Understanding a Popular Tax Credit for TV and Film Production in Upstate New York

Wondering if the popular tax credit for TV and film production in Upstate New York is something that your production could be eligible for and may benefit from? The New York State film tax credit which has been available for several years and continues to draw filmmakers to the city despite the recent reduction from 30% to 25% and stringent requirements that make it tougher to quality, but understanding all of these if you’re not an accountant can be tough!

At Beverly Boy Productions, clients that are considering NYC for their production frequently ask us about the credit and if it has any benefits that might apply to them.

We try to answer by providing as much help as possible. Here’s how it works:

What is the New York State Film Tax Credit?

The New York State Film Tax Credit is a program that provides a tax credit for TV and film production in Upstate New York as well as throughout the state.

It was designed to provide incentives to filmmakers that come into the state to produce professional films by reducing qualified production costs through a tax credit of up to 25% with no funding cap.

This means potentially, that a film with qualifying post-production costs of $2M can qualify for the tax credit of 25% and so could a film with qualifying post-production costs of $4M. The one with higher post-production costs would simply get a higher tax credit.

Additional 10% Credit until 2025

Some productions qualify for an additional 10% credit if their production budgets were over $500K and they produced in a qualifying county. The credit is for qualified labor expenses only. The details of this adjustment should be reviewed through the program’s official guidelines. 

How is Eligibility Determined for Upstate New York Producers?

Figuring out if you’re eligible for the popular tax credit or TV and film production in Upstate New York requires careful examination of the program rules and eligibility requirements as well as reviewing your own production practices and expenses.

Production companies that produce feature films, television  series, television pilots, television movies, and relocated television series are potentially eligible for this credit. 

The following types of productions are excluded from the program and will not qualify for the credit:

• Documentaries
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• News programs
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• Interviews and talk shows
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• Instructional videos
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• Sports events or shows
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• Daytime soap operas
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• Reality shows
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• Commercials
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• Music videos

Additionally, the majority of the production must take place in New York unless seeking the post-production credit which is available for films predominantly filmed outside the state of New York but in which post-production services have been contracted with a licensed New York company for post-production work.

For post-production costs that are incurred in Upstate New York, outside the Metropolitan Commuter Transportation District (MCTD), an additional 5% credit is provided for post-production costs making the credit 35% rather than 30%.

Additional eligibility requirements for the popular tax credit for TV and film production in Upstate New York can be found by reviewing the program guidelines.

To learn more, or to find out how you can reduce your post-production costs with various tax credits and filming incentives, give Beverly Boy Productions a call at 646-448-8787! We’ll help you figure out which programs are available to support your filmmaking!