Both Europe’s most right-wing nation and its second hottest destination for international shoots, Hungary has shocked the world with its recent ban on LGBTQ+ public events. But Hollywood is not yet ready to give up on the country’s generous tax incentives.

An amendment to the constitution passed on Monday by the Hungarian parliament codifies a law passed in March that made it an offense to hold or attend events that violate Hungary’s “child protection” legislation, which prohibits the “depiction or promotion” of homosexuality to minors under 18.

The Hungarian government will use measures to enforce the ban including...