NEW YORK STATE OFFERS SEVERAL PROGRAMS TO THE FILM AND TELEVISION INDUSTRY IN THE FORM OF TAX CREDITS AND SALES TAX EXEMPTIONS. PLEASE DOWNLOAD THIS DOCUMENT FOR INFORMATION ON THE DIFFERENCE BETWEEN THE PRODUCTION, POST PRODUCTION AND VFX TAX CREDITS.
SEE BELOW FOR ADDITIONAL INFORMATION.
How the New Post Production Tax Credit Works
The Film Tax Credit Program provides incentives to qualified production companies that produce feature films, television series, relocated television series, television pilots, films for television, and/or incur post-production costs associated with the original creation of these productions. Program credits of $420 million per year can be allocated and used to encourage companies to produce film projects in New York and help create and maintain film industry jobs. Of the $420 million, there is a set-aside for the post-production credit of $25 million per year beginning in 2015.
For information on the New York State Film Production credit.
How much is the credit?
The NY State Post Production credit is a fully refundable 30% tax credit (35% upstate) on qualified post production costs paid in the production of a qualified film at a qualified post production facility in New York State.
What is a "qualified film"?
The incentive applies to post production costs incurred in the creation of certain kinds of film and television projects in New York State. Eligible productions include:
Certain categories of productions are excluded from the program, including but not limited to documentaries, news or current affairs programs, interview or talk shows, instructional videos, sport shows or events, daytime soap operas, reality programs, commercials, music videos.
What is a qualified post production facility?
"Post production facility" means a building and/or complex of buildings and their improvements in which films are intended to be post produced.
"Qualified Post Production Facility" means a post production facility located in the state, engaged in finishing a qualified film.
What kind of costs qualify?
"Post Production Costs" means production of original content for a qualified film employing traditional, emerging and new workflow techniques used in post-production for picture, sound and music editorial, rerecording and mixing, visual effects, graphic design, original scoring, animation, and musical composition; but shall not include the editing of previously produced content for a qualified film.
Post Production Costs qualify for the credit ONLY to the extent they are incurred for post production work actually done in New York State; work done by or contracted out to vendors, employees, service providers or any parties located outside NY State is not qualified, and costs related to such work is not eligible for the tax credit.
Are there any project caps or other restrictions?
No, there are no per project caps, and there is rollover in the annual $7 million allocation going forward until 2014.
Who can apply?
"Qualified film production company" means a corporation, partnership, limited partnership, or other entity or individual which or who is principally engaged in the production of a qualified film and controls the qualified film during production.
What are the program threshold requirements?
In order to be eligible for the credit, the qualified post production costs (as defined on Post Form B) incurred at a qualified post production facility in NY State must meet or exceed 75% of the total post production costs paid or incurred in the post production of the qualified film at any post production facility anywhere.
When can I apply?
An application can be filed NO SOONER than 60 days before the start of principal photography on the qualified film, but NO LATER than the last day of principal photography (or, in the case of a television series, no later than the last day of principal photography on the first episode of the series).
What is the New York State VFX/Animation credit?
The VFX/Animation credit is a fully refundable credit of 30 percent of qualified VFX costs incurred in New York State (NYS).
An additional 5 percent credit is available for VFX/Animation costs incurred in Upstate NY, outside the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York City, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties.
How do I qualify for the VFX/Animation credit?
Spend 20% or $3 million (whichever is less) of your VFX/Animation budget in New York State.
Can I apply for the VFX/Animation credit and not the Post Production only credit or the Production credit?
Yes! The VFX/Animation credit is a stand-alone credit.
Can I apply for the Post Production only credit and the VFX/Animation credit in New York, and not the Production credit?
Yes!
Can I apply for the Production credit and the VFX/Animation credit?
No. You don't need to! When your production becomes eligible for the Production tax credit, any qualified post production or VFX work completed in NYS is automatically eligible for the Production tax credit.
If I am applying for the Post Production only credit,is VFX spend in NYS eligible for the Post only incentive?
No. The VFX/Animation incentive requires a 20% or $3million spend threshold to be eligible for the credit. It is a stand alone credit and cannot be folded in to the Post Only credit. Any part of VFX/Animation done in NYS is eligible for the Production credit. Not the Post Only.
Is there a deadline to apply to the VFX/Animation credit?
No. But only costs incurred after your initial application is received by the Film Office will be eligible for the credit.
How does the 10% Labor Credit work?
For the period 2015-2019, productions with budgets over $500,000 can receive an additional 10 percent credit on qualified VFX/Animation labor expenses incurred in the following counties:
Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, Wyoming, or Yates.
There is a maximum of $5 million per year that can be allocated for the additional 10 percent credit on qualified labor expenses.
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We highly recommend you file a Visual Effects Incentive Application, whether or not you are planning to do visual effects in NY or visual effects at all. In our experience, the plan for Visual Effects is always changing and new decisions are made at the very last minute. It doesn't cost anything to file for the Visual Effects Incentive and it shouldn't take more than 30 minutes of your time to complete.
For more information visit http://nylovesfilm.com/tax-incentives.php