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US Virgin Islands
Up to a 17% transferable tax credit, paired with a cash rebate, on US soil — pairing Caribbean scenery with US legal and tax familiarity, no passport required for American cast and crew.
US Virgin Islands Film Incentive Overview
- Up to 17% transferable credit
- Cash rebate stackable
- $250K minimum spend
- 20% local hire required
The US Virgin Islands film incentive runs through the S.T.A.R.S. program (Sustainable Tourism through Arts-based Revenue Stream), administered by the USVI Economic Development Authority (USVIEDA) and the Department of Tourism. Because the USVI is a US territory, this incentive works differently from anywhere else in the Caribbean: productions get the benefit of local scenery and a tax credit, while still operating under US law, with no work permits or currency conversion for American crew.
The credit and the cash rebate can be combined on the same production, and a St. Croix bonus adds a further 10% for qualifying activity done specifically on that island — a deliberate incentive to spread production beyond St. Thomas.
How the transferable tax credit works
The credit rate scales directly with how much of the production’s workforce is made up of USVI residents:
- 20–25% resident workforce: 10% transferable tax credit
- 25.1–30% resident workforce: 15% transferable tax credit
- 30.1% or greater resident workforce: 17% transferable tax credit
- St. Croix bonus: an additional 10% if qualifying production activity takes place on St. Croix specifically
- The credit is transferable, so productions without USVI tax liability can sell it, similar in mechanism to the Dominican Republic’s model but with a US legal framework underneath it
- Resident production companies can combine incentives and credits across up to 3 projects per year, capped at a combined $1,050,000
Eligibility and minimum spend
- Minimum qualifying spend of $250,000
- Minimum 20% local resident hires, covering crew, extras, and actors, plus up to three paid interns
- One above-the-line crew member must speak at a local school or university — a public-engagement requirement not seen in the DR or Trinidad programs
- Productions must credit the territory on screen (e.g. “Made in the USVI” or “Portions Made in the USVI”)
- For the cash rebate specifically, qualifying spend must occur on-island and be performed by a Territory Certified Production (TCP)
- Eligible formats: motion pictures, documentaries, television programs, commercials, music videos, and magazine advertising
Application process
- Pre-application meeting. Schedule a meeting with USVIEDA and the Department of Tourism to walk through the project, process, timeline, and approved CPA list
- Incorporation and good standing. Obtain a certificate of good standing from the Lieutenant Governor’s office and incorporate in the territory
- Formal application. Submit the application with a $500 fee; productions can apply after filming has already started, but no later than 30 days in
- Initial review. Processing takes up to 32 business days
- EDA approval. The Economic Development Authority has a further 25 business days to approve or reject the application
- Audit and payout. Complete production, verify qualifying spend through an approved CPA, and receive the credit/rebate
Production locations
The territory spans three main islands, each with a distinct character: St. Thomas (Charlotte Amalie’s harbor town, Cyril E. King Airport access), St. Croix (larger, quieter, and specifically incentivized via the 10% bonus), and St. John (largely protected national park land, more limited for production use). Because it’s a US territory, standard US customs and equipment rules apply rather than a separate import regime — a genuine convenience compared to most Caribbean neighbors.
Weighing the trade-offs
- The base credit tops out at 17%, meaningfully lower than the Dominican Republic’s flat 25% or Trinidad’s tiered-up-to-35%, though the ability to stack the cash rebate and the St. Croix bonus can close some of that gap depending on where and how the production is structured
- The public-engagement requirement (a crew member speaking at a local school) is a genuine logistical planning item, not just paperwork — it needs a name and a date, not just a checkbox
- US tax and legal framework cuts both ways: it’s more familiar and lower-risk for US productions, but doesn’t offer the same currency-driven cost savings some fully foreign jurisdictions provide
- The $1,050,000 combined cap for resident companies across 3 projects/year is a real ceiling for a busy production company working repeatedly in the territory
Who the US Virgin Islands film incentive is right for
This incentive is a strong fit for US-based productions that want Caribbean visuals without leaving US jurisdiction — no work permits for American cast and crew, no currency conversion, familiar legal recourse. It particularly rewards productions that can genuinely commit to a high resident-hire percentage, since the credit rate steps up meaningfully between the 20% floor and the 30%+ top tier. Productions chasing the single highest percentage in the Caribbean should look elsewhere; productions that value US-soil simplicity and are willing to hire and train locally get real, compounding value here.
For US-based productions, the appeal often comes down to logistics as much as scenery. No work visas for American cast and crew, no currency conversion, and a legal system that mirrors the mainland US remove a layer of friction that most Caribbean incentive territories can’t offer. Combined with the credit’s built-in reward for local hiring, and the added St. Croix bonus, the USVI works well for productions that want island production values without leaving US jurisdiction.
Notable productions in the US Virgin Islands
The US Virgin Islands Film Promotion Office, established in 1973, is one of the oldest film commissions in the Americas and the first in the Caribbean. Its own production history includes several titles recognizable well beyond the region: the final beach scene of The Shawshank Redemption (Castle Rock) was filmed on St. Croix, standing in for the film’s fictional Zihuatanejo. Other credited productions include Christopher Columbus: The Discovery (Warner Bros.), Forces of Nature (DreamWorks), and Four Seasons (Universal).
Most of these productions predate the current S.T.A.R.S. incentive program, filming in the territory for its locations and US-jurisdiction convenience rather than a specific tax benefit. That history is still worth highlighting, though: it demonstrates a production track record and working relationship with major studios that goes back decades, on top of the financial incentive available today.
- USVIEDA — Tax Incentives (official S.T.A.R.S. program page)
https://usvieda.org/tax-incentives/ - Film USVI — Incentives (the film office’s own incentive breakdown, with the tiered credit table)
https://www.filmusvi.com/incentives/ - Film USVI — Movies credits page (source for the notable productions section)
https://www.filmusvi.com/about-us/credits/movies/
Frequently asked questions
Both, and they can be combined. The credit rate (up to 17%) scales with local hiring percentage; the cash rebate applies separately to qualifying on-island spend performed by a Territory Certified Production.
Yes, unlike Trinidad & Tobago's mandatory pre-approval — USVI allows application up to 30 days after filming has started, though earlier application is still recommended to avoid disqualifying early spend.
No. Since the USVI is a US territory, American cast and crew don't need work permits or visas, which is one of the incentive's biggest practical advantages over other Caribbean jurisdictions.