New Zealand Boosts Movie Production Incentives Amid U.S. Tariff Threat
New Zealand Boosts Movie Production plans to increase funding for rebates to attract foreign film productions. This move responds to U.S. President Donald Trump’s recent announcement of a 100% tariff on movies made outside the United States. As a result, New Zealand aims to reinforce its position as a top destination for international filmmakers.
New Zealand Strengthens Film Sector with Additional Funding
Famous for hosting the “Lord of the Rings” trilogy, New Zealand remains a favored filming location. This is thanks to its competitive costs and strong government support. Finance Minister Nicola Willis emphasized the country’s commitment. She stated, “We are sending a clear message to the world: New Zealand is the best place in the world to make movies.” She invited productions to take advantage of the country’s talent and locations.
Despite proposed cuts to baseline spending amid shrinking tax revenue, the government will allocate an extra NZ$577 million (about $339 million) in next week’s federal budget. This funding will maintain the International Screen Production Rebate scheme. Established in 2014, the program offers cash rebates of 20% for feature films with production costs exceeding NZ$15 million. It also applies to TV shows costing over NZ$4 million.
Willis acknowledged that although incentives are not the preferred strategy, sustaining the rebate scheme is essential. It helps attract offshore investment to New Zealand’s thriving screen industry. Currently, the sector employs roughly 24,000 people and generates NZ$3.5 billion annually. Notably, about one-third of its revenue comes from the U.S.
Moreover, Willis noted that neighboring countries like Australia, Canada, and the UK offer more generous incentives. This highlights the competitive environment for film production. Meanwhile, President Trump recently criticized foreign incentives. He claimed they threaten Hollywood’s future. Therefore, New Zealand’s move to boost support for filmmakers aims to counter these challenges. It will help maintain the country’s appeal as a global production hub.
