New York’s $700 Million Film Tax Credit: Why Hollywood Keeps Rolling Cameras in the Empire State

New York State has built one of the strongest film and television incentive programs in the world by pairing a large financial commitment with clear local and domestic content requirements. The New York State Film Production Tax Credit Program is funded at $700 million dollars per year through 2036 and has positioned the state as a top destination for major studio and independent productions while ensuring that public investment translates into real economic impact for New York workers and businesses.

The program offers a 30 percent tax credit on qualified production expenses that must be incurred in New York State. This requirement is the core local content driver. Eligible costs include crew wages paid for work performed in state payments to New York based vendors set construction equipment rentals post production visual effects and capped above the line salaries. To maximize the credit productions are effectively required to hire local labor use New York facilities and source goods and services from in state suppliers.

New York also uses the program to spread economic activity beyond New York City. Productions with budgets over $500 thousand dollars can earn an additional 10 percent labor credit when filming in more than 50 designated counties across the state. If a production completes more than half of its principal photography days in those counties the additional credit can apply to all qualified local costs. This structure encourages productions to engage local crews and vendors in upstate and regional communities.

Facility usage requirements further reinforce domestic content goals. Most productions must complete at least one day or a minimum share of filming at a qualified production facility located in New York State. If a production uses non qualified or out of state facilities at least 75 percent of facility related production spending must still occur at qualified New York facilities ensuring that capital investment and jobs remain in state.

For companies that produce multiple projects in New York the Production Plus program offers an additional 5 to 10 percent credit on future productions once spending thresholds are met. Television series that relocate to New York may also claim up to 6 million dollars in qualified relocation costs as long as those costs support New York based jobs facilities and vendors.

Since 2023 productions are required to submit a diversity plan outlining how they will recruit and hire a workforce that reflects the diversity of New York’s population. Productions must also track workforce and vendor data reinforcing inclusive participation by local workers and small businesses.

The program is administered by Empire State Development with an application process that requires approval before filming begins and a final review after production is complete. Optional third party CPA reviews can speed final approval.

Taken together the New York State Film Production Tax Credit functions as more than an incentive. It operates as a local and domestic content policy tool that ties film production to job creation small business participation workforce development and long term economic growth across the state.