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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
The short answer: dozens.
Many producers mistakenly believe that commercial shoots can’t be eligible for the same lucrative tax breaks that features and television productions often receive. This simply isn’t true! A whole host of states across the country offer competitive production incentives for commercial production.
For the most part, funding from these programs takes the form of commercial production tax credits, rebates, and direct payments via production grants. If this is your first time working with production incentives, you might find this primer on the various types of incentives useful.
Below, we’ll take a look at every commercial production incentive currently offered in the United States, starting with four of the most popular programs.
Georgia has long been a hub of production thanks to its highly competitive Georgia film tax credit program. Commercial productions, too, can take advantage of Peach State savings with Georgia commercial production tax incentives.
Georgia offers a 20% transferable tax credit for qualifying commercial productions. As with all Georgia film tax credits, productions must spend at least $500,000 in the state in order to qualify. Commercial production companies, however, can aggregate expenditures across multiple commercials from one calendar year to meet the $500,000 minimum spend threshold.
Commercials interested in receiving Georgia film tax credits must submit an application within seven days of starting principal photography. Applications are typically reviewed and approved within seven to 14 days.
With no annual funding cap and no per project caps, Georgia production incentives are among the most attractive in the country. The state’s robust production infrastructure and wealth of talented professionals also make it a favorite among commercial producers.
To learn more about Georgia production incentives, check out our guide to the program here or take a look at our detailed breakdown of the program on the Production Incentive Center.
The Land of Lincoln is also the land of commercial production thanks to Illinois production incentives.
Illinois boasts a 30% transferable tax credit for commercial productions—one of the highest commercial film tax credit rates in the country!
In order to qualify for these generous Illinois commercial production tax incentives, productions with a final runtime of less than 30 minutes must spend at least $50,000 in the state.
Commercial productions must submit their application for Illinois film tax credits at least 24 hours before production commences in the state. Applications for commercials specifically should include storyboards.
You can find a full breakdown of the Illinois film tax credit program here.
Over the last two decades, Massachusetts has emerged as a top filmmaking destination thanks to its competitive film tax incentives.
Features including The Holdovers, Challengers, and Madame Web have all capitalized on savings with Massachusetts film tax credits, and commercials can find serious production savings in the Bay State, too.
At the core of Massachusetts commercial production tax incentives is a 25% partially refundable tax credit.
In order to qualify for Massachusetts film tax credits, productions must spend at least $50,000 in the commonwealth over a consecutive 12-month period.
Like in Georgia, however, commercial production companies can aggregate expenditures for multiple commercials made for the same client during a 12-month period to meet Massachusetts’s minimum spend threshold.
Massachusetts’s comparatively low minimum spend requirement, paired with the state’s world class production resources, make its commercial production incentive one of the most popular in the nation.
No list of popular commercial production incentives would be complete without a visit to the Empire State.
New York is one of a very few states to offer a dedicated production incentive program just for commercials. In New York, commercial productions can receive a 20%–30% refundable tax credit provided they incur at least 75% of production costs within the state.
Projects eligible for New York commercial production tax incentives can be any length and minimum spend requirements differ depending where in the state you shoot.
“Downstate” productions shooting in and around New York City must spend at least $500,000 in the state to qualify for the commercial film tax credit. For the purposes of the credit, the downstate region is defined as the Metropolitan Commuter Transportation District (MCTD) and includes New York City along with Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties.
Downstate commercials can earn a 20% refundable film tax credit on qualified spend above $500,000.
“Upstate” productions shooting outside of this area must spend at least $100,000 in state to qualify for production incentives. Upstate commercials can earn a 30% refundable film tax credit.
New York is unique in that all applications for commercial incentives must be received by April 1st each year. If a production company is awarded a tax credit, the credit must be attached to that year’s tax return and applied to that year’s tax liability.
If you’re applying for New York commercial production incentives for the first time, it’s highly advisable to work with an experienced New York CPA.
Georgia, Illinois, Massachusetts, and New York may be among the most popular states for commercial production thanks to their incentive programs, but that doesn’t mean they are the only states which offer commercial production incentives. Not by a long shot!
Let’s take a look at some other states where commercial productions can maximize their budget thanks to commercial production incentives.
Alabama’s growing production infrastructure and picturesque Gulf Coast landscapes attract film projects of all types, from feature films like Get Out to unscripted reality shows like Love in Fairhope.
Commercial productions looking to capitalize on savings in the Yellowhammer State should look no further than Alabama’s film tax credit program which offers a 25%–35% fully refundable tax credit for commercial productions.
To qualify for Alabama commercial production tax incentives, productions must spend at least $500,000 in the state. If you’d like to learn more about all the various ways Alabama supports production, check out our guide to the Alabama Film Office.
Arizona relaunched its film tax credit program in 2023, aiming to attract a diverse array of film production to the state including commercials.
Through its film commission, Arizona now offers a 15%–22.5% fully refundable tax credit for commercial production. Projects wishing to qualify for these Arizona commercial production tax incentives must spend at least $250,000 or 10% of their total budget—whichever is less—in the state.
This relatively flexible minimum spend threshold caters to both smaller-scale commercials and larger campaigns, positioning Arizona as an up-and-coming destination for commercial production.
Arkansas’s scenic landscapes and supportive film commission make it an attractive destination for commercial projects that require a natural backdrop or that all-American small-town feel.
With a 25%–30% transferable tax credit for commercial production, Arkansas is an economical choice as well.
To qualify for Arkansas commercial production tax incentives, productions must spend at least $100,000 in the state. Approval of all projects occurs on a case-by-case basis and is up to the Arkansas Economic Development Commission.
Connecticut offers a 10%–30% transferable tax credit to commercial productions that spend at least $100,000 in the state.
Because Connecticut commercial production tax incentives are tiered, productions that spend more in the state can earn back more in credits.
Projects that spend between $100,000 and $500,000 are eligible for a 10% credit, projects that spend between $500,001 and $1 million are eligible for a 15% credit, and projects that spend more than $1 million are eligible for a 30% credit.
With its coastal New England towns and proximity to New York City, Connecticut can be both a convenient and picturesque location for commercial shoots.
Delaware provides film tax rebates of up to 30% to qualified commercial productions.
Eligibility for Delaware commercial production tax incentives is determined on a project-by-project basis by the Delaware Film Office, and the program’s overall annual funding cap is $1,000,000.
For smaller-scale commercials or those seeking a streamlined shoot in the Mid-Atlantic, Delaware might be the perfect fit.
For commercials looking to capture a slice of paradise without the price tag, Hawaii’s 22%–27% fully refundable film tax credit could be just the ticket. Productions that spend at least $100,000 on the islands of Hawaii can qualify for these Hawaii commercial production tax incentives.
Just as in Georgia and Massachusetts, production companies can also bundle expenses incurred on multiple commercial shoots in the same year to meet Hawaii’s minimum spend threshold.
To learn more about film tax credits in the Aloha State, check out this useful guide.
Louisiana offers a 25%–45% partially refundable tax credit for commercial production through its Motion Picture Production Tax Credit.
Projects that spend at least $300,000 in the state can qualify for Louisiana commercial production tax incentives. Louisiana also allows bundling, enabling companies to combine their spending on multiple productions in order to reach the minimum spending threshold.
Additional regional incentives—like those in Jefferson Parish, Shreveport, and St. Bernard Parish—help make Louisiana an even more appealing destination for commercial shoots.
You can find more information about Louisiana film tax credits here.
With its rugged coastlines and Downeast charm, Maine is a picturesque backdrop for your next commercial.
Through a combination of both a tax credit and a rebate, Maine commercial production tax incentives can return 5%–12% to qualified commercial productions.
In order to qualify for Maine incentives, productions must spend at least $75,000 in the state.
Commercial productions in Maryland can earn a 28%–30% fully refundable tax credit. For the most part, productions must spend at $250,000 in the state to qualify for these Maryland commercial production tax incentives.
Smaller Maryland-based production companies can earn the state’s “Maryland Small Film” designation, reducing the credit’s minimum spend requirement to just $25,000 in local spending. All projects, regardless of size, must conduct at least 50% of principal photography in Maryland to qualify for the incentive.
Minnesota offers both a transferable film tax credit and a production rebate for commercial production. Both Minnesota commercial production tax incentives can return 20%–25% to qualified productions.
Minnesota’s transferable film tax credit for commercial production has a $1,000,000 minimum spend requirement. The rebate requires productions to spend at least $100,000 in the state and is capped at $200,000 in total funding per year, available on a first-come, first-served basis.
Mississippi’s 25%–40% film tax rebate is available to commercial productions that spend at least $50,000 in the state.
Known for its unique southern charm, the Magnolia State has been steadily growing its production-friendly reputation. You can learn more about Mississippi commercial production tax incentives, and the state’s full film tax rebate program here.
Missouri’s recently revamped 20%–42% transferable film tax credit is available to commercial productions shooting in the Show-Me State. Provided the final runtime of the spot is under 30 minutes, production companies only need to spend $50,000 in the state to qualify for the credit.
In order to maximize your total film tax credit, take advantage of Missouri’s stackable bonuses, including a 5% bonus if at least 50% of the project is filmed in Missouri and another 5% bump if the commercial paints Missouri in a positive light.
Whether you’re shooting in the bustling cityscapes of St. Louis and Kansas City or the scenic Ozarks, Missouri’s range complements a variety of productions.
Commercial productions can qualify for a 15%–25% transferable tax credit in Montana. In order to be eligible for Montana commercial production tax incentives, projects must spend at least $50,000 in the state.
Known for its majestic mountain ranges and expansive plains, Montana provides a breathtaking natural backdrop that can elevate any commercial spot.
New Mexico’s iconic desert landscapes and strong local crew base make it a go-to destination for productions of all sizes.
With a refundable tax credit of between 15%–40% and no minimum spend requirement, New Mexico is also one of the most flexible states for commercial producers.
Projects looking to take advantage of New Mexico commercial production tax incentives must provide proof of media buys in order to qualify. To learn more about New Mexico’s production incentive program, check out this guide.
North Carolina offers a 25% grant for commercial productions that spend at least $250,000 in the Tar Heel State.
From the Outer Banks’ pristine beaches to the Great Smoky Mountains, commercials have plenty of terrain to choose from when taking advantage of North Carolina commercial production incentives.
Keep in mind that North Carolina’s production incentives are awarded on a case-by-case basis—not first-come, first-served. The NC Film Office and NC Department of Commerce determine grant awards based in part on a project’s economic impact to the state. Simply meeting the program’s minimum requirements does not guarantee a rebate.
Commercial productions that spend at least $300,000 in Ohio can qualify for the state’s 30% refundable film tax credit.
Ohio commercial production tax incentives are awarded by the Ohio Department of Development based on economic impact, with preference given to projects that are most beneficial to the state.
Oklahoma offers a 20%–30% cash rebate to commercials that spend at least $25,000 in-state, provided the total budget is at least $50,000.
Oklahoma commercial production incentives can substantially lower production costs, all while granting access to the state’s wide-open prairies and modern cityscapes.
Oregon provides a 6.2% cash rebate for commercial productions that spend at least $1,000,000 in the state over one calendar year.
Administered under the Greenlight Oregon Labor Rebate program, Oregon commercial production incentives allow production companies to bundle spending for multiple commercials made in the same calendar year to meet the spending threshold.
You can learn more about Oregon production incentives, including rebates for feature and television projects here.
Pennsylvania’s 25%–30% transferable film tax credit for commercial production comes without a minimum spend requirement, making it accessible for projects of all sizes.
In order to qualify for Pennsylvania commercial production tax incentives, projects must incur at least 60% of total production expenses—including pre-production, production, and post-production—in the commonwealth.
For commercials looking to showcase the Caribbean, Puerto Rico offers a 20%–40% transferable tax credit.
In order to qualify for Puerto Rico commercial production tax incentives, productions must spend at least $50,000 on the island. Credits are awarded based on a project’s economic impact, not on a first-come, first-served basis.
While Rhode Island may be the smallest state in the union, Rhode Island commercial production tax incentives can offer big savings.
Productions that spend at least $100,000 in the Ocean State can qualify for Rhode Island’s 30% transferable tax credit.
South Carolina provides a 10% rebate to commercials that spend at least $500,000 in-state within a single calendar year. Like North Carolina, South Carolina’s rebate is awarded on a case-by-case basis and is not first-come, first-served.
With a higher minimum spend requirement, South Carolina commercial production incentives might appeal to producers who plan to shoot an entire campaign or a single large-scale spot in the Palmetto State.
Commercials shooting in the Lone Star State can qualify for a 5%–10% grant, depending on how much they spend.
Productions spending between $100,000 and $1,000,000 in Texas are eligible for a 5% grant, and those spending more than $1,000,000 can receive 10% back.
To qualify for Texas commercial production incentives, at least 55% of your project’s total paid cast, including extras, and 55% of the total number of crew must be residents of Texas. The Texas commercial production grant is awarded on a case-by-case basis.
Virginia offers both a tax credit and a rebate to commercial productions.
These two Virginia commercial production incentives are very similar to each other and both offer between 15% and 35% back to qualifying projects.
Productions applying for the tax credit must spend at least $250,000 on production in the state to qualify. The grant has no minimum spend requirement.
Washington provides a 15% cash rebate for commercials that spend at least $150,000 in the state.
In order to qualify for Washington commercial production incentives, projects must commence principal photography no later than 45 days after receiving a Funding Letter of Intent from Washington Filmworks.
Productions must also submit a Commercial Funding Assistance Application detailing storyboards, budgets, and producer intent.
Known for its mountainous terrain and rustic settings, West Virginia is perfect for commercials looking for a rugged, natural aesthetic.
Commercial productions that spend at least $50,000 in West Virginia can receive a 27%–31% transferable film tax credit.
West Virginia commercial production tax incentives are not first-come, first-served and projects must submit a written proposal in order to be considered for the program.
Commercial production incentives vary widely from state to state, offering everything from fully refundable credits to generous cash grants and rebates. By understanding each state’s incentive, including minimum spend requirements and application procedure, you can smartly allocate your resources and maximize your budget.
When you’re ready to dig deeper, compare details, or begin an application, be sure to visit Wrapbook’s Production Incentive Center for the most comprehensive and up-to-date information.
If you have questions about commercial incentives, or are curious about where your next project could find the most savings, reach out to Wrapbook’s incentives experts.
Whether you’re shooting a single spot or an entire campaign, your goal as a commercial producer is always the same: reduce costs wherever possible in order to maximize your budget.
Commercial production incentives—offered by dozens of states across the country—can be a powerful way to save on your next commercial production without compromising on quality.
In this post, we’ll explore the many commercial production incentives offered all across the United States including four of the most popular programs specifically geared toward commercial production.
Before we dive into the world of commercial production incentives, we invite you to explore Wrapbook’s Production Incentive Center. This robust hub serves as a one-stop destination for production teams seeking detailed, state-by-state insight into film tax incentives across the United States—including incentives for commercials.
Wrapbook’s user-friendly interactive database takes the mystery out of identifying the best locations for your next commercial shoot, giving you a clear picture of each incentive’s requirements, benefits, and application timelines.
