When Governor Kathy Hochul signed New York’s $237 billion budget last week, one headline grabbed every line-producer’s attention: the state’s Film and TV Tax Credit cap will jump from $425 million to a record-setting $800 million.
The expansion—plus several rule tweaks—could put New York back in the ring with Georgia, California, and Canada in the ongoing incentive arms race.
Film and TV Tax Credit
Below is a producer-friendly guide to the overhaul, how it stacks up against rival programs, and what it means for crew jobs, indie auteurs, and the next wave of prestige TV.
Film and TV Tax Credit
1. The Headline Numbers
- Annual cap rises to $800 million (up 88 %).
- 10 % loyalty bonus: studios that shoot two titles worth $100 M+ in NY by 2028 receive an extra 10 % credit on the next project—taking the potential rebate to 40 % of qualified spend.
- Independent set-aside: $100 M carved out for indies, split into $80 M for features over $10 M and $20 M for smaller budgets.
- Program extended through 2036, locking a decade of certainty for financiers.
By explicitly boosting the Film and TV Tax Credit pool, lawmakers hope to reverse last year’s 26 % dip in New York production spend reported by analytics firm ProdPro.
2. Above-the-Line Freedom
One persistent gripe from studios was New York’s $500k cap on above-the-line salaries.
The new law scraps that ceiling, although payouts on ATL still cannot exceed 40 % of total below-the-line costs. For shows with A-list casts—think The Marvelous Mrs. Maisel or Only Murders in the Building—that flexibility removes a big budgeting headache.
3. Faster Cash, Fewer Red-Lines
Time is money when you’re closing a completion bond. Under the old structure, producers sometimes waited 24+ months for their rebate.
The revision lets companies claim credits within the allocation year, smoothing cash flow and easing lender anxiety. Visual-effects houses also cheer a lower spend threshold for standalone VFX/animation projects, giving boutique vendors a shot at work previously reserved for the coastal titans.
4. How NY Now Compares to Rival Jurisdictions
| Jurisdiction | Base Credit | Annual Cap | Bonus Tiers | Sunset Year |
|---|---|---|---|---|
| New York | 30 % | $800 M | +10 % loyalty, 5 % post-upstate | 2036 |
| California (proposed) | 20-25 % | $750 M | +10-15 % uplift, 35 % studio build credit | 2030 |
| Georgia | 20 % | No cap | +10 % logo uplift | None |
| Ontario, CA | 21.5 % | No cap | 10-18 % regional, VFX stackable | None |
New York’s expanded Film and TV Tax Credit doesn’t eliminate Georgia’s logo bonus or California’s stage-build benefit, but the loyalty bump essentially gives returning series a Georgia-level 40 % rebate—without requiring a peach logo in the end credits.
5. The Indie Opportunity
Sundance darling Past Lives and Oscar-winning Nomadland both leveraged state incentives elsewhere.
New York’s dedicated $100 M indie bucket (up from zero) aims to keep the next breakout film shooting in Troy or Poughkeepsie instead of Prague. Producers with budgets under $10 M can now access a pool that won’t be swallowed by Marvel reshoots. Expect festivals to showcase more NY-shot indies as early as 2026.
6. Federal Wild Card: Voight’s Proposal
While state legislators traded numbers, “Hollywood ambassador” Jon Voight has floated a stackable federal Film and TV Tax Credit and targeted tariffs on foreign-made productions.
If Washington adopts even a partial credit, New York-shot projects could layer federal, state, and city incentives—potentially surpassing the net-effective 45-50 % range enjoyed in parts of Australia.
7. What Producers Should Do Now
- Update your budgeting templates: incorporate the 10 % loyalty path if you manage multi-show slates.
- Book stages early: soundstage availability at Kaufman Astoria, Steiner, and Wildflower (opening fall 2025) will tighten once big-budget franchises lock their bonuses.
- Engage an NY audit firm: faster credit delivery still requires meticulous paperwork—start cost-tracking from day one.
- Scout upstate: the 5 % location bonus for shoots 75+ miles from Columbus Circle is unchanged and often underused.
8. Bottom Line
With an $800 million purse, streamlined payouts, and a loyalty kicker, New York’s refreshed Film and TV Tax Credit is no longer playing defense; it’s aggressively courting studio tentpoles, prestige TV, and passion-project indies alike. The next twelve months will reveal whether Gotham can peel productions away from the Peach State and Toronto’s tax-friendly corridors—but for now, the Empire State has re-entered the incentive game in a big-budget way.
