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Arizona to offer $125 million in film and TV tax breaks

Illustration of a film strip with one hundred dollar bills in each frame

Illustration: Annelise Capossela/Axios

Film production has boomed in states outside of California and New York over the last decade, largely due to incredibly generous tax breaks — some as high as 30%. Arizona has officially signed on to its own Hollywood deal.

Driving the news: Arizona, with its $125 million in breaks that Gov. Doug Ducey signed into law Wednesday, joins a small list of states offering nine-figure tax breaks, including New Mexico, Louisiana, Connecticut, New Jersey, Illinois and Georgia.

  • And of course, New York and California, each of which handed out more than $400 million in tax credits in 2021.
  • Georgia offers the most, giving away $1.2 billion in tax credits last year.

Details: The Arizona Motion Picture Production Program will offer $75 million in 2023 and increase to $125 million by 2025, according to the bill, HB 2156.

Meanwhile: Arizona's eastern neighbor New Mexico has emerged as a production hub itself.

  • Both Netflix and NBCUniversal committed $2.5 billion between them to produce content in the state, which has been the home for AMC's "Breaking Bad" and "Better Call Saul."
  • New Mexico offers among the highest tax breaks, with some productions getting as much as 35%. Arizona targets 15-20% in credits.

Of note: This is not the first time Arizona has had a film tax credit program. It had a prior one from 2005 to 2010, when it was scrapped after the state reported millions in losses.

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