ABSTRACT
One indispensible method of funding films is through the use of state production incentives, the most significant of which are tax credits. Broadly speaking, a tax credit is money paid by a state to the filmmaker for shooting (and incurring expenses) in that state. Cities and states offer these incentives to encourage film production within their borders; in fact, production incentives are conditional upon a certain percentage of the film’s budget being spent in that state. In addition to tax credits, other state production incentives include relief for sales, gross receipts, use, and other local taxes. Some states also offer rebates, which are paid to filmmakers for certain qualified expenses incurred within that state.
