NYC OFFERS A NEW TAX INCENTIVE TO FILMMAKERS

January 11, 2005

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NYC OFFERS A NEW TAX INCENTIVE TO FILMMAKERS

New York City Mayor Michael Bloomberg recently signed legislation that provides an additional 5% refundable tax credit to filmmakers shooting in the city. The credit is part of a package of “Made in NY” incentives intended to encourage more productions in the city itself, and is in addition to the 10% refundable tax credit given by the state of New York.

The NYC tax credit is applicable to all costs of below-the-line tangible property or services used or performed within any of the five boroughs of New York City. The costs must be incurred directly and predominately in the pre-production, production, and post-production of a qualified film.

The refundable tax credit is applied against the production company or film owner’s New York State taxes. Fifty percent of any unused, earned credits may be carried forward to the following year. If those credits are still unused, they become fully refundable to the production company or film owner in the third year.

Productions eligible to apply for the “Made in NY” credit include feature length films, made-for-TV movies, television pilots, and television series, and the productions must be completed sometime between this year and 2007. To qualify, 75% of the total stage work must be conducted in a qualified New York City facility. If the production spends at least $3 million during production of the film at the qualified facility, the production company is eligible for the entire 5% tax credit refund. If the production spends less than $3 million at the qualified facility, but spends at least 75% of its location days in NYC, the production company is also eligible for the entire 5% tax credit refund. If the production spends less than $3 million and shoots less than 75% of its location days in NYC, the production company will only receive a tax credit refund for the qualified costs at the qualified facility. Credits are offered on a first come, first served basis.

For more information, contact the City of New York Mayor’s Office of Film, Theatre and Broadcasting: www.nyc.gov/html/film/html/index/index.shtml .