Empire State Film Production Credit

New York State and New York City now offer Film Production Tax Credit programs, which combined can provide qualifying film and television productions a fully-refundable tax credit equal to up to 35% of production expenditures.

The incentive applies to production costs incurred in New York State and/or New York City. Eligible productions include:
• Feature Films
• Episodic television series
• Television pilots
• Television movies and miniseries

The New York State Film Production Credit program provides a refundable 30% tax credit for qualified feature films, episodic television, pilots, and television movies/miniseries. Legislation increasing the NY State credit from 10% to 30% of qualified costs was signed into law by Governor David Patterson on April 23, 2008.

The Made In New York (New York City) program provides an additional 5% credit and was first signed into law by Mayor Michael R. Bloomberg on January 3, 2005. $30 million per year have been allocated to the City program.

The incentive applies to qualified production costs for work incurred in New York State and/or City, and productions must qualify by being based in New York State and/or City. New York City consists of the five boroughs of Bronx, Queens, Brooklyn, Staten Island and Manhattan.

The two programs (State and City) are similar and have similar qualifying thresholds. Projects and costs incurred anywhere in the State of New York will be eligible for the State’s 30% credit. Projects that shoot inside the five boroughs of the NY City may also be eligible for the City’s 5 % credit.

WHO IS ELIGIBLE? WHAT COSTS ARE ELIGIBLE?

For a feature film or television project to be eligible for the New York State credit, the production must shoot on a set, on a stage, at a qualified production facility in New York State. These productions will qualify for up to a 30% state tax credit for the work done at the facility. If the facility is within New York City, these productions will also qualify for the additional 5% tax credit from the New York City program. (Note: If a production also shoots at any non qualified production facility in addition to the qualified production facility, then at least 75% of the total facility related costs must be spent at the qualified facility).

For location work, post-production, and costs of other work done in New York outside the facility to be eligible, either 1) at least 75% of any days shot on location outside the facility must be in New York State, or 2) the production must spend at least $3 million on work incurred at the qualified facility. If the facility is in New York City and 75% of location days are done within New York City, the production will also qualify for the additional 5% tax credit from the New York City program

“Qualified productions” are feature length films, television films, television pilots or television series. Certain categories of productions are excluded from the program, including but not limited to documentaries, news or current affairs programs, interview or talk shows, instructional videos, sport shows or events, daytime soap operas, reality programs, commercials, music videos.

“Qualified production costs” are costs for tangible property or services used or performed within New York directly and predominantly in the production (including post production) of a qualified film. Qualified production costs generally include most below-the-line items including costs of technical and crew production, expenditures for facilities, props, makeup, wardrobe, set construction, background talent, etc., and generally exclude costs of stories and scripts, and wages for writers, directors, producers and performers (other than extras without spoken lines).

“Qualified film production facilities” are facilities in the State of New York in which television shows and films are or are intended to be regularly produced, and which contain at least one sound stage of at least 7,000 SF.

For a list of film production facilities considered qualified for the New York State program, click here .

HOW IS THE CREDIT RECEIVED?

The State of New York has allocated to the program: $65 million in calendar year 2008, $75 million in 2009, $85 million in 2010, $90 million in 2011 and 2012, and $110 million in 2013. The City of New York has allocated $30 million per year through 2011. These credits will be offered on a first come, first serve basis. Applicants “rollover” or move into the next year’s funding cycle if the annual allocations for the State and/or the City are reached.

The New York State 30% refundable credit is applied to the applicant’s New York State tax return for the year in which the production was completed. If the amount of the credit earned exceeds any NY State tax owed by the applicant, 100% of the overage will be refunded to the applicant in the year it is earned.

The New York City 5% refundable credit is applied to the applicant’s New York City tax return for the year in which the production was completed. If the amount of the credit earned exceeds any NYC tax owed by the applicant, 50% of the overage will be refunded to the applicant in the year it is earned and the balance of such credit will be carried over to the tax return for the following tax year.

To apply for the credit, a production company must first submit an Initial Application which leads to conditional approval of the project. The same application forms may be used to apply for both the State and the City credits, however, if applying for both programs, separate copies with original signature pages must be delivered to both the New York State Office For Motion Picture and Television Development (for the State credit) and the Mayor’s Office of Film Theatre and Broadcasting (for the City credit).

Applications must be submitted at least 5 business days prior to the start of principal and ongoing photography, but not more than 180 days (90 days for New York City) prior to the start of principal and ongoing photography.

The New York State Film Production Credit program is administered by the New York State Governor’s Office for Motion Picture and Television Development.

The New York City credit is administered by the City of New York Mayor’s Office of Film, Theatre and Broadcasting. To contact the MOFTB, please go to www.nyc.gov/film.

The New York State Empire State Film Production Credit program is administered by the New York State Governor’s Office for Motion Picture and Television Development.

The New York City credit is administered by the City of New York Mayor’s Office of Film, Theatre and Broadcasting. To contact the MOFTB, please go to www.nyc.gov/film.