# Minimum Spend

Source: https://storiara.com/glossary/minimum-spend
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Minimum spend is the threshold of qualifying local expenditure a production has to reach before it can claim a jurisdiction's film incentive. Spend below the line earns nothing, and spend above it earns the credit or rebate on the full qualifying amount. Thresholds range from a few hundred thousand dollars in some US states to tens of millions for large international programs.

## Thresholds side by side

Minimums are set to match the kind of production a program wants. Low thresholds suit indie features and local series. High ones target large studio work.

| Program | Minimum | Measured on |
|---|---|---|
| Louisiana Motion Picture Production Program | $300,000 in-state spend ($50,000 for Louisiana screenplay productions) | In-state expenditure |
| Georgia Entertainment Industry Investment Act | $500,000 a year, one project or several from the same company | Qualified Georgia spend |
| New Zealand rebate for international productions | NZ$4 million for live action (from 1 January 2026) | QNZPE |
| Australia Location Offset | A$20 million for films | QAPE |

Check the program page for your format. Many programs set different thresholds for series, documentaries, or post-only work, and New Zealand's threshold for productions that started photography before 2026 was higher.

## How close is too close

Say a producer plans a $1,100,000 shoot in Georgia and the accountant estimates $560,000 of qualified spend. That clears $500,000 by $60,000, about 11%. Now picture moving four shoot days of cast travel and a stage build across the state line, or post going to Los Angeles instead of Atlanta. Each change pulls qualified spend down, and a $60,000 margin disappears quickly. When a threshold is this close, the line producer should flag every scheduling or vendor decision that affects in-state spend.

The math of missing is harsh. At Georgia's combined 30%, $560,000 of qualified spend earns $168,000. At $490,000 it earns nothing.

## Common mistakes

Measuring the threshold against the total budget instead of qualifying spend is the obvious one. A quieter mistake is assuming a program that applies to features applies the same number to a pilot or a limited series. Another is timing: some programs apply the test per tax year, others per project, so a shoot that crosses 31 December can split its spend across two years.

## Related terms

Minimum spend is always measured on [qualified spend](https://storiara.com/glossary/qualified-spend), so the two terms go together in any finance plan. Programs with high thresholds, such as Australia's [location offset](https://storiara.com/glossary/location-offset), sit alongside separate programs for smaller local work like the [producer offset](https://storiara.com/glossary/producer-offset). Run a threshold check with the [incentive calculator](https://storiara.com/tools/incentive-calculator) and compare states in [best states for film tax incentives](https://storiara.com/blog/best-states-for-film-tax-incentives).

## Frequently asked questions

### If I miss the minimum spend by a little, do I get a partial credit?

Generally no. A threshold is a pass or fail test, so a production that falls short of it earns nothing under that program. Build a margin above the threshold into the plan.

### Can I combine several projects to reach the minimum?

Some programs allow it. Georgia's $500,000 annual minimum can be met by one project or by several projects from the same production company in one tax year. Check the program rules.

### Is the minimum measured on the total budget?

Usually it is measured on qualifying local spend, which is smaller than the budget. A $1M film with $400,000 of qualifying in-state spend does not meet a $500,000 threshold.

## Sources

- [Georgia Film Office, production incentives](https://www.georgia.org/industries/film-entertainment/georgia-film-tv-production/production-incentives)
- [Louisiana Entertainment, Motion Picture Production Program](https://www.louisianaentertainment.gov/film/motion-picture-production-program)
- [New Zealand Film Commission, Rebate for International Productions](https://www.nzfilm.co.nz/incentives/rebate-international-nzspr)
- [Office for the Arts, Tax rebates for film and television producers](https://www.arts.gov.au/funding-and-support/tax-rebates-film-and-television-producers)