For 2026 and beyond, Colorado’s film
Colorado is providing a $34 million tax incentive package over 10 years (starting 2027) for the Sundance Film Festival to move to Boulder, averaging about $3.4 million annually, alongside local support and funds for smaller festivals, expecting significant economic boosts from the prestigious event. This incentive, through refundable tax credits, aims to bring economic benefits like tourism and job creation, with the festival expected to generate billions for the state over the decade.
- Total Incentive: Up to $34 million in refundable tax credits over 10 years (2027-2037).
- Annual Value: Roughly $3.4 million per year, awarded retrospectively after ticket sales targets are met.
- Local Investment: Boulder and partners are contributing additional marketing, services (traffic, parking), and cash, valued at millions more.
- Benefits: Aims to boost local economy, create jobs, and enhance Colorado’s film industry, mirroring Sundance’s $132M economic impact in Utah in 2024.
- Local Festival Support: An additional $500,000 annually is set aside for other Colorado film festivals.
- Context: This package was part of legislation (HB25-1005) to attract Sundance, which chose Boulder as its new home starting in
Colorado is providing a $34 million tax incentive package over 10 years (starting 2027) for the Sundance Film Festival to move to Boulder, averaging about $3.4 million annually, alongside local support and funds for smaller festivals, expecting significant economic boosts from the prestigious event. This incentive, through refundable tax credits, aims to bring economic benefits like tourism and job creation, with the festival expected to generate billions for the state over the decade.
Film Incentive Program Comparison (2025 data)
| Feature | New Mexico | Georgia | Utah | Colorado |
| Incentive Type | Refundable Tax Credit | Transferable Tax Credit | Post-Performance Refundable Rebate/Tax Credit | Performance-based Refundable Tax Credit |
| Base Percentage | 25% | 20% | 20% | 20% |
| Max Percentage | Up to 40% with uplifts (e.g., rural, TV series) | Up to 30% with promotional uplift | Up to 25% (for $1M+ spend/local hire) | Up to 22% in an Enterprise Zone |
| Minimum Spend | None | $500,000 (can aggregate commercials) | $500,000 (various tiers available) | Varies by project, requires Economic Development Commission approval |
| Annual/Project Cap | No project cap; annual payouts capped ($160M for 2024+) | None (uncapped program) | Program funding limit of just over $20 million annually | Smaller program; historically spends average $3 million/year |
| Noteworthy | Flexible for small projects; significant rural filming incentives | Highly established hub with major infrastructure (e.g., Tyler Perry Studios) | Focus on rural Utah filming, leveraging diverse landscapes for promotion | Lags behind other states in total production volume, but new funding aims to grow the industry |
Key Changes & Additions for 2026+
Film Festival Incentives (HB25-1005): Creates two new refundable tax credits for film festivals, effective 2027-2037, contingent on a major festival relocating to Colorado by January 1, 2026.
Global Festival Credit: Up to $34 million for a qualified global festival (like Sundance) relocating to CO.
Small Festival Credit: Up to $500,000 annually for existing or small Colorado festivals.
Production Incentive Pool: A sustainable $5 million annual fund for general film/TV/game production tax credits, now guaranteed through at least 2029 (from HB23-1309).
Existing Incentives (Still Active)
Cash Rebate: A 20% refundable tax credit on qualified local expenses, increasing to 22% for rural/local infrastructure use.
Eligibility: Productions need 50% local workforce and minimum spending thresholds (e.g., $1M for out-of-state features, $250k for commercials/games).
What This Means for 2026
The focus shifts to attracting major film tourism through festival incentives, with a major decision point in early 2026.
Production incentives remain strong, providing a steady $5M pot for films, TV shows, and video games.
For the most official details, refer to the Colorado Office of Economic Development and International Trade (OEDIT) website and the Colorado General Assembly website.
