New York City has served as the setting for some of Hollywood’s most iconic films and television series throughout the ages. Whether it be Robert De Niro taking a job as a cabbie in Taxi Driver or Sarah Jessica Parker strutting down Madison Avenue in Sex and the City or Bill Murray and Dan Aykroyd unleashing their proton packs in Ghostbusters, New York’s famous locations and towering skylines are familiar to audiences around the world.
But as the industry has shifted and studio and indie productions have increasingly looked to set up farther afield to benefit from more attractive tax credits in other states and nations, production in the Big Apple has been waning. At the beginning of the year, a report from the state’s development office indicated that applications to its state tax credit were down 53% compared to five years ago – even after the state doubled its annual cap in 2023 from $420 million to $700 million.
So, when New York Governor Kathy Hochul approved a state budget in May that increased the state’s film and TV subsidy to $800 million and offered expanded incentives for indie productions, it was a welcome move. It felt even more significant considering that, just a few days prior, New York native Donald Trump sent shockwaves across the global film and TV businesses by proposing 100% tariffs on content produced outside of the U.S.
While any levies of the sort are yet to take shape in the sector, New York and its capital have been ramping up efforts to reposition the area as a prime location for film and television projects to set up camp and Hochul’s expanded incentives hope to lure productions in again. (California is also hoping to attract more homegrown productions, having recently launched its $750 million tax incentive program).
New York currently offers a base 30% incentive with regional step ups and the fresh pot of $100 million is geared specifically towards independent productions. In that fund, there are separate pools for films with budgets under $10 million. Of the $100 million, $20 million will be allocated for projects with budgets less than $10 million and $80 million will be allocated for budgets of more than $10 million.
“We’ve worked very hard to make sure that the tax credit improvements were passed and installed, and it is now stronger and better than ever,” says Pat Swinney Kaufman, Commissioner of New York City’s Mayor’s Office of Media and Entertainment. “We’ve uncapped the above-the-line so that production can get a higher net and the fund for independent productions has been set up so that indie productions can thrive and get a faster payout. That way, you don’t have to wait in a long line, and you can get your money faster. These are the areas that the state had the wisdom to create and pass, and the legislation is really helping attract more production and that is very important.”
The new package also has a provision of subsidies for return producers: Production companies that apply to shoot at least two projects in the state through 2028 are eligible for a 10% increase in their next project through 2028. TV shows, meanwhile, can benefit from the boost until the show is canceled. This means that qualifying productions are eligible for a total incentive of up to 40%, making the state hugely competitive to not only other states but also major international destinations such as the UK, Hungary and neighboring Canada. In order for a project to qualify as a New York production, 75% of the film or series has to shoot in New York.
Further revisions include the removal of a $500,000 cap on above-the-line costs, such as actors’ pay and lower eligibility requirements for VFS and animation subsidies. At the time, Motion Picture Association chief exec Charles Rivkin said the new changes were a “momentous expansion of what is a proven economic driver for New York.”
He continued: “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.”
For Kaufman, she believes New York is “the creative capital of the world” and points to a slew of recent productions that have shot in New York City such as Colin Farrell limited series The Penguin and Netflix’s Black Rabbit. “There is a wealth of people who are working in the film and television industries here – we have so many creatives in the city, and they want to work here so we do our best to assist them so that they can.”
Further productions that recently shot in the city include: Darren Arronofsky’s Caught Stealing with Austin Butler and Zoë Kravitz, Spike Lee’s Highest 2 Lowest, Scarlett Johansson’s directorial debut Eleanor the Great and Apple TV+ drama The Savant with Jessica Chastain, the latter of which was postponed following the shooting of Charlie Kirk.
And of course, New York has long been the home for shows such as Saturday Night Live, Last Week Tonight with John Oliver, Late Night with Seth Meyers, Law and Order: Special Victims Unit and iconic children’s show Sesame Street.
“It’s a very important element within the economy of New York,” says Kaufman, who adds that her office recently brought back its Made in NY Awards ceremony after a 10-year hiatus. “When you look at the number of jobs that the industry generates and creates, it’s truly impressive. It’s hundreds of thousands of jobs and so much money is spent by this industry that is very vital to the economy. We get tremendous respect within the city because it’s really understood that this is an important industry and has an important economic place for the city.”
Kaufman continues: “I can’t change what is going on in the world, but I know that New York and this industry is vital. We are working hard to create the ability for all the productions from anywhere that want to come to New York. We are here and ready to support them for any project that they may want to bring.”