NZ boosts production subsidies following Trump's 100% film tariff

NZ to inject US $339 million into screen reporduction rebate, move to remain competitive as global filming destination


News Desk May 16, 2025
he Hobbiton Movie Set, a location for The Lord of the Rings and The Hobbit film trilogy, is pictured in Matamata, New Zealand, December 27, 2020. Picture taken December 27, 2020. PHOTO:REUTERS

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New Zealand will inject NZ$577 million (US$339 million) into its screen production rebate scheme over the next four years, responding to US President Donald Trump’s new 100% tariff on films made outside the United States.

The move aims to keep New Zealand competitive as a global filming destination and sustain foreign investment in its NZ$3.5 billion screen industry, which employs about 24,000 people.

Finance Minister Nicola Willis announced the increase ahead of next week's federal Budget, emphasising the importance of maintaining international competitiveness.

"While industry incentives are not generally our favoured approach, the reality is we simply won't get the offshore investment without continuing this scheme," Willis said in a statement.

Under the International Screen Production Rebate, eligible feature films with production costs over NZ$15 million, and TV series over NZ$4 million, can receive a 20% cash rebate.

Productions spending over NZ$30 million and meeting additional economic criteria can qualify for an extra 5% rebate.

The funding increase will raise support to NZ$250 million in 2024/25 and NZ$210 million annually from 2025/26 onward.

The changes follow a 2023 review that helped attract 10 major international productions, including A Minecraft Movie, currently the second-highest-grossing film of 2025, and Taika Waititi’s Klara and the Sun.

President Trump, announcing the film tariffs earlier this month, claimed that foreign incentives were "killing Hollywood" and causing its "very fast death".

Willis noted that countries like Australia, Canada, and the UK offer more generous film incentives, and that New Zealand is now "playing catch-up" to remain competitive.

New Zealand previously attracted blockbusters like The Lord of the Rings, and aims to solidify its status as a top global filming location with this funding boost.

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