New York Introduces Bill to Repeal Film Tax Credits After 2019 Sunset Date

The Empire State boasts the second most production activity the country due in large part to its generous incentive program along with it’s infrastructure and of course New York City.  With New York’s storied history regardless of existing incentives, some legislators believe that the program is unnecessary and have introduced a bill to repeal the credit for productions.  The current program allocates $420 million each year for production and post-production credits and provides a 30% credit with an additional 10% available in certain situations.  Proponents of the credit through the industry and the legislature point to a recent study that shows a return of approximately $1.15 for every dollar spent on the program, a common figure used to determine the success of incentive programs across the country.  Many state programs haven’t been successful in this area and a return like that indicates a program that definitely benefits the state’s economy.

Currently New York’s program expires in 2019 so lawmakers will have to address the program and determine whether or not it’s really necessary to maintain production activity.  While New York will always be a haven for production, California and Georgia, the first and third, respectively, most popular filming locations in the US have boosted their programs in recent years.  Additionally, Canada and the UK consistently provide strong incentives for filmmakers.  Productions will undoubtedly always be wooed by the permanent industry in New York, but up and coming locations like Georgia, Louisiana and others could cut into that share of New York’s production should the program be cut.  Based on the benefits provided by the program to the state, it does appear to be working as planned.