The Sundance Film Festival, one of the world’s most prominent independent film events, is relocating from Utah to Colorado in 2027, after securing $34 million in refundable tax credits over the next decade. The move is part of a broader state effort to attract high-profile cultural events using targeted economic incentives.
Colorado Governor Jared Polis signed House Bill 25-1005 this week, offering the incentives specifically to film festivals that draw at least 100,000 in-person attendees and 10,000 out-of-state or international guests. The bill passed with bipartisan support, although some lawmakers voiced concerns over prioritizing tax breaks for specific events.
Under the bill, Sundance will receive a structured series of credits: $4 million in both 2027 and 2028, $5 million in 2029, and $3 million annually through 2036. An additional $5 million will be available over the same 10-year period to support smaller Colorado-based film festivals, with a cap of $500,000 per year.
The Sundance Institute, founded by actor Robert Redford, announced in March that Boulder, Colorado, was selected over Salt Lake City and Cincinnati as the new host city. Sundance’s acting CEO Amanda Kelso described Boulder as a “place where the festival can build and flourish,” highlighting the city’s blend of art, technology, and natural beauty.
The festival’s economic impact in Utah was significant. According to its 2024 report, Sundance generated $132 million in GDP, supported over 1,700 jobs, and brought in nearly $14 million in state and local taxes. Colorado officials hope the move will produce similar or greater economic gains.
Critics of the legislation, including Republican Rep. Ken DeGraaf of El Paso County, questioned the selective nature of the tax relief. “Why is the emphasis not on cutting taxes in general, instead of giving the tax break?” DeGraaf asked, expressing concern that the bill favors specific industries while leaving others burdened by the tax code.
Despite opposition, the move was praised by film festival organizers across Colorado, who see the presence of Sundance as a cultural and economic boost. Julie Huntsinger, director of the Telluride Film Festival, called the relocation “an exciting moment for Colorado,” adding that the state’s natural beauty makes it a perfect fit for cinematic events.
Sundance’s relocation reflects a broader trend of states leveraging tax incentives to lure major entertainment and cultural institutions. Colorado’s bet is that the long-term return from hosting one of the film industry’s top festivals will far outweigh the cost.
