NYS Tax Incentives

NYPA VP – John Amman op-ed Crain’s – “Tax Incentive makes NY Hollywood East”

HR&A Study – Economic and Fiscal Impacts of the New York State Film Production Tax Credit  HRA MPAA NYS Film Tax Credit Study Final Report 12 2 2012 (2).pdf

To apply for NYS Tax Incentives please contact the New York State Governor’s Office for Motion Picture & Television Development at 212-803-2330 or
www.nylovesfilm.com
downloads:  2013 FilmTaxCreditfactsheet and HowTheTaxCreditWorks2014


Change to Production Tax Credit Audit Procedures
(July 2014)

The overwhelming success of the New York State Film Production Tax Credit under Governor Cuomo has brought record breaking numbers of film and television productions – and tax credit applications -into the state.

To help address the influx of final applications, Empire State Development (ESD) has announced that an optional, voluntary program for third party review of final applications will be made available to applicants to the program. Slated to go into effect January 2015, the new procedure will allow productions that choose to participate to have their final applications reviewed by outside CPA firms according to agreed-upon procedures (AUPs) established and published  by ESD.  For the full story, clickhere.


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NEW YORK STATE EXTENDS PRODUCTION TAX INCENTIVE PROGRAM through 2019

April 3, 2013 –  The extension and enhancement of NY State’s popular film and television tax credit through 2019 will provide the stability necessary to allow the state to attract more long-term investments and create more jobs for New Yorkers all across the state.

The extension expands the scope of projects eligible for the credit, accommodates the rise of visual effects spending as a portion of overall budgets, and includes provisions to drive more film production and post-production upstate. There are also provisions adding transparency and accountability to increase the state’s return on investment, protect the film credit program’s integrity, and reduce program costs by adding new third party reporting and oversight provisions.

The newly expanded and enhanced film and television tax credit program will:
(download summary 2013 FilmTaxCreditfactsheet)

  • Extend the credit at $420 million for five additional years (through 2019)

  • Increase the amount set aside for the stand-alone post production credit from $7 million to $25 million (effective from 2015 allocation onward)

  • Boost upstate production by setting aside $5 million per year to be used for an additional 10% credit on below-the-line labor costs incurred in specific upstate counties* (effective 2015-2019)

  • For productions that film in NYS and qualify for the film production tax credit:

    • Eliminate the 75% threshold on post-production costs so that all qualifying post-production costs incurred in-state are credit-eligible (effective immediately)

    • Provide an additional 10% credit for below-the-line labor costs incurred in specific upstate counties for both production and post-production (effective 2015)

  • For productions that did not film in NYS or only apply for the post production tax credit:

    • Separate Visual Effects and Animation from all other post production costs and create a lower threshold for this category of costs, so films that incur either 20% or $3 million of all their Visual Effects and Animation qualified costs in NYS can receive a credit on this category (effective immediately)

    • Maintain the threshold for post-production costs excluding Visual Effects and Animation so that these ‘traditional’ post costs qualify if 75% of the qualified costs in this category are incurred in NYS (effective immediately)

    • Provide an additional 10% credit on post-production labor costs incurred in specific upstate counties (effective 2015)

  • Allow a “relocated television production” to qualify as a qualified film.  A relocated television production is defined as a talk or variety television production that filmed at least five seasons prior to its first relocated season in New York, has a studio audience of 200 or more people, and either incurs at least $30 million in annual production costs in the State or incurs at least $10 million in qualified capital expenditures at a qualified facility (effective immediately)

  • Require enhanced quarterly reporting by Film Office and independent audit and economic impact statement of the film credits to be prepared once every two years

*Upstate Counties Eligible for 10% Bump on Labor Costs:
Beginning in 2015, productions with budgets over $500,000 can receive an additional 10% credit on qualified labor expenses incurred in the following counties:

Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango,
Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida,
Onondaga, Ontario, Orleans, Oswego, Otsego, Schoharie, Schenectady, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, Wyoming, or Yates

*** UPDATE November 2016

Designated counties see increase to 40 percent on qualified labor
These counties include: Warren,Saratoga, Washington, Rensselaer, Greene, Columbia, Ulster, Dutchess,Sullivan, Orange, Putnam and Suffolk.  Direct link to legislation – https://www.nysenate.gov/legislation/bills/2015/s6987

Governor Cuomo signed a bill on Nov. 4 extending the 10 percent film production tax credit on labor costs for eligible film productions to additional counties beyond the New York City metropolitan area that were not previously covered.

The additional credit totals 40 percent for labor costs above $500,000. The new law is expected to be amended when the Legislature returns in the new year. Until that amendment is passed and signed into law, the additional credit applies only to eligible projects in those designated counties that submit both initial and final applications after Nov. 4, 2016. For more information about eligibility, visit nysfilm.com or call the Governor’s Office of Motion Picture & Television Development: (212) 803-2330.

 

UPDATE: STAND ALONE POST CREDIT
INCREASED TO 30%-35%

July 24, 2012 — Governor Cuomo has signed legislation increasing the NY State Post Production tax credit to 30% for productions working within the Metropolitan commuter region (including NY City, and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties), and to 35% for post-production expenditures in locations elsewhere in the state.

This program is entirely separate from the New York State Film Production tax credit program (which includes post production), and applicants to that program may NOT apply to both programs for the same project. For information on the New York State Film Production credit, go to http://www.nylovesfilm.com/tax/