The New York Governor’s office for Motion Picture and Television Development, (a division of Empire State Development), announced that in less than two months, since Governor Cuomo signed legislation to expand the postproduction tax credit in the state, 10 production companies have agreed to do their postproduction work in New York, generating a projected $7.7 million in direct economic spending activity.
“Under the leadership of Governor Cuomo, the state’s television and film incentives program is attracting new business that is resulting in more investment in New York and more jobs for New Yorkers,” said Empire State Development president, CEO and commissioner Kenneth Adams. “Bringing in 10 new projects in less than two months shows that the state’s new postproduction tax credit program is clearly working to grow New York’s film and television industry.”
Governor Cuomo signed legislation on July 24 that strengthens existing incentives to attract additional film postproduction activity to New York. The legislation increases the percentage of tax credits available for projects that did not film in New York, but now qualify for credits for postproduction work done in the state. Under the new law, the qualified film and television postproduction 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 is available for postproduction expenditures in locations elsewhere in the state.
From November 2010 to June 2012 – when the postproduction incentive credit was 10 percent and filming had to be done in New York – only 18 applications were received with a projected spend of just over $20 million.
New York State’s film tax credit program began in 2004 and many major film and television productions have cited the state’s tax credit program as a leading factor in the decision to produce film and television projects in New York.
The program is worth $420 million each year, including $7 million for postproduction credits. Since the program began, there have been 744 applications for the tax credit program, which when all completed will spend an estimated $11.6 billion in New York. Of the 744 projects, 488 projects have been completed and received the credit. The total credit issued to date has been $1.06 billion for completed projects, which generated economic spending activity of $7.62 billion. In 2011, New York State received 135 applications that are projected to spend $1.5 billion. To date, the state has received 107 applications for 2012 that are projected to spend $1.77 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.
