New York Increases Film and TV Tax Credits to $800 Million to Compete for Hollywood Projects

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New York Governor Kathy Hochul has given the green light to a state budget that raises the limit for the state’s film and television incentive grant program to a staggering $800 million – almost twice as much as in 2022.

This initiative establishes a $100 million fund exclusively for funding independent films and boosts rewards for companies that frequently shoot movies within the state. It also incorporates minor adjustments to address ongoing issues with the program, such as delays in credit distribution and limitations on expenses like executive salaries, which are not immediately eligible for tax rebate.

The revisions are happening during a competitive battle among movie-making hotspots, each trying to attract more Hollywood investments. California is considering a major update to its film and TV tax incentive scheme, which includes raising the cap from $330 million to $750 million, boosting the base credit up to 35 percent, and broadening the range of productions eligible for these benefits.

Additionally, there’s a possible federal tax benefit under consideration, which, if approved as it stands now by representative Jon Voight from Hollywood, could be combined with subsidies offered by states. President Trump hinted at potential tariffs being considered within this plan on Sunday, but he didn’t specifically mention the government tax credit that certain legislators are advocating for to boost domestic production.

One of the significant decisions made includes offering subsidies to repeat clients of New York’s program. From 2021, production companies that film at least two projects in the state with qualifying costs of $100 million will be entitled to a 10% boost in their next title credit until 2028. This benefit can continue for TV series as long as they remain on air. Eligible productions may receive a total incentive of up to 40%, matching the highest credit provided by other states.

On Friday, the program was approved to continue until 2036. This decision takes into account lower-budget productions. A total of $100 million will be allocated for independent projects, divided into three categories:

* For projects with budgets greater than $10 million, a pool of $80 million has been set aside.
* For projects with budgets between $2 million and $10 million, there is a separate pool of $20 million available.
* Lastly, for projects with the lowest budgets, below $2 million, resources will be allocated as needed.

A change that could entice certain producers towards New York is the elimination of a $500,000 limit on pre-production expenses, such as actor salaries. However, the total payout will still be capped at 40% of all post-production costs.

Changes also involve quicker credit recovery for productions, as they can now claim it during the same allocation year. Furthermore, the qualification criteria for visual effects and animation subsidies have been made less stringent.

In his statement, Charles Rivkin, head of Motion Picture Association, described the changes as a “significant broadening of an established economic booster for New York.” He further explained that the upgraded and extended film incentive program will strengthen New York’s position as a top player in the entertainment and creative industries. His remarks were met with approval from crews, creatives, and small businesses across the state, who are commending the leaders in Albany today for their efforts.

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2025-05-09 20:54