New York to renew popular film tax credit
Mayor Michael Bloomberg to extend city's programNEW YORK -- New York City is introducing legislation in Albany to extend but modify its wildly popular production tax credit program, including new credit caps.
The program, started in 2005, is close to running out of funds and also needs retooling to make it viable longer-term, according to city sources.
The Bloomberg administration is proposing in new legislation a 4% NYC credit, down from 5%.
The legislation, to be introduced in Albany this week, would extend the city's program through 2011 with a $24 million budget per year and introduce a $250,000 cap for each film or episode of a TV series.
The plan also includes a new limit to how long TV shows can get tax credits. After receiving the full 4% benefit for three years, shows would get 3% in year four and 2% in year five.
Film and TV productions will continue to be eligible for the credit if they do 75% of their work in the city and shoot for at least one day at a top production facility in it.
"New York City's 'Made in NY' tax credit for qualified film and television production -- the only one of its kind administered by a city in the U.S. -- has been enormously successful since its inception in 2005," said Commissioner Katherine Oliver of the Mayor's Office of Film, Theatre and Broadcasting.
"Bearing in mind the current economic realities facing the city, it is imperative that the program be revised in order to maximize its effectiveness. The new legislation extends the credit with modifications, which allows for the program's continued success and further diversifies the city's economy," she said.