New York State Proposes Boost To Film Tax Credits

“Under the proposal for the state’s 2024 fiscal year that starts April 1, New York would:

∙ Raise its annual cap from $420 million to $700 million.

∙ Make above-the-line wage costs eligible, with restrictions: It would cap credit at $150,000 per individual. Qualified above the line wages capped for each production at 40% of other qualified production expenses.

∙ Modify payout rules, allowing businesses to get paid sooner. Delays in payment have devalued the credit and created negative messaging around the ability of New York to pay out. The payout will now occur before the later of (1) the taxable year the production of the qualified film is complete, or (2) the taxable year for which the film has been allocated credit (versus the tax year immediately following the allocation year).

∙ Incentivize the relocation of TV series that are filming elsewhere with a 5% bump for two years. Series need to have filmed 6+ episodes in other jurisdictions before relocating to NYS. A required minimum budget of $1,000,000 per episode — intended to weed out smaller productions.

There was no change requiring a film budget of $1 million in NYC for tax credit eligibility. Filmmakers have called that a high bar in a city with deep ties to independent film, which has been going elsewhere. However, the minimum budget is only $250k north of Westchester County.“

By Jill Goldsmith