Post New York Alliance (PNYA) extends its endorsement to a new agreement between New York Governor Kathy Hochul and state lawmakers to dramatically expand the state’s Film Tax Program. Overall funding for the program will rise from $420 million a year to $700 million.
PNYA is especially pleased by the expansion of the program’s Post-Production Tax Credit (PPC) with funding for postproduction activity growing from $25 million to $45 million. Rebates for individual productions will rise to 30% from 25% for post work performed within the Metropolitan Commuter Transportation District (MCTD) and to 35% from 30% for post performed Upstate. Producers will now be able to claim rebates in the taxable year when their projects are completed. The PPC has been extended to 2034.
PNYA has been a strong proponent of the Film Tax Incentive program and has lobbied on behalf of the postproduction industry for inclusion in it. “PNYA is grateful to Governor Hochul and her administration for extending and expanding the tax credit program,” said Yana Collins Lehman, PNYA chair and CEO of Trevanna Post. “The growth of the postproduction industry is more certain than ever. We plan to continue our investments in outreach and training to ensure everyone has an opportunity to work in post.”
PNYA recently funded a study of the impact the PPC has had on the postproduction industry and New York State’s economy in general. Conducted by H&RA Advisors, the study showed that the program has produced $156 million dollars in tax revenue annually while delivering an eightfold return on fiscal investment. It has also contributed to a 25% increase in postproduction employment over the past seven years.
As successful as the PPC has been, its extension is crucial to the postproduction industry’s continued growth as it faces rising competition from other states offering similar incentives. The increases will allow postproduction companies to thrive and capitalize on their advantages in infrastructure, experienced crew and long-established relationships to studios and production companies.
