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NEW YORK
August 6, 2010
The previous notice incorrectly stated that for independent films or pilots, at least 10% of the total principal photography days must be spent in a qualified film production facility when, in fact, they are the only productions exempt from that requirement. Please see the corrected version below. I apologize for any confusion this may have caused.
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). With the exception of qualified independent film production companies and pilots, all projects must spend at least 10% of the total principal photography shooting days 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 (at 30%) 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. This credit is available to productions that may have filmed elsewhere but would like to complete post production in New York or to productions that did not qualify for the film production credit even though they were filmed in New York. To be eligible for this 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.
If you have any questions, please do not hesitate to contact the New York Film Office.
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
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