ABSTRACT
One indispensable method of funding films is through the use of state production incentives, the most significant of which are tax credits. A tax credit is money paid by a state to the filmmaker for shooting 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. Most states have active film commissions whose function is to encourage in-state film and television production by helping filmmakers find local crew and supplies; recommending production-oriented state policy and legislation; and providing information on state permits, production incentives, and regulations on the use of public land for production. Transferable tax credits are used to offset state tax liability.
