Indiana Film & TV Tax Incentive: Eligibility, 30% Rate, and Application

The Indiana film and TV tax incentive is a transferable state tax credit worth 20% to 30% of qualified Indiana production spending, capped at $250,000 per project and $2 million statewide per year. The Indiana Economic Development Corporation (IEDC) administers the program under Indiana Code 6-3.1-36, and you have to apply at least 30 days before principal photography starts. The current version runs for tax years beginning after December 31, 2025, and sunsets July 1, 2031.¹²

Which Productions Qualify

The statute defines a “qualified media production” in Section 6-3.1-36-3, and the definition is broad.³ Eligible projects include feature-length films (independent and studio), documentaries, television series and episodic programs, music productions, and digital media productions intended for commercial distribution. The production has to be aimed at public exhibition or reasonable commercial release, so internal corporate videos and personal projects are out.

The applicant itself has to be a “qualified applicant” under Section 6-3.1-36-2, which generally means being authorized to do business in Indiana. An out-of-state company will typically register as a foreign entity with the Indiana Secretary of State before applying.

What Spending Counts Toward the Credit

The credit is calculated only on money spent inside Indiana with Indiana vendors and residents. Payments to out-of-state companies generally don’t count, even when the work is performed in Indiana. The IEDC application sets a minimum qualified Indiana expenditure threshold to participate at all.⁴

Categories of qualified expenses, set out in Section 6-3.1-36-4,⁵ typically include:

Wages and salaries paid to Indiana residents, subject to a per-person cap. The IEDC application has historically set this cap at $150,000 per resident, though the 2026 update may adjust that figure.
Equipment rentals from Indiana-based vendors, set construction supplies, wardrobe, and props purchased or rented in-state.
Hotel stays at Indiana properties for cast and crew, and meals from local caterers.
Vehicle rentals, fuel, and logistics services paid to Indiana companies.
Insurance premiums paid to Indiana-based agents for production coverage.

Every dollar you claim needs to be traceable to an Indiana resident or Indiana-based vendor.

How to Reach the 30% Rate

The base credit is 20% of qualified Indiana spending. Three bonus categories can push it up to 30%:¹

Hiring Indiana residents above a threshold set by the IEDC.
Using Indiana-based post-production services for editing, sound, and visual effects.
Incorporating promotional Indiana branding into the finished product, such as recognizable state locations or inclusion of the state in credits and marketing.

The IEDC determines the exact bonus percentages during its review of the application and the final report. Because the per-project cap is $250,000, roughly $833,000 of qualified spending at the full 30% would max out the credit.

Caps and Why Timing Matters

Two hard caps apply. No single production can receive more than $250,000 in credits, and the state will not award more than $2 million in total film and media credits per year. Both caps were set by Senate Bill 306, which also pushed the program’s expiration from July 1, 2027, to July 1, 2031.¹²

A handful of mid-sized productions can exhaust the annual pool. Apply early in the fiscal year.

How to Apply

File the application with the IEDC at least 30 days before principal photography begins.⁴ There is no way to backfill this after the fact. Miss the deadline and you forfeit the credit, no matter how much you spent in Indiana.

The application package requires:

A line-by-line project budget with estimated Indiana spending broken out by category.
A production schedule with specific dates and Indiana filming locations.
Proof of financing, such as bank statements or investment contracts, showing enough capital to finish the project.
Identification of the lead producer and the accounting firm that will track expenditures.

The IEDC reviews the proposal against the program’s economic development goals. If approved, the state issues an initial certification of eligibility under Section 6-3.1-36-7.⁵ That certification is permission to proceed, not the credit itself.

After Filming: Audit, Certificate, and Using the Credit

Once production wraps, submit a final expenditure report to the IEDC documenting qualified Indiana spending and the number of Indiana residents employed. The report has to be verified by an independent CPA audit confirming that expenses were actually paid to Indiana entities and that compensation caps were respected. The IEDC uses the audited figures to calculate the final credit under Section 6-3.1-36-8.⁵ If actual spending came in under the estimate, the credit adjusts downward.

The IEDC then issues a tax credit certificate you claim on your Indiana state return under Section 6-3.1-36-10. The credit is not refundable, so it can only offset Indiana state tax liability rather than generate a cash payment. If it exceeds your Indiana liability for the year, you have two options:

Carry the unused credit forward under Section 6-3.1-36-11.⁵
Transfer all or part of it to another Indiana taxpayer. Each credit can be assigned only once; the recipient cannot pass it along again.¹

Transferability is what lets a production company without a large Indiana tax bill convert the incentive into actual value by selling the credit to an Indiana business that can use it.

Pass-Through Entities

If your production company is an LLC, partnership, or other pass-through, Section 6-3.1-36-9 lets the credit flow through to shareholders, partners, or members, generally in proportion to their ownership interest.⁵ Individual investors in an Indiana-filmed project can then apply their share against personal Indiana tax liability.

Program Timeline

The current program applies to taxable years beginning after December 31, 2025, and expires July 1, 2031.¹ If you are planning a multi-year project, confirm that your expected completion falls before that sunset date.

1
Film Indy. Incentives
2
BillTrack50. IN SB0306
3
Indiana General Assembly. Indiana Code 6-3.1-36-3 – Qualified Media Production
4
Indiana Economic Development Corporation. Indiana Film and Media Tax Incentive Application
5
Justia. Indiana Code Title 6 Article 3.1 Chapter 36