LITTLE ROCK, Ark. – Across the country, states are experiencing a surge in economic growth as film productions relocate from Hollywood, seeking better economic conditions, new workforces, diverse geographies, and attractive incentives. Over the last 10 to 15 years Arkansas has hosted notable productions such as True Detective, MUD, and What Happens Later, which is remarkable given the current state of Arkansas’s film incentives–rebate funding on a project-by-project basis, and a $4 million cap on transferable tax credits.
Neighboring states like Oklahoma, on the other hand, have surged ahead by investing $30 million, up from $8 million, every year in film incentives, and by robust recruitment and workforce training efforts. As a result, Oklahoma has attracted renowned directors like Martin Scorsese and cultivated homegrown successes such as Reservation Dogs. In the three years following the increased funding in 2021, the film industry in Oklahoma grew by leaps and bounds, injecting $411 million into the state’s economy, with $177 million of that on wages through thousands of new hires.
To create a sustainable job market for film industry professionals, Arkansas filmmakers and crew have rallied together to launch the Film in Arkansas campaign to transform Arkansas into a competitive Film & TV destination by partnering with legislators and stakeholders to enhance state film incentives and increase local productions. Increasing film incentives in Arkansas can fuel a thriving creative economy by recruiting out-of-state productions to spend their money in Arkansas and hire Arkansas workers and by ensuring that homegrown productions remain in-state. To increase awareness about the benefits of film production, the film community has launched a website and produced a video featuring many residents and ex-pats who want to make more movies in Arkansas but cannot due to the current incentives and infrastructure.
States like New Mexico and Oklahoma have run comprehensive film economic impact studies. New Mexico’s data illustrates that their film incentive generated an economic return on investment (ROI) of 8.4, meaning that for every $1 invested through the program, $8.40 has been returned to the state’s economy. Additionally, for 92% of productions in New Mexico, filmmakers have identified the incentive as the most important factor when choosing where to produce film and television projects. To date, the “Filmed in Oklahoma Act” has paid out $78 million in incentives between FY 2022 and FY 2024, while projects generated $344 million in-state direct spend on qualified expenditures. That’s a 4.4:1 ROI, and that only includes the direct impact without considering the downstream economic impacts of film productions and crews staying in local hotels and shopping and eating local.
In a recent study by the University of Arkansas-Little Rock, the economic impact of a strong film incentive program is undeniable:
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$4.06 million – Economic activity generated per $1 million in film incentives
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1,300+ jobs – Created locally by just one major production
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$100 million – Economic impact from True Detective Season 3
“Filmmaking means business–plain and simple,” said Arkansas Cinema Society Director of Advocacy Dr. Brandon Goldsmith, of Fort Smith. “All of our neighbors–Oklahoma, Texas, Mississippi, Missouri and Louisiana–are going big on film right now. They recognize the direct economic impact it creates for their states. Incentives are not handouts to Hollywood; they are actually the opposite, as they compel Hollywood to invest in creating jobs for Arkansans right here in Arkansas. When a film production comes to town, they hire local crew, stay in local hotels and lodging, eat at local restaurants, buy goods at local stores. All of these things add up. Arkansas has had some success, but we will be left behind if we don’t grow our film incentives to be competitive regionally. Many of our state legislators recognize this. We hope they can bring on their colleagues to take film in Arkansas to the next level.”
With filmmakers unified statewide, Film in Arkansas organizer Zak Heald, of Bentonville, believes we can rise to the occasion.
“As a filmmaker and owner of Bentonville Studios, I have seen firsthand what support from the state and a lack of support from the state can do for small businesses like mine and the others in this industry. We love to work in-state, but recently, the opportunities have been drying up as Arkansas becomes less competitive with incentives for filmmaking. I am proud to see our community of crew, producers, and other filmmakers coming together to take a stand for film in Arkansas. Together, we will do all we can to convince our legislators that more movies means more money for the state.”
Arkansas Paved the Way, But Funding Is Lagging
Arkansas pioneered film incentives, launching the nation’s first rebate program with 1983’s “Nickel Rebate.” However, inconsistent funding has hindered the state’s potential to capitalize on this thriving industry. Currently, Arkansas offers a 25% incentive with up to 5% add-ons as either a tax credit or a rebate. In addition to the unfunded tax rebate, the tax credit was added by statute and funded in 2021, but has a $4 million cap, significantly smaller than any other state in the region. The rebate remains unfunded and at the Governor’s discretion. The Arkansas Legislature has commissioned world-renowned creative consultants Olsberg SPI to issue a study on the economic benefits of film to Arkansas.
To remain competitive with states like Georgia, Oklahoma, and New Mexico, Arkansas must fully fund its film incentive program and infrastructure. A fully funded incentive program will stabilize and grow Arkansas’s local crew base, create high-paying jobs, and keep skilled talent in the state. Film incentives generate significant local spending, benefiting small businesses, tourism, and local vendors. Increased incentives will also strengthen Arkansas’s competitive edge. Currently, Oklahoma’s 38% rebate with a $30 million annual cap has given it a clear advantage, drawing productions that could have been Arkansas-based. Arkansas natives Lee Isaac Chung, Clark Duke, Jeff Nichols, Graham Gordy, and others have wanted to shoot more of their films and TV shows in their home state. They have had to take their productions elsewhere, however, due to Arkansas’s lack of incentives and infrastructure.
“When states run the numbers on the economic impact of film incentives, they almost always double down on their investment. States like Georgia have lifted their cap completely because they realized their caps were only limiting their ability to generate revenue,” said Kathryn Tucker, Executive Director and Co-Founder of the Arkansas Cinema Society. “We are not trying to be the next Georgia. Our focus is on Arkansas, so we are eager to see the results from the recent comprehensive Olsberg SPI economic impact study done in Arkansas. We can all agree that Arkansas is known for its diverse, beautiful landscapes and the hospitality and warmth of its people. But without competitive film incentives, we’ll continue losing business and homegrown talent to neighboring states for more consistent and better paying jobs. My family has deep roots in Arkansas, spanning seven generations, and my dream is to make movies here. The current film incentives and lack of infrastructure, however, make a career in filmmaking unsustainable in Arkansas.”
A Call to Action: Invest in Arkansas’s Future
Without immediate action to fund the 25% base cash rebate program or raise the cap on tax credits, Arkansas risks losing more productions, Arkansans with careers in film, and the associated economic benefits to neighboring states in the coming months. Please visit and share our https://filminarkansas.org website for updates on the Olsberg SPI study, calls to action, plans for a more competitive film incentive, and robust film infrastructure here in Arkansas. Film production in Arkansas isn’t just about entertainment; it’s about economic growth, job creation, tourism, promoting our beautiful and beloved state, and keeping local talent home.
Filmmakers across Arkansas see the benefit of increasing the tax incentives. Writer/director Alexander Jeffery, of El Dorado, said, “The film incentive program is so important to the whole state, but for me personally, the projects that I want to make in South Arkansas (specifically El Dorado) will be greatly affected if the program isn’t renewed. When you make films that have autobiographical influence about where you grew up, having to shoot those films in other cities and states is heartbreaking to the filmmaker and the community that the story is about.”
About Arkansas Cinema Society
Arkansas Cinema Society (ACS) is a non-profit committed to building a film community in Arkansas where film lovers can watch films, share ideas, connect with each other, and nurture the new and existing film talent within our state through increased exposure to filmmakers and their art. Memberships are available to the public at large who may wish to dive into educational videos, member-only tickets, movie swag, and more. Those interested in supporting ACS can visit their website at www.arkansascinemasociety.org.
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