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Hollywood in the Heartland: Analyzing Film Incentive Legislation

July 21, 2025

Silhouette of people working in big production studio for shooting or recording movie video by digital camera and lighting set.

The greatest films have the power to transport their audience, placing them within the story and as part of the action. In some cases, as the productions enter the American film canon, the film and its location become inextricably linked. It’s hard to think of Ocean’s Eleven (2001) without seeing the fountains at the Bellagio Hotel in Las Vegas, or remember Good Will Hunting (1997) and not see visions of a bench in the Boston Common. But the memorialization of location and story is only one part of the benefit received by cities and states that open their doors to film production. 

Filming movies and television shows on location brings significant economic boosts to local communities. Per the Motion Picture Association, movies filmed on location add over $670,000 to the local economy daily. For big-budget films, that economic impact jumps to a daily $1.3 million. Add in the tourism boost from fans visiting iconic locations and the valuable infrastructure added to accommodate film production, and hosting film sets becomes an economic boon. 

Using data from the IMDB database, BetMGM compiled a report of the most commonly used cities for film and television production. The research found Los Angeles, California, has an overwhelming lead in total productions. Hosting over 21,000 films and 7,400 television shows, Los Angeles has tallied more than double the next highest city (New York, NY) in both metrics. 

With film production being such an economic powerhouse, why leave all the Hollywood magic to Hollywood? Many heartland states see the potential economic benefits of the film industry and are undertaking efforts to bring more production to their communities. 

What is the Solution? 

Film incentive programs have become common among state and city governments, with the more impactful programs coming from the state level. Heartland states have joined states from around the country in passing legislation to incentivize film production in their localities. Though the exact details vary, most of the major legislation boils down to the following programs

  • Grants: The state issues a non-taxable cash grant to the production company. 
  • Rebates: Like a grant, the state issues money to the production company to the sum of a fixed percentage of the film’s qualified expenses. Unlike grants, this can be taxed. 
  • Tax credits: The state issues the production company a refund check of its film tax credit award after a tax return has been filed. Often, these programs return a dollar for every dollar the production company spent in the state. These credits can be refundable, partially refundable, transferable or non-transferable. 

Louisiana was the early leader in film incentive programs. Beginning in 1992 and modernizing in 2002 after reorganizing under Louisiana Economic Development (LED)’s oversight, Louisiana’s film tax credit was the first in the nation. Though the program has been the subject of heavy scrutiny, Governor Landry signed Act. 44 into law this year, giving the LED more agility in tailoring the incentive program to the evolving film industry. 

While Louisiana may have had an early jump on the rest of the country, the heartland’s biggest winner of late is Oklahoma with the Filmed in Oklahoma Act. A rebate program passed in 2021, the Filmed in Oklahoma Act has brought the production of blockbusters like Twisters (2024) and Killers of the Flower Moon (2024). The films brought over $530 million in local economic impact, including an over 800% return on investment on rebated dollars. The productions created 2,650 local jobs and increased rural lodging and food spending by 30%. Looking at the impact past the blockbusters, the Oklahoma film industry average salary has grown by over 66% and Oklahoma ranks in the top ten for a litany of industry growth factors since 2019. 

In total, 38 US states had active film-incentive programs as of 2024, 14 of which are heartland states. Among these heartland states, many are keen on the expansion of their programs. During the 2025 legislative session, the Texas legislature advanced a bill to add $300 million to support projects filmed in Texas. In Little Rock, film industry leaders like Mud (2012)director Jeff Nichols met with Arkansas legislators to discuss the benefits of incentive expansion. Heartland governments and industry leaders have made it clear they see the potential for economic development in their symbiotic incentive programs. 

This Summer, Warner Bros. brought Metropolis to the heartland, filming most of Superman (2025) in Ohio. As more big-budget projects look for locations to film, heartland states can entice production companies to base in their cities, inject new energy into local economies and hopefully make some iconic movie moments in the process.