Last week, New York Governor Kathy Hochul announced she wanted to expand the state’s film and television incentives to $700 million a year from the program’s prior $420 million a year. The decision reached some pushback from politicians and the general populace, but the decision was being made as to not lose production to New Jersey, Georgia, Canada, and other regions. The film and television industry in New York provides many below-the-line crew and technicians, but the studios and production companies are always looking at locations where they can get the greatest tax credits.
Today, the Post New York Alliance (PNYA) released a statement, extending its “enthusiastic support” to Hochul’s new agreement to increase the state’s Film Tax Program to $700 million.
“PNYA is especially pleased by the expansion of the program’s Post-Production Tax Credit (PPC) with funding for post-production activity growing from $25 million to $45 million. Rebates for individual productions will rise to 30% from 25% for post work performed within the Metropolitan Commuter Transportation District (MCTD) and to 35% from 30% for post performed Upstate. Producers will now be able to claim rebates in the taxable year when their projects are completed. The PPC has been extended to 2034.
“PNYA has been a strong proponent of the Film Tax Incentive program and has lobbied on behalf of the post-production industry for inclusion in it. “PNYA is grateful to Governor Hochul and her administration for extending and expanding the tax credit program,” said Yana Collins Lehman, PNYA Chair and CEO of Trevanna Post. “The growth of the post-production industry is more certain than ever. We plan to continue our investments in outreach and training to ensure everyone has an opportunity to work in post.”
PNYA recently funded a study of the impact the PPC has had on the post-production industry and New York State’s economy in general. Conducted by H&RA Advisors, the study showed that the program has produced $156 million dollars in tax revenue annually while delivering an eightfold return on fiscal investment. It has also contributed to a 25% increase in post-production employment over the past seven years.
As successful as the PPC has been, its extension is crucial to the post-production industry’s continued growth as it faces rising competition from other states offering similar incentives. The increases will allow post-production companies to thrive and capitalize on their advantages in infrastructure, experienced crew and long-established relationships to studios and production companies.