New York Doubles Film and Television Subsidy to $800 Million

News Summary

Governor Kathy Hochul has announced a significant increase to New York’s film and television subsidy, raising the cap to $800 million. The new budget also allocates $100 million for independent film productions. This initiative aims to enhance the state’s competitiveness against neighboring regions, simplify the funding process for filmmakers, and promote local economic growth. Industry representatives acknowledge the positive impact on job creation and economic support as New York solidifies its position in the film market.

Albany, New York – New York Governor Kathy Hochul has announced a significant increase to the state’s film and television subsidy, raising the cap to $800 million, nearly doubling the previous year’s limit. The newly approved state budget also sets aside $100 million specifically for independent film productions, aiming to foster creativity and diversity in the filmmaking process.

The expansion of the subsidy budget comes in response to mounting competition among states vying for Hollywood productions. Neighboring California is considering a major overhaul of its tax incentive program, which could raise its cap from $330 million to as much as $750 million. The stakes have never been higher, with states enhancing their incentive offerings to attract filmmakers.

The changes in New York’s subsidy program aim not only to increase economic activity but also address previous grievances from production companies. Complaints included delays in receiving tax credits and limitations on which costs are eligible for rebates. These revisions are designed to simplify and expedite the funding process.

The program is designed to provide production companies with substantial incentives for filming in New York. Productions that apply to shoot at least two projects with combined eligible costs of $100 million can qualify for a ten percent incentive increase on their next project until 2028. This provision is especially focused on television productions, which will continue to benefit from the incentives until they are canceled.

Eligible productions can receive up to 40 percent in total incentives, which matches the lucrative offers provided by competing states with similar programs. The newly approved budget extends these incentives through 2036, ensuring the program remains active for the foreseeable future.

The allocation from the state budget also includes $20 million for independent projects with budgets under $10 million and $80 million for those with budgets exceeding that amount. The previously existing $500,000 cap on above-the-line costs has been removed, allowing for greater flexibility among filmmakers, although total payouts will continue to be limited to 40 percent of below-the-line costs.

Key adjustments include accelerated recovery of credits within the same fiscal year, as well as reduced requirements for qualifying for visual effects and animation-only subsidies. Productions that include music scoring will also benefit, as they can earn an additional 10 percent incentive by employing at least five musicians to perform in New York.

The expansion of New York’s film and television incentives is seen as a strategic response to a downturn in production work and increasing competitive pressures from states like New Jersey, which also recently expanded its incentives. With neighboring states enhancing their own programs, New York aims to attract more productions while maintaining job growth in the region and supporting local businesses.

According to industry representatives, the Motion Picture Association has endorsed the changes, stating they represent a significant boost for New York’s economy. The association highlights the critical role that film and television industry plays in job creation and the promotion of local economies.

The cap on New York’s film and television subsidy has seen gradual increases over the years, starting at $420 million in 2023, which was then raised to $700 million before reaching its current maximum. This momentum in funding reflects both a recognition of the economic impact of the film industry in the state and a commitment to remain competitive in the global market for film and television production.

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Additional Resources

• Hollywood Reporter: New York’s Film Subsidy Boost
• Wikipedia: Film Tax Incentive
• Deadline: New York Film and TV Production Incentives
• Google Search: New York Film Subsidy
• Variety: New York Film Subsidy Compared to Jersey
• Encyclopedia Britannica: Television
• The Wrap: New York Film Subsidy Hits $800 Million
• Google News: New York Film Incentives