There’s a lot to like in the New York State and New York City filming incentive packages. There’s also a lot not to like based on what’s not in these anti-runaway production initiatives.
Signed into law by Gov. George E. Pataki (R-N.Y.), the state program calls for New York to contribute $100 million over the next four years ($25 million annually) in order to provide a 10 percent tax credit on below-the-line production costs for certain qualifying projects shot in New York State.
To be eligible for the state incentive, the production company has to book 75 percent of the project’s stage work in the State of New York. This means that projects cannot get tax credits simply by lensing New York exteriors and then heading elsewhere.
Feature films, television movies, TV pilots and TV series episodes are eligible for the tax break, which has already taken effect. Two TV shows–Fox’s Jonny Zero and NBC’s Law & Order: Trial By Jury–were among the first to tap into the incentive.
New York City has followed with its own credit to work in tandem with the state initiative. The city production tax incentive, which is tied to the state legislation, offers a five percent refundable tax credit to those filming in New York City. The program is funded by an annual $12.5 million allocation.
Clearly the anti-runaway credits represent a progressive step for New York, demonstrating the state’s and the city’s commitment to attract and retain more production, which is key to the health of the economy. Increasing the amount of filming activity also helps to ensure the health of the state’s production infrastructure spanning its talent pool, facilities, resources and services.
So what’s not to like? As alluded to earlier, the rub lies in what the incentives don’t cover: namely commercialmaking, an industry synonymous with New York and Madison Avenue, deemed by many as the bread and butter of the Big Apple’s filming economy.
The exclusion of commercial production from landmark pro-filming legislation comes as other states such as Illinois, Louisiana and Mississippi have made concerted efforts to court the advertising business, passing aggressive tax break legislation to spur on commercial production within their borders. There’s also talk that California is considering a proposal to do the same as part of a new broad-based, anti-runaway push (SHOOT ‘s “Street Talk,” 1/28, p. 22).
To be sure, the strengthened infrastructure that New York’s anti-runaway program will likely bring about bodes well in terms of a ripple effect for the state’s spot biz. But the advertising industry deserves better than a ripple of relief.
Indeed commercialmaking continues as a major contributor to New York’s fiscal wellbeing. Furthermore the spot community has come up to the plate repeatedly to support the state and city on assorted fronts. One effort that readily comes to mind is the marshalling of ad industry and spotmaking resources in support of the drive to bring the 2012 Summer Olympics to New York City. The Association of Independent Commercial Producers (AICP), along with other industry factions, have played pivotal roles in the pro-bono creation of films and spots designed to help New York land the Summer Games.
In our Border Watch series last week, AICP president and CEO Matt Miller related that there were several factors behind why spots were not included in the original anti-runaway legislation (SHOOT, 1/28, p. 20). He noted, however, that legislators are very much aware of spotmakers’ concerns and the hope is that the situation will be rectified.
Indeed no anti-runaway initiative is complete without commercials–and without accounting for an advertising industry that is starting to meaningfully diversify into other emerging forms of content.