- Type of Incentive
- 30% Refundable Tax Credit
- Maximum Benefit
30% refundable tax credit for film production.
5% to 20% tax credit available for commercial projects with >= 75% of production costs (excluding post) in NYS.
Add'l Credit: Beginning 2015, 10% additional credit for BTL labor expenses incurred in certain counties in upstate New York.
- Compensation and Project Caps/ Funding Per Year
This incentive program is administered on a first-come, first- served basis.
Annual Cap: $420M for all tax credits per year through 2019; of that, post- production credits are allocated $7M in 2014 and $25M in 2015 through 2019, and funding set aside for the Upstate New York Bonus is $5M in 2015 through 2019.
Project Cap: None. Comp Cap: None.
- What Qualifies
Costs attributable to the use of tangible property or the performance of 'Below the Line' services within the state directly and predominately in the preproduction, production, and post-production of a qualified film. Purchases qualify from NYS Registered Sales Tax Vendors (see Publication 28, NYS Sales Tax).
- 2019-12-31 00:00:00
- Application Considerations
Applications can be submitted up to 180 days but no later than 10 business days prior to the start of principal and ongoing photography. Applications submitted more than 180 days prior to the scheduled start of principal photography will not be accepted.
- Application Considerations
The production entity must report the allocation year directly on their empire state film production credit form for each year a credit is claimed and include a copy of the certificate with their tax return. A production cannot claim the credit before the later of the taxable year the production of the qualified film is complete or the taxable year immediately following the allocation year for which the film has been allocated credit by the Governor's Office for Motion Picture and Television Development. Beginning in 2015, certain applicants may opt for a CPA Agreed-Upon-Procedures review to help expedite processing of the tax credit certificate.
- Loan-Out Company Considerations
- Crew Base Considerations
Substantial crew base, especially in New York City.
- Is Mappable
- Has Incentive Program
- You Should Know
If the amount of the credit is $1M-$5M, the credit shall be claimed in equal installments over a two-year period. If the amount of the credit >= $5M, the credit shall be claimed in three equal installments, over a three-year period.
- Project Criteria
There are two levels of eligible productions with separate requirements to qualify expenditures in a (A) facility located in NY and for (B) NY location shooting costs:
Level 1 ('Independent' Productions)
Production budget (excluding post) <= $15M AND produced by a company <= 5% owned, directly or indirectly, by a publicly traded entity.
- Level 1 Stage Requirements: Projects must build and use a qualified set on a stage in a QPF for at least one day to recover qualified costs incurred at a qualified production facility (QPF).
Production budget (excluding post) > $15M OR is being produced by a company > 5% owned, directly or by a publicly traded entity.
- Level 2 Stage Requirements: Projects (other than pilots) must build and use a qualified set on a stage in a QPF for at least 10% of the principal photography days AND productions (including pilots) filming in NYC must use a Level 2 QPF (certified as such by the Film Office) to recover qualified costs incurred at a QPF.
(A) For NY Facility costs to qualify (Levels 1 AND 2): Productions must (1) spend >= 75% of all facility-related costs (within and outside NYS) at a QPF AND (2) have at least one shooting day in a QPF.
(B) For NY location shooting costs to qualify (Levels 1 AND 2): Location shooting days in NYS (outside QPF) must be >= 75% of the total location shooting days (within and outside NYS) OR spend at QPF >= $3M to recover the location and non-facility costs (including post-production work).
Post-production costs can be recovered when both the 'stage' and 'location' requirements are met.
Requirements to qualify as a 'Relocated Television Production' include:
TV talk or variety program must have filmed at least five seasons prior to its first relocated season in NY.
Has a studio audience of 200 or more people.
- Either (1) incurs at least $30M in annual production costs in NY OR (2) incurs at least $10M in qualified capital expenditures at a qualified facility.
10% Upstate NY Bonus: Minimum budget = $500K. Eligible Counties: Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, Wyoming, or Yates.
New York State Governor's Office for Motion Picture and Television Development | www.nylovesfilm.com | Gigi Semone, Executive Director Phone: 212.803.2330 | [email protected]
- Sales and Use Tax Exemption
- Post Facilities
- Water Tank
- Big City
- Historical Architecture
- In-State Vendors
- Out-of-State Vendors
- Fringes Paid
- Taxes Paid
Qualified Compensation Expenditures
- Award Shows
- Feature Films
- Game Shows
- Interactive Media and Video Games
- Music Videos
- Reality Shows
- Scripted Shows
- Sporting Events
- Talk Shows
- Visual Effects
- NY CLS Tax § 24
- 5 NYCRR § 170.1
These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact EP Financial Solutions or your legal or tax advisors to confirm any laws or the effect of incentives on your project.
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