Recently, the United States announced a big change that affects movies made outside the country. U.S. President Donald Trump declared a 100% tariff on films produced abroad. This means that movies made outside the U.S. will suddenly become much more expensive to show in American theaters. This announcement has caused concern in many countries that have been popular places for filming, including New Zealand.
New Zealand is famous worldwide as the filming location for movies like the “Lord of the Rings” trilogy. For years, Hollywood studios have chosen to shoot films there because it is cheaper and because the New Zealand government offers financial help through incentives. But with these new tariffs from the U.S., countries like New Zealand could lose many big movie projects.
New Zealand’s Strong Response
In response, New Zealand’s Finance Minister Nicola Willis announced that the government will put more money into its International Screen Production Rebate scheme. This program gives back a portion of the money that movie studios spend while filming in New Zealand. Specifically, the government will add NZ$577 million (about US$339 million) to the budget to support this rebate.
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This decision is especially important because New Zealand’s government is trying to reduce overall spending as tax revenues shrink. However, Minister Willis emphasized that continuing this rebate program is necessary to keep attracting foreign movie productions.
The rebate program, which began in 2014, offers a cash rebate of 20% for production costs over NZ$15 million for feature films, and over NZ$4 million for television shows. This helps reduce the cost for studios and makes New Zealand a more attractive filming location.
Nicola Willis stated that even though offering such financial incentives is not their preferred method, the reality is that the country won’t get the offshore investment needed to support its successful screen sector without continuing the program.
Why This Matters for New Zealand
The film industry is a major part of New Zealand’s economy, employing about 24,000 people and generating NZ$3.5 billion every year. Around one-third of this money comes from the United States, highlighting how important Hollywood productions are to New Zealand.
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Other countries like Australia, Canada, and the United Kingdom provide even larger incentives to filmmakers than New Zealand does. Minister Willis pointed out that New Zealand needs to stay competitive to keep bringing in these big productions.
By increasing the rebate budget, New Zealand is sending a clear message: “We are the best place in the world to make movies.” The country offers fantastic locations and talented professionals ready to work on major films.
President Trump had claimed that Hollywood was facing a “very fast death” because of the incentives offered by other countries, which is why he introduced the tariffs. New Zealand’s decision to boost its movie incentives is a direct response, aimed at protecting its film industry from these new trade barriers.
In summary, New Zealand is making a strong commitment to its film sector by increasing funding for rebates, even in a time of tighter government spending. This move shows how much the country values the movie industry and its role in the economy.
