New York State Budget Includes Expansion of Film and Television Tax Credits
New York state’s just-passed fiscal year 2024 budget includes an expansion of the New York Film Tax Credit, Governor Kathy Hochul announced yesterday.
The amount allocated to the program has been raised substantially, from $420 million per year to $700 million. Additionally, the base credit, which was reduced to 25% in 2020, has been raised to its prior level of 30%. And within the details are other significant changes. For the first time, the New York credit will apply to above-the-line costs. Salaries of writers, directors, “specific producers,” actors, and composers will be eligible for the credit, capped at $500,000 per individual and 40% of a production’s qualified production costs.
One of the program’s prior rules contributing to an industry critique of the program — the lengthy time it has taken after a film’s completion to actually receive the credit — has been revised. New York dispenses money from funds pegged to an “allocation year,” with, previously, producers required to claim the credit the year after their allocation year. Now, productions can claim their credit for their tax allocation year. (Unfortunately, this change does not appear to be retroactive; currently, productions are receiving tax credit certificates for the 2024 allocation year, and unless there is further revision or clarification, these prior productions still must file in 2025.)
Other details, such as new provisions applying to upstate productions and incentives for series relocating to New York, can be found here.
The Governor’s Office of Motion Picture & Television will be holding an information session to review these changes and answer questions on Wednesday, May 10. Register for the seminar here.
(Disclosure: I have produced and executive produced films that have received the New York State Film Tax Credit.)