The New York State Film Production tax credit program provides qualifying film and television productions a 30% credit for qualified production expenditures.  All eligible productions shot in New York City may qualify for this program.  In August 2010 new legislation extended the program through 2014, allocating $420 million per year. 

Here is some basic information about the program.  For additional information and details contact the New York State Governor's Office for Motion Picture and Television Development at 212-803-2330 or visit the website at www.nylovesfilm.com.

Types of Eligible Productions 

There are two classes of eligible productions:
• A LEVEL 1 production is a qualified production that has a production budget of no more than $15 million, AND is being produced by a company in which NO MORE THAN five percent of the beneficial ownership is owned, directly or indirectly, by a publicly traded entity. Level 1 productions are referred to as “independent” productions in the State law.
• A LEVEL 2 production is a qualified production that has a production budget greater than $15 million, OR is being produced by a company in which more than five percent of the beneficial ownership is owned, directly or indirectly, by a publicly traded entity.

What Requirements Must Be Met? 

To qualify for the 30% New York State credit, the eligibility requirements must be met entirely within New York State. 

For a feature film or television project to be eligible for the credit, the production must first meet a stage requirement:
1) Level 1 productions must build a set and shoot at least one day on a stage at a qualified production facility (QPF).
2) Level 2 productions must build a set and shoot at least ten percent of all shooting days on a stage at a qualified production facility. In New York City, Level 2 productions must use a Level 2 QPF.
3) Level 2 pilots must build a set and shoot at least one day on a stage at a qualified production facility. In New York City, Level 2 pilots must use a Level 2 QPF.
4) All films must complete at least 75% of the total facility related expenses at a qualified facility.

These productions will qualify for the tax credit for the work done at the facility.

For a list of qualified film production facilities within New York City, click here.

Once the stage requirement is met, the costs of location and other work done in New York, but outside the facility are eligible if at least 75% of the location shooting days are in New York. If the production spends at least $3 million on work incurred at the qualified facility, the location threshold is waived. Post production costs are eligible after the stage and location thresholds are met, and 75% of qualified post production costs must be incurred in New York.

What Costs Are Eligible?

QUALIFIED COSTS - Qualified production costs are generally below-the-line costs that include the costs of technical and crew production, facilities, props, makeup, wardrobe, set construction, background talent, etc., and generally exclude costs of stories and scripts, and wages for writers, directors, producers and performers (other than extras without spoken lines).

For additional detail on which costs are qualified, visit the State website at www.nylovesfilm.com and download the Schedule of Qualified Expenditures (Form B).

WORK INCURRED IN NEW YORK - The tax credit is based on where the work is incurred.  Costs for goods and services that are used in New York State are eligible for the State credit. 

The cost of goods and services (including labor costs) used in New York is qualified, even if they are purchased, leased, or rented from outside New York and brought into New York.  If a person who lives outside New York is hired to work in New York, his or her labor cost is qualified.  However, shipping and travel costs to bring equipment or personnel to New York are not qualified. 

On the other hand, costs for shooting days outside New York are NOT qualified.  Even if the crew lives in New York, or goods or services are purchased or rented in New York, if they are brought outside of New York for shooting that takes place outside of New York, then those costs are NOT qualified.

Applications must be submitted prior to the start of principal and ongoing photography, but not more than 90 days prior to the start of principal and ongoing photography.

Application Process

The tax credit program is administered by the New York State Office for Motion Picture and Television Development. 

1)   The Initial Application must be submitted to the State two weeks prior to the start of principal and ongoing photography. NY State accepts initial applications up to 180 days prior to the start of principal and ongoing photography.

2)   After submitting the application, schedule a meeting with the State office prior to the start of photography.

3)   The Final Application must be submitted no more than 60 days after the completion of the project.
    
Applications

Initial and final applications are available online at www.nylovesfilm.com/tax/.