Just a little more than a year ago, the commercialmaking community in New York was understandably disappointed over the passage of landmark tax credit legislation designed to encourage filming in the Empire State. Theatrical features and TV programs, including telefilms and series, were deemed qualifying projects for the incentive. But conspicuous by their absence were commercials, a perennial New York business mainstay.
The exclusion of spots was all the more ironic in that New York, home to Madison Avenue, is synonymous with the advertising industry. The Association of Independent Commercial Producers (AICP) immediately took a proactive stance to remedy the situation. During its December 2004 meeting in Los Angeles, the AICP national board offered full support for an effort to help bring about a New York tax incentive bill specifically designed for commercials. For one, the board approved the hiring of a major national lobbying firm, Wilson, Elser, Moscowitz, Edelman & Dicker, which helped open some doors in Albany, enabling the AICP to present its case to legislators regarding the importance of commercialmaking to the New York economy.
Bipartisan support was drummed up in both the New York Assembly and Senate, to the point where there was a real chance to have a spot-only bill pushed through earlier this year. While that didn’t come to pass, the foundation had been laid for another bid, which now looks encouraging (see page one story).
For example, during the first go-around this past spring, Assemblyman Joseph Morelle (D-Rochester) enlisted more than 20 other State Assembly co-sponsors of the measure. Now the anti-runaway legislation has as its two major sponsors Assemblyman Morelle and Sen. Martin Golden (R-Brooklyn), with legislators in both houses on board.
The next key hurdle for the bill’s backers is to bring Gov. George Pataki’s camp into the equation so that the legislation’s cost is incorporated into the upcoming proposed state budget currently being worked on by the governor’s office.
The AICP can make a strong case for the passage of a tax credit for commercials. The passage of the tax credit for features and television has served as a catalyst helping to significantly increase movie and TV program production in New York, boosting the state economy.
Meanwhile spot production has decreased in New York. According to the independently conducted third annual survey of AICP member companies, Los Angeles’ share of spot shoot days in the U.S. rose from 46 percent in 2003 to 53 percent in ’04. However, New York showed a decrease from 21 to 18 percent during that same time frame (SHOOT, 10/21, p. 40). AICP president/CEO Matt Miller said that this decline underscores the need for New York to implement incentives.
Supporters of the tax credit for commercials hope to bring the bill up for a vote during the New York legislature’s next session, which begins in January. While a lot can happen in the give-and-take political wrangling that goes into arriving at a state budget, tax credit proponents seem guardedly optimistic over the prospects of their measure gaining passage. Just getting to this point says much for the power of perseverance and the commercial community’s resolve.
