Sweeping vistas and production friendly metros make the Southwest an ideal location for your next project
From the John Ford Westerns of the 1930s to eager vacationers on summer break, the mythic qualities of the American Southwest have inspired stories and memories for generations. The mountains, valleys and vast rivers of the region can replicate the 19th century or the 23rd, and immense horizon lines make for stunning compositions no matter your subject mater.
Arizona
This July, Arizona this enacted the Arizona Motion Picture Production Program, an annual film and TV tax incentive that will offer qualified productions up to $75 million a year in 2023, $100 million in 2024, and $125 million in 2025 and thereafter. Under the new structure, productions that spend up to $10 million can get 15% tax credit, with productions spending $10 million-$35 million eligible for 17.5%. For productions over $35 million, it’s 20%. The law also calls for an additional 2.5% for a production company’s production labor costs related to positions held by Arizona residents. Learn more from the Arizona Commerce Authority.
Incentive Type: Refundable, Non-Transferable Tax Credit
Incentive Amount: 15-27.5%
Minimum Spend: <$10M (15%), $10M – $35M (17.5%), $35M+(20%)
Bonus: An extra bump on all qualified expenditures if you utilize a local AZ-qualified production facility. An extra bump on all qualified expenditures if you prep, shoot, and post all in AZ.
Audit Requirements: Third-Party CPA Audit is Required
Application: Applications must be submitted through the Authority’s electronic application system. Productions must begin principal photography within nine months of notice of pre-qualification status.
Sunset Date: 12/31/2043
New Mexico
New Mexico has emerged as a thriving hub for the film production industry, attracting directors and producers with its unique blend of diverse landscapes, favorable weather conditions, and a generous film incentive program. Additionally, the state boasts a skilled local workforce, top-notch production facilities, and a supportive community that understands the intricacies of the film industry. Hits like “Breaking Bad”, “Better Call Saul” and “No Country for Old Men” have all utilized the unique backdrops of New Mexico to become celebrated productions. Contact Film New Mexico to learn more.
Incentive Type: Non-Transferable Refundable Tax Credit
Incentive Amount: 25-40% (residents and non-residents)
Minimum Spend: None
Bonus: 5% increase for productions that shoot in rural areas, defined as 60 miles outside the counties of Bernalillo (home to Albuquerque) and Santa Fe
Audit Requirements: Audit by a New Mexico licensed CPA is required for credits over $5 million.
Application: Productions must file initial application materials with the NM Film Office at least 30 days prior to that start of principal photography.
Sales Use Tax Relief: Yes.
Hotel Occupancy Tax Relief: No
Sunset Date: None
Oklahoma
Since the pandemic, there’s been no better place to shoot a movie than Oklahoma. Many linking this to “Oklahomans’s poise in the face of calamity,” another theory has been because of Governor Kevin Stitt’s signing the Filmed in Oklahoma Act, “increasing the state’s annual funding to $30 million.” Either way––the state’s been swarmed (busy) with films. In 2021, Stillwater, American Underdog, and Killers of the Flower Moon were all filmed in Oklahoma. The Oklahoma Film & Music Office has all the information you’ll need.
Incentive Type: Rebate
Incentive Amount: 20-30%
Minimum Spend: $50K (total budget)
Bonus: Up to a 3% uplift for post-production expenses that are at least 3% of Qualified Production Expenditures (includes music) – If at least 3% of qualified expenditures spent on Oklahoma post-production: 2% uplift if at least 5% of qualified expenditures spent on Oklahoma post-production: 3% uplift. Up to a 3% uplift for at least 25% of main crew principal photography on location in a county of less than 250k if 25% filmed on location in a county less than 250,000 people: 2% uplift if 35% or more filmed on location in a county less than 250,000 people: 3% uplift.
Audit Requirements: An audit by a pre-certified Oklahoma CPA is required.
Application: Apply no more than 1 year prior to preproduction and no less than 45 days prior to preproduction (14 days prior to post on post only projects); include required documentation, the most current version of the shooting script, the production budget and proof that 50% of funding is in place (100% of funding must be in place 30 days prior to principal photography).
Sunset Date: 6/30/2031
Texas
In 2017, as reported by Texas Monthly, the Texas House “voted to reduce the amount of funding in the state’s film incentives program,” from $32 million (split over two year) to $0. Following the ruling, many critics feared the state’s film industry would collapse, as other nearby states offered better incentives. While this didn’t end up happening––as the film industry is still well and alive––the state realized later on that it could’ve been a close call. To make up for it, this past June, lawmakers agreed to budget $45 million to the program, effectively bringing its return. Let the productions begin! You can learn more from the Texas Film Commission.
Incentive Type: Grant
Incentive Amount: 5-22.5%
Minimum Spend: $250K (5% grant); $1M (10% grant); $3.5M (20% grant)
Bonus: 2.5% for projects that complete at least 25% of their total filming days in Underutilized or Economically Distressed Areas (UEDAs)
Audit Requirements: A CPA audit is required if the estimated grant is $300,000 or more.
Application: Productions must apply no earlier than 180 days prior and no later than 5pm CDT, 5 business days before the first day of production. To request a link to the application, productions must contact the TFC Incentives Team at filmincentive@gov.texas.gov. Links are valid for 7 days.
Sales Use Tax Relief: Yes
Hotel Occupancy Tax Relief: Yes
Sunset Date: None
