# Indiana Film Tax Credit

Source: https://storiara.com/incentives/us/indiana
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Indiana's Film and Media Tax Credit, run by the Indiana Economic Development Corporation, pays a 20% base credit on qualified Indiana production spend, rising to as much as 30% with bonuses for hiring Indiana residents, using in-state post, and Indiana branding. Since January 1, 2026 the credit can be assigned once to another Indiana taxpayer. Each project is capped at $250,000 and the statewide total at $2 million a year, through July 1, 2031.

The cap is the first thing to understand about Indiana. A $250,000 ceiling per project means the program is sized for commercials, documentaries, music videos, and features that spend well under $2 million in the state. A studio feature will blow through it on the first week of payroll.

The credit was created in 2022 by Senate Enrolled Act 361 as a nonrefundable, nontransferable credit. A 2025 law rebuilt it effective January 1, 2026: the credit became assignable, the program now runs through July 1, 2031, and the structure moved to a 20% base with bonuses up to 30%. Some IEDC pages still describe the older version (Indiana Creates says "non-transferable, non-refundable" and "up to 30%"), so when two Indiana documents disagree, go by the date.

## How the 2026 version works

| Item | Current rule |
|---|---|
| Base credit | 20% of qualified Indiana production expenditures |
| Bonuses | Indiana resident hiring, in-state post-production, Indiana branding placement |
| Maximum rate | 30% |
| Per-project cap | $250,000 |
| Statewide cap | $2,000,000 per year |
| Transfer | One assignment to another Indiana taxpayer, no resale |
| Program end | July 1, 2031 |

The Indiana Department of Revenue lists the maximum allowable credit as $250,000 and says the credit must be approved by IEDC before anyone claims it on Schedule IN-OCC. The individual percentage for each bonus wasn't posted on the pages we checked, so ask IEDC for the scoring sheet before you promise a financier 30%.

## What spend qualifies

IEDC's published overview (dated May 2024, before the rewrite) counts Indiana-based spending on stages and locations, set materials, lighting and camera packages, picture cars and cranes rented in state, editing, VFX, sound mixing and music, and wages. It also counts workforce training for Indiana crew and paid internships for students at state schools. It excludes anything bought from a business without a physical presence in Indiana, insurance, legal and business costs, marketing, cell phone service, private or charter airfare, and costs after release. That list is the best guide to [qualified spend](https://storiara.com/glossary/qualified-spend) until IEDC posts updated guidance.

## A $1,000,000 production

Take a $1,000,000 indie shooting in Indianapolis and Columbus. After you strip out insurance, legal, out-of-state rentals, and marketing, $700,000 is qualified Indiana spend.

- Base only: 20% x $700,000 = $140,000
- With the full bonus stack: 30% x $700,000 = $210,000

Both are under the $250,000 cap, so the cap doesn't bite.

## A $5,000,000 production

Now a $5,000,000 feature with $3,500,000 of qualified Indiana spend:

- 20% x $3,500,000 = $700,000 calculated
- Capped at $250,000

The effective rate drops to about 7.1% of qualified spend. Once qualified spend passes $1,250,000 at the base rate (or about $833,333 at 30%), every additional Indiana dollar earns nothing. With a $2 million statewide pool, the state can fund roughly eight projects at the cap in a year.

## Applying

Open a project by emailing IndianaFilm@iedc.in.gov before production. The 2024 checklist asks for an Indiana-registered applicant entity with an Indiana production office address, a synopsis and script, the total budget with eligible expenses broken out, the number of Indiana-resident cast and crew, a creative elements list, and proof of financing. If you accept an offer, principal photography has to begin within 180 days, and your marketing has to carry "Indiana Film" branding approved by IEDC. The transfer is a one-time sale to another Indiana taxpayer, so find the buyer before you sign the assignment.

## Compared with nearby states

For anything bigger than a small feature, [Illinois](https://storiara.com/incentives/us/illinois) is the obvious comparison: 35% on vendor and resident spend with no project cap. [Kentucky](https://storiara.com/incentives/us/kentucky) pays 30% to 35% as a refundable credit with a $75 million annual pool. [Michigan](https://storiara.com/incentives/us/michigan) has no program at all, and [Ohio](https://storiara.com/incentives/us/ohio) runs its own credit worth checking if you're near the eastern border. Plug your numbers into the [incentive calculator](https://storiara.com/tools/incentive-calculator), browse the full [incentives list](https://storiara.com/incentives), and read up on the [transferable tax credit](https://storiara.com/glossary/transferable-tax-credit) mechanics before you negotiate a sale. The [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work) guide covers the timeline from application to cash. Storiara's [budgeting feature](https://storiara.com/feature/budgeting) is one place to build the budget you'll submit.

## Frequently asked questions

### How much is the Indiana film tax credit?

20% of qualified Indiana production expenditures, with bonuses that can bring it to 30%. The credit for any one project cannot exceed $250,000.

### Is the Indiana film tax credit transferable?

Yes, starting January 1, 2026. A production company can assign unused credit to another Indiana taxpayer one time. The buyer cannot resell it.

### How long does Indiana's film credit last?

The updated program took effect January 1, 2026 and is available through July 1, 2031, according to the Indianapolis film office.

### What budget do I need to qualify in Indiana?

IEDC's 2024 overview listed a $300,000 minimum project budget or a distribution agreement in place. The 2026 rules pages did not restate a minimum, so confirm the current threshold with IEDC before you budget around it.

## Sources

- [Incentives, Film Indy (Visit Indy film office)](https://www.filmindy.com/incentives/)
- [Indiana Department of Revenue, Tax Credits (Film and Media Production Credit)](https://www.in.gov/dor/individual-income-taxes/filing-my-taxes/tax-credits/)
- [Indiana Film and Media Tax Credit Overview (IEDC, May 2024)](https://www.indianacreates.com/wp-content/uploads/2024/10/Indiana-Film-Quals_05.2024.pdf)
- [Indiana Creates Tax Credit page (IEDC)](https://www.indianacreates.com/tax-credit/)