Gov. Hochul Proposes New Incentives to Boost Film and TV Production in New York
Governor Kathy Hochul unveiled a series of new incentives on Tuesday aimed at revitalizing the film and TV industry in New York. With production spending projected to decline by 15% since 2019 and a significant drop in applications for the state tax credit, Hochul’s proposals seek to attract more productions to the state.
One of the key initiatives is the introduction of a $100 million fund specifically for independent films, providing a much-needed boost for smaller productions. Additionally, companies that undertake at least three big-budget productions in New York will now be eligible for a 10% bonus on top of the existing 30% base credit.
To remain competitive with other jurisdictions, such as New Jersey, Hochul’s proposal also aims to eliminate the $500,000 cap on salaries for actors, directors, writers, and producers. This move aligns New York with other states and allows productions to fully benefit from the tax credit.
Another significant change is the reduction of wait times for accessing the tax credit. Currently, credits are allocated over two to three years, causing delays for many productions. Hochul’s plan seeks to provide the full credit in the first year of allocation, streamlining the process for filmmakers.
Recognizing the challenges faced by independent productions, Hochul’s office has earmarked $100 million for low-budget films and TV shows. This set-aside fund will be allocated on a first-come, first-served basis, ensuring that smaller projects have access to the incentives.
The Motion Picture Association has praised Governor Hochul for her efforts to support the creative community in New York. The association highlighted the economic benefits of film and TV production, emphasizing the job creation and support for local businesses that come with it.
While the proposed incentives have received positive feedback from industry stakeholders, some critics, like State Senator James Skoufis, have raised concerns about the effectiveness of the tax credit. A 2023 state audit found that the credit generates 31 cents in tax revenue for every dollar invested, prompting calls for its repeal. Despite these criticisms, the film and TV industry in New York remains a vital economic driver, creating jobs and stimulating local economies.
