The credit could go as high as 35% for work done upstate — where officials are especially eager to promote economic development. Since the program began in 2004, the state has issued $1.04B in tax credits for projects with an estimated economic value of $7.57B.
Here’s today’s release:
Since the state began offering tax credits to support the film and television industry in 2004, producers have spent more than $7 billion in New York. The new law signed today is designed to expand state support by specifically focusing on attracting post-production work to communities in all corners of the state.
“New York State’s program of incentives to attract film and television productions to New York has been a tremendous success, generating billions of dollars in economic impact and supporting hundreds of thousands of hires,” Governor Cuomo said. “However, there is potential for this industry to make new investments in communities across the state and in doing so, help make New York the television and film capital of the world. With this legislation, New York is inviting producers, directors, and editors from across the nation to bring their post-production work right here to the Empire State. The new New York supports business and this law is a clear sign that the state stands ready to help enterprises that are looking for new places to invest, expand, and create jobs. I thank the sponsors for their hard work on this new law.”
Post production includes all of the editing after filming is complete and includes visual effects, color correction, sound editing and mixing, along with thousands of other jobs this industry touches, from engineers and messengers to support staff and creative. Since being established in 2010, New York State’s post-production incentive program has been underutilized, as the 10 percent credit offered by the program resulted in only 19 applications in two years.
The law signed today by the Governor increases the percentage of tax credits available for projects that did not film in New York but will now qualify for credits for post-production work done in New York. Under the new law, the qualified film and television post production credit increases from 10 percent to 30 percent in the New York metropolitan commuter region, including New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties. An additional five percent (for a total of 35 percent) in tax credits would be available for post-production expenditures in locations elsewhere in the state. The additional five percent in tax credits for upstate post production is designed to encourage investment in and construction of new facilities in Upstate New York.
Senator John A. DeFrancisco said, “The purpose of the post production film tax credit is to incentivize the film industry to do post production work in New York State. The credit has been underutilized. This new law increases the percentage available for post-production credit, and will facilitate a greater utilization of those funds throughout New York State. It encourages production companies to conduct business and create jobs in New York. I commend Governor Cuomo for signing my bill into law.”
Assembly Member Deborah J. Glick said, “This adjustment in the film tax credit will encourage more post production work to be done here in New York where so many more films and TV shows are produced. I am really pleased because of the jobs it will mean to people who are part of the creative capital here in New York.”
New York State’s film tax credit program began in 2004. The program is worth $420 million each year including $7 million for post-production credits. Since the program began, there have been 727 applications for the tax credit program, which when all completed will spend an estimated $11.3 billion. Of the 727 projects, 473 projects have been completed or received credit to date. The total credit issued so far has been $1.04 billion for completed projects, which generated an economic value of $7.57 billion. In 2011, New York State received 135 applications that are projected to spend $1.5 billion. In 2012 so far, New York has received 88 applications that are projected to spend $1.46 billion.
Since 2004, the tax credit program is responsible for more than 522,000 hires by the film and television industry in New York State.
A number of major film and television productions have cited the state’s program as a leading factor in the decision to film and produce in New York. The new law signed by the Governor today strengthens the existing incentives to help communities in all corners of the state attract these investments.
Marcelo Gandola, Senior Vice President of Creative Services at Deluxe, and President of the Post New York Alliance, said, “Signing into law this incentive will have a tremendous impact on my group of companies as well as dozens of other post production facilities throughout the state. With the Governorâ€™s signing of this bill into law, the growth opportunity for the post production industry has been accelerated. Our companies will now be able to expand our educational efforts to create a job-ready workforce to service our industryâ€™s expansion. We look forward to hiring more people immediately to meet increased demand for services.”
Yana Collins Lehman, Managing Director of Trevanna Post, a premier post production accounting firm, said, “Increasing the post production incentive to thirty percent – and thirty-five percent upstate – as has just been signed into law by Governor Cuomo, will make New York a front runner in the very competitive post production film and TV landscape. New York will now be a destination for film and TV post production, leading to thousands of jobs being created all over New York State.”
The new law takes effect immediately.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.