New York Governor Seeks to Expand Film Tax Credit to $700 Million

New York Gov. Kathy Hochul has proposed a major increase in the state’s film and TV tax incentive, as the state looks to compete with California and Georgia to attract productions.

In her executive budget, Hochul proposed increasing the state’s film credit from $420 million to $700 million a year. The credit would also become more generous to each production, raising the rebate from 25% to 30%.

Georgia has the nation’s largest production incentive, which topped $1.3 billion last year. New York and California each offered $420 million annually for the last two years. California’s incentive is focused largely on attracting TV series to relocate from other states, offering a 25% incentive to relocating shows instead of the 20% credit offered to recurring shows.

Hochul’s proposal seeks to fight back by offering the state’s own 5% additional credit for relocating shows for two years. The governor is also proposing to make above-the-line costs eligible for a credit, as well as to speed the payment once productions are completed.

The governor would also extend the credit for five years, out to 2034.

California Gov. Gavin Newsom has recently proposed making the state’s credit refundable, meaning that productions can claim the credit even if they have little or no tax liability in the state.

More to come…

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