Expanding Film Subsidies in New York: Governor Hochul Approves $800 Million Budget
After a monthlong delay, New York Governor Kathy Hochul has officially approved a state budget that includes a significant expansion of the film subsidy program, now totaling $800 million. This decision comes at a critical time for the state, as it faces increased competition from neighboring New Jersey, where Governor Phil Murphy has implemented a generous incentive program to attract film productions.
The newly signed bill by Governor Hochul includes the creation of a $100 million fund specifically designated for independent films. In addition, the bill relaxes certain requirements, such as lifting the $500,000 cap on “above the line” costs eligible for rebates, providing more flexibility for filmmakers.
The Motion Picture Association, representing major studios and streamers, has praised Governor Hochul and state lawmakers for their efforts in bolstering the film industry in New York. Charles Rivkin, the organization’s chairman and CEO, commended the expansion of the incentive program, highlighting its positive impact on the state’s economy and creative sectors.
Meanwhile, there are ongoing efforts at the national level to implement a federal film incentive program, which would compete with existing incentives in countries like Canada and the U.K. In California, Governor Gavin Newsom is also working towards increasing the state’s film subsidy from $330 million to $750 million, reflecting a trend of states and provinces investing more in the film industry.
New York’s program offers a 30% credit to productions, matching the incentive provided in Georgia. With the new provisions, productions investing at least $100 million in eligible costs across multiple projects will be eligible for an additional 10% credit through 2028, further incentivizing large-scale productions to choose New York as their filming location.
