EP NowStoreAcademySupportProduction LotProducts by Country
Newsroom Home

New York Gov. Aims to Boost Film Tax Credits to $700M As New Jersey Rivalry Heats Up

Since 2020, at least 10 productions chose to film in New Jersey or other jurisdictions instead of the Empire State.
February 4, 2023

As seen on Hollywood Reporter.

New York is looking to increase the cap on tax credits the state gives to the film and TV industry from $420 million to $700 million and raise the incentive to 30 percent, according to the 2023 state budget proposed by Gov. Kathy Hochul on Wednesday.

The changes, which would run through 2034, are aimed at luring productions back from jurisdictions that left the state when it lowered its credit to 25 percent in 2020. Since then, states have turned to offering increasingly competitive incentives as film and TV production spending reached record highs. The proposal includes a 5 percent bump for TV series that relocate to New York, among other major revisions.

If the budget passes the legislature, it would also make above-the-line wage costs eligible for tax breaks for the first time, with certain restrictions. The credit would be capped at $500,000 per individual and limit above-the-line tax incentives to 40 percent of other qualified production expenses.

The proposed change follows Illinois Gov. J. B. Pritzker in April signing into law a measure that similarly allowed some non-resident wages to qualify. California is now the only state that doesn’t do so.

“Governor Hochul is focused on growing industries and opportunities across the state and the film and television industry is no different,” says Kristin Devoe, a spokesperson for Empire State Development, in a statement. “The proposed enhancement of the film tax credit will grow the film industry and keep New York competitive in this very important sector of our economy which has generated over $20 billion in spending and created 57,300 direct and indirect jobs.”

Additionally, the changes modify payout rules. A production would be able to claim the non-transferable, refundable tax credit the same year it’s allocated the incentive instead of having to wait a year.

A common complaint from prospective productions have been delays in payment, according to Devoe.

“A lot of people were avoiding New York, especially independent producers, because of that long payout,” says Joe Chianese, senior vp and practice leader at Entertainment Partners, a Los Angeles-based group that advises companies and state film offices on how to set up and structure tax incentive programs.

To be eligible for the 5 percent bump, relocating TV series must have filmed at least six episodes in other jurisdictions and have a minimum budget of $1 million per episode. California in 2022 passed a similar measure by reserving an additional $15 million for series that relocate to the state, bringing the total annual funding for such shows to $71.1 million. Criteria to qualify was relaxed to include projects that filmed their pilot episode out of state. (The program previously required relocating series to film an entire season outside of California.) Killing It and Rap Sh!t — two series selected to receive tax credits — moved production from Louisiana and Florida, respectively.

Under the proposal, tax credits to shoot in New York can reach as high as 40 percent if a production qualifies for a 10 percent bump by shooting in certain areas. Productions have increasingly been flocking to Buffalo and Western New York to qualify, Chianese says. Buffalo FilmWorks is currently constructing a $50 million facility set to become the largest soundstage in the state.

Several states, including New Jersey, Oklahoma and California, increased their film incentives when New York lowered its credit to 25 percent. As a result, productions fled the state. Soundstages that normally operate at full capacity have increasingly had vacancies, and at least 10 productions chose to film in New Jersey or other jurisdictions, Devoe says.

New York’s loss was New Jersey’s gain. In 2022, film and TV production spending reached a record $650 million. Gov. Phil Murphy reinstated the Film and Digital Media Tax Credit program in 2018 after a three-year hiatus.

The New York State Assembly is expected to vote on the budget proposal by April.

Related Content

What Does the UK’s New Independent Film Tax Credit (IFTC) Mean for Productions?

3/7/2024
As the UK government strengthens its support for productions, find out what the latest changes to the...
More

Entertainment Partners Hosts 'An Independent Producer's Survival Guide' in Park City

2/27/2024
Joe Chianese, EP’s SVP & Production Incentives Practice Leader, brings independent filmmakers and industry...

Production Incentives Update: December 2023

12/20/2023
Notable dates and modifications to production incentive programs in California, India and Spain.
Camera man filming on a snowy mountain in the winter-sq

Production Incentives Update: November 2023

11/28/2023
Your guide to recent production incentive changes in Connecticut, Minnesota, New York and Japan.
Disability Insurance

State-by-State Guide to Disability Insurance for Production Accountants

10/11/2023
A comprehensive overview of State Disability Insurance (SDI) and how these figures impact production...

Minnesota Becomes Land of 10,000 Opportunities with New Incentive Launch

9/29/2023
Minnesota introduces a new tax incentive program to renew the state’s status as a dynamic location for...
Georgia Incentives Panel_sq

GA Incentives Insider: Your Questions Answered

9/27/2023
Brian Shanaghan, Audits Manager at the Georgia Department of Revenue (GA DOR), addresses the industry's...
Film crew on location filming outdoors

Production Incentives Update: September 2023

9/27/2023
Insights on recent changes to production incentive programs in D.C., Kentucky, Montana, Ohio and Ontario.
Expert Advice_Sam Collett

Spotlight: Sam Collett, UK Production Accounting and Incentives Expert

9/19/2023
Meet the Senior Partner at FLB Accountants, an Entertainment Partners company specializing in UK media and...
Master Series_UK Incentives Panel_Square

What's Changing in UK Production Incentives

9/15/2023
Learn about the recent changes to the UK Creative Sector Tax Credits and how they might impact your next...
EP Blog_SQUARE_UK cultural test

Understanding the UK Cultural Test

9/12/2023
Find out whether your film or TV show will pass the UK’s Cultural Test, a key step in qualifying for the...
Master Series Australia Offset Square Thumbnail

Discover All About Australia's Location Offset

8/30/2023
Australia's Location Offset rebate skyrocketed from 16.5% to 30%! Learn about the requirements and how...
Jane Corden, Managing Director, Australia and New Zealand

Spotlight: Jane Corden, Managing Director, Australia & New Zealand Operations

8/29/2023
Meet the Australian production accounting and tax incentives expert who is helping EP invest in the future...

Production Incentives Update: August 2023

8/25/2023
Recent changes to production incentive programs across the US and Thailand.

Japan's Latest Film Tax Incentive Sets the Stage for Global Productions

3/13/2024
From Miyazaki to Godzilla, Japan is entering a cinematic renaissance and poised to attract international...
Four panelists discuss co-production-square

Unlocking the Myths and Benefits of Co-Production

2/15/2024
Learn the difference between an official co-production and PSA, and how to leverage these opportunities to...
Big Ben, London

5 Things to Consider Before Transitioning to the UK’s New AVEC Regime

1/16/2024
A comprehensive overview to help determine if you should use the UK’s new incentive regime to fund your...

Minnesota: Land of 10,000 Opportunities

11/17/2023
Learn about Minnesota's new incentive program, dynamic locations, strategies for boosting crew training...
BBS-Radio-TV-logo

The Cathy Durant Show: Featuring John Hadity

11/9/2023
Cathy interviews guest, John Hadity, EVP of Incentive Operations who oversees the film financing...

Regional Success: Why Small UK Hubs Aren’t Afraid of Big Productions

11/7/2023
Learn about the stunning natural scenery, historic architecture and film-friendly incentive schemes that...

Production Incentives Update: October 2023

10/26/2023
Learn about recent legislation changes boosting tax incentives in Colorado, Florida, Virginia and ...
Master Series Thumbnail Square UK Productions

UK Production: Sites, Services and Studios

10/20/2023
Learn about UK incentives, infrastructure and production innovation spanning from London to Wales,...
EP Blog_SQUARE_EP Paymasters

Meet the Paymasters

9/5/2023
This National Payroll Week we celebrate the hard-working payroll professionals behind Hollywood's...
EP_SQUARE_HMRC Answers

HMRC Answers Key Questions on New UK Audio-Visual Expenditure Credit

8/22/2023
UK Creative Sector Department weighs in on the interpretation of some of the new legislation and guidance...

Payroll & Finances

PayrollResidualsSmartStartSmartTimeProduction PortalEP On LocationSmartAccountingEP LiveSmartPOCASHétPayPaymaster Rate GuideEP Residency

Manage Multiple Productions

AssetHubSmartHub

Additional Services

Academy
Subscribe now

Be an industry insider with EP's
newsletters and alerts

LegalPrivacy NoticeSecurity
© 2024 Entertainment Partners. All rights reserved.