New York Strengthens Film & Television Incentive Program to Keep More Production in the U.S.

The global production landscape is more competitive than ever, with international jurisdictions like the UK, Canada, and Australia offering enticing incentives that have drawn many filmmakers away from the U.S. In response, New York—along with other states—is making a concerted effort to revamp its film incentive program, ensuring that productions not only stay in the country but actively choose New York as their go-to filming location.

New York’s long-standing film incentive program

Historically, New York has maintained a robust film and television tax credit program, providing attractive incentives for productions that meet certain criteria. The State has long been a top-tier destination for filmmaking, particularly for its iconic urban landscape in the city, scenic country terrain upstate, and world-class talent pool.

However, as international jurisdictions continued to sweeten their deals—offering higher rebates, fewer restrictions, and enhanced infrastructure—the State recognized the need to remain competitive.

Georgia, often cited as the gold standard in U.S. film incentives, has been a dominant force in attracting productions, but New York has now positioned itself as a serious contender. As the incentives competition has become fiercer among states and countries, New York has seized the moment, making sweeping reform to its incentive program in a bid to keep American film and television production here at home.

New York State improves production incentives with dramatic tax credit expansion

New York Governor Kathy Hochul is leading the charge to revitalize U.S. film and television production by significantly enhancing the State’s production incentive offering. On Friday May 9, 2025, the 2025-2026 Executive Budget was signed into law, expanding upon the existing tax credit program, making it one of the most attractive in the country.

10 Key changes to the New York State Film Tax Credit program include:

1. Total Funding Cap Expanded to $800M

New York State’s film and television subsidy program has been increased to an annual cap of $800M, making it the highest cap in the State’s history.

2. New “Production Plus” Bonus Credit (Up to +10%)

Aimed at high-volume producers, companies that submit at least two applications totaling $100M+ in qualified spend (or $20M+ for independents) after January 1, 2025, are eligible for two new credits:

• A 10% bonus on New York qualified spend (major studios), or
• A 5% bonus on subsequent projects for qualifying independent projects.

3. Creation of the Empire State Independent Film Production Credit

The standalone program will have its own $100M annual cap (split $20M for under $10M films, $80M for larger budgets). This provision offers:

• 30% base credit
• +10% bonus for labor and qualified spend in New York’s upstate counties
• +10% bonus for in-state film scoring that employs 5+ musicians
• Capped at 2 projects per company per year

4. Sunset Extension Through 2036

Both the main and post-production film credits are extended two more years, from 2034 to 2036.

5. Above-the-Line (ATL) $500K Cap Removed

The $500K cap on ATL compensation has been eliminated. This change allows productions to claim the full amount of qualified ATL wages without the cap limitation. However, these expenses cannot exceed 40% of total qualified spend in the state.

6. Expanded Scoring Credit

A 10% bonus will be available on film scoring costs incurred in New York State when employing at least 5 musicians—this bonus applies to both the standard and independent programs.

7. Post-Production Thresholds Lowered

VFX and animation spend thresholds have been reduced from $3M to $500K, or from 20% to 10% of total VFX spend, making the post-production credit more accessible.

8. Accelerated Credit Claim Timeline

Productions can now look forward to faster incentive payouts. For applications submitted after January 1, 2025, credits may be claimed, in full, in the tax year that includes the last day of the allocation year. This improvement streamlines prior multi-year claim schedules.

9. Credit Recapture Provision Added

If a project is later found ineligible and the tax credit certificate is revoked, any claimed credit must be repaid in the year the revocation becomes final.

10. Expanded Upstate and Regional Bonuses

The 10% bonus for certain counties now covers both production and post-production for qualifying spend and labor costs, incentivizing broader geographic diversity in filming.

New York ties Georgia as a top U.S. incentive location

With these budget enhancements, New York boasts one of the most competitive film incentive programs in the U.S., putting the state on par with Georgia. New York’s latest legislative changes position it as an even more appealing destination for productions looking for strong incentives, top-tier talent, and world-class infrastructure.

The State’s new approach also places a greater emphasis on sustainability in production, offering additional incentives that reward productions for green filmmaking practices.

New York's aggressive push for stronger film and television incentives comes at a critical time. According to the 2025 Industry Outlook Report, the U.S. saw a 26% decline in total production spending compared to 2022, while competing markets like Canada and the UK saw slight increases.

California, another major competitor, has proposed raising its annual film tax credit program from $330 million to $750 million, as well as increasing the credit to 35%-40%, and adding competition shows, 30-minute scripted TV and animation as qualified productions, underscoring the urgency for New York to stay ahead in this competitive landscape.

Looking for the right incentive for your production? Visit ep.com/production-incentives to view details of local and global incentives and access the incentives estimator and jurisdiction comparison tools.

How the U.S. stacks up against international incentives

Producers have increasingly sought international locations for filming, seeking the most advantageous incentive programs as budgets have tightened and studios worldwide are scrutinizing their slates and distribution schedules. The United Kingdom, Canada, and Australia have become hotspots, offering stable, high-percentage rebates and well-established film infrastructures. The flexibility of their programs, combined with experienced crews and innovative facilities, has made them the preferred choice for many large-scale productions.

In 2024, Canada attracted $5.41 billion in production spending, a 2.8% increase from 2022, while the UK brought in $5.91 billion, showing steady growth. Meanwhile, the U.S. saw its overall production spending decline to $14.54 billion, highlighting the impact of productions shifting overseas.

New York’s newly passed budget represents a pivotal shift, demonstrating that U.S. states are taking assertive steps to remain globally competitive and reclaim their position as prime filmmaking hubs.

Additionally, efforts are underway to streamline visa processes for international talent and expand co-production agreements that make filming in the U.S. even more accessible.

Infrastructure growth and workforce development in NY

To ensure that New York’s competitive edge is sustainable, the State is also investing in infrastructure to support the growing (and anticipated) demand for production. This includes:

• Expansion of soundstages and studio facilities to accommodate large-scale productions. Studio developments are popping up across key locations, including Manhattan (Sunset Pier 94 Studios), Queens (Sunnyside Studios), and Buffalo (Great Point Studios).
• Workforce development programs to train and retain skilled crew members. The State is introducing new incentives for local workforce hiring, ensuring a steady pipeline of skilled labor.
• Public-private partnerships aimed at fostering long-term growth in the entertainment sector. Several major media companies are investing in New York-based production hubs to take advantage of the enhanced incentive structure.
• Technological advancements in virtual production and LED soundstages, making New York a leader in innovative filmmaking techniques.

Many in the industry agree these efforts will help New York solidify its place as a top-tier production hub. With 700 feature films produced in 2024, matching pre-strike 2022 levels, the State's infrastructure investments aim to ensure that it can handle the growing demand and keep productions from migrating elsewhere.

The future of film and TV production incentives in the U.S.

With New York’s bold move to strengthen film and television production in the State, other states are expected to quickly follow suit, pushing for expanded film tax credit programs and infrastructure development to compete on both a national and international level.

In addition to California, Texas and others with active proposals moving through legislation, states like neighboring New Jersey are also closely watching New York’s lead and may adjust their own programs to remain attractive destinations for filmmakers.

The increased competition among U.S. states is a promising sign for the domestic film industry, signaling a potential resurgence in American-based productions that might have otherwise gone overseas.

New York’s incentive reform marks a turning point for the U.S. production landscape, reinforcing the State’s commitment to keeping and attracting major film and television projects. As more states follow suit with competitive legislation, it is crucial for industry professionals to stay informed.

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