Financial Incentives

Film Production Credit Program 

NYS's Film Production Credit Program encourages companies to produce film projects in New York and help create and maintain film industry jobs.  Production companies may be eligible to receive a fully refundable credit of 40 percent of qualified production costs and post-production costs incurred in Ulster County.  

For the period 2015-2019, productions with budgets over $500,000 can receive an additional 10 percent credit on qualified labor expenses.   

Eligibility 

  • The Program is limited to feature films, television series, relocated television series, television pilots, and films for television.
  • "Qualified  film" shall not  include (i) a documentary film, news or current affairs program, interview or  talk  program,  "how-to"  (i.e., instructional)  film  or program, film or program consisting primarily of stock footage, sporting event  or  sporting  program, game show, award ceremony, film or program intended primarily for industrial, corporate or institutional end-users, fundraising film or program, daytime drama (i.e., daytime "soap opera"), commercials, music videos or "reality" program, or (ii) a production for which records are required under section 2257 of title 18, United States code, to be maintained with respect to any performer in such  production (reporting  of  books, films, etc. with  respect to sexually explicit conduct).
  • The production credit is available for companies that film a substantial portion of their project in NYS.

Film Production Credit

Qualified production costs are for tangible property or services used or performed within New York State directly and predominantly in the production of a qualified film. Qualified costs generally include most below-the-line items associated with production such as set construction, crew, camera equipment, grip equipment, props, etc. Post-production costs such as film editing, sound design and effects, and visual effects may be qualified costs for purposes of the film production credit.

Eligibility requirements vary based on the type of film production company and the budget.

If the film has a production budget over $15 million or is being produced by a company in which more than five percent of the beneficial ownership is owned directly or indirectly by a publicly traded entity:

  • At least 10% of the total principal photography shooting days must be at a qualified production facility (QPF) in New York State. 

Pilots are exempted from the 10 percent principal photography day requirement. Pilots must shoot a minimum of one day of principal photography day at a QPF, and at least 75 percent of the total of all expenses related to work (excluding post-production) done at all facilities utilized by the Pilot must be related to work done at the QPF.

Productions with budgets of $15 million or less produced by companies that are independently owned must shoot at least one day of principal photography at a QPF.

If a non-qualified production facility (in NYS or out of State) is used by the Production Company, at least 75 percent of the total of all expenses related to work (excluding post-production) done at all facilities anywhere must be related to work done at the QPF.

If a production has met the 75 percent test for qualified production facility expenditures, it may also qualify for credit based upon qualified expenditures outside the qualified facility that are related to pre-production, location production and post-production if:

  1. The production spends less than $3 million on all costs related to work done at a qualified production facility, then a minimum of 75 percent of the principal photography days shot on location must be in New York State. This threshold requirement applies to location days only. Principal shoot days at a facility must not be included in the calculation of the 75 percent; OR
  2. The production spends $3 million or more on all expenses related to work done at a qualified production facility, then there is no 75 percent threshold for principal photography on location in NYS. All qualified expenditures related to pre-production, location production and post-production in NYS are eligible for calculating the credit.

Further definition of certain terms such as film production facility, qualified production facility and armories are provided on NYSFilm.com.

NOTE: A film production company filming a substantial portion of its project in NYS can include post-production costs incurred in NYS in the calculation for the film production credit. The post-production credit is available to film production companies that film a substantial portion of a project outside NYS but are seeking to contract some or all of the post-production work to a facility in NYS. A Film production company cannot claim the film production credit and the post-production credit for the same qualified post production costs. 

Post Production Credit Program

These credits can be allocated and used to encourage companies to post their film projects in New York and help create and maintain film industry jobs.  Production companies may be eligible to receive a fully refundable credit of 40 percent of qualified post-production costs incurred in New York State (NYS). 

 

Please note, an additional 5 percent credit may be available in the Post-Production Program because Ulster County is outside the Metropolitan Commuter Transportation District. (The MCTD includes New York City, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties.)

For the period 2015-2019, productions with budgets over $500,000 can receive an additional 10 percent credit on qualified labor expenses incurred. 

Eligibility

  • The Program is limited to the post-production of feature films, television series, relocated television series, television pilots, and films for television.
  • Qualified  film" shall not  include (i) a documentary film, news or current affairs program, interview or  talk  program,  "how-to"  (i.e., instructional)  film  or program, film or program consisting primarily of stock footage, sporting event  or  sporting  program, game show, award ceremony, film or program intended primarily for industrial, corporate or institutional end-users, fundraising film or program, daytime drama (i.e., daytime "soap opera"), commercials, music videos or "reality" program, or (ii) a production for which records are required under section 2257 of title 18, United States code, to be maintained with respect to any performer in such  production (reporting  of  books, films, etc. with  respect to sexually explicit conduct).
  • The post-production credit is available when the project was filmed predominantly outside of the State and the film production company contracts their post-production work to companies in NYS specializing in post-production work.

Post-Production Credit

Post-production costs associated with the production of original content for a qualified film that are incurred at a qualified post-production facility in New York State are eligible.

A qualified post-production facility is any company located in NYS and engaged in providing post-production services to film and television.

A film production company can qualify for the post-production credit if it meets either one or both of the following thresholds

  1. Visual Effects and Animation - The qualified VFX/Animation costs incurred at a qualified post-production facility in NYS must EITHER meet or exceed:
  • 20 percent of the total VFX/Animation costs paid or incurred for VFX/Animation for the qualified film at any post-production facility anywhere; OR
  • $3 million
  • Post-Production - The qualified post-production costs incurred at qualified facilities in NYS, (excluding cost for VFX/Animation), must meet or exceed 75 percent of the total qualified post-production costs paid or incurred in the post-production of the film at any post-production facilities. 
  • Fully Animated Production/Post Production - A company engaged in the production of a fully animated film is eligible for the Post-Production Credit if the qualified production and post-production costs meet the VFX/Animation threshold of 20 percent; expenses in the Producer, Director and Deliverable Elements categories are also qualified if they meet the Post Production 75 percent threshold.