Indiana film productions will be able to receive tax incentives thanks to new law

Heartland Film Artistic Director Greg Sorvig with filmmakers

If you saw the 2014 film The Fault in Our Stars, based on the novel of the same name by John Green, you were probably moved to tears. The romance involving two teenage cancer patients was set in Indianapolis, where Green lives. But if you like verisimilitude in film, you may have been moved to tears for a different reason.

That is because the portion of the film set in Indianapolis was filmed in Pittsburgh. At that time, Pennsylvania had a movie specific tax incentive. Indiana did not.   

That will soon change. On March 15, Governor Holcomb signed Senate Enrolled Act 361. The new law provides that the Indiana Economic Development Commission can award tax credits for certain expenses related to media production in Indiana. Productions, which include film, television, digital media, and music, could be eligible for tax credits worth up to 30% of their expenses.

Heartland Film artistic director Greg Sorvig, for one, was thrilled by its passage.

“This long-awaited legislation will bring competitive film and media tax credits back to Indiana,” he said in a press release just after the enrolled act passed the Indiana Senate.  “I look forward to promoting Indiana as a viable place to do business with our international network of filmmakers and studios, and to showcase future incentive-backed projects at our festivals. This is a big win for economic development and the film industry in the Hoosier state!"

Paul Nethercott, who directed Grateful: The Jenni Berebitsky Story  —  which won the Indy Shorts International Film Festival  Audience Choice Award in 2018 — also offered praise. “The Indiana tax incentive is most welcome and it will bring film projects into the state,” he said. “It's extremely positive for me and all of my filmmaking colleagues in Indiana.”

He noted the experience of another state in this regard. “The comment that comes to mind, first of all, is the early bird gets the worm,” he said. “Almost 20 years ago, Georgia started a tax incentive and Atlanta, Georgia has turned into a major hub for film and TV production.”

But he voiced a degree of skepticism about whether that would happen in the Hoosier state. “Realistically, it's almost certainly too late to establish Indiana as a major hub for filmmaking,” he said. “I think everybody is asking the question: How long will it last? Will the tax incentive be available for a year or two or be basically permanent?” he asked. “To bring in big budget films, which usually take years to produce, decision makers need to have confidence that the tax incentive is going to be available when they need it.”

The new law goes into effect July 1.   

This comes too late however, for Turtles All the Way Down, the latest film project based on a John Green book, currently in pre-production for HBO Max.  Like The Fault in Our Stars,  the story of Turtles unfolds in Indianapolis. Filming will start in April —  in Ohio, another state with tax incentives for film production.