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. Reach out to the Arizona Commerce Authority for more information.
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: 25-35% (residents and nonresidents)
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
Application: Productions must submit the Film Production Registration form and the Film Production Tax Credit Agreement form to the New Mexico Film Office two weeks prior to the beginning of principal photography. A production can expect to wait 8-10 months after wrap to receive their earned credit for applications submitted prior to July 1, 2019.
Sales Use Tax Relief: Yes.
Hotel Occupancy Tax Relief: No
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.
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 Amount: Film & TV & Visual Effects Projects: 5% for $250,000 but less than $1,000,000; 10% for $1,000,000 but less than $3,500,000; 20% for $3,500,000 and above
Minimum spend: 5-22.5%
Bonus: 2.5% for projects which complete at least 25% of their total filming days in Underutilized or Economically Distressed Areas (UEDAs)
Application: Applications will not be accepted earlier than 120 calendar days and no later than 5 p.m. Central Time, five business days prior to a project’s production start date.
Sales Use Tax Relief: Yes
Hotel Occupancy Tax Relief: Yes
Sunset Date: None
