After a monthlong delay, New York Gov. Kathy Hochul has approved a state budget that expands the film subsidy to $800 million.
The state is facing a downturn in production work, and competition from across the Hudson River, where New Jersey Gov. Phil Murphy has overseen a significant expansion in the state’s incentive.
On Friday, Hochul signed a bill that creates a new $100 million pool of money for independent films. The bill also loosens the requirements on other provisions, including lifting the $500,000 cap on “above the line” costs that are eligible for a rebate.
The Motion Picture Association, which lobbies on behalf of seven studios and streamers, applauded the move.
“Congratulations and thank you to Governor Hochul and state lawmakers for this momentous expansion of what is a proven economic driver for New York,” said Charles Rivkin, the organization’s chairman and CEO. “The enhanced and extended film incentive program will further cement New York as a leader in the entertainment and creative sectors. As the outpouring of support from across the state has made clear, New York crews, creatives, and small businesses are applauding leaders in Albany today.”
The move comes as Sen. Adam Schiff and other lawmakers are seeking to implement a national film incentive, which would compete with incentives in Canada, the U.K., and elsewhere.
In California, Gov. Gavin Newsom is working with legislators to increase the state’s subsidy from $330 million a year to $750 million. New York’s program was expanded from $420 million to $700 million in 2023. British Columbia also moved to expand its provincial tax incentive, in the face of a severe downturn in film employment in recent years.
New York’s program offers a 30% credit to productions, equal to the incentive offered in Georgia. Under the new provisions, productions that invest at least $100 million in eligible costs across at least two projects will be eligible for an additional 10% through 2028.
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