February 7, 2014

Tax incentives creating opportunity in NY

NEW YORK — New York Governor Andrew M. Cuomo has released data that shows post production business is booming in the state as the industry continues to experience significant growth. The data, compiled by the Post New York Alliance, shows a major increase in new permanent post jobs since July 2012, resulting in the creation of more than 240 new jobs, with more than 70 jobs created in the last six months alone. This new post business is expected to lead to nearly $100 million in new spending in the state. Since July 2012, post companies have reported spending nearly $25 million to expand or lease additional space to accommodate the increased business demand.

“The State’s film and television post production industry is taking off — bringing more businesses, investments and new jobs to New York than ever before,” notes the Governor. “Over the last 18 months, we have achieved record-breaking post production investment and employment gains including tens of millions in investment and more than 240 new jobs for New Yorkers. As we continue to create new economic opportunities for communities across the state and promote New York as the top destination for businesses to locate and grow, these figures make it clear that the Empire State has become the place to be for the film and television industry.” 

The legislation to strengthen the post production tax credit program, which Governor Cuomo championed and signed into law in July 2012, was designed to help New York State compete for post production business and jobs, a fast-growing segment of the motion picture and television industry. The law boosted the available post production tax credit from 10 percent to 30 percent (for post production work in the New York metropolitan commuter region), and from 10 percent to 35 percent (for post production work done Upstate.) 

Since taking effect, nearly 100 productions have applied for post production work in New York, almost six times the number of applications received during a two-year period under the previous tax credit. In addition, 10 post production companies have established new operations, including Empire Visual Effects in Buffalo, Edgeworx Studios in Kingston, and Crazy Horse Effects in New Paltz. Hollywood’s LightIron opened a new office in Manhattan and at least five New York-based post studios have undertaken major expansions.

Yana Collins Lehman, managing director of Trevanna Post and executive board member of the Post New York Alliance, says, “The New York post production industry has never been busier than it is at this moment. The tax incentive has driven film and television projects to the state at the exact rate we hoped it would. The incentive is also successfully emboldening companies to expand all over the state. The Post New York Alliance can't thank Governor Cuomo enough for letting the world know, New York is open for business.”