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New York State tax credit extended

April 2, 2013
New York State tax credit extended
NEW YORK — The extension of the film tax credit through 2019 will provide the stability necessary to allow the state to attract more long-term investments. It includes provisions to expand the scope of projects eligible for the credit, accommodate the rise of VFX spending as a portion of overall budgets and to drive more film production and post production upstate. 

Program changes will extend the credit at $420 million for five additional years through calendar year 2019. It will also increase the carve-out available for post from $7 million to $25 million. The program will allot $5 million per year to be used for an additional 10 percent credit on below the line labor costs incurred in specific upstate counties. The Commissioner of the Department of Economic Development will be able to allocate unused funds from one facet of the program to the other to adjust for increased industry demand.

For productions that film in New York State and qualify for the film production tax credit, it will eliminate the 75 percent threshold on post costs so that all qualifying post costs incurred in state are credit eligible. It will also provide an additional 10 percent credit for below the line labor costs incurred in specific upstate counties for both production and post (effective 2015).

For productions that do not film in NYS, it will lower the threshold for VFX and animation costs. It will also separate the threshold for post costs eclipsing VFX and animation so these post costs qualify if 75 percent of those costs are incurred in NYS. In addition, it will provide an additional 10 percent credit on post labor costs incurred in specific upstate counties.

A relocated television production can qualify as a film. This would be a talk or variety TV production that filmed at least five seasons prior to its first relocated season in New York, has a studio audience of 200 or more and either incurs at least $30 million in annual production costs in the state or $10 million in qualified capital expenditures as a qualified facility.

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