Cuomo Extends, Expands NY Film & TV Post Production Tax Credit

April 1st, 2013 by

New York is looking better and better as a location for film and television post production, with the recent expansion and five-year extension of the Empire State Film Post Production Tax Credit, originally signed into law by Governor Andrew M. Cuomo in July of 2012.

Click for more info and to apply!

Click for more info and to apply!

According to news announced on Friday by the Post New York Alliance (PNYA), the program will see significant amendments as part of the 2013-2014 budget for New York State, including an $18 million increase in the annual funds allocated specifically to the post production incentive, a five-year extension of the incentive program to the year 2019 and more attractive qualifying standards for film projects being shot and/or completed in New York.

All of the amendments will apply to current and future applications to the incentive program, effective once the budget is signed into law.

The credit encourages film and television productions shooting anywhere in the U.S. or the world to bring their projects to New York for post production services. Any project ready to commit 75% of its post production costs to being performed in NYC is eligible for a fully-refundable tax credit of 30% of those costs. The credit increases to 35% for post production work performed in upstate New York (north of the MTA line).

Previously, the Empire State Production Tax Credit had allocated $7 million of the program’s $420 million budget for post production credits, and was set to run through 2014. This credit has reportedly made a difference in the NYC post business, which prior to the incentive used to lose significant post production work on projects shot in NY to other markets like Los Angeles and Toronto, never mind all the post work related to productions outside of the NY area. Now, under the terms of the new budget, the annual allocation will be increased to $25 million (of the $420 million production tax credit program) for eligible post production services beginning in 2015.

“The tax credit program has already been attracting new productions to New York, which means more investment in the state and more jobs for New Yorkers,” said Yana Collins Lehman, PNYA co-founder and executive board member. “By extending the tax incentive program until 2019, Governor Cuomo has committed to creating and nurturing greater opportunities for post production professionals throughout New York State.”

In addition to allocating a larger portion of funds to the post only incentive program and extending the program, the new budget stipulates more favorable qualification terms for film and television projects thinking of shooting and/or posting in New York.

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While prospective applicants must still spend 75%of their project’s total post production budget in New York in order to qualify for the post-only tax credit, the new budget stipulates a new and separate threshold of the lesser of $3 million or 20 percent of the total visual effects and animation spend in New York to qualify. The lower threshold makes it easier for films with larger visual effects and animation budgets to qualify for the program. Additionally, the post only incentive now applies to post services on animated features and TV programs.

The Governor’s 2013 budget also removes the 75% post-spend threshold for productions shooting in the city or state. Productions that qualify for an Empire State Film Production Tax Credit are now entitled to the 30% tax credit on any and all post production services completed here.

However, much of the work happening in NYC is still not covered in this incentive program. The only eligible productions are feature films, episodic television series, “television pilots and presentations”, and television movies and miniseries. That excludes documentaries, news or current affairs programs, interview or talk shows, instructional videos, sport shows or events, daytime soap operas, reality programs, commercials, and music videos.

For more information and to apply for the tax credit, visit http://www.nylovesfilm.com/tax/postProduction.

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