Most state rankings sort by headline rate. That tells a studio line producer very little and an indie producer even less, because the rate applies to different slices of the budget in each state and some credits have to be sold at a discount. This ranking is built for a $1 million to $5 million independent feature, and the numbers come from the state pages on our incentives hub, each checked against the film office or statute. Figures are as of September 2026. Programs change with state budgets, so confirm on the linked page before you commit a schedule.
How we ranked them
Five things decided the order, roughly in this weight:
- Net cash per dollar spent. What reaches the production after the sale discount or refund haircut, on a realistic indie cost mix.
- How much of an indie budget counts. Whether director, writer, and cast pay qualify, and whether nonresident crew are limited.
- Certainty. Annual caps, competitive allocation, first-come queues, and statutory buybacks.
- Minimum spend. Whether a $1 million film clears it comfortably.
- Paperwork and timing. Pre-approval windows, audit requirements, and how long the cash takes.
We didn't score crew depth, stage space, or vendor supply, and they matter. A state's credit only applies to what you can spend there, so check the film office's crew and vendor directories before you assume the in-state share below.
The model: one $2,000,000 feature, eight states
Same film, same spend in each state. The mix is an assumption chosen to look like a typical indie: $1,700,000 spent in state, made up of $300,000 in above-the-line pay to a nonresident director and two leads, $500,000 of resident crew payroll, $300,000 of nonresident department heads, and $600,000 with in-state vendors. The other $300,000 (post, insurance, legal) is spent elsewhere and earns nothing. Transferable credits without a state floor are assumed to sell at 90 cents with a 2% broker fee, so 88% of face.
| State | How the credit is built | Face value | Conversion | Net cash |
|---|---|---|---|---|
| New York, upstate county | 30% of $1.7M, plus 10% on $1.1M of labor | $620,000 | Refundable | $620,000 |
| Kentucky | 35% on resident payroll, 30% on the rest | $535,000 | Refundable | $535,000 |
| Illinois | 35% on resident wages and vendors, 30% on nonresident wages | $565,000 | Sold at 88% | $497,200 |
| New Jersey, outside the 30-mile circle | 35% on $1.4M (above-the-line excluded) | $490,000 | State buyback at 95% | $465,500 |
| Georgia | 30% of $1.7M | $510,000 | Sold at 88% | $448,800 |
| Louisiana | 25% of $1.7M, plus 15% on $500K resident payroll | $500,000 | State buyback at 88% | $440,000 |
| New Mexico | 25% on most spend, 15% on nonresident crew | $395,000 | Refundable | $395,000 |
| Massachusetts | 25% payroll credit plus 25% production credit | $425,000 | Refund election at 90% | $382,500 |
New Mexico's nonresident crew credit is limited by position count and budget share, and New York's above-the-line pay counts only up to 40% of other qualified costs (it fits here). Illinois assumes the nonresidents fall within its 13-crew and 4-actor limits. Re-run the model with your own mix in the incentive calculator, because a film with more resident crew or more above-the-line pay reshuffles the middle of this table.
1. New York - the most cash, if you shoot upstate
New York's Empire State credit is 30% of qualified costs and refundable, paid in one tax year for applications filed from 2025 on. Budgets over $500,000 that shoot at least half of principal photography in the listed counties (everywhere outside the five boroughs, Westchester, Rockland, Nassau, and Suffolk) add 10% on qualified labor, including above-the-line pay. The program is funded at $700 million a year through 2036, and the minimum budget is $250,000 outside the New York City area.
The catch is the stage rule. A production under $15 million needs at least one day at a qualified production facility, and location work counts only when the production meets ESD's tests. Budget for that stage day in the schedule. See the New York page.
2. Kentucky - refundable and generous with above-the-line pay
Kentucky pays 30% on qualifying spend and nonresident payroll and 35% on resident payroll, or 35% across the board in an enhanced incentive county. Above-the-line pay counts up to $1,000,000 a person, which is more than any indie needs. The credit is refundable.
Watch the minimum, raised in 2026 to $400,000 for out-of-state companies, the $75 million calendar-year pool, and the approval step: the Kentucky Film Leadership Council authorizes each agreement. Vendors need a physical Kentucky location with a resident employee, and nonresident kit and box rentals don't count. Details on the Kentucky page.
3. Illinois - high rate, low minimum, no annual cap
Since the 2025 rewrite, Illinois pays 35% on Illinois vendor spend and resident wages, 30% on nonresident wages, and adds 15% on wages of residents from high-unemployment areas. The minimum is $100,000, which opens it to films Georgia and Kentucky won't touch, and there's no annual cap.
It ranks below Kentucky because the credit is sold rather than refunded, the certificate must be sold within a year of issue, and nonresident wages count for only 13 crew and 4 to 6 actors. Only two executive producers can go into labor spend. More on the Illinois page.
4. Georgia - the fewest strings
Georgia's 20% base plus 10% for the promotional logo gives 30% on nearly everything spent in state, above-the-line pay and nonresident crew included. There's no annual cap and no per-project cap, so approval doesn't depend on who else is shooting that year.
The credit is transferable, so the sale discount comes off the top, and the Department of Revenue audit is mandatory with a $5,000 fee at indie spend levels. The minimum is $500,000, which can be met across a company's projects in one tax year. See the Georgia page.
5. New Jersey - 35% with a state buyback
New Jersey pays 35% outside a 30-mile circle around Columbus Circle and 30% inside it, where Newark, Jersey City, and Hoboken sit. For applications approved on or after January 1, 2026, the Director of Taxation must buy back unused credits at 95%, which makes the credit nearly as good as a refund.
The weakness for indies is the base. Pay to writers, directors, producers, and performers other than background doesn't qualify, so a cast-heavy budget loses more here than in Georgia. Allocation is first-come, first-served against a $100 million legacy program cap. See the New Jersey page.
6. Louisiana - up to 40% with a fixed floor
Louisiana's 25% base can climb with 15% on resident payroll, 5% for shooting outside the New Orleans area, 10% for Louisiana screenplays, and 5% on VFX, to a ceiling of 40% of base investment. Credits can be sold back to the state at 90% less a 2% fee, so lenders know the floor.
The 2025 changes cut the annual limit to $125 million for credits issued and for claims and buybacks, with no carryover. Above-the-line pay counts only up to 40% of in-state spend. See the Louisiana page.
7. New Mexico - no minimum and a refund
New Mexico's 25% refundable credit has no minimum spend and a $150 million annual cap. Work at least 60 miles from the qualifying county seats adds 10%, and a series or a qualified production facility adds 5% (one or the other). A film that can use the location uplift moves up this list.
Nonresident crew earn a separate 15% credit limited to a set number of positions, and lodging counts only up to $300 a person a night. See the New Mexico page.
8. Massachusetts - the easiest door for small films
Massachusetts combines a 25% payroll credit that needs only $50,000 of in-state costs with a 25% production expense credit that needs 75% of spend or shoot days in the state. There's no annual cap, and the producer can elect a refund at 90% of face.
It ranks here because the combined rate stays at 25% and the refund haircut takes it lower. No individual's pay counts above $2,000,000, which rarely bites an indie. See the Massachusetts page.
9. Oklahoma - a cash rebate for small budgets
Oklahoma's rebate starts at 20% and stacks to 30% with rural, small-town, soundstage, post, and music uplifts. The minimum is $50,000, and there's no buyer to find. Nonresident below-the-line crew earn 20% with no uplifts, projects under $7.5 million are awarded in six series a fiscal year, and every production hires Oklahoma apprentices. See the Oklahoma page.
10. Connecticut - 30%, but only above $1 million
Connecticut's transferable credit is 30% once Connecticut spend passes $1,000,000, with no annual cap. Below that the rate drops to 15%, and to 10% under $500,000, so a small film does better in Massachusetts next door. The state limits how much of a credit can pass to a buyer, which brokers price in. See the Connecticut page.
Worth pricing, but outside the top ten
- California pays 35%, but excludes wages for producers, writers, directors, and actors, and allocates credits by jobs ratio in application windows. Independent films can sell their credit. See California.
- Puerto Rico has the highest headline rate at 40% on local spend, but payments to nonresidents earn 20%, and the decree has to issue before photography with proof of funds and a distribution or minimum guarantee contract. See Puerto Rico.
- Texas reaches 25% only at $1.5 million of Texas spend and requires 35% of paid cast and crew to be Texas residents. See Texas.
- Pennsylvania pays 25% to 30% but wants 60% of total production expenses in state and proof that 70% of financing is secured. See Pennsylvania.
States with nothing to claim
The incentive pages list no active production program in Alaska, Idaho, Kansas, Michigan, Montana, New Hampshire, North Dakota, South Dakota, Vermont, and Wyoming. Montana's statute still describes a credit, but none is available. Florida offers a sales tax exemption rather than a credit. Shooting in one of these states can still make sense for a location you can't double, but plan the budget without soft money from the state.
Using the ranking
Pick two or three states, rebuild the model with your actual budget split, and price the bridge loan against each one, since a refund and a sale arrive at different times. How film tax credits work walks through the application-to-cash sequence, and transferable vs refundable tax credits covers why a lower rate can net more.