Wellington: New Zealand is set to increase budget allocations to enhance rebates for foreign studios filming movies within its borders, responding directly to U.S. President Donald Trump’s recent announcement of 100% tariffs on films produced outside the United States.
Famed as the filming location for the iconic Lord of the Rings trilogy, New Zealand has long attracted Hollywood productions thanks to its competitive costs and government-backed incentives.
“We are sending a clear message to the world: New Zealand is the best place in the world to make movies. Bring your productions here to take advantage of our talent and locations,” Finance Minister Nicola Willis said in a statement.
Earlier this month, Trump criticized international incentives for film production, asserting that Hollywood was experiencing a “very fast death” due to overseas subsidies.
In a clear countermeasure, New Zealand will inject an additional NZ$577 million (approximately $339 million) into its upcoming federal budget to sustain the International Screen Production Rebate scheme. This funding boost comes despite broader government plans to cut baseline spending amid shrinking tax revenues.
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Launched in 2014, the rebate program offers a 20% cash rebate on production costs exceeding NZ$15 million for feature films, and NZ$4 million for television productions, aiming to keep the country competitive in the global film industry.
“While industry incentives are not generally our favoured approach, the reality is we simply won’t get the offshore investment in our highly successful screen sector without continuing this scheme,” Willis added.
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New Zealand’s film industry supports around 24,000 jobs and generates NZ$3.5 billion annually, with roughly one-third of that revenue originating from the United States, according to a report by the country’s foreign ministry in March 2025.
Willis also acknowledged that other countries like Australia, Canada, and the United Kingdom currently offer more generous incentives than New Zealand.
