New York State Film Production Tax Credit Extended to Mid-Hudson Valley

The Hudson Valley Film Commission is overjoyed with the legislation that has passed the NY State Senate (S.6987) and Assembly (A09415), which will extend the New York State Film Production Tax Credit to the Mid-Hudson Valley Counties of Dutchess, Greene, Orange, Sullivan, and Ulster.

The Hudson Valley Film Commission is extremely grateful for the support and leadership of Assemblywoman Aileen Gunther, State Senator George Amedore, and Ulster County Executive Mike Hein who made passing the legislation part of his 2016 State of Union Address. Many others, including State Senators John Bonacic and William Larkin were instrumental in passing the legislation.

“These additional tax credits will allow the Mid-Hudson Valley region to compete on a level playing field for billions of dollars in film and TV production revenue,” said Hudson Valley Film Commission director Laurent Rejto, “This legislation will create revenue opportunities for local vendors; create a steady demand for services and hospitality; promote the region nationally and around the globe; increase opportunities so that current local industry members don’t need to travel from the region for work; increase opportunities for youth so they can work locally; create more regional opportunities for industry Union Members; and generate investments in local infrastructure through productions, new businesses and Jobs!!! It’s a win-win for the region and the entire state!”

The New York State Film Tax Credit Program offers film productions a 30% fully refundable tax credit statewide on Qualified Below-The-Line production expenses. The new legislation increases the credit to 40% on qualified labor for the following counties Greene, Ulster, Columbia, Warren, Saratoga, Washington, Rensselaer, Dutchess, Sullivan, Orange, Putnam and Suffolk. There is a $420-million annual limit, which (if used entirely) grosses $1.4-BILLION in Below-The-Line film production expenses. Above-The-Line* and Indirect Production Costs increase those expenses significantly.

*Above-The-Line expenditures (expenses that do not qualify for tax credit) reflect the expected line item compensation for an official above-the-line member’s role in a given film project including the screenplay is based, production rights to the screenplay, compensation for the screenwriter, producer, director, principal actors and other cost-related line items such as assistants for the producers, director or actors.

The Hudson Valley Film Commission estimates that for every $500,000 in additional tax credits, at least $5-Million worth of movie production revenues will benefit the Mid-Hudson Valley.

“This legislation will allow local film studios to compete for TV shows and films,” added Rejto. “That means steady LOCAL jobs. We’ve had the infrastructure all along, but the lack of additional incentives put the Mid-Hudson at a disadvantage. These additional incentives will allow Umbra Studios in Newburgh, Michelson Studios in Middletown and developing studios such as the one proposed by Mary Stuart Masterson for Kingston, NY, to comepete for work that has consistently been lost to other states and to Canada.”