Ellie Stark
After the pandemic, strikes, and wildfires, Los Angeles is struggling to maintain its place as the global epicenter of film and television production. In a bid to retain projects, the Golden State is hoping to entice with tax incentives. California Governor Gavin Newsom recently proposed more than doubling the state’s budget for filming tax credits from $330 million to $750 million.[1] Additionally, state representatives introduced SB 630 and AB 1138 to broaden the eligibility criteria for receiving tax benefits, like expanding the program to include shorter television shows, animated projects, and unscripted works.[2] Productions could ultimately receive up to a 40 percent rebate for shooting in California.[3] However, the state is the only major production jurisdiction that prevents above-the-line costs, like salaries for actors and directors, from qualifying for incentives.[4]
Martin Scorsese’s latest film, Killers of the Flower Moon, was filmed in Oklahoma, and the state plays a vital role as the historical backdrop of the three-hour epic.[5] The film received a 15 percent cash rebate from the state under the Compete with Canada Film Act.[6] In 2021, Oklahoma passed the Filmed in Oklahoma Act, whereby productions can receive a rebate of 37 percent on labor, goods, and services related to filming in Oklahoma, with an annual aggregate cap of $80 million.[7] The blockbuster success Twisters and recent television shows Tulsa King and Reservation Dogs were filmed in Oklahoman communities and received incentives.[8] Shooting in Oklahoma and on tribal land, with incentives from both governments, is in part leading to an increase in Indigenous stories produced.[9] According to the state, the Act has generated a total of $531 million in economic impact, with a 4.4:1 return on incentives paid out.[10] Oklahoma was also the only state to rank in the top ten in film and television employment growth (56.2% growth, ranked 6th), total compensation growth (169% growth, 4th), and annual compensation per worker growth (72.3% growth, 9th).[11]
In a bid to attract production, other states like Oregon, Kansas, and Missouri have introduced bills to create or expand their incentive program.[12] Some states, however, are grappling with the fallout from subsidizing these projects. Massachusetts gave out $92.8 million in tax credits for films in 2023.[13] The box-office-underperforming film Don’t Look Up received a record $46 million in incentives; while in 2023, two projects accounted for half of the state’s film tax credits: Dexter: New Blood and the panned Madame Web, each qualifying for over $22 million.[14] Union workers in Massachusetts are seeing some of the worst years for the local industry since 2010, citing productions moving overseas due to new incentive programs and lower costs.[15] The state’s program only created one job for every $102,945 spent through these incentives.[16]
Even though Oklahoma is expanding their incentive program, Tulsa King’s second season was filmed in Atlanta—unlike Oklahoma, Georgia does not have a cap on its incentive program.[17] Dennis Quaid, who starred in Oklahoma-shot Reagan, remarked that “[t]he next time we come back, we’re going to ask for $1 billion [in incentives].”[18] At what point will states begin to walk away from the glamor of Hollywood?
[1] Governor Newsom Proposes Historic Expansion of Film & TV Tax Credit Program, Oct. 27, 2024, https://www.gov.ca.gov/2024/10/27/governor-newsom-proposes-historic-expansion-of-film-tv-tax-credit-program/.
[2] Gene Maddaus, California Lawmakers Introduce Bills to Enhance Film and TV Tax Credit, Variety Feb. 26, 2025, https://variety.com/2025/biz/news/california-tax-credit-increase-legislation-1236321710/.
[3] The 40 percent incentive is comprised of a 35 percent rebate for California costs, with an additional 5 percent credit for shooting outside of Los Angeles. Winston Cho, Film and TV Shows Shooting in California May Get 35 Percent Subsidy Under Changes to Bill, The Hollywood Reporter March 26, 2025, https://www.hollywoodreporter.com/business/business-news/film-california-may-get-subsidy-under-changes-to-bill-1236173237/.
[4] Id.
[5] Rachel Wallace, Where Was Killers of the Flower Moon Filmed?, Architectural Digest Oct. 31, 2023, https://www.architecturaldigest.com/story/where-was-killers-of-the-flower-moon-filmed.
[6] The film received $4 million in incentives. Matt Stevens, Oklahoma’s Booming Film Industry Has Texas’ Attention, The New York Times April 7, 2024, https://www.nytimes.com/2024/04/07/arts/oklahoma-texas-film-incentives-tulsa-king.html; Carmen Forman, Film Reignites Calls for Oklahoma Movie Rebate, ICT News Oct. 20, 2023, https://ictnews.org/news/film-reignites-calls-for-oklahoma-movie-rebate; Film Incentive Bill Signed Into Law, Oklahoma Senate May 24, 2001, https://oksenate.gov/press-releases/film-incentive-bill-signed-law.
[7] See Economic Study Reveals a Significant Impact from the “Filmed in Oklahoma Act”, Oklahoma Department of Commerce Feb. 7, 2025, https://www.okcommerce.gov/economic-study-reveals-a-significant-impact-from-the-filmed-in-oklahoma-act/.
[8] Reservation Dogs received $12.8 million, and Tulsa King’s first season received $14.1 million. Supra at n. 7.
[9] See e.g. Scott Roxborough, Native All-Stars Unite for ‘Brave’ Film (Exclusive), The Hollywood Reporter Nov. 29, 2024, https://www.hollywoodreporter.com/movies/movie-features/brave-choctaw-nation-film-amber-midthunder-dallas-goldtooth-1236071582/; Brandy McDonnell, Lily Gladstone elevates another Oklahoma-made movie with terrific turn in 'Fancy Dance', AOL June 28, 2024, https://www.aol.com/lily-gladstone-elevates-another-oklahoma-165458800.html; Anousha Sakoui, Why the Cherokee Nation is Offering Film Incentives, LA Times Feb. 5, 2022, https://www.latimes.com/entertainment-arts/business/story/2022-02-05/in-oklahoma-the-cherokee-nation-gives-boost-for-indigenous-film-with-1-million-incentive; Scott Roxborough, AFM: America’s First Native Film Commission Looking to Do Business, Challenge Stereotypes; The Hollywood Reporter Nov. 3, 2022, https://www.hollywoodreporter.com/movies/movie-features/first-native-film-commission-challenge-stereotypes-afm-2022-1235254447/.
[10] Supra at n. 8.
[11] Supra at n. 8. The average film and TV industry wage in Oklahoma increased 66% from late 2019 to $79,450.
[12] See e.g., HB2523, 83rd Leg. Assemb., Reg. Sess. (Or. 2025); HB2038, Kansas Leg. Assembl., (Ks. 2025); The SHO MO Act, SCS SB 732, (Mo. 2022).
[13] Massachusetts’s program offers credits for up to 25% of payroll costs and 25% of production costs. 80 – 90% of the film tax credits get sold to corporations to reduce their state taxes, rather than the productions using them themselves. See Amelia Mason, Massachusetts gave films $92.8 million in tax credits in 2023, wbur Feb. 18, 2025, https://www.wbur.org/news/2025/02/13/massachusetts-film-tax-credits.
[14] Id.
[15] Supra n. 13. For its 2024-2025 budget, Quebec announced that it was raising its cap on labor expenditures from 50 percent to 65 percent of production costs. See Kelly Townsend, Quebec enhances film, TV tax credits in 2024-25 budget, Playback Mar. 13, 2024, https://playbackonline.ca/2024/03/13/quebec-enhances-film-tv-tax-credits-in-2024-25-budget/. Thailand is removing its rebate cap, which had been set at $4.5 million USD, and its maximum cash rebate increased from 20 percent to 30 percent. As a qualification, to receive these incentives, filming must not cause or result in environmental damage to natural resources; after 20 years of litigation, a Thai court recently held that a production company must pay $300,000 USD due to the damage the company allegedly caused to a local coral reef. There is also a requirement that at least 50% of spending must be on physical production expenses. See Waralee Sripawadkul, Updates on Thailand’s Film Incentive Measures, Aust Cham Thailand Mar. 26, 2025, https://www.austchamthailand.com/updates-on-thailands-film-incentive-measures/.
[16] Supra n. 13.
[17] The hit Netflix show, The Ozarks, was also filmed in Georgia, though the namesake Lake of the Ozarks is in Missouri. See Matt Stevens, Oklahoma’s Booming Film Industry Has Texas’ Attention, The New York Times April 7, 2024, https://www.nytimes.com/2024/04/07/arts/oklahoma-texas-film-incentives-tulsa-king.html.
[18] Id.