Sections
General
Questions
Qualified
Cost Questions
Questions
on Qualified Stages
Location
Day Threshold
General Questions
Are the New York State and City tax credits one program?
NO. Although similar, the State and City tax credits are two separate programs. They are administered separately by the New York State Office For Motion Picture and Television Development and the New York City Mayor’s Office of Film Theatre and Broadcasting. Separate, complete applications with original signatures must be submitted to both offices and all correspondence should be addressed to both offices.
What are the differences between the State and City programs?
The City and State
programs are similar however, there are important differences. For information
on these differences see the “How
The Tax Credit Works”
section of the website.
What are the important application deadlines?
Information on important application deadlines is available
in the “How
The Tax Credit Works”
section of the website.
How do I receive the tax credit?
You will claim
the tax credit when you file your tax return for the year in which the
production is completed. Additional information on receiving the credit is
available in the “How
The Tax Credit Works”
section of the website.
Who is the applicant?
The applicant is the entity that controls the production of the film during production. This is the individual, LLC, or corporation that holds the contracts, pays the payroll, and otherwise is responsible for the production of the film.
Is the credit transferable?
No. Both the New York State and New York City Film Production Tax Credits are refundable and are only available to the applicant. The Credit is not assignable or transferable.
When is a qualified film completed?
A qualified film is completed when post-production has been finished and a cut negative, video master or other final locked form of the qualified film is ready for the striking of prints or electronic copies, and/or ready for broadcast or delivery to a distributor.
All activities and expenses related to marketing and distribution are considered to occur after the production of a qualified film is completed and are not qualified. These include the making of release prints, video dupes or other forms of copies, promotional images, and poster art.
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Qualified Cost Questions
Where the work is incurred
The tax credit is based on where the work is incurred. Costs for goods and services that are used in New York State are eligible for the State credit. Costs for goods and services used within New York City are also eligible for the City credit.
Additional information on where the work is incurred is
available in the “How
The Tax Credit Works”
section of the website.
Can Purchase Orders be included in Qualified Costs?
No. Only actual paid costs can be considered qualified costs. Costs which are estimates, purchase orders, accruals, etc. are NOT considered qualified costs
Are rights fees qualified?
No. Rights, license or clearance fees for use of clips or photographs are NOT eligible. No other rights fees are qualified, including for writing, artwork, music, Dolby fees, etc.
Which shipping costs are qualified?
Shipping costs for film and business documents, including scripts, are qualified costs. Other shipping costs, such as for baggage, wardrobe and equipment are NOT qualified costs.
Is insurance an eligible expense?
The cost of insurance is not an eligible expense.
Are medical exams an eligible expense?
Medical exams performed in New York are eligible.
Is travel & living a qualified cost?
Travel & living is NOT a qualified cost. There are exceptions. In the case of in-State travel, when cast and crew travel to a distant location for filming within the State of New York, travel & living is qualified for the State incentive only. This “distant location” travel and living is not qualified for the City incentive.
Ground transportation, including tolls, courtesy cars, pick ups, shuttles and car service within New York, is qualified when it is used to get to/from the set.
Is transportation to/from NYC airports a qualified cost?
Transportation and tolls to/from LaGuardia Airport and JFK is qualified. However, transportation to/from Newark airport in New Jersey is NOT a qualified cost.
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Questions on Qualified Stages
How does a stage become a qualified facility?
To be qualified, a stage needs to be in a facility that is regularly used for production and that has at least one soundstage with 7,000 sq. ft. of contiguous space.
Click
here
for a list of qualified facilities in New York City
Click
here
for a list of all qualified facilities in New York State
Do I have to use a 7,000 square foot stage?
You may use any stage at a qualified facility and still be eligible for the tax credit.
What is the minimum amount of stage work needed to qualify?
At a minimum, the film must do one eight hour day on a qualified stage in order to qualify. The stage day must use sets that are built for use for that day. A three-wall set will meet the build requirement. Scenes [with dialogue] must be identified. The work on the stage must include the director, the first unit, principal talent.
If you are planning a minimum amount of stage work, contact the City or State to determine if the production qualifies. Additional information may be requested.
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Location Day Threshold
Do all location days count towards the threshold calculation?
No. Only principal photography or first unit days count towards the location day threshold calculation.
What counts as principal photography?
Principal
photography means the filming of major and significant portions of a qualified
film that involves the lead actors/actresses. In addition to the presence of the
lead actors/actresses, the test for determining if a camera roll day is a ‘major
and significant portion’ of the film could include
- the presence of the director
- the presence of other members of the “first unit’
production team (e.g., cinematographer, First AD, etc.)
- if lines of dialogue are spoken
If any two of these conditions is met, it is likely that such camera roll days will be considered principal photography days for the purposes of calculating the location days threshold.
“Additional Photography,” “Preshoot” or “Reshoot” camera roll days which occur outside the main schedule of ongoing principal photography are considered principal photography if the conditions above are met and therefore would be included in calculating the location days threshold.
“2nd Unit Photography” generally
does not include the leads or spoken dialogue, and is filmed by a smaller crew
overseen by someone other than the film’s main director. 2nd Unit segments would
typically include inserts, crowd scenes, aerial shots, certain effects shots,
etc. 2nd Unit Days are not included in any threshold calculations.
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