New York Governor Kathy Hochul’s sweetened production incentives in her latest budget proposal, including a pool for indie film, are getting a push by local film commissions, lawmakers and a coalition of the arts, entertainment and creative community working with small businesses.
The proposals, which would be part of the state’s budget for fiscal 2026 that starts April 1, extend and amend existing incentives to strengthen the film and television industry in New York and remain competitive with other states as productions increasingly seek the best deals across the U.S. and overseas.
The new elements include:
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Establishing the Production Plus Program to provide additional tax credits for larger productions with at least $100 million in qualified production investments or above $20 million for small budget independent projects.
Creating a new $100 million pool specifically for independent films.
Extending the program for an additional two years through 2036, providing more long-term security for productions.
Increasing eligibility of “above-the-line” (ATL) expenses — including salaries for actors, directors, writers, and producers — while keeping in place the overall cap on ATL compensation
Significantly reducing delays in credit allocation for larger productions, allowing companies to claim the full credit in the first year, benefiting both major productions and independent projects.
Allocating $3.5 million annually to support workforce development programs, creating pathways to high-quality jobs for New Yorkers of diverse backgrounds.
The New York Film Coalition, formed in 2023 around the Governor’s proposal for that budget, has come together again for this year’s budget push with a new website asking supporters to add their names. “Since it launched in 2004, the NYS Film and Television Production Incentive has created over one million union jobs and generated billions of dollars in economic activity, turning film and TV production into a multi-billion-dollar industry in New York,” it says. “Film and TV production supports high-quality, high-paying jobs, benefits local businesses, and adds an average of $1.3 million to the local economy every day its in production.
It said some 78% of New Yorkers support the tax incentives, with bipartisan backing across Democrats (86%), Independents (68%), and Republicans (72%).
On Monday, thirteen New York film commissioners sent a letter to state legislators touting the enhancements to support high-skilled, high-wage union jobs across the Empire State.”
“We respectfully write to express our enthusiastic support for the Governor’s proposed extension and enhancements to the New York State Film and TV Production Tax Credit program,” the letter said.
State Sen. Mike Gianaris, the Deputy Majority Leader, last week posted posted from a tour of Kodak’s film lab his in Queens district. “Our vibrant film industry is about so much more than movie stars and big studios. Great to visit Kodak’s film lab right here in western Queens, creating good local jobs as part of the film production process,” he said on X.
New York has long been a hub for film production but it’s pricey, can be slow to pay out — which is a real headache with interest rates this high — and has lost ground as New Jersey and other hubs sprouted with their own production tax incentives. Independent film, which has a long tradition in New York, has have had a tough time and the new indie incentive is welcome.
There has been a corresponding in push in California, both before and now after the devastating LA wildfires, to stock runaway production and keep more work in state with Gov. Gavin Newsom more than doubling the state’s film and television productive incentives. Other states have had public battles to keep their credits intact. Louisiana saw its pot lowered amid a sweeping fiscal reform the state. Some Georgia lawmakers tried unsuccessfully to cap the generous incentive that has turned the state into one of top global production hubs.
There will be hearings on Hochul’s budget proposal with production tax credits likely to be addressed on Feb. 29, according to a person familiar with the process. The State Assembly and Senate then release their budget and negotiations lead to a final document, which is due March 31 but has been late for the past several years.
The state currently offers a tax credit of 30% of qualified production expenses including certain above-the-line wages subject to specific caps, below-the-line wages, and production costs directly related to the production of a qualified film.
The tax credit is funded at $700 million a year through 2034.
Productions with a minimum budget of $500k may receive an additional 10% credit on qualified labor expenses in certain counties outside of New York City. Qualified costs incurred in those counties may be eligible for the 10% credit if the production company shoots more than 50% of principal photography there.
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