-resident actors for productions under $25M, or four for those over $25M, promoting diversity in film. Legislation:  Income Tax Act and the Prevailing Wage Act.

INDIANA

Indiana has proposed legislation to convert its non-transferable, non-refundable tax credit into a transferable credit. The proposal would allow taxpayers to assign all or part of the credit, with a minimum assignment of $10,000. The program is also extended through June 30, 2035.

MONTANA

Montana has proposed legislation to significantly increase its annual tax credit cap for film productions, raising the limit from $12 million to $350 million.

The expanded incentive, set to take effect for tax years after December 31, 2024, aims to attract more productions to the state and boost its growing film industry.

NEVADA

Nevada’s proposed legislation seeks to expand the state’s film industry with increased tax incentives and diversity mandates. The bill introduces up to $80 million annually in infrastructure-related film tax credits, raises non-infrastructure tax credits from $10 million to $25 million per year, and enforces diversity hiring in key creative roles like producers, directors, writers, and actors.

NEW YORK

New York Governor Hochul’s 2025-26 Executive Budget proposes modification to the NYS Film/TV Tax Credit Program. The Governor’s budget proposal further enhances the film tax credit program, removing the tiered payout structure and extending the program through 2036.

Key updates include a $100 million Empire State Independent Film Production Credit, improvements to the post-production credit, and a 10% credit rate for long-term studio partners.

A 6.85% withholding requirement for loan-out companies has also been introduced. In addition, Senate Bill 271 will exclude Rockland and Westchester counties  from the upstate 10% credit uplift.

Note, the withholding requirement would be effective as of January 1, 2025. While this is not yet law, and EP is not currently required to withhold from these loan-out payments, it is important to understand this proposed change and how it will impact your projects. We suggest you consult your Legal and Business Affairs teams regarding the potential legislation and determine the best path forward for your projects.

If you elect to have EP begin withholding 6.85% for loan-outs prior to the enactment of the pending legislation, you must complete a loan-out tax withholding authorization and indemnification agreement.

OREGON

Oregon has proposed legislation to boost its Oregon Production Investment Fund, increasing annual funding from $20 million to $28 million per fiscal year, starting July 1, 2025.

TEXAS

The Lieutenant Governor of Texas has unveiled proposed legislation to provide $498 million to the Texas Moving Image Industry Incentive Program (TMIIIP), and expand infrastructure and educational programs.

• SB 1 proposes a two-part increase: $48 million in grants for small films and TV commercials, and up to $450 million in new tax credits, including Texas residency requirements for workers.
• HB 1452 seeks to expand funding opportunities, establish new educational programs, designate special development zones, establish virtual production institutes, and create new tax rebate and trust funds to attract production to the state.

VIRGINIA

Virginia has proposed legislation to increase its film tax credit cap to $8.5 million starting in the fiscal year 2025.

Proposed legislation raises the annual cap to $11.5 million and introduces a provision allowing unclaimed funds to roll over into the next fiscal year. The program's sunset date has also been removed, ensuring its continued support for the state's film industry.

CANADA JURISDICTION UPDATES

Enacted Legislation

NOVA SCOTIA

Nova Scotia adds $38M to Film and Television Production Incentive Fund. The Department of Communities, Culture, Tourism and Heritage is investing $38 million into the Nova Scotia Film and Television Production Incentive Fund, bringing the province's investment fund total to $77M for the 2024-25 period.

Proposed Legislation

BRITISH COLOUMBIA

BC’s premier has announced this year’s provincial budget will include an increase to the production services tax credit, raising it from 28% to 36%. The change is expected to be retroactive to January 1, 2025.

Tentpole projects with local expenditures exceeding $200 million will receive a 2% bonus, further incentivizing large-scale productions in the province.

UNITED KINGDOM JURISDICTION UPDATES

Enacted Legislation

The UK government is providing a 40% business rates relief for film studios. Studios in the UK will receive business rates relief for the next nine years; the government rolls out the 40% reduction effective February 17, 2024

An increased rate of tax relief is also now available for VFX expenditure in the UK. The net 29.5% on VFX is exempt from the overall 80% cap on spending eligible for the Audio-Visual Expenditure Credit (AVEC).

In addition, the UK also announced a fresh £60m of investment for UK creative businesses and projects across the country with the aim to “turbocharge growth by transforming local venues, creating jobs, supporting businesses and spreading opportunity across the country.”

AUSTRALIA JURISDICTION UPDATES

Enacted Legislation

Australia is adjusting its production incentives to attract more mid-budget international projects. The Australian federal government has lowered the minimum expenditure for the Location Offset, while Screen Producers Australia advocates for further reforms in its 2025 policy platform. However, Screen Australia’s strict rules on reinvestment and incurred expenditure have led to several contested Producer Offset claims being withdrawn, raising concerns about the incentive process.

Additionally, Tasmania has introduced a new $1 million Island Incentive Scheme, signaling a commitment to growing its local screen industry.

NEW ZEALAND JURISDICTION UPDATES

Enacted Legislation

New Zealand offers competitive incentives to attract both international and domestic film productions. The 20% cash rebate on Qualifying New Zealand Production Expenditure (QNZPE) for international projects, with an additional 5% available for those demonstrating significant economic benefits to the country.

Domestic productions can access a 40% rebate, contingent on meeting specific criteria. These incentives have positioned New Zealand as a favorable destination for filmmakers worldwide.

INTERNATIONAL JURISDICTION UPDATES

Enacted Legislation

ABU DHABI

Abu Dhabi raised its rebate to up to 50% of qualified production spend. This increase makes it an even more attractive location for international film and television productions.

CZECH REPUBLIC

Recent legislation increased the Czech Republic’s rebate to 25% for standard productions, while animated and digital productions now qualify for a 35% rebate, strengthening the country’s appeal for international filmmakers.

FRANCE

French Budget cuts spare French Film Subsidies and Tax Rebates for International Productions. The Tax Rebate for International Productions granted to French production services companies amounts to 30% of the qualifying spend incurred in France (or up to 40% if French VFX expenses are more than €2M).

GERMANY

Germany is extending its DFFF and GMPF incentives for another year, with rebates now increased to 30% for both programs, further encouraging production in the region.

Germany has also removed the diversity clause from its film law, but local producers remain optimistic, stating that diversity is integral to their culture and will continue without legal mandates.

GREECE

EKKOMED-Creative Greece announced the relaunch of the 40% Cash Rebate Film & TV Incentive. This marks a dynamic period for the enhancement of film and audiovisual production in Greece, with Euros 105M for 2025 and operating through a new online system and involving the newly created Creative Greece. 

Note, it’s unclear how much of this budget might be needed to service any backlog of applications from the pausing of the system.

Proposed Legislation

IRELAND

Proposed expanding Section 481 tax credits to include unscripted TV projects, broadening the scope of support for production in the country.

THAILAND

Proposes an increase to their Cash Rebate to 30%. Following the success of projects like HBO’s The White Lotus Season 3, Thailand is increasing its cash rebate from 20% to 30%, making it a more competitive destination for film and TV production.

Other industry updates

The California Production Coalition (CPC) continues to advocate for policies that support a healthy production ecosystem in California. Their 'Stay in LA' petition has gained significant traction, now with over 15,000 signatures from supporters including Keanu Reeves and Patty Jenkins.

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