New York's Film and TV Industry Gets a Boost

New York State has just given its film and TV production industry a significant boost. Governor Kathy Hochul has signed off on an expanded budget that includes enhanced incentives for productions. This move comes after a week of uncertainty following Donald Trump’s proposal for tariffs on content produced outside the U. S. The new incentives are set to run through 2036 and include some interesting tweaks. The state now offers a base incentive of 30%, with additional bonuses for productions in specific regions. The annual allocation has been increased by $100 million, specifically earmarked for independent projects. This funding is divided into two categories: $20 million for projects with budgets under $10 million and $80 million for those with budgets over $10 million. Once this $100 million is allocated, no more projects can be accepted for that year. Independent production companies are limited to two applications per year. Music scoring costs have also been included in the incentives. Productions can get an additional 10% incentive if they hire at least five musicians to work in New York State. This is a smart move, as it supports local talent and encourages more productions to use local resources. The Production Plus Program has been introduced to provide extra tax credits for larger productions. Companies that have submitted multiple applications with significant production costs can apply for this program. Subsequent productions by the same company will be eligible for a 10% increase in their incentive amount until the end of 2028. Above-the-Line labor costs have seen some changes too. Previously, these costs were capped at $500, 000 per person and limited to 40% of other qualified costs. The new law has removed the $500, 000 cap, although the overall cap of 40% remains. This change could make New York a more attractive option for productions with high-profile talent. The post-only credit has also been adjusted. Productions can now earn this credit if 75% of their post-production budget or $1 million of such costs are spent in New York State. VFX/Animation-only credits have become more accessible. The eligibility requirements have been lowered from 20% of the budget or a spend of $3 million in New York to 10% of the budget or $500, 000 spent in New York. This could encourage more productions to use local VFX and animation services. The accelerated recovery of credit is another notable change. Starting from January 1, 2025, productions can claim their credit in the allocation year. This should help reduce delays in credit allocation, a common complaint among producers. Meanwhile, California is also working on expanding its incentives. Governor Gavin Newsom’s proposals aim to increase the overall cap on incentives to $750 million annually, up from the current $330 million. These changes could make California a strong competitor to New York in the film and TV production industry. It will be interesting to see how these developments play out and which state ends up attracting more productions. The film and TV industry is a significant economic driver, bringing jobs and supporting local businesses. These incentives could help cement New York’s position as a leader in the entertainment sector.