Production Incentive
Tax credits, rebates, or other benefits offered to productions shooting in a location.
Definition
Production incentives are tax credits, rebates, grants, or other financial benefits offered by governments to attract film and television production. They've become a major factor in location decisions, with productions often choosing locations primarily based on incentive value.
Incentive programs vary significantly in structure, qualification requirements, and reliability. Productions must carefully evaluate both the potential benefit and the risk of policy changes or funding limitations.
Why It Matters
Incentives can reduce effective production costs by 20-40%. Location decisions are frequently driven by incentive analysis alongside creative considerations.
For producers, incentive expertise is essential for competitive budgeting.
Examples in Practice
A 30% tax credit in Georgia makes shooting there significantly cheaper than the original Los Angeles plan.
The production qualifies for an additional 5% incentive bonus by using local crew and services.
Incentive analysis includes not just the percentage but also the timing and certainty of receiving the benefit.