Production Initiatives Association (PIA) advocates for businesses and stakeholders reliant on a strong, healthy, and sustainable film industry in the state of New York. Our goal is to maintain New York’s position in the industry as one of the top destinations for production by supporting and maintaining a competitive tax incentive program. 

We strongly believe tactics to strengthen this industry extend beyond top-down efforts, so we’re equally dedicated to initiatives that support the communities we live and work in with a keen focus on improving economic factors and minimizing detriments to the environment.

 

AN INDUSTRY AND ECONOMY IN FLUX

The film and television production industry of New York, one of the largest job creators in the state, is facing a major threat to its sustainability as unprecedented increases in competition continue to emerge. Once rivaled only by the state of California, the industry has since caught the attention of many states interested in its economic benefits. Some of the most competitive states include Georgia, New Mexico and New Jersey, the latter of which is simultaneously positioning itself to siphon work directly from New York with their higher rebate percentage (30-37%).

This industry directly hires tens of thousands of New York residents and spends billions of dollars with New York vendors and small businesses every year. The economic health of this state is significantly impacted by the continued vitality of the film and television production industry. As New York continues its road to economic recovery following the setbacks caused by the COVID-19 pandemic, it is well within the state’s best interest to continue promoting the growth of this industry.

PIA thanks Governor Hochul and the NYS Legislature for continuing to support our industry through maintenance of the Film Tax Credit Program for both production and post-production. 

 

We support implementation of the following changes proposed by Governor Hochul in New York State’s Fiscal Year 2024 Executive Budget:

 

EXTEND THE SUNSET CLAUSE

Extending the current tax credit to 2034 will provide much of the stability producers look for when deciding where to film both their current and future projects. However, it is important to note that states like Georgia & New Mexico, two of our most prominent rivals, still have film & television production tax credit programs with no sunset clause in place. Therefore, PIA continues to support its long-term goal of leveling the playing field and eliminating our program’s sunset clause entirely.

 

RAISE THE ANNUAL CAP

Raising the tax credit program’s annual cap from its current $420 million to $700 million is crucial due to the short-term impact it can have on our market share of the industry. With an additional $280 million allocated to the tax credit program, New York can realistically welcome a significantly higher number of productions to film in the state each year. This kind of flexibility is what we need to limit how much competition can take away from New York in terms of production totals, especially those in close proximity to us like New Jersey. The expected increase in the number of productions will also boost the industry’s economic impact on the state as a whole, with significant increases in direct and indirect spending each year.

 

INCREASE THE TAX CREDIT PERCENTAGE

While an extension of the program’s sunset helps studios choose New York for long-term/future projects and an increased annual cap allows for a greater number of projects to film here each year, an increase in the tax credit percentage offer from 25% to 30% should be the most influential change for a studio in the process of deciding on a film location. At our current offer of 25%, approximately 80-85% of the other 33 states with competitive film tax credit incentives are prepared to match it. If New York State passes the 2024 Executive Budget as it’s currently proposed, an increase to a 30% baseline tax credit incentive could only be matched by around 48% of our competitors. It's worth noting that New York previously offered a 30% tax credit incentive up until 2019, when Governor Cuomo decreased the incentive back to 25% in 2020.

 

STRENGTHEN THE FILM TAX CREDIT UPSTATE
 
Strengthen the 10% additional credit upstate to continue the growth of the industry seen north of the NYC zone, including in Buffalo, Albany, Schenectady, Syracuse, Rochester, and the Mid-Hudson Valley. We want to keep jobs and productions in New York and support the emerging market upstate which captures a different piece of the market than NYC. While the additional 10% credit on below-the-line labor upstate has generated jobs and regional economic growth, unlike the base credit, it applies only to labor, not to goods and services, and has an aggregate cap of $5 million per year within the overall film tax credit program. To stay competitive with other jurisdictions, particularly New Jersey outside the union zone, the additional 10% credit upstate must be adjusted to be a true extension of the base credit by adding goods and services and eliminating the $5 million cap.

 

Prepared and supported by,

Production Initiatives Association (PIA)

info@goforpia.com​

www.goforpia.com

Production Initiatives Association (PIA) is a qualified 501(c)(6) not-for-profit organization.