The 10-point list below includes just a few of the reasons why the New York State Film Tax Credits are critical to keeping, and bringing new work and employment opportunities to the Mid-Hudson Valley, as well as the entire state.
The program was initiated in 2004 by Governor Pataki. The first film to take advantage of the credit was The Producers, which began production in September of 2004. The production was announced at a press conference with Governor Pataki, Mayor Michael Bloomberg, and filmmaker Mel Brooks.
Over the past 20+ years, the New York State Film Tax Credits have remained non-partisan due to the benefits that have come from encouraging Film and TV production in New York State. State and county officials need to support and improve these efforts.
1) The NYS Film Tax Credit program keeps NY industry members employed with good paying jobs, especially for below-the-line* employees. HVFC maintains that creating and maintaining these industry employment opportunities combats and reduces unemployment.
These jobs need to be kept in New York State instead of going to other states that offer stronger tax credits, quicker payouts, or countries with cheaper labor. Said countries (Canada, Hungary, South Africa, UK…) don’t usually allow American below-the-line workers on crew.
*Below-the-line refers to crew members who are responsible for the technical aspects of making a movie as opposed to the "above-the-line" employees, such as directors, producers and actors.
2) Georgia, which has a population of 11 million people, spends more than $1.2 billion annually on Film Tax Credits. Georgia continues to offer these tax credits to keep people employed and to create direct and indirect spending. Countless other states (Alabama, New Mexico, North Carolina, Oklahoma, and others) have initiated competitive Film Tax Credits, which are less restrictive and paid out faster than in New York, where some productions have had to wait up to 5 years. Those delays are a non-starter for Investors and Gap Funders who would actually prefer to invest in NY.
3) Connecticut, Massachusetts and New Jersey also understand the value of Film Tax Credits. As a result, New York State has lost many Film and TV projects, especially to NJ. This has resulted in a loss of economic opportunities, especially jobs.
There are countless examples including the movie JOY starring Jennifer Lawrence. The director wanted to film in the Hudson Valley but when the production realized that Massachusetts would underwrite above-the-line costs (including a third of celebrity salaries) with their film tax credit, the production was lost.
New York’s film tax credits are more conservative than most competing states. Above-the-line support is limited, and only Films and TV shows are eligible.
*Ads, documentaries, industrials, music videos, reality shows, and shorts are not eligible.
4) The Hudson Valley has benefited greatly from the additional 10% tax credit that was created in 2016 on qualified labor expenses for areas outside of the NYC Film Zone.
*The NYC Film Zone radius varies, but is essentially 30 miles from Columbus Circle in NYC. The parameters were established in the late sixties by industry labor unions to determine travel, per diem rates, turnaround and other work rules. Productions within the zone are considered "local," while those outside the zone are considered "on location.” The additional 10% is critical so that areas outside the zone can compete. The Hudson Valley Film Commission worked very closely to make that additional credit happen.
5) The Hudson Valley has benefited greatly from individuals and companies that have spent millions of dollars to create qualified production facilities like Umbra of Newburgh, Kingston Studios and Cobalt Stages. These private facilities (and others) were paid for by individuals and companies with zero state funds. The result has been year-round jobs and facilities that attract major film and television projects. Furthermore, the renovated facilities are generally properties that were no longer being used.
6) Film investors and gap funders will not invest in film and television projects in states that do not have tax credits. Due to competition from other states and countries, the reality is that investors and gap funders will not invest in Film and TV projects without tax credits. The Film & TV business is an international multi-billion dollar industry. As Governor Pataki understood two decades ago, it’s naive to think that New York can maintain Film & TV production without substantial incentives.
7) Over the years, hundreds of Film & TV industry members have moved to the Hudson Valley region, bringing a vitality that helps drive the economy. Most of these industry members work blue collar jobs. They are our neighbors, parents, volunteer firefighters, emergency medical technicians, PTA and community members. They pay school, property, income and sales taxes.
Indirect spending* is often ignored when discussing the benefits of film and TV production. The Hudson Valley has countless examples where indirect spending resulted from industry members living in the region. One example we love to use is Samuel's Sweet Shop in Rhinebeck. The store was on the verge of closing when it was bought by actors Paul Rudd and Jeffrey Dean Morgan who moved here after working on Peace, Love & Misunderstanding in 2011. The store has become a staple of economic development, drawing tourists and customers year round.
*Indirect spending refers to expenses that are not directly tied to the Film or TV production.
8) The publicity that results when a Film or TV project is produced in the Mid-Hudson Valley is invaluable and results in substantial economic development. This is true for massive projects like Companion, Sing Sing, Smile 2, Poker Face, Severance and international projects like Das Traumschiff (The Dream Ship), which is one of the most popular TV shows in Germany.
*As a side note, when foreign productions work in the region, they do not receive Film Tax Credits, but they do drive tourism.
9) Film and TV, with their ripple effect of production, distribution and indirect spending, offers a way for New York State and the private sector to invest responsibly in an industry that generates billions of dollars in annual economic activity. As production crews come to the Mid-Hudson Valley, they require broad support and involvement, including private (and public) locations, casting and crew referrals, accounting, legal services, transportation, catering, lodging and thousands of other employment opportunities.
10) The Hudson Valley Film Commission is a 501(c)(3) charitable organization that works to attract, support and promote regional film and television productions. As part of our mission, we continue to recommend thousands of regional locations, crew members, actors, background extras, vendors (hotels, qualified production facilities, post-production houses) and more.
Over the past 25+ years, HVFC has never received funding from New York State and has relied primarily on funding from specific counties, corporate sponsors like Markertek Video Supply, charitable foundations like the Wood Dock Foundation and Blavatnik Family Foundation, as well as private funding from individuals who understand the benefits of the New York State Film Tax Credit and how it helps the Hudson Valley.
Laurent Rejto
HUDSON VALLEY FILM COMMISSION
RECENT LOCAL PRODUCTIONS:
Marty Supreme (A24) • The Four Seasons (Netflix / Universal) • Calling All Chefs (Netflix) • Oh Hi • Wake Up Dead Man: A Knives Out Mystery (Netflix) • Mother Wolf • Your Lips Never Left Mine • The Accused (Choice Films) • The Bride (Warner Bros) • Materialists (A24 / Killer FIlms) • The Dreamboat (Polyphon) • There She Goes (Choice Films) • Smile 2 (Paramount Pictures) • Too Many Christmases (Choice Films) • The Outlaws (Amazon Prime) • Companion (Boulder Light) • Pretty Little Liars: Summer School (MAX) • Motherland • After This Death • Floaters • Dead Guy • Kitchen Nightmares • Good One • Bloody Axe Wound • Park Avenue • Life and Beth S2 (Hulu) • Between the Temples • Severance S2 (Apple TV+) • Billions S7 (Showtime) • Neil Gaiman Masterclass • A Killer Romance (Choice Films) • New Amsterdam (NBC) • Post Truth • The Sweet East • Blackout (Glass Eye Pix) • Manifest (Netflix) • Full Circle (HBO) • Sing Sing (A24) • Fallout (Amazon Prime) • Poker Face (Peacock) • Lost on a Mountain in Maine (Balboa) • Family • The Tuba Thieves • Theater Camp • Blue Light • A Holiday Spectacular (Hallmark / Choice Films) • Three Women (Showtime) • The Adults • Pinball (Choice Films) • The First Lady (Showtime) • One December Night (Hallmark) • Pretty Little Liars: Original Sin • The Endgame (NBC Universal) • Crumb Catcher • Stay Awake • Redemption in Cherry Springs (Hallmark) • Life & Beth (Hulu) • The Sex Lives of College Girls (HBO Max) • White House Plumbers (HBO) • Remote • The Gilded Age (HBO) • Severance (Apple TV+) • The Whale (A24) • Old Man • Master (Amazon Studios) • Adopting Audrey • The Hating Game (BCDF Pictures) • Invasion (Apple TV+) • The Green Veil • Linoleum • The Sixth Reel • The Secret Diaries of an Exchange Student (Netflix Brazil) • Werewolves Within (Ubisoft) • Things Heard and Seen (Netflix) • Billions (Showtime) • Monsterland (Hulu) • The Plot Against America (HBO) • The Undoing (HBO) • I Know This Much Is True (HBO)
For a full list of local films, visit www.hudsonvalleyfilmcommission.org/streamfest
