Anticipating Sundance’s Decision, Utah Leaders Consider Offering $3.5M

SALT LAKE CITY, Utah – The Utah Legislature has earmarked $3.5 million in its proposed final budget for the Sundance Film Festival in the 2026 fiscal year, a figure that lawmakers say matches what festival organizers requested.The allocation is part of Utah’s ongoing efforts to keep the festival in the state as other cities, including Boulder, Colorado, and Cincinnati, Ohio, offer significant financial incentives to lure it away.

Sundance Institute officials announced last year that they were exploring new host locations after their contract with Park City expires following the 2026 festival. The festival, which began as the Utah/United States Film Festival in Salt Lake City in 1978 before relocating to Park City, has been a cornerstone of Utah’s cultural and economic landscape for over four decades. KSL reported, that a report by Y2 Analytics found that the 2024 festival generated $106.4 million in out-of-state spending, $132 million in economic impact, and supported more than 1,700 jobs.

The Colorado Sun reported that Colorado lawmakers are prepared to offer up to $34 million in tax incentives, with $4-5 million annually through 2030 and $3 million per year until 2036. Meanwhile, WCPO in Cincinnati reported that the Cincinnati City Council has pledged $5 million over ten years to bring the festival to Ohio. In contrast, Utah’s $3.5 million offer is only a portion of its total incentives package, which also includes a mix of public and private funding, according to the Utah committee leading negotiations with Sundance.

State and local leaders have expressed optimism that Sundance will remain in Utah, emphasizing the deep historical and economic ties between the festival and the state.

“The place for Sundance is the state of Utah,” Mendenhall said in September. “What we’re offering is a new friendship, a new friendship between Salt Lake City and Sundance that hasn’t quite existed in the past — in a bigger way.”

Senate President Stuart Adams acknowledged that while Utah’s bid might not match the financial incentives from other cities, the festival’s long-standing presence in the state and the infrastructure already in place provide compelling reasons for it to stay. Adams also noted that if Sundance ultimately decides to leave, the $3.5 million currently earmarked for the festival could be reallocated elsewhere in the state budget.

Sundance organizers have not yet made a final decision, but they are expected to announce their plans in March or April.