New York State Film Tax Credit
Qualified Production Rental Facility
Studio Two is a Level 2 Qualified Production Rental Facility.
All qualifying productions must work in Studio Two or in connection with Studio Two to qualify for the film tax credit.
Eligibility
The Program is limited to feature films, television series, relocated television series, television pilots, and films for television.
"Qualified film" shall not include (i) a documentary film, news or current affairs program, interview or talk program, "how-to" (i.e., instructional) film or program, film or program consisting primarily of stock footage, sporting event or sporting program, game show, award ceremony, film or program intended primarily for industrial, corporate or institutional end-users, fundraising film or program, daytime drama (i.e., daytime "soap opera"), commercials, music videos or "reality" program, or (ii) a production for which records are required under section 2257 of title 18, United States code, to be maintained with respect to any performer in such production (reporting of books, films, etc. with respect to sexually explicit conduct).
The production credit is available for companies that film a substantial portion of their project in NYS.
Film Production Credit
Qualified production costs are for tangible property or services used or performed within New York State directly and predominantly in the production of a qualified film. Qualified costs generally include most below-the-line items associated with production such as set construction, crew, camera equipment, grip equipment, props, etc. Post-production costs such as film editing, sound design and effects, and visual effects may be qualified costs for purposes of the film production credit.
Eligibility requirements vary based on the type of film production company and the budget.
If the film has a production budget over $15 million or is being produced by a company in which more than five percent of the beneficial ownership is owned directly or indirectly by a publicly traded entity:
At least 10% of the total principal photography shooting days must be at a qualified production facility (QPF) in New York State
A Level 2 Qualified Production Facility must have at least one 7,000 sq ft soundstage that meets these criteria:
be soundproof with a noise criteria (NC) rating of 30 or better;
have sufficient heating and air conditioning for shooting without the need for supplemental units,
incorporate a permanent grid and sufficient built-in electrical service for shooting without the need for generators, and
be column-free with a clear height of at least 16’ under the permanent grid.
Pilots are exempted from the 10 percent principal photography day requirement. Pilots must shoot a minimum of one day of principal photography day at a QPF, and at least 75 percent of the total of all expenses related to work (excluding post-production) done at all facilities utilized by the Pilot must be related to work done at the QPF.
Productions with budgets of $15 million or less produced by companies that are independently owned must shoot at least one day of principal photography at a QPF.
If a non-qualified production facility (in NYS or out of State) is used by the Production Company, at least 75 percent of the total of all expenses related to work (excluding post-production) done at all facilities anywhere must be related to work done at the QPF.
If a production has met the 75 percent test for qualified production facility expenditures, it may also qualify for credit based upon qualified expenditures outside the qualified facility that are related to pre-production, location production and post-production if:
The production spends less than $3 million on all costs related to work done at a qualified production facility, then a minimum of 75 percent of the principal photography days shot on location must be in New York State. This threshold requirement applies to location days only. Principal shoot days at a facility must not be included in the calculation of the 75 percent; OR
The production spends $3 million or more on all expenses related to work done at a qualified production facility, then there is no 75 percent threshold for principal photography on location in NYS. All qualified expenditures related to pre-production, location production and post-production in NYS are eligible for calculating the credit.
If you are interested in more details or have specific questions about the Program, please contact the Film Tax Credit Program at (212) 803-2328 or via email at filmcredits@esd.ny.gov
Source: https://esd.ny.gov/new-york-state-film-tax-credit-program-production