New York Gov. Kathy Hochul has proposed a significant increase in the state’s film and TV tax incentive. The state looks to compete with California and Georgia to attract the eyes of film studios looking for cheap locations to shoot their films. In her executive budget, Hochul proposed increasing the state’s film credit from $420 million to $700 million a year. The credit would also become more generous to each production, raising the rebate from 25% to 30%.
According to Variety, “The proposed enhancement of the film tax credit will grow the film industry and keep New York competitive in this very important sector of our economy which has generated over $20 billion in spending and created 57,300 direct and indirect jobs in the Empire State.”
Despite Hollywood having the stereotype of the land of films, The Peach State, Georgia, has the nation’s most significant film production incentive, which topped $1.3 billion last year. Marvel fans who stay till the end credits will no doubt recall the jingle “Made in Georgia.” Some have even called Georgia the film production capital of America because of the hospitable tax incentive. It should be noted that the Georgia credit is non-refundable. Still, it is transferable, meaning studios can sell their credits to in-state taxpayers at a discount, making it a profitable investment. New York and California have each offered $420 million annually for the last two years.
California’s incentive is to attract TV shows to relocate from other states, offering a 25% incentive to relocate shows instead of the 20% credit offered to recur shows.
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