How the New Post Production Tax Credit Works

Legislation enacted in August 2010 has created a new NY State Post Production tax credit program. Up to $7 million per year for calendar years 2010-2014 inclusive will be available to the program. This program is entirely separate from the New York State Film Production tax credit program, and applicants to that program may NOT apply to both programs for the same project.
For information on the New York State Film Production credit.

How much is the credit?

The NY State Post Production credit is a fully refundable 30% tax credit (35% upstate) on qualified post production costs paid in the production of a qualified film at a qualified post production facility in New York State.

What is a "qualified film"?

The incentive applies to post production costs incurred in the creation of certain kinds of film and television projects in New York State. Eligible productions include:

Certain categories of productions are excluded from the program, including but not limited to documentaries, news or current affairs programs, interview or talk shows, instructional videos, sport shows or events, daytime soap operas, reality programs, commercials, music videos.

What is a qualified post production facility?

"Post production facility" means a building and/or complex of buildings and their improvements in which films are intended to be post produced.

"Qualified Post Production Facility" means a post production facility located in the state, engaged in finishing a qualified film.

What kind of costs qualify?

"Post Production Costs" means production of original content for a qualified film employing traditional, emerging and new workflow techniques used in post-production for picture, sound and music editorial, rerecording and mixing, visual effects, graphic design, original scoring, animation, and musical composition; but shall not include the editing of previously produced content for a qualified film.

Post Production Costs qualify for the credit ONLY to the extent they are incurred for post production work actually done in New York State; work done by or contracted out to vendors, employees, service providers or any parties located outside NY State is not qualified, and costs related to such work is not eligible for the tax credit.

Are there any project caps or other restrictions?

No, there are no per project caps, and there is rollover in the annual $7 million allocation going forward until 2014.

Who can apply?

"Qualified film production company" means a corporation, partnership, limited partnership, or other entity or individual which or who is principally engaged in the production of a qualified film and controls the qualified film during production.

What are the program threshold requirements?

In order to be eligible for the credit, the qualified post production costs (as defined on Post Form B) incurred at a qualified post production facility in NY State must meet or exceed 75% of the total post production costs paid or incurred in the post production of the qualified film at any post production facility anywhere.

When can I apply?

An application can be filed NO SOONER than 60 days before the start of principal photography on the qualified film, but NO LATER than the last day of principal photography (or, in the case of a television series, no later than the last day of principal photography on the first episode of the series).