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MPA Applauds Gov. Hochul and New York Legislature for Extending and Enhancing State Film Tax Credit

May 9, 2025

NEW YORK – The Motion Picture Association (MPA) today hailed the extension and enhancement of the successful New York State Film Tax Credit Program, which was signed today by Gov. Kathy Hochul as part of the state’s 2025-2026 fiscal budget.

“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, Chairman and CEO of the MPA. “Film and TV production brings jobs, supports local businesses, and drives economic growth. Whenever a major production shoots on location, it adds $1.3 million to communities and local economies every day of filming. 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 tax credit program has been one of the most successful economic development programs generating an estimated $9 of economic activity across the state for each tax credit dollar allocated. The changes enacted today will extend the program through 2036, as well as:

  • Production Plus program. A production company and its affiliates that have submitted 2 or more initial applications with combined total qualified NY production costs of $100 million or more can apply to the Production Plus program.  All subsequent productions by the same company and its affiliates will be eligible for a 10% increase in their incentive amount (equal to a 40% incentive in NYC) until the end of 2028.  An episodic series will be eligible for the uplift until the show is canceled.
  • Above-the-Line Labor.  Previously, ATL costs were capped at $500,000 per person and limited to 40% of all other qualified BTL and vendor costs.  Under the new law, the $500,000 limit has been removed, but the overall cap of 40% of BTL and vendor costs remains in effect.
  • Post-only Credit. Prior requirements for the post-only credit required that 75% of the post budget (not including VFX/Animation) must be undertaken in NY to qualify.  Under the new program changes, a production can earn a post-only credit if 75% of post or $1 million of costs are spent in NYS.
  • VFX/Animation-only Credit. The eligibility requirements changed from 20% of the VFX/Animation budget or a spend of $3 million in NY to 10% of the budget or $500,000 spent in NY. 
  • Accelerated Recovery of Credit. For applications filed after January 1, 2025 , the production can claim its credit in the allocation year.  The requirement that credits more than $5MM must then be paid over three years, beginning with the allocation year, is removed.
  • Music Scoring. Music scoring costs earn an additional 10% incentive as long as five musicians are hired to perform work in New York State.
  • Independent Production Company Program. The program has a new queue for independent film production companies.  An independent film production company is defined as a company that is not 51% or more owned by a company publicly traded on a US stock exchange.
    • The $100MM of annual funding is fixed and set aside as follows: $20MM for projects with budgets less than $10MM, and $80MM for projects with budgets more than $10MM.   Once the $100MM is allocated, no additional projects can be accepted in the current year.  An independent production company cannot submit more than two (2) applications per year.

Beyond the MPA, a broad coalition of New Yorkers made their support for the package known:

Open Letters

Press Coverage and Op-Eds

 

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About The Motion Picture Association

The Motion Picture Association (MPA) serves as the leading voice and advocate of the motion picture, home video, and television industries. It works in every corner of the globe to advance the creative industry, protect its members’ content across all screens, defend the creative and artistic freedoms of storytellers, and support innovative distribution models that bring an expansion of viewing choices to audiences around the world. Its member studios are: Netflix, Paramount Pictures, Prime Video & Amazon MGM Studios, Sony Pictures, Universal Studios, The Walt Disney Studios, and Warner Bros. Discovery. Charles Rivkin is Chairman and CEO.