New York Film Tax Credit Extended
Neighboring Film Tax Credits: New York + New Jersey
“The New York Film Tax Credit has been extended until 2034 and it’s quite enticing. In the world of filmmaking, art and commerce have not been more diametric during this long strike.
Tax incentives play a vital role in determining the location where production takes place. Film production has a profound effect on the economy, which is why currently, 38 states offer film tax credits, rebates, and subsidies to draw in filmmakers.
New York gave up a lot of vendors with untenable commercial rents with the “The Rent is Too High” Exodus of 2015.
Businesses that cater to the entertainment industry were lured to The Garden State with affordable rent and ample real estate.
In 2018, it released the Garden State Film and Digital Media Jobs Act, offering a 30-35% tax credit and a 2% diversity bonus. Netflix and Lionsgate are investing in state-of-the-art sound stages in New Jersey, which will expand opportunities due to its strategic location an hour from Philadelphia and an hour and twenty minutes from Manhattan.
While the film industry’s infrastructure hangs on by a thread, Governor Kathy Hochel has extended a welcoming hand with financial incentives for New York State. The base rate was raised to 30% from 25%, returning to its original rate. The robust incentives will come in handy.
New York’s extended film tax credit is very competitive financially, however, New Jersey’s Diversity Tax Credit stands out as a goal and must for New York.”
Breakdown of the New York State Film Tax Credit Extended and Competitive. (Again.)
In a nutshell, more money back, faster turnaround and almost twice the capacity.
FIVE MORE YEARS + ABOVE THE LINE QUALIFIED
- Incentives extended through 2034.
- Above-the-line wages, subject to caps, for writers, directors, specific producers, actors, and composers now qualify.
BIGGER PURSE + FASTER RETURNS
- Annual funding was increased from $420 million to $700 million.
- Post-production was increased to $45 million.
- The base credit percentage was reverted back to 30% from 25%.
- New productions can claim in their tax credit allocation year, rather than the year after.
RELOCATION + UPSTATE BONUS
- Incentivize the relocation of series by allowing, for the first season in NY after relocation, as eligible qualified relocation costs, up to $6 million.
- Shorten the time a relocating talk/variety series must be in production before gaining eligibility, from five years to two years.
- 40% credit for productions that shoot a majority of principal photography days in specific upstate counties.
The New York Governor's statement on the Hollywood Strike.
"...I was proud to stand with workers on the picket line and meet last week with MPA studio executives to urge them to reach a timely agreement.
New York's film industry is the backbone of our economy, creating more than 50,000 direct and indirect jobs each year and generating at least $35 billion in investment over the past decade..”
Why the extension and expansion of the NY State Film Tax Credit is significant: New Jersey.
It’s no secret that film production has a significant positive economic impact on any region. At the time of this writing, 38 states offer some sort of film tax credits, rebates, grants, or incentives.
New Jersey has done a terrific job of competing with New York State. Not only did they absorb a lot of film vendors in the Great Manhattan “The Rent is Too High” Exodus of 2015, but the Garden State Film and Digital Media Jobs Act was enacted in 2018, creating a 30-35% tax credit for New Jersey productions, plus a 2% bonus for companies that develop and execute a diversity plan.
Not only that but in a significant development for New Jersey’s film and media industry, Netflix and Lionsgate are investing in the construction of state-of-the-art sound stages. These sound stages are set to transform the region’s production capabilities.
Netflix’s plan includes the development of a defunct Army base into a massive complex featuring 12 soundstages, covering nearly 500,000 square feet. Additionally, New Jersey has secured studio deals with Lionsgate, contributing to the growth of the state’s entertainment infrastructure.
Like the studios in Los Angeles, these state-of-the-art facilities will not only provide soundstages but also offer post-production, props, set construction, and support facilities, catering to the diverse needs of the film and media industry. These investments are part of New Jersey’s efforts to establish itself as a hub for film and television production, attracting major players and boosting the local economy.
On top of that, this facility is one hour from Philadelphia and an hour and twenty minutes from Manhattan, which opens up vendor options and sourcing and a new “TriState Area”, at least from Production,
Studio construction in New Jersey does not stop there. To meet the growing demand for production facilities. Notable among these developments is Great Point Studios, investing $125 million in the construction of a 300,000-square-foot facility. Additionally, 10 Basin Studios, strategically located close to New York City, is another significant addition, providing new soundstage options. These ventures reflect the state’s commitment to expanding opportunities for the film and media industry, catering to a diverse range of production needs. New Jersey’s investment in studio space is a testament to its ambition to become a prime destination for productions.
Not so great for Doug Steiner and other New York stages.
“Jersey certainly is trying to lure the business,..I have vacant stages for the first time in many, many years.”
The Hollywood Strike Must End to Judge the Power and Might of The NYS Film Tax Incentive.
To sum it up, Doug Steiner might consider going into the Victorian Wardrobe Rentals business. There soon may be a dearth of any options whatsoever in NYC.
The Hollywood Strikes are decimating vendors, draining personal savings (if they even have them), and driving freelancers and small businesses into debt, professional pivots, crumbling partnerships, or worse, out of (the) business forever.
But when the strikes end and we do resume, the same studios dragging their heels now will have to shoot somewhere and Governor Kathy Hochel gave them every reason they want to select New York State, money and a red carpet.
