Open The brutal truth about tax credits: Why locations matter more than your script

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Max

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Hi everyone! I’ve been thinking a lot lately about how much the industry has changed, and there’s a tough lesson I think every producer should hear. In 2026, the reality is that your script is often secondary to the tax credit. It sounds harsh, but as a Line Producer, I find myself spending way more time analyzing state legislation and tax codes than actually looking at storyboards.

Take the whole Georgia versus New Mexico situation for example. Georgia’s 30% is still the gold standard, but the infrastructure in Atlanta is so saturated right now that finding a good gaffer who isn't already locked on a Marvel set is like finding a needle in a haystack. Meanwhile, Albuquerque is catching up fast, but you really have to do your homework before you commit.

The biggest mistake I see is when people don't calculate their actual spend-to-rebate ratio early enough. Those out-of-state labor penalties and travel housing logistics can absolutely kill an indie budget. Sometimes you think you're saving 10% by moving a 50-person crew across the country, but in the end, the hidden costs and the broker's cut leave you with almost nothing.

I’m curious what you guys think about this. Have you had any real-world experiences where the tax credit look good on paper but turned into a nightmare in reality? Is it even worth chasing these credits anymore for smaller indie projects? Let’s share some honest stories!
 
"You hit the nail on the head with the 'fantasy math' – that’s exactly what kills so many projects before they even start. It’s refreshing to hear someone talk about the 'cleanliness' of a production instead of just chasing the biggest rebate.
I love your point about incentives rewarding stability rather than ambition. It’s so true: the moment you start forcing a script to fit a location just for the tax break, you’re basically trading creative control for a line item that might not even net out in the end.
The 'leakage' you mentioned in Georgia due to saturation is something I wish more first-time producers understood. A 30% credit doesn't mean much if your daily overhead is skyrocketing because you're flying in keys and paying premiums for basic gear.
I’m seeing a similar pattern even outside the US. Look at Hungary, for example—Budapest has become a massive hub with a reliable 30% incentive, but just like Atlanta, it gets so crowded during peak season that finding a top-tier local crew or stage space becomes a bidding war.

Quick question for you: Since you've worked in so many of these hubs, have you found that any of the newer, 'smaller' incentive spots are actually offering a 'cleaner' experience right now, or is it just a matter of time before every place with a good rebate becomes just as saturated as Atlanta or Budapest?"
 
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