Governor Andrew M. Cuomo last week released data showing postproduction business is booming in New York State as the industry continues to experience significant growth a year and a half after the strengthened and expanded post tax credit program was signed into law by the Governor. The data, compiled by the Post New York Alliance, shows a major increase in new permanent post production jobs since July 2012, resulting in the creation of more than 240 new jobs–with more than 70 jobs created in the last six months alone. This new post business is expected to lead to nearly $100 million in new spending in the state. Since July 2012, postproduction companies have reported spending nearly $25 million to expand or lease additional space to accommodate the increased business demand.
The legislation to strengthen the post production tax credit program, which Governor Cuomo championed and signed into law, was designed to help New York State compete for postproduction business and jobs, a fast-growing segment of the motion picture and television industry. The law boosted the available postproduction tax credit from 10 percent to 30 percent (for post production work in the New York metropolitan commuter region), and from 10 percent to 35 percent (for postproduction work done Upstate.)
Since the incentive program took effect, nearly 100 productions have applied for postproduction work in New York–almost six times the number of applications received during a two-year period under the previous tax credit. Furthermore, 10 postproduction companies have established new operations, including three Upstate–Empire Visual Effects in Buffalo, Edgeworx Studios in Kingston, and Crazy Horse Effects in New Paltz. And at least five New York-based postproduction companies have undertaken major expansions, including one company that built and will operate an onsite postproduction facility at Broadway Stages in Brooklyn and had also overhauled a screening room at Steiner Studios in Brooklyn, creating the largest Digital Intermediate color correction theater on the East Coast.
Yana Collins Lehman, managing director of Trevanna Post and executive board member of the Post New York Alliance, said, “The New York post production industry has never been busier than it is at this moment. The tax incentive has driven film and television projects to the state at the exact rate we hoped it would. The incentive is also successfully emboldening companies to expand all over the state. The Post New York Alliance can’t thank Governor Cuomo enough for letting the world know, New York is open for business.”
Paul Moore, Eastern executive director of The Motion Picture Editors Guild, said, “Thanks to Governor Cuomo’s support of the postproduction tax incentive program, members of the Motion Picture Editors Guild Local 700, International Alliance of Theatrical Stage Employees (IATSE) have experienced a 30 percent increase in hours worked with more than 94,000 additional hours in 2013 than 2012.”
Benjamin Porcari, industry director, The ICEA at Daemen College, said, “Empire Visual Effects is off to an amazing start and has brought a new level of digital production to the Upstate New York region. The growth of New York-based opportunities due to the postproduction tax credits has led to a rapid growth of staff as we continue to provide advanced paint, roto and compositing services. Recent projects for New York visual effects and post companies include supporting work for both a major feature film and the Pepsi Grammy’s Half-time show.”
Productions consistently cite the enhanced credit as key to their decision to bring their postproduction work to New York instead of another state.
Todd London, sr VP, VFX & post production, The Walt Disney Studios, said, “We are very pleased that the New York State Post Production Credit Program has made it possible for us to bring our postproduction work on Into the Woods back to New York.”
