One Reason to Celebrate 2025: Production Incentives
Both new and enhanced programs could save your production big bucks in 2026.
While 2025 was a brutal year on many fronts, global production incentives continued to offer us something to celebrate, with some seismic shifts worthy of a midnight toast.
Some major US jurisdictions raced to lure runaway productions back home, while global locations sweetened the pot in areas like unscripted, post, VFX…and even toyed with incentivizing generative AI.
We’ll dive into the big changes that defined 2025, but first: if you film across borders - or provide services for international crews - be sure to read to the end for a sneak peek at a service that could save you lots of time, money, and trouble.
Now on to those incentives!
California Doubles Down with $750M Program
California made the biggest splash of 2025, more than doubling its annual film and television tax credit program from $330 million to $750 million, which became effective July 1, 2025. Under Program 4.0, the Golden State now offers a 35% refundable tax credit, with a 5-10% uplift for projects outside the Los Angeles zone and 40% for relocating TV series.
California’s Program 4.0 also expanded eligibility criteria beyond bigger-budget scripted productions. For the first time, animated films and series (minimum $1 million budget/ep), TV series with episodes averaging 20 minutes or more (eg, sitcoms at last!), and large-scale competition shows are eligible. Traditional reality TV and other unscripted formats remain ineligible, however (womp womp).
The first application window (July 7-9, 2025) saw television series applications jump 400% compared to the previous program. By October 2025, 48 projects had been approved that are collectively expected to generate over $660M in economic activity.
New York Raises the Stakes to $800M
Not to be outdone, New York Governor Kathy Hochul signed a budget in May 2025 that increased the state’s annual film and TV subsidy cap to $800 million - the highest in the program’s history. The 30% refundable tax credit features a number of bonuses that can boost it even higher.
The revised program includes a dedicated $100M pool specifically for lower-budget indies and introduces an additional 5-10% “Production Plus” bonus credit for companies that commit to multiple productions in the state.
Big-budget producers committing to at least 2 projects totaling $100M or more in qualified spend now receive an additional 10% bonus, potentially bringing the total credit to 40%; indies spending $20M+ will score a 5% bonus on subsequent productions. The program also added a 10% bonus for film scoring costs when productions employ at least five in-state musicians.
The biggest news: New York also removed the previous $500,000 cap on above-the-line costs (note: they cannot exceed 40% of total qualified spend). And more exciting still: New York is also doing away with its much-loathed, multi-year incentive payout structure, streamlining the process so that productions can now claim credits in full in the allocation tax year.
New York’s incentive applies to both scripted and unscripted content, including reality television, though specific project types are evaluated on a case-by-case basis.
UK Enhances VFX / AI Incentives
This year, the United Kingdom boosted its Audio-Visual Expenditure Credit (AVEC) to 39% (29.25% net post corporate tax) for qualifying visual effects expenses, a 5% increase from the previous rate - and certain generative AI costs also qualify (eg using AI to create backgrounds, crowds, and digital characters).
Another big bonus: VFX costs are now exempt from the 80% cap on qualifying expenditure that applies to other production costs.
This means productions can receive net 25.5% relief on filming and other non-VFX costs (up to 80% of total budget) and still claim net 29.25% on VFX spend even if it takes total UK spend above the 80% threshold. The UK government estimates this will attract an additional £175M/ year in VFX spending and create 2,800 new jobs.
Additionally, the UK launched a 53% Independent Film Tax Credit (IFTC) (net 39.75% after taxes - still much higher than the standard net 25.5% rate) for films with budgets under £23.5M. However, it cannot be combined with the VFX uplift.
UK incentives apply to scripted content, including film, high-end TV, and animation, and remember - a cultural test applies.
British Columbia Jumps to 36%
This year, British Columbia also increased its production services tax credit (PSTC) from 28% to 36% for international productions with principal photography - a dramatic 8-percentage-point jump designed to reclaim its “Hollywood North” status. The Film Incentive BC (FIBC) for Canadian-content productions rose from 35% to 36%.
And remember: British Columbia’s incentives apply to both scripted and unscripted content, including reality television, documentaries, and animation.
Foreign productions represent over 80% of total production spending in BC on average, making the PSTC increase particularly significant.
Productions with BC costs exceeding $200M receive an additional 2% bonus, bringing potential totals to 38%. The province also reinstated regional and distant location tax credits for qualifying animation productions with physical offices outside Metro Vancouver, the Fraser Valley, and Whistler/Squamish.
Ireland Introduces 40% “Scéal Uplift” and Launches Unscripted Incentive
Ireland made major moves in 2025 with two significant incentive announcements. In May 2025, the government officially launched the “Scéal Uplift” (announced in the October 2024 budget), increasing the Section 481 tax credit from 32% to 40%—an 8% boost—for feature films and animated features with qualifying expenditure under €20M. This enhancement specifically targets Irish-led productions featuring Irish creative talent in key roles.
The uplift aims to support smaller-scale Irish cinema and close the gap with the UK’s new 40% Independent Film Tax Credit. Ireland’s recent international success—with films like Kneecap winning at Sundance and Small Things Like These opening Berlin—underscored the importance of supporting homegrown productions.
Even more significantly for the unscripted community, the EU approved Ireland’s 20% tax credit for unscripted production. This unscripted television production incentive applies to qualifying production spend up to €15M per project; at least half the minimum required €250K budget per production must be spent in Ireland.
Productions must pass a cultural test administered by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media. The credit is designed to help Ireland become an international hub for unscripted television, including game shows and entertainment formats seeking a cost-effective European hub, positioning the country to compete with similar incentives in Malta and Cyprus. In recent years, several Fox Entertainment game shows aimed at the US market have migrated to Dublin and Wicklow.
Additionally, Ireland boosted its VFX credit: up to €10M of eligible Irish expenditure on VFX work can now qualify for the uplifted 40% rate (from 32%) for projects deemed “visual effects projects.” Projects must spend at least €1M on qualifying VFX services.
Ireland’s existing 32% Section 481 credit applies to scripted content only (feature films, TV drama, animation, creative documentaries). The new 20% unscripted credit specifically covers game shows, reality television, and other unscripted formats that pass the cultural test, marking Ireland’s first formal incentive for unscripted content.
OTHER SIGNIFICANT CHANGES IN 2025:
Texas – Passed SB22, providing $150 million annually (through 2035 - $1.5B total!) for film, TV, and digital media productions. The rebate offers up to 25% base rate with potential uplifts to 31%. Minimum spend: $250K for features/TV, $100K for commercials. Includes escalating local hire requirements (35% Texas residents initially, rising to 50% by 2031). Applies to scripted and unscripted.
Wisconsin – Film incentives return in 2026 after 12-year hiatus! New program provides 30% transferable tax credit on qualified in-state spend and resident labor, capped at $1M/project with a $5 million annual program cap.
Iowa – A pilot program launching in 2026 will offer up to 30% rebate on qualified spend, with an annual program cap of $4 million. The program is still in administrative rule development; preliminary details suggest production facilities must be principally located in Iowa for at least 3 years to apply, with a minimum $1M film budget. Follow developments here.
PROGRAM ENHANCEMENTS:
Georgia – Reinstated post-production tax credit starting January 1, 2026, at 20% for companies spending at least $500K on qualified expenditures. Additional 10% bonus if project shot in Georgia, 5% bonus for rural county post work. Annual post credit program cap: $10M.
New Mexico – Increased annual funding cap to $130 million for FY2025, stepping up to $140M for FY2026, solidifying status as competitive alternative to larger markets. Applies to scripted and unscripted content. Details here.
MUNICIPAL INCENTIVES:
Greater Fort Lauderdale, FL – Launched new Scripted Series Program offering 25% rebate - the largest rebate percentage in Florida. Projects must spend a minimum of $12 million in Broward County; rebate cap of $5M/project (or season).
Savannah, GA – Increased local cash rebate cap from $100K to $175K for features and $250K to $300K for TV. Can be stacked with Georgia’s 30% transferable tax credit.
Broken Arrow, OK – Approved $100,000 pilot film incentive program, making it Oklahoma’s second-largest municipal film incentive after Oklahoma City. Offers 10% rebate on local spend, 10-20% rebate on production space costs, and more.
The Bottom Line
The 2025 incentive wars reflect an industry in flux. California and New York are finally competing seriously with international markets and uncapped programs like Georgia’s. As the UK and Canada leverage their advantages in VFX capabilities and crew depth, Ireland positions itself to be a leading European unscripted hub.
In short, incentives continue to be a prime lever in drawing productions and driving industry and economic development - with no signs of slowing down in 2026.
Working across borders? Cultural Intelligence pays.
International productions and co-productions deliver significant financial benefits, but cultural misunderstandings can quickly erode those savings through miscommunication, project delays, and team friction.
Globally Minded helps production companies, crews, film commissions, and service providers turn cultural differences into strategic advantages. With 25+ years of leading multicultural teams across five continents and delivering millions in cost savings through international partnerships, we provide:
For Production Companies & Crews: Cultural intelligence training, location culture research, and team playbooks that prevent costly miscommunications, accelerate team cohesion, and maximize the ROI of your international shoots and partnerships
For Film Commissions & Service Providers: Tools to better serve foreign clients, differentiate your location, and build lasting production relationships that bring crews back
Whether you’re shooting abroad, collaborating with international partners, or hosting foreign productions, cultural fluency isn’t just nice to have - it’s a competitive edge.
Learn more at www.getgloballyminded.com, or reach out to Carrie directly at carrie@carrieregan.com to find out more.
Film commissions: Time to brag about your own incentive!
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