The Core Concept
A location incentive is a broad term for any program a government establishes to make its jurisdiction—be it a country, a state/province, or even a city—a financially attractive place to make a movie or television show. In the highly mobile global film industry, producers can choose to shoot almost anywhere in the world. Incentives are the primary tool governments use to compete for the immense economic benefits that a major production can bring.
The Goal: Economic Development
The underlying purpose of a location incentive is to stimulate the local economy. When a large production comes to town, it spends millions of dollars on:
- Local Jobs: Hiring hundreds of local crew members, from electricians and carpenters to drivers and production assistants.
- Local Businesses: Spending money at hotels, restaurants, rental car agencies, lumber yards, and equipment rental facilities.
- Infrastructure Growth: Encouraging the development of a permanent film industry infrastructure, such as soundstages and post-production houses.
- Film Tourism: Showcasing the location’s scenery on a global stage, which can attract tourists for years to come (like New Zealand after The Lord of the Rings).
The Main Types of Location Incentives
Governments use several financial mechanisms to deliver these benefits, each with its own set of rules and advantages:
| Incentive Type | How It Works | Common Example |
|---|---|---|
| Tax Credit | Reduces the production’s tax bill. Often transferable or refundable to provide cash. | Georgia, New York |
| Cash Rebate | The government gives the production a direct cash refund based on its local spending. | Louisiana, United Kingdom |
| Grant | A direct, upfront payment of funds to the production. Less common and often for smaller projects. | Various regional film funds |
| Fee Waivers | Exemption from fees for filming on public property, such as parks or government buildings. | Many city film offices |
These programs have become a determining factor in where the majority of large-scale film and television shows are produced today.