Governor Announces New Tax Incentives During Start of Seventh Annual Tribeca Film Festival
Tax Incentives for Commercials info
Tax Incentives for Feature Films & Episodic Television info
New York State Governor David A. Paterson today announced that he will sign legislation this afternoon, which will dramatically expand the Empire State film production tax credit program and help attract even more movie and television industry business to New York. The significant expansion of the tax credit will keep New York the most popular destination outside of Hollywood for filmmakers, and further promote an industry that creates billions of dollars in economic activity in New York each year.
“It is vital to our state’s economy that New York remains a premier destination for film and television productions,” said Governor Paterson. “The entertainment industry plays an important role in fostering economic growth by promoting our state on movie and television screens across the world, and creating thousands of jobs for New Yorkers.”
Mayor Michael R. Bloomberg said: “Film and television play a major role in New York City’s place as a world-class center for culture, and the industry’s continued growth will play an important role in our efforts to diversify the economy. The expansion of the Empire State film production tax credit program is good news for New York City, and I thank Governor Paterson for signing it into effect.”
Governor Paterson made the announcement during the opening of the seventh annual Tribeca Film Festival. The festival was created after September 11, 2001, and brings more than 500,000 visitors and $125 million annually. The 2008 Tribeca Film Festival will run until May 4, and includes 121 feature films, 79 short films and 53 world premieres from 41 different countries, as well as major premiers and outdoor events.
For the last few years New York has been losing its film and television business to neighboring states that enacted their own tax credits – a loss that has cost the New York economy approximately $750 million. This aggressive state legislation triples the percentage of qualified film production costs eligible for the credit from 10 percent to 30 percent. Additionally, it extends the program, which was originally set to expire in 2011, for an additional two years to 2013.
Pat Swinney Kaufman, Executive Director of the Governor’s Office for Motion Picture & Television Development, said: “In the end we believe every producer and director wants to shoot in New York, and with the strengthened credit they will again be able to make that choice. I was just in Los Angeles, making studio visits and meeting with producers, and they are ecstatic about the increase. We expect to get a bumper crop of new productions, which is good news for New York’s film community and our economy.”
Dan Glickman, Chairman & CEO of the Motion Picture Association of America, Inc, said: “I applaud Governor Paterson and the New York State Legislature for their vision to grow motion picture and television production in New York State, which is proving to be a positive economic stimulus that continues to create thousands of new employment opportunities for New Yorkers.”
Nancy Fox, National Director of Policy and Strategic Planning for the Screen Actors Guild, said: “The Screen Actors Guild greatly appreciates New York State’s expansion of the existing tax incentive program. Although the initial program was particularly successful, employment for NY SAG members fell dramatically after Connecticut and several other states introduced similar, but more generous, tax credit programs. SAG sends a special thank you to Governor Paterson, Assembly Speaker Sheldon Silver, Senate Majority Leader Joseph Bruno, Senator Martin Golden and Assembly Committee on Tourism, Arts and Sports Development Chairman Steve Englebright for their leadership on this issue. The entertainment industry not only provides income for actors and their families, but it also creates a wave of employment for many other businesses in the State.”
Stuart Match Suna, President of Silvercup Studios, said: “New York City has the best backlot in the world, some of the finest stages, crews, acting talent, and for the last several years, one of the most competitive tax incentive programs anywhere. Governor Paterson’s expanded Empire State tax credit program — which triples the benefits to producers — will allow for film and TV productions to continue to be filmed in New York City. In addition, the program will generate tax revenue, economic activity and good jobs for New Yorkers.”
James Schamus, CEO of Focus Features, said: “This is a great day for New York filmmakers. You have the best crews in the world right here, and there is nothing better than knowing you’ve got the support to be able to make movies in New York State.”
The new provisions also raise the aggregate amount that can be awarded under this credit during a calendar year from $60 million to $110 million over a six-year period. The credit cap will increase to $65 million in 2008, $75 million in 2009, $85 million in 2010, $90 million in 2011 and 2012, and $110 million in 2013.
Under previous law, if the credit awarded exceeded the production company’s New York State tax liability during a given tax year, 50 percent of the excess was treated as an overpayment and refunded to the taxpayer, with the rest of the balance carried over to the next succeeding tax year. The new legislation refunds 100 percent of the excess credit up front at the end of the first tax year.
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