A state film tax credit can move a production budget by millions, and in 2026 the gap between the most generous states and the average ones is wider than it has been in years. California rebuilt its program, New York pushed its annual pool to historic levels, and Georgia still anchors the market with an uncapped, transferable credit. For producers deciding where to shoot, the state-by-state math now matters as much as locations and crew depth.
This comparison walks through the major programs, the current rates and caps as confirmed on official state pages, and the structural differences that determine how much cash a production actually keeps. Pease Bell CPAs works with production companies and investors through our motion picture industry practice, and the questions below are the ones that come up first in every incentive conversation.
Quick answer: As of mid-2026, the most competitive state film tax credit programs are California (base 20% to 25% with stackable uplifts, now refundable under Program 4.0, $750 million annual pool), New York (30% base on the production credit, $700 million annual allocation funded through 2036), Georgia (20% base plus a 10% logo uplift, fully transferable, no annual cap), and Ohio (30% refundable, roughly $50 million annual allocation, $300,000 minimum spend). The right choice depends less on the headline percentage and more on whether the credit is refundable, transferable, and whether the state pool is large enough to fund your project in the year you apply.
Why the Headline Rate Is Not the Whole Story
Two states can both advertise a 30% credit and deliver very different value. The mechanics that decide real-world worth are refundability, transferability, the per-project cap, and the size of the annual funding pool. A producer who compares only the advertised percentage will routinely pick the wrong state.
A refundable credit pays out the excess in cash when the credit exceeds your state tax liability, which matters because most production entities owe little or no income tax in the filming state. A transferable credit can be sold to a third party, usually a bank or insurer, for cash at a discount. A nonrefundable, nontransferable credit is close to worthless to a single-purpose production LLC with no in-state tax bill, so producers should treat structure as the first filter, not the rate.
The annual cap is the second filter. A state can offer an attractive rate and still leave you empty-handed if its yearly allocation is exhausted before your application is approved. Funded pool size and application timing therefore belong in the budget conversation from day one, alongside the rate itself.
A third, quieter factor is the definition of qualified expenditures. States differ on whether above-the-line talent, out-of-state crew, and post-production count toward the eligible base. A 30% credit applied to a narrow definition of spend can yield less than a 25% credit applied to a broad one, so the eligible-cost rules deserve as much attention as the percentage.
The Major Programs Compared
The four programs below represent the bulk of US scripted production spend in 2026. Figures are drawn from each state’s official film office or development agency, and producers should confirm them against current program pages before committing.
California: Program 4.0
California overhauled its program in 2025. Under Program 4.0, which the California Film Commission confirms runs as a five-year, $3.75 billion commitment with $750 million in annual funding and a sunset of June 30, 2030, the standard credit is 20% to 25% of qualified expenditures depending on project category. Productions can stack uplifts: an additional 5% for out-of-zone filming, 5% for visual effects, and up to 10% for local hire labor.
The structural headline is that credits are now refundable for the first time since the program began in 2009, and independent films may elect a transferable credit instead. The per-project qualified expenditure cap is the first $120 million for feature films and the first $20 million for independent features, with a $1 million minimum budget per project. For producers who previously wrote California off as a nonrefundable program, that change alone reopens the case for shooting in state.
Because the uplifts stack, a California project that films outside the Los Angeles zone, carries heavy visual effects, and hires locally can push its effective rate above the headline 25%. That makes the state more competitive than its base percentage suggests for the right kind of project.
New York: $700 Million and a Long Runway
New York’s production credit carries a 30% base rate on qualified production expenses, and Empire State Development confirms the production program is funded at $700 million per year through 2036, alongside a separate $100 million annual pool for independent films. The long funding horizon is meaningful for episodic television and franchises that plan multi-year shoots, because it reduces the risk that the pool runs dry mid-series.
New York layers on supplemental credits, including an additional 5% to 10% for companies running multiple projects in the state and an extra 10% on qualifying labor expenses in designated upstate counties. The credit is refundable, and the combination of a large, durable pool and a strong upstate incentive keeps New York directly competitive with Georgia and California for major projects.
For a long-running series, the durability of the New York pool can outweigh a marginally higher rate elsewhere. A showrunner planning five seasons values certainty that the credit will still be funded in year five, and a runway through 2036 delivers exactly that.
Georgia: Uncapped and Transferable
Georgia remains the structural benchmark. The state offers a 20% base transferable tax credit with a 10% uplift for providing promotional value to the state, typically through a Georgia logo placement, for a 30% effective rate. Georgia.org confirms a $500,000 minimum annual expenditure threshold and, critically, no annual cap and no sunset on the main production credit.
Because the credit is transferable rather than refundable, producers monetize it by selling to in-state taxpayers, with the market generally clearing in the high-80s to mid-90s cents on the dollar. Effective for tax years beginning January 1, 2026, Georgia also reinstated a standalone postproduction credit at 20% (plus 10% if the underlying project shot in Georgia), with the program subject to a $10 million total cap over its five-year window and a sunset by January 1, 2031.
The uncapped main program is the reason Georgia continues to lead the country in soundstage construction and series volume. Producers who can place credits with willing buyers treat Georgia as the closest thing the market has to guaranteed funding, since there is no pool to exhaust and no annual race to apply.
Ohio: A Refundable 30% With a Smaller Pool
Ohio offers a 30% refundable credit on qualified in-state cast and crew wages and other eligible spending, with a $300,000 minimum spend. The trade-off is pool size: the program runs on a roughly $50 million annual allocation effective July 1, 2026, plus rollover from the prior fiscal year, with a portion reserved for Broadway and theatrical productions.
For mid-budget features and independents, Ohio’s refundable structure and lower minimum spend make it accessible, and there is no per-project cap. The constraint is competition for a limited pool, so early application is essential. Pease Bell is an Ohio-based firm, and Ohio productions are a regular part of our tax advisory services work.
The refundable design is a genuine advantage for smaller producers who would struggle to find a credit buyer. Rather than discounting a transferable credit on the open market, an Ohio production receives cash directly from the state once its credit exceeds its in-state liability, which keeps more of the headline value intact.
How to Read These Programs as a Producer
Start by matching credit structure to your entity. If your production company will have no meaningful tax liability in the filming state, a refundable credit (California, New York, Ohio) or a transferable credit (Georgia, and California for independents) is the only way to capture value, so rule out anything nonrefundable and nontransferable early.
Next, size the pool against your timeline. A $750 million California pool and a $700 million New York production pool can absorb large projects, while a roughly $50 million Ohio allocation can be claimed quickly, so application windows and certification dates should be locked before you commit locations. Stacking uplifts also changes the comparison: a 20% to 25% California base can exceed Georgia’s flat 30% once out-of-zone, VFX, and local hire bonuses apply to the right project.
Finally, model the net of monetization costs. A transferable credit sold at 90 cents is not a 30% benefit, it is closer to 27%, and brokerage and legal fees reduce it further, so the comparison should always be done on after-monetization, after-fee dollars rather than the advertised rate. Build that adjusted figure into your financing model before you sign location agreements, because lenders and bond companies will want to see the net credit value, not the gross.
Frequently Asked Questions
What is the difference between a refundable and a transferable film tax credit?
A refundable credit pays the production the excess in cash when the credit exceeds the company’s state tax liability, so it is valuable even to an entity that owes no in-state tax. A transferable credit cannot be refunded in cash by the state, but it can be sold to a third-party taxpayer, usually at a discount of 5 to 12 cents on the dollar, which is how Georgia credits are monetized.
Which state has the highest film tax credit in 2026?
There is no single highest number, because the structures differ. New York and Ohio carry a 30% base rate, Georgia reaches 30% with its logo uplift, and California starts at 20% to 25% but can exceed 30% once out-of-zone, visual effects, and local hire uplifts stack on a qualifying project.
Do film tax credits run out during the year?
Yes, in capped states. California ($750 million), New York ($700 million on the production credit), and Ohio (about $50 million) each allocate a fixed annual pool, and once it is committed, applications wait for the next cycle. Georgia is the major exception, with no annual cap and no sunset on its main production credit, so that credit does not run out.
How do single-purpose production companies actually use these credits?
Most productions are run through a single-purpose LLC with little or no state tax liability, so they rely on refundability or transferability rather than offsetting their own taxes. The credit becomes cash either through a state refund or through a sale to a third party, and the planning around entity structure, certification, and monetization is where a CPA experienced in motion picture work adds the most value.
State film incentives are moving quickly, and the figures here reflect official program pages as of mid-2026. Before you lock a budget to a state, confirm the current rate, cap, and application window directly with that state’s film office, and model the after-fee value so the comparison reflects what your production will actually keep.
Sources:
– California Film Commission, The Basics 4.0
– Empire State Development, New York State Film Tax Credit Program (Production)
– Georgia.org, Film Incentives
– Entertainment Partners, Ohio Production Incentives
