NEW YORK

August 5, 2010

The empire state film production credit bill awaiting the Governor's signature provides $420 million worth of tax credits annually beginning in 2010 and continuing thru 2014 with up to $7 million of the annual allocation available for a newly created empire state post production credit (see below).  Other requirements remain the same except that for an independent film or pilot, at least 10% of the total principal photography days must be spent in a qualified film production facility.  The Governor's Office will notify the taxpayer of their "allocation year" and any credits earned under this program cannot be claimed before the later of (1) the taxable year the qualified production is complete, or (2) the taxable year immediately following the "allocation year" for which the film has been allocated credit by the Governor's Office.  If the amount of the credit is at least $1 million but less than $5 million, the credit will be paid out pro ratably over a two year period beginning in the FIRST taxable year in which the credit may be claimed.  For credits of $5 million or more, the credits are paid out pro ratably over a three year period beginning in the FIRST taxable year in which the credit may be claimed.  Post production costs incurred in New York will qualify for the film production credit only if 75% or more of all post production costs are incurred in New York. 
 
The newly created empire state post production credit allows a credit equal to 10% of the qualified post production costs paid in the production of a qualified film at a qualified post production facility.  To be eligible for the post production credit, at least 75% of all post production costs must be paid or incurred at a qualified post production facility.  Any post production costs used in the empire state film production credit do not qualify for the empire state post production credit. Fifty percent of any excess post production credit will be refunded in year one and the balance will be refunded in year two.
 
The Governor is expected to sign the bill by the end of next week.

For more information please contact:

Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
jbessacini@castandcrew.com

RETURN TO INCENTIVES UPDATES PAGE

Copyright © 2011 Cast & Crew Entertainment Services, LLC. All Rights Reserved.