Indianapolis, Indiana – A new piece of legislation is making its way through Indiana’s legislative process, and while it hasn’t garnered much attention, its potential impact is significant. Senate Bill 306, also known as the Film and Media Production Tax Credit Bill, could transform Indiana into a more competitive destination for filmmakers and media producers, all without requiring additional funding from the state budget.
The Indiana Senate recently passed the bill with a unanimous 49-0 vote, highlighting strong bipartisan support. The bill aims to address a critical flaw in the state’s existing film and media production tax credit system. Originally established in 2022, the tax credit allows production entities to receive up to 30% of their qualified expenditures back in the form of a tax credit against their Indiana-based taxes. However, many production companies—especially those created for a single project—do not have significant state tax liabilities, rendering the credits useless to them.
Senate Bill 306, introduced by Sen. Andy Zay (R-Huntington) and sponsored by Rep. Dave Heine (R-Fort Wayne), seeks to fix this issue by allowing production companies to sell their unused tax credits to other Indiana taxpayers. This change would create a mutually beneficial system where production companies could monetize credits they cannot use, while Indiana taxpayers could purchase them at a discount to reduce their own tax liabilities. Meanwhile, the state would benefit from increased media production activity, leading to job creation and economic stimulation.
This kind of transferable credit system has been implemented in at least 24 other states, many of which have seen remarkable economic benefits. Kentucky, for example, has leveraged its film and media tax credit to attract a growing number of projects each year. In 2022, Kentucky’s credit attracted 58 projects, generating a $158 million economic impact. The following year saw 61 projects with an impact of $182 million, and in 2024, 77 projects are expected to bring in $203 million. If Indiana follows suit, it could see similar economic benefits.
Currently, Indiana’s non-transferable credit makes it far less competitive than neighboring states with more attractive incentives. This has led many filmmakers and media producers to take their projects elsewhere, missing out on the opportunity to contribute to Indiana’s economy. With an average 6:1 return on tax credits to economic impact in states that allow transfers, SB 306 represents a crucial opportunity for Indiana to tap into this lucrative industry.
Though not widely publicized, the bill has already caught the attention of filmmakers and media producers who are waiting to see its outcome. If passed, it could immediately greenlight projects that have been put on hold due to Indiana’s restrictive tax credit policy. More importantly, it would signal to the broader industry that Indiana is open for business and eager to attract film and media investments.
The bill is now awaiting a hearing in the House Ways and Means Committee, where its fate will be decided. With its strong economic potential and zero impact on the state budget, SB 306 stands as a rare legislative opportunity to boost Indiana’s film and media industry with minimal risk. If it passes, it could put Indiana on the map as a top destination for filmmakers, bringing significant economic benefits to the state for years to come.
