Film Festival Tax Credit

Program Summary

The Film Festival Tax Credit was established by HB 25-1005 and offers incentives to a globally recognized film festival to relocate to Colorado, and to existing film festivals which can qualify based on elements outlined in statute, by providing financial support for film festival organizers for qualifying expenditures in relation to organizing and hosting their film festival in Colorado. These tax expenditures and financial incentives are intended to boost local economies by increasing local sales tax revenue, along with boosting state visitation from out-of-state and international visitors. The bill, which was signed into law in April 2025, supports the Sundance Film Festival’s relocation effort via refundable tax credit at $3-5M per year through 2036. House Bill 25-1005 also provides $500,000 in refundable tax credits to support local, existing film festivals throughout the state through a changing market landscape.  

The Office of Economic Development and International Trade's (OEDIT) Business Funding and Incentives (BF&I) division will issue the tax credit and run the technical assistance; COFTM will manage the program.

Type: Refundable Tax Credit

For: Existing film festival entities holding a festival in Colorado

Amount: Varying amounts based on film festival 

Application period: Annually, summer-fall

OEDIT divisions: Business Funding and Incentives and Colorado Office of Film, Television and Media

Qualifications

A film festival entity that is not a global film festival entity. An existing or small Colorado film festival entity may be an entity that provides video, television, new media, or content creation exhibitions.

Years of Eligible Festival Program Spend

To be defined by OEDIT per the program policies and procedures.

Amount

Up to $500,000 per year in total awards, through a competitive review process.

Tax Credit Reservation Timeframe

Must apply for tax credit reservation each tax year. Applications for tax year 2027 will open in late summer 2026.

Committee Review

Festival entities must apply for a tax credit reservation each tax year.

Qualifying Costs

Costs paid by film festival entities in connection with a film festival taking place in Colorado, limited to qualifying expenditures incurred in Colorado.

CPA Certification Upon Reservation

Yes, Colorado CPA or CPA accounting firm to report and certify on qualifying expenditures in Colorado.

For: Existing or small film festival entities hosting a festival in Colorado

Amount: Up to $500,000 allocated throughout a competitive process annually

Application period: Annually, summer-fall

Qualifications

A film festival entity that is either:

• A tax-exempt entity under section 501(c)(3) of the internal revenue code or;
• A for-profit entity and has a multi-decade operating history and a verifiable annual track record of attracting 100,000+ in-person ticket sales and at least tens of thousands of out-of-state and international attendees for the film festival.

Years of Eligible Program Spend

To be defined by OEDIT per the program policies and procedures.

Amount

$34 million over 10 years ($4 million per year from 2027-2028, $5 million for 2029, $3 million per year for 2030-2036)

Tax Credit Reservation Timeframe

Tax credit reservation agreement can be made over multiple years. Please reach out to program managers for application details.

Application Review

Must apply for tax credit reservation each tax year (multi-year applications will be documented through OEDIT).

Qualifying Costs

Costs paid by film festival entities in connection with a film festival taking place in Colorado.

CPA Certification Upon Reservation

Yes, Colorado CPA or CPA accounting firm to report and certify on qualifying expenditures in Colorado.

For: Global film festivals holding a festival in Colorado

Amount: Up to $34 million over ten years allocated throughout a competitive process annually

Application period: Contact oedit@state.co.us for application information