NEW YORK STATE FILM TAX CREDIT PROGRAM GUIDELINES

1 | NYS Film Tax Credit Program Guidelines

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PROGRAM PURPOSE

The New York State Film Tax Credit Program is designed to increase the film production and post-

production industry presence and overall positive impact on the State’s economy.

PROGRAM OVERVIEW

The Film Tax Credit Program provides incentives to qualified production companies that produce

feature films, television series, relocated television series, television pilots and television

movies, and/or incur post-production costs associated with the original creation of these film

productions.

The Film Tax Credit Program is divided into two distinct programs, the Film Production Credit

and the Post-Production Credit. Each Program is outlined in detail below.

Amount of Credits Available

Program credits of $700 million per year can be allocated and used to encourage companies to

produce film projects in New York and help create and maintain film industry jobs. Up to $45

million of the $700 million may be dedicated to supporting and growing the post-production

industry in the State. There are no per project caps for credits, and there is rollover in the annual

$700 million allocation going forward until 2034.

Film Production Credit and Post-Production Credit applicants may be eligible to receive a fully

refundable base line credit of 30 percent of qualified production costs incurred in New York

State (NYS).

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There is a 5 percent increase in credit to 30 percent applicable to the Post-Production Credit only

for post-production costs incurred in Upstate NY, outside the Metropolitan Commuter

Transportation District (MCTD)

For the period 2015-2034 any production with a budget over $500,000 can receive an additional 10

percent credit on qualified labor expenses incurred in the following counties:

Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton,

Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton,

Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida,

Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,

Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins,

Ulster, Warren, Washington, Wayne, Wyoming, or Yates.

This additional 10 percent credit is applicable to both the Film Production Credit and the Post-

Production Credit.

Changes to the Film Tax Credit Program which are effective April 1, 2023 are as follows:

Base tax credit rate has increased to 30%.

Annual Allocation has increased to $700 million, of which $45 million is allocated to Post

Production Tax Credit Program. Allocation for the program continues through 2034.

Above the Line salaries as follows are qualified for the tax credit: director, writers, actors,

composers and 2 Producers (one Executive Producer responsible for overall creative

management, one Line Producer responsible for overall production management). ATL salaries

identified are subject to a $500,000 cap per individual and limited to 40% of all other qualified

production costs.

Upstate Production in counties specified above shall include Above the Line salaries specified

above and incurred in those counties in qualified labor eligible for 10% additional credit. In

addition, if the production company shoots more than 50% of principal photography days in the

specific counties, all other qualified costs incurred in those counties are eligible for 10% additional

credit.

Relocating Talk/Variety series must be in production outside NYS for two years only (reduced from

5 years).

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Relocating Television series (narrative dramatic or comedy series) must have been in production

outside NYS for a minimum of six episodes with a per episode budget of $1 million minimum. For

network/cable, the length requirement is at least 30 minutes with commercials; for streaming

media, the length must be at least 75 minutes for the total number of episodes in the season.

Production costs up to $6 million for relocation (excluding salaries) are eligible for the tax credit

for the first season in NYS.

Effective April 1, 2023, those applicants with a tax credit allocation year of 2024 and thereafter

may file a return for the first taxable year in the allocation year cited on the tax credit certificate.

ELIGIBILITY CRITERIA

The Film Tax Credit Program is limited to film production companies producing feature films,

television series, relocated television series, television pilots and television movies, regardless of

the medium by means of which the film, pilot or series is created or conveyed. Television series

and relocated television series must submit separate applications for each complete season.

Certain categories of productions are excluded from the Program, including, but not limited to,

documentaries, news or current affairs programs, interview or talk shows, variety talk, variety

sketch and variety entertainment shows, instructional videos, sport shows or events, daytime

soap operas, reality programs, commercials and music videos.

• The production credit is available for companies that film a substantial portion of their project

in NYS.

• The post-production credit is available if the project was filmed predominantly outside of the

State, or was ineligible for the production tax credit program, and the film production

company contracts their post-production work to NYS post-production companies.

• More specific eligibility requirements for the credits are outlined below. You may also wish to

review Appendix A to these Program Guidelines for more complete definitions used in these

Guidelines and for more detailed information about Program requirements.

1 The Metropolitan Commuter Transportation District is defined in Section 1262 of the Public Authorities Law and

includes New York City, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties.

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Film Production Credit

Eligibility requirements vary based on the type of company and the budget.

Level 2: If the film has a production budget over $15 million and/or is being produced by a publicly

traded entity; at least 10 percent of the total principal photography shooting days must be at a

qualified production facility (QPF) in NYS on a set built expressly for the production.

Level 1: Productions with budgets of $15 million or less produced by companies that are

independently owned must shoot at least one full day of principal photography at a QPF on a

set built expressly for the production.

For the purposes of this program a full day means a minimum of eight hours from first unit crew

call to wrap. Principal photography is defined by criteria including, but not limited to, the presence

of first unit crew, director and principal performers, and the recording of scenes in which lines of

dialogue are spoken. Re-shoot days with actors, director and crew are considered principal

photography. Second unit shoots, and pickup shots without director and actor(s) are not

considered principal photography.

A qualified film whose majority of principal photography shooting days in the production of

the qualified film are shot in Westchester, Rockland, Nassau, or Suffolk counties or any of the five

New York City boroughs shall have a minimum budget of one million dollars. A qualified film,

whose majority of principal photography shooting days in the production of the qualified film are

shot in any other county of the state than those listed in the preceding sentence shall have a

minimum budget of two hundred fifty thousand dollars.

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.

Pilots are exempted from the 10 percent principal photography day requirement. Pilots will still

have to shoot one 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.

If a production has met the 75 percent test for production facility expenditures, it may also qualify

for credit based upon qualified expenditures outside the qualified production facility that are

related to pre-production, location production and post-production if:

1. The production spends $3 million or more at a qualified production facility, then all

qualified expenditures related to pre-production, location production and post-

production in NYS can be used for calculating the credit; or

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2. The production spends less than $3 million at a qualified production facility then at least

75 percent of principal photography location shooting days must be spent in NYS. This

threshold applies to a percent of the total principal photography location days only, not

the total principal photography shoot days. Shooting days spent at facilities are not used

in the calculation – i.e., the test is the ratio of principal photography days spent on

locations anywhere in NYS to total principal photography days on location both within and

outside of NYS.

Further definition of certain terms such as film production facility, qualified production facility

and armories are provided below.

Definitions:

A “film production facility” generally means a building and/or complex of buildings and their

improvements and associated back-lot facilities on which films are, or are intended to be,

regularly produced and must contain at least one sound stage.

A Qualified Production Facility (“QPF”) must be within NYS and is further defined according to the

type of film Production Company (i.e., level 1 or level 2), the budget for the project, and whether

the facility is located within NYC. All QPF’s are listed on our website (esd.ny.gov/soundstage-

directory)

For any production outside NYC, a QPF must contain at least one sound stage having a minimum

of 7,000 ft

of contiguous open unimpeded production space.

If the production is in NYC and has a budget of more than $15 million, or is being produced by a

publicly traded entity, a QPF must, in addition to the 7,000 ft

contiguous open unimpeded

production space requirement:

• 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 16’ under the permanent grid (12’ for facilities

constructed before January 1

2019)

Armories

There are special conditions established for armories owned by NYS or NYC:

• If an armory is being used by an independent film production company with a budget of

$15 million or less, it is considered a QPF, and can be used in the calculation for meeting

the 75 percent facility threshold.

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• If an armory is located within NYC, it may be considered a QPF if it is certified by the

Governor's Office for Motion Picture and Television Development (MP/TV).

Post-Production Credit

A qualified post-production facility is any building or complex of buildings and their improvements

in which post-production activities take place and is located in NYS and engaged in finishing a

qualified film.

A film production company can qualify for the post-production credit if it meets either one or both

of the following thresholds:

1) Visual Effects and Animation - the qualified VFX/Animation costs incurred at a qualified post-

production facility in NYS must EITHER meet or exceed:

• 20 percent of the total VFX/Animation qualified costs paid or incurred for VFX/Animation

for the qualified film at any post-production facility anywhere; OR

• $3 million in qualified costs

2) Post-Production - the qualified post-production costs incurred at post-production facilities in

NYS, (excluding cost for VFX/Animation), must meet or exceed 75 percent of the total qualified

post-production costs paid or incurred in the post-production of the film at any post-

production facility.

*A film production company that meets the program requirements for production with its project

can include post-production costs incurred in NYS in the calculation for the film production

credit. The post-production credit is available to film production companies that film a

substantial portion of a project outside NYS, or are ineligible for the production program in

NYS, but are seeking to contract some or all of the post-production work to facilities in NYS. A

Film production company cannot apply for the film production credit and the post-

production credit for the same qualified post-production costs.

To be certified the production company must submit a petition to the MP/TV Office establishing that no qualified

Level 2 film production facility in the City of New York has stage space available that is appropriate for shooting such

company's film. Such petition shall be submitted no later than ninety days prior to the start of principal photography

for the qualified film and the Governor's Office for Motion Picture and Television Development shall have ten days to

certify or reject the petition. A stage will be deemed unavailable if consideration has been paid for its use or such

stage is currently under an agreement with an option for use and, in either circumstance, such period of use includes

the petitioner's estimated start date of principal photography.

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QUALIFIED COSTS

Whether a film production company is applying for the film production credit or the post-

production credit, only certain costs qualify. As with eligibility, there are separate requirements

for the production and post-production credits.

Film Production Credit

Qualified production costs are for tangible property or services used or performed within NYS

directly and predominantly in the production of a qualified film. Qualified costs generally include

most below-the-line items associated with production such as labor costs incurred on set

construction, crew and camera equipment, film stock and development, hard drives etc. as well

as above-the-line wages for directors, writers, actors, composes and two producers up to

$500,000 per individual. These above the line wages are limited at 40% of all other qualified costs.

Post-Production Credit

Post-production costs are costs associated with the 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, re-recording 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 or the salary of directors and music composers.

Post-production costs qualify for the credit ONLY to the extent they are incurred for post-

production and/or visual effects and animation work done in NYS; work done by or contracted to

vendors, employees, service providers or any parties located outside NYS is not qualified, and

costs related to such work are not eligible for the tax credit. See the SCHEDULE OF QUALIFIED

EXPENDITURES for detailed information on specific costs that are eligible for the post- production

credit.

Live Action

For live action films, certain activities defined as “production” in other contexts, can be defined

as “post-production” and become qualified costs for the post-production credit. For example,

digital content created to be merged with content captured through the camera, (i.e. “real”

images and/or performers), would be eligible for the post-production credit. Digital content not

designed to be integrated with content captured by the camera would not be eligible (such as an

entire digital landscape sequence).

“Production” related costs not eligible for the post-production credit include any activity which

occurs on set with actors or physical models, captured by a camera or similar image capture

device – such as filming live performers for motion capture purposes; filming or scanning

miniatures or 3D models; performers or set models filmed in front of “green screen” etc. Pre-

visualization work done for production purposes only, e.g., the design of sets, the plotting of

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camera moves, etc. is not eligible unless it is done in support of the addition of post-production

content such as a creature/character, an effect, or set enhancements.

Fully Animated Production

Primary content is generated through whatever processes the animator employs to generate the

images (paint on cells, CGI, stop motion photography, motion capture, etc.). Processes that help

plan the animation, e.g., layout, design, pre-vis, modeling, storyboard, etc. are eligible for the

post-production credit. Processes that precede, or produce the digital assets for animation -

recording, modeling, rigging, etc. are also eligible for the credit.

Qualified costs attributable to the animation process are eligible for the credit. Those operations

on a fully animated production that are conducted after completion of animation are eligible for

the credit (e.g., final scene integration, FX animation, lighting, compositing, rendering, color

timing/correction, music recording, editing, etc.).

For fully animated production, there are 2 thresholds:

1. For Qualified Costs in the Producer/Director and Final Deliverable Elements categories,

the threshold on total qualified expenditures is 75%.

2. For Qualified Costs in the Categories for Animation Production/Post-Production, which

are Talent, Editing, Music, Sound, Film/Lab, VFX/Animation, Titles & Opticals, the

threshold of total qualified expenditures is 20%.

HOW TO APPLY

Film Production Credit - Applications must be submitted prior to the start of principal and

ongoing photography. All application materials can be downloaded from the website.

Post-Production Credit - An application must be submitted before incurring any qualified post

costs in NYS and must include in the post budget all post-production costs incurred in and

outside NYS prior to the application date. All application materials can be downloaded from

the website.

APPLICATION MATERIALS

All application materials are available on the film production, and post-production program’s

websites.

Costs covered by NYS ESD grants and/or other economic assistance provide by NYS ESD are not eligible for the tax

credit.. It is recommended that applicants consult with tax credit program administration regarding any NYS funding

provided for an eligible project. Grant/assistance amount should be coded in appropriate column(s) on Budget Cost

Qualifier and will automatically be deducted from Qualified Costs.

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Project Summary

is the initial/final online application document. This document contains personnel, budget, QPF

and location shoot day information, etc. This document must be signed electronically by an

authorized corporate representative of the Applicant entity.

Schedule Of Qualified Expenditures

The schedule indicates, line by line, whether a particular budget line item is or is not considered a

qualified cost eligible for the calculation of thresholds and for the tax credit. As such, there is a

separate SCHEDULE for the film production credit and the post-production credit (either Live Action

or Animation) listing the specific qualified costs for each. Be sure to reference the correct SCHEDULE

related to the credit program to which you are applying.

This schedule is for reference purposes only. It is not a Form to be completed by an applicant.

The expenses listed on the SCHEDULE should be used as a reference when completing the BUDGET

COST QUALIFIER. Please note the comments provided on this Form alongside certain line items, or

call the Department for further clarification at (212) 803-2328.

Budget Cost Qualifier

This form lists the qualified costs being considered for the project’s tax credit. There are separate

BUDGET COST QUALIFIERS specific to the film production credit and the post-production credit (either

Live Action or Animation). There is a standard template (MS Excel) for the BUDGET COST QUALIFIER

and it must be submitted in this format (not as a pdf). Be certain that the appropriate BUDGET COST

QUALIFIER is being completed for your application.

Diversity Plan (included in the initial Project Summary)

As a part of the Initial Application, all applicants must file a Diversity Plan that includes specific

goals for hiring a workforce with a gender and racial/ethnic makeup reflective of the diversity of

New York state. Applicants must explain whether and how they intend to participate in training,

education, and recruitment programs that are designed to promote and encourage the training

and hiring in the film and television industry of New York residents who represent the diversity of

the State's population; and how the applicant plans to work with vendors with diverse ownership.

Examples of training, education, and recruitment programs applicable to section 5-2 of the ap-

plication, include but are not limited to, studio or union Traineeship Programs, SUNY Production

Training Programs, Partnerships and visits with local schools, programs which skills training as well

as job placement opportunities for individual looking for careers in film and tv production. Ideal

programs will include in person training, job placement support, mentoring, union coordination,

and employer coordination.

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The Diversity Plan must include specific proactive steps the applicant will take to ensure outreach

to target populations for direct hires on the production.

Notwithstanding the Department’s right to make final determinations on the minimum

requirements for diversity plans, the Department considers the minimum requirements to have

been met when the applicant has set hiring goals, explained how the applicant intends to

implement a workforce development plan, and selected among the options listed in the application

for hiring and vendors. Applicants may send additional documentation and diversity plans in

addition to the sections of the application.

Diversity Report (included in the final Project Summary)

As part of the applicant’s Final Application all applicants must file a Diversity Plan Report that will

be evaluated to verify that the applicant has either met the goals it set or made good-faith efforts

in achieving said goals.

This report includes, but is not limited to: 1) diversity impact data, 2) illustrates how the authorized

applicant has met or made good faith efforts to meet the specific goals for hiring a diverse

workforce outlined in their diversity plan; 3) whether and how the authorized applicant has

participated in training, education, and recruitment programs that are designed to promote and

encourage the training and hiring in the film and television industry of New York residents who

represent the diversity of the State's population; and 4) how the authorized applicant has executed

its plan for hiring vendors of diverse ownership.

Productions who do not meet their goals, must demonstrate the good faith efforts that were made

to meet the goals. Applicants must include additional supporting documentation, such as published

notices, emails regarding attempted hires as part of their final submission, and/or other

documentation regarding the specific efforts indicated on the initial and final application.

Employment Report

This form is required for the documentation of all credit eligible hours worked and credit eligible

wages paid to qualified employees who worked on the project in New York State and whose

wages are included in qualified expenses. This form also documents all hours worked and all

wages paid to all employees (qualified and non- qualified) who worked on the project in New

York State. The EMPLOYMENT REPORT is the same whether an applicant is applying for the film

production credit or the post-production credit. There is a standard template (MS Excel) for this

report.

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End Credit Requirements

This form states the End Credit requirements. There are separate forms for the Film Production

End Credit and the Post-Production End Credit. This form must be signed by the applicant, to

acknowledge and agree to the terms of the END CREDIT REQUIREMENTS. A Frame Grab of the End

Credits must be submitted with the form. Failure to comply fully with the END CREDIT REQUIREMENTS

will jeopardize receipt of the film tax credit.

Production Budget

The film PRODUCTION BUDGET represents how much will be spent on the entire film project. It

involves the identification and estimation of cost for each phase of filmmaking (development,

pre-production, production, post-production and distribution). The budget structure is normally

split into "above-the-line" (creative) and "below-the-line" (technical) costs. The PRODUCTION

BUDGET is required of applicants for the film production credit. For applicants for the post-

production credit, the top sheet of the production budget and the complete post-production

budget are required. For the post-production credit, for fully animated projects, a complete

production/post-production budget is required. The estimated budget or locked budgets are

submitted as part of the initial application.

General Ledger and Separate Ledger Reports

GENERAL LEDGER (GL) represents the day-to-day accounting of production expenses and can be

generated using a variety of software programs designed specifically for film production

accounting. For the production program, the final application must include the complete general

ledger and separate GL reports that correspond to the qualified cost columns indicated in the

BUDGET COST QUALIFIER. For the post-production program, the final application must include the

complete general ledger and separate GL reports that correspond to EACH column of the BUDGET

COST QUALIFIER, both qualified and non-qualified. The GL and separate reports should be

submitted in their original format and emailed in pdf format AND as MS Excel files.

Vendor List

Vendor List is a list (in excel) of all vendors utilized by production/post-production and paid

through Accounts Payable. Names and mailing addresses including City, State and Zip Code, and

NYS Sales Tax ID (if applicable) are required.

Daily Production Reports

A DAILY PRODUCTION REPORT is a form completed each day of production for a project to

summarize what occurred on that day. The DAILY PRODUCTION REPORT, BOTH FRONT AND BACK, is

required of applicants for the film production credit. (Call Sheets are not acceptable

substitutes for Production Reports.)

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Shoot Days Summary

This report shows detailed information about each shoot day (principal photography and

second unit/other) completed for the film production project There is a standard template for

this report in MS Excel that all applicants must download, complete and submit as a required

component of the final application.

Cast & Crew List

The Cast & Crew List is a final listing of all members of the cast and crew that were employed

during the film production project (The Cast & Crew List is only required for applicants for the

Film Production Credit).

Schedule Of Retained Assets

This schedule is a list of assets that were not destroyed in the film production process and that

is being held for future productions or other purposes and has a purchase price over $5,000.

This report is required of applicants to the Film Production Credit who applied after January 1,

2015. It is submitted as part of the final application

Related Party Transaction Report

This report is a listing of related party transactions (including parties with a 5% or greater

ownership directly or indirectly, in or affiliation with the production company applicant) that the

production company is including as qualified expenditures. This report is submitted with the final

application

Diverse Vendor Report

This report lists all the vendors paid by the applicant for goods and/or services and their diverse

ownership to the extent which the production is able to ascertain the demographics of the

business owner.

Workforce Utilization Report

This report is a summary of production employees and days worked categorized by employees'

race/ethnicity and gender.

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OTHER REQUIREMENTS

End Credits

Include in the end credits of the qualified film “Filmed With the Support of the New York State

Governor’s Office for Motion Picture and Television Development” and include the logo

provided by the Film Office:

For applicants for the post-production credit, an applicant must comply with this requirement

by:

Include in the end credits of the qualified film “This production participated in the New York

State Governor’s Office for Motion Picture and Television Development Post Production Credit

Program” and include the logo:

Note: The acknowledgement language AND the logo must be included in the end credits in order

to satisfy the requirement; one item does not suffice. A frame grab or video file of the end credits

must accompany the End Credit Requirement form as part of the final application. (If the frame

grab does not establish proof of compliance, the Department may request other materials before

issuance of Certificate of Tax Credit.)

Record Retention

Each authorized and approved applicant must maintain records, in paper or electronic form, of

any qualified production and/or post-production costs used to calculate its potential or actual

benefit(s) under this program for a minimum of three years from the date of filing of the tax

return on which the applicant claims the tax credit. The Department shall have the right to

request such records upon reasonable notice.

FOIL Disclosure

The New York State Department of Economic Development is subject to the New York State

Freedom of Information Law ("FOIL"), which governs public access to the records of

government agencies (see Public Officers Law sections 84 through 90).

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You should be aware that some information submitted to the Department as part of any

application to the Program becomes subject to legislatively mandated reports which will be

made public, and that the Department will respond to requests for information. Please refer to

Appendix A to the Program Guidelines for the specific information that must be disclosed.

Vendors and Sales Tax

Applicants to the Program must certify that they will purchase taxable tangible property and

services, defined as qualified production costs, only from companies registered to collect and

remit NYS and local sales and use tax.

To determine if a given individual or company is registered, their NYS Sales Tax Vendor ID

Number must be obtained:

Go to: https://www7b.tax.ny.gov/TIVL/tivlStart

Enter Vendor Tax I.D. number to determine registration

It is highly recommended that the Applicant download a copy of the Vendor Verification and

retain documentation with all company documents until audit has been completed and

Certificate of Tax Credit issued.

If the sales tax identification number provided by the vendor cannot be verified through the

system:

• Contact the vendor to confirm that the correct number was provided; or

• Call the Sales Tax Information Center 518-485-2889 or 800-698-2909 and a

representative can search by the vendor’s name.

Publication 28: A Guide to Sales Tax for the Film Industry issued by the NYS Department of

Taxation and Finance, provides a list of items considered exempt from sales tax and therefore

not subject to verification.

For more information on sales tax issues go to www.nylovesfilm.com/pdf/SalesTaxExemption.pdf

or call the NYS Film Tax Credit Program (212) 803-2328.

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SUMMARY

The NYS Film Tax Credit Program is designed to expand the film industry in NYS. The Film

Production Tax Credit is available for all eligible productions filming a substantial portion of the

project in New York State (and post-production costs qualify toward the credit).

The Post-Production Credit is available for those productions not filmed in the state, or not

filming enough in NYS to meet the eligibility criteria for the film production credit, but contract

post-production work with any of the companies located in NYS specializing in this work. This

credit is also available for fully animated productions completing all or part of production and

post-production in NYS.

Review this guide and the appendix to the Film Tax Credit Program carefully. Program staff is

available to answer questions, but ultimately it is your responsibility to comply with all program

requirements in order to qualify for the credit.

Submit initial application materials before starting your film project for the film production credit

and no later than the last day of principal photography and/or before incurring any costs with a

qualified post-production vendor in NYS with respect to the post-production credit.

The initial application is an eligibility determination. The credit is not allocated at this point. The

credit will be allocated based on receipt of a complete final application. Applications must be

complete as outlined in these guidelines. If your application is incomplete, you will be notified.

Final applications will not be considered for audit until it is deemed complete.

Good luck with your project and we look forward to the investment and jobs it will bring to New

York State.

THIS IS A NEW YORK STATE PROGRAM.

PLEASE DIRECT QUESTIONS TO:

EMPIRE STATE DEVELOPMENT

FILM TAX CREDIT PROGRAM

212-803-2328

[email protected]

1 Terms and Definitions

NEW YORK STATE FILM TAX CREDIT PROGRAM

Terms and Definitions

The Film Tax Credit Program contains many key terms and definitions that are used in the

Guidelines, statute, regulations and documents that comprise the application. These terms

and definitions are organized alphabetically for reference purposes:

Above the Line (ATL) refers generally to expenditures such as rights to the script (and source

material), compensation for the screenwriter, producer, director, principal actors, support staff

and other line items such as casting. ATL employees on a film project generally refers to the

individuals who guide and control the creative direction and process of a film and their related

expenditures. Effective April 1, 2023, previously non-qualified ATL employees (certain

producers, director, actors, writers, and composers) became qualified costs in the program. See

the SCHEDULE OF EXPENDITURES for a detailed listing of costs that are qualified and non-qualified.

Above the Line – Qualified NY Employees refers to the number of Above the Line NY Production

Employees, whether resident or not, whose wages or salaries qualify for the credit. Certain ATL

wages and salaries are subject to a double cap. Wages and salaries for directors, writers, actors,

composes and two producers (one Executive Producer, and one Line Producer) can be qualified

up to $500,000 per individual and cannot collectively exceed 40% or all other qualified costs.

Additional Photography, or Reshoot, refers to camera roll days that occur after the main

contiguous schedule of principal and ongoing photography. This additional photography or

reshoot could be considered part of Principal Photography and Ongoing Photography if certain

conditions are met (see definition for Principal and Ongoing Photography below) and, in such

instances, would be included in calculations affecting the Location Days threshold.

Additional Principal Photography / Second Unit Start Date is the first date on which either

Second (2

) Unit (or other additional photography that does not include the main actors)

begins; or when the lead actors are reconvened for Principal Photography 'reshoots' or

additional scenes that were not part of the initial phase of principal and ongoing photography.

Allocation Year means the pool of funds by tax year from which the tax credits are allocated

pursuant to subdivision e of section 24 of the tax law and is determined by the amount of funds

available as of the date of issuance of the tax credit certificate. Allocation year cited on the tax

credit certificate identifies the period for which the Applicant can file for the tax credit. Effective

April 1, 2023, Applicants file for the allocation year of the tax credit (the first taxable year in the

allocation year if the Applicant’s tax year differs from the calendar year).

Applicant is the corporation, partnership, limited partnership, or other entity or individual that

is principally engaged in the production of the film or television program and that controls the

film or television program during pre-production, production and post-production. The

applicant is the entity that, upon approval of the final application, will receive the tax credit

certificate. The applicant must be the entity that incurs and pays direct expenditures related to

2 Terms and Definitions

the physical production process and is signatory to contracts with a payroll company, facility

operators, vendors, etc. during the production.

Application refers to the group of documents which all applicants for the Film Production

Credit and Post-Production Credit must complete. The Project Summary Form can be

completed and submitted online. All other documents must be submitted through the secure

file transfer system. Forms are located on the Film Production and Post-Production Tax Credit

Program websites

Armory refers to facilities (formerly used for weapon storage) that are owned by NYS or NYC. If

located in NYC, an armory is considered a Level 1 qualified production facility (QPF) and may be

used by any Qualified Independent Film Production Company (with a production budget less than

$15 million) to meet the Facility Threshold requirements. Outside of NYC, an armory is considered

a QPF and any Qualified Film Production Company may use an armory to meet the Facility

Threshold requirements. In NYC, an armory is not considered a Level 2 QPF suitable for meeting

the Facility Threshold requirements unless certified by the Governor's Office for Motion Picture

and Television Development (MP/TV). An applicant (which is not an independent film production

company and/or with a production budget more than $15 million) must petition the MP/TV Office

requesting an armory be authorized as a QPF and demonstrate that no QPF in NYC has stage space

available that is appropriate for shooting the applicant’s film. Such petition shall be submitted no

later than ninety days prior to the start of principal photography for the qualified film and the

MP/TV Office shall have ten days to certify or reject the petition. A stage will be deemed

unavailable if consideration has been paid for its use, or, such stage is currently under an

agreement with an option for use and, such period of use includes the applicant’s estimated start

date of principal photography.

Background actors refer to extras (non-speaking performers, usually in the background)

employed during the production of the film.

Below the Line (BTL) refers generally to expenditures for employees who provide craft and

technical services for a film or TV production, (e.g., camera operators, make-up artists, and

electricians), and differentiates these employees from the above-the-line people who are

charged with the creation of the production (e.g., directors, producers, and writers). Costs

associated with such items as equipment rental, set construction materials and props would be

below-the-line costs. Below the line wages and production costs are generally qualified for the

NYS Film Tax Credit if incurred in NYS. See the SCHEDULE OF EXPENDITURES for a detailed listing of

costs that are qualified and non-qualified.

Below the Line -- Qualified NYS Employees refers to the number of Below the Line NYS

Production Employees, (excluding post-production Qualified NYS Employees), engaged in the pre-

production and production (shooting) process who are qualified, whether resident or not. If an

employee performs more than one production and/or post-production job, list all wages but

include in the headcount only once, in production.

3 Terms and Definitions

Budget Cost Qualifier is the MS Excel Template designed to assist applicants in determining costs

that are qualified and eligible to be applied to the appropriate eligibility thresholds. There are

separate BUDGET COST QUALIFIER templates specific to the film production credit and to the post-

production credit (one for live action post, including VFX/animation, and one for fully animated

production/post-production). THE BUDGET COST QUALIFIER is included in the initial/final application

template book as part of the application and must be submitted through the Secure File Transfer

System.

Certificate of Conditional Eligibility (CCE) is a form issued by the Department which states that

a project is eligible to receive a tax credit if the applicant meets all program requirements and

files a complete final application, and that receipt of the Credit is subject to the availability of state

funds and continuation of the program.

Certificate of Tax Credit is a form issued by the Department that indicates the amount of the

film tax credit for which an applicant has qualified. Such certificate may include, but not be

limited to, the following information: name and address of the approved applicant, name of the

qualified film, completion date of the project, amount of the tax credit to be received by the

approved applicant, allocation year of the tax credit earned.

Certificate of Tax Credit will be issued and sent to the Applicant listed on the Project Summary

form. To receive the credit, an Applicant must submit the Certificate of Tax Credit with the

Applicant’s NYS income tax return. The NYS return will either be a Corporate (Form CT-248 for

production credits, or Form CT 261 for post-production credits) or Individual for S Corp/LLC

members (Form IT-248 for production credits, or Form IT 261 for post-production credits)

income tax return. Each member of an S Corp or LLC must file a return for their share of the

credit.

For projects applying to the Production Program, the film tax credit may be claimed for the tax

year in which the project was completed, or for the allocation year, whichever is later. For projects

applying to the Post-Production Program, the film tax credit should always be claimed for the

year in which the project was completed. The tax credit will be issued from the NYS Department

of Taxation and Finance, either as a credit towards tax liability, or, if there is no liability, as a

refund for the full dollar value of the credit. For a credit from the Film Production program, the

refund is issued in one payment if less than $1 million; 2 payments between $1 and $5 million; 3

payments if more than $5 million. If applicable, a return must be filed over 2 or 3 successive years

to receive 100 percent of the credit. For a credit from the Film Post-Production program, the

refund is issued in two payments if less than $5 million: 3 payments if more than $5 million. If

applicable, a return must be filed over 2 or 3 successive years to receive 100 percent of the credit.

Complete application means that all required information is provided in the form and manner

prescribed by the Department. The Department will not determine that an applicant is eligible

to participate in the Program, assign an allocation year, nor determine that a final application is

ready for audit unless it is first deemed to be a complete application.

4 Terms and Definitions

Designated Contact is the person, such as the preparer of the application, whom the primary

contact has authorized to provide information to the Department about the application on his/

her behalf. If the designated contact is a consultant, accountant, or other third party

representative of the applicant, then the primary contact must provide a letter authorizing the

representative to release and/or exchange information to/with the Department.

Development Process (“in development”) refers to costs or activities related to acquiring the

rights to a script, creating a story, selecting the actors or director, or negotiating the basic terms

of an agreement for financing a project.

Diversity impact data means information submitted by an authorized applicant that describes

the gender and race/ethnicity of all individuals working on a production seeking the tax credit

under this Part. This shall include information on the diverse business ownership of vendors

working on a production, to the extent the information is known and verifiable to the production,

in addition to job creation numbers for production and post-production staff and crew at entry,

middle and management level positions; and talent positions (cast and extras). Productions may

utilize self-reporting and identification by the individual members of the production workforce

and vendors, employment, payroll, and human resources data, and other sources in order to

collect and aggregate this information.

Employment Practices Form is a form which gathers data about whether a code of conduct is in

place that applies to the production, crew and talent, and highlights certain best practices for

such code of conduct. It is a required form which is part of the Initial Application.

End Credit Requirements for participants in the Film Production Credit Program are the inclusion

in the end credits of a qualified film the statement: “Filmed with the Support of the New York

State Governor’s Office of Motion Picture and Television Development” and a logo provided by

the Governor’s Department.

Compliance with the End Credit requirements is mandatory per NYS law governing the film

production credit. A frame grab must be provided with the End Credit Requirement form,

submitted as part of the final application. The Department may require additional substantiation

if the frame grab does not constitute proof of performance.

For participants in the Post-Production Credit Program include the statement: “This Film

Participated in the New York State Post-Production Tax Credit Program” And a logo provided by

the Department. A frame grab verifying the statement and logo in the end credits is required to

be submitted with the End Credit Requirement form.

Facility Costs refers to costs incurred at a film production facility that are used in the calculation to

determine if the facility threshold requirement is met. The Facility Cost information must be

included in the appropriate columns of the BUDGET COST QUALIFIER (i.e. NYC QPF, NYS (outside NYC)

QPF, Outside NYS Facility). Expenditures at the facility(s) could include but are not limited to:

5 Terms and Definitions

•

Facility lease/licensing cost refers to the cost of the License or Operating agreement with

the qualified production facility (QPF). If the agreement includes bundled costs directly

related to use of the stage itself, (as opposed to set operations), such as power, HVAC,

waste removal, etc, such costs should be included.

•

Construction and Wrap: refers to days spent in the processes of construction and wrap

of sets at any facility. This would include all costs incurred for activity at the facility,

including the cost of materials for set construction, salaries of crew working at the facility,

meals at the facility, transportation related to the facility activity, services at the facility,

etc.

•

Camera Roll Days: refers to the days when filming at a facility and includes all costs

related to production activity at the facility, including set operations, crew salaries,

meals, camera and equipment rentals, transportation, set dressing, wardrobe, props,

etc.

•

Other Facility Expenditures: refers to all costs that are incurred at any facilities that do

not relate specifically to days prepping, shooting or wrapping on a stage, including, for

example, production office rental if at the facility, (including office equipment and staff

salaries), telephone charges, etc.

Facility Threshold refers to the minimum requirements that must be met regarding use of a

Qualified Production Facility (QPF) in order to participate in the Program. The requirements for

meeting this threshold differ for Level One and Level Two productions. There is also a Pilot

Exemption. An applicant must secure a signed license or operating agreement with a QPF in

order to qualify for the Program. (A complete list of all Qualified Production Facilities in NYS can

be found on this website (https://esd.ny.gov/soundstage-directory).

Feature-Length Film means a production intended for commercial distribution regardless of the

medium by means of which the film is created or conveyed. that has a running time of at least

seventy-five (75) minutes in length.

Film Production Facility means a building and/or complex of buildings and their improvements

and associated back-lot facilities in which films are or are intended to be regularly produced and

which contain at least one sound stage. (See above definition of Armory in re usage as Qualified

Production Facility.)

Final Application means information concerning actual expenditures regarding a qualified film

that could make it eligible for the film tax credit provided in a form and manner as prescribed by

the Department and submitted by an approved applicant after it has completed production and

post-production of a qualified film. Such application may include, but not be limited to: actual

data with regard to the qualified film’s total budget, the total production costs at film production

facilities in and outside of New York, the total number of shooting days in and outside of New

York and any other information the Department determines is necessary. See Application

referenced earlier for details about how to submit a final application.

6 Terms and Definitions

Freedom of Information Law ("FOIL") refers to the law governing public access to the records of

government agencies (see Public Officers Law sections 84 through 90). Applicants should be

aware that some information submitted to the Department as part of any application to the

Program becomes subject to legislatively mandated reports that will be made public.

Additionally, the Department will respond to requests for information about the Program

including but not limited to the:

i. name of the project which has been issued a certificate of tax credit;

ii. counties in NYS where the project was filmed;

iii. qualified costs for the project;

iv. total expenditures on goods and services in NYS for the project

v. number of employees associated with the project;

vi. credit-eligible man hours for the project;

vii. total wages for such credit-eligible man hours for the project;

viii. name of each taxpayer* issued a certificate of tax credit for each project and the county

of residence or incorporation of such taxpayer or, if the taxpayer does not reside or is not

incorporated in New York, then the state of residence or incorporation; and

ix. the amount of tax credit issued to each taxpayer*; *provided however, if the taxpayer

claims a tax credit because the taxpayer is a member of a limited liability company, a

partner in a partnership or a shareholder in a subchapter S corporation, the name of

each limited liability company, partnership or subchapter S corporation earning any of

those tax credits instead of information about the taxpayer claiming the tax credit

Applicants may request that certain information be excepted from public disclosure, pursuant to

section 87(2)(a-d) on the grounds that the information constitutes trade secrets, proprietary

information or that the information, if disclosed, would cause substantial injury to the

competitive position of the Applicant. Such a request must be in made in writing to the

Department, specify the information to be withheld and state the reasons for the requested

exception. The Department reserves the right to determine whether the information submitted

by the Applicant will be withheld from disclosure. The Department will notify the Applicant of any

requests for disclosure of Applicants' information and notify the Applicant as to whether the

information will be disclosed. Applicants may submit their request for non-disclosure of

information with the application submitted to the Department.

General Travel & Living Costs are costs related to travel into or out of NYS, such as airfare, hotels,

travel related per diem, non-production meals, etc. paid to individuals who are brought into NYS

to work on the qualified film. General Travel costs are not qualified costs in New York City, with

the exception of one round trip airport pickup/drop-off. However, travel and living costs incurred

while shooting on Distant Location in NYS are qualified costs, e.g., travel within NYS to/from set,

hotels at the rate paid for the average crew member, and per diem paid at either average crew

rate or union mandated rate.

7 Terms and Definitions

Good faith efforts in relation to the Diversity Plan and Diversity Plan Report means the extent to

which the applicant can document specific steps taken, including but not limited to copies of

outreach emails, phone calls and advertisements to targeted organizations and individuals, in-

person meetings and interviews held, etc.--to meet the specific goals outlined in their diversity

plan; including how the applicant has participated in training, education and recruitment

programs that are designed to promote and encourage the training and hiring of New York State

residents who represent the diversity of the State’s population.

If the applicant’s final Diversity Plan Report falls significantly short of the goals set in the Initial

Diversity Plan filed as part of the Initial Application, the Department reserves the right to make a

final determination on whether the applicant has made sufficient effort to be considered a ‘good

faith’ attempt to meet the goals of diversity and inclusion as outlined in the regulations governing

the program.

Level One Production is a qualified production that:

(a) Has a production budget of no more than $15 million, AND

(b) Is being produced by a company in which no more than five percent of the beneficial

ownership is owned, directly or indirectly, by a publicly traded entity.

If there is any change of budget or ownership structure of the applicant at any time after the

filing of the Initial Application that would affect the designation of the production as a Level One

Production, the Applicant must notify the Department. The determination of whether an

applicant has met the appropriate Level One Production or Level Two Production requirements

will be based on the budget and ownership structure of the Applicant upon submission of the

Final Application.

Level Two Production is a qualified production that:

(a) has a production budget over $15 million, OR

(b) 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.

Location Threshold refers to the requirement relating to the eligibility for on-location filming, pre

or post-production, or any other costs for work done in NYS outside the Qualified Production

Facility (QPF). There are two possible ways to meet the Location/Other Threshold:

1) If less than $3,000,000 is spent on facility-related work, then at least 75% of the

location principal photography shoot days must be in NYS, OR

2) If $3,000,000 or more is spent on facility-related work, then there is no required

percentage of location days that must be in NYS.

It is possible to meet the Facility Threshold but not the Location Threshold. For example, a film

may use a QPF within NYS, but only shoot 50% of its location days in NYS; the other 50% is shot

8 Terms and Definitions

outside the State. If less than $3 million is spent at the QPF, all qualified costs related to the work

at the facility would be eligible for the credit. However, the location costs, post-production costs,

or other non-facility costs, would not be eligible, because the location threshold was not met.

If more than $3 million is spent at the QPF, any location days or other qualified non-stage costs,

including post-production costs, in the State would be eligible for credit.

Location/Other NYC – is a category of qualified costs in the BUDGET COST QUALIFIER that refers to all

qualified costs incurred anywhere within NYC other than at a Film Production Facility.

Location/Other NYS – is a category of qualified costs in the BUDGET COST QUALIFIER that refers to

all qualified location and other costs incurred in NYS but OUTSIDE NYC. Do not include the

Location/Other NYC costs in the Location/Other NYS column.

MP/TV Office refers to the Governor’s Office For Motion Picture and Television Development.

For further information about the MP/TV Office visit the website at http://www.nylovesfilm.com

or call (212) 803-2330.

NY Production Employees are ALL employees assigned to work on the film in New York City or

New York State (regardless of their residence).

NY Wages are ALL wages and compensation paid to all NY Production Employees (regardless of

their residence) for work performed in NYS or NYC.

NYS Distant Location Travel & Living refers to travel costs incurred for travel within NYS to and

from both qualified production facilities and locations outside the NYC studio zone. Costs for NYS

Distant Location Travel & Living, including transportation to the distant location from a point of

origin within NYS, hotels, meals and travel-related per diems, are qualified for all production

personnel (both ATL and BTL). The maximum dollar amount qualified for each type of travel-

related expense, (e.g. transportation, hotel, meals, per diem, etc. cannot exceed the amount for

an average crew member or union mandated minimums.

NON- Qualified NY Employees – refers to the number of NY Production Employees whose wages

or salaries are NOT Qualified (e.g., director, producers, actors, etc.), whether resident or not.

NON-Qualified in NYS refers to costs that are NOT considered qualified (indicated as "NO" on the

SCHEDULE OF QUALIFIED EXPENDITURES) even though the costs are incurred within NYC or NYS, such as

General Travel & Living Costs, costs for a story, script or scenario, wages or salaries for writers,

directors, producers, actors and performers other than extras, license fees, etc.

NON- Qualified Outside NYS refers to costs that are NOT considered qualified (indicated as

"NO" on SCHEDULE OF QUALIFIED EXPENDITURES) and that are incurred outside NYS, such as General

Travel, directors fees, actors’ salaries, license fees, etc.

9 Terms and Definitions

NON-Qualified Production Facility means a facility, within or outside NYS, that does not meet

the criteria for a Qualified Film Production Facility. All facilities outside NYS are, de facto, Non-

Qualified.

Pilot Exemption refers to the fact that Pilots are exempted from the Facility Threshold criteria

regarding 10% of principal photography days at the Qualified Production Facility (QPF). One

shoot day fulfills the QPF requirement. However, at least 75% of the total of all expenses related

to work, (excluding post-production), done at all facilities anywhere utilized by the Pilot must

be related to work done at the QPF.

Post-Production Costs means production of original content for a qualified film employing

techniques used in post-production for picture, sound and music editorial, rerecording and

mixing, visual effects, graphic design, musical composition, original scoring, and animation; but

shall not include the editing of previously produced content for a qualified film. Post-production

costs shall not include (i) costs for a story, script or scenario to be used for a qualified film; (ii)

licensing or rights associated with the production of a qualified film; Post-production costs on a

fully animated production shall mean the process and operations in the animation workflow

which are conducted after completion of animation (key frame and/or stop motion animation,

motion capture data acquisition and solving), including but not limited to final scene integration,

fx animation, lighting, compositing, rendering, color timing/ correction, music recording and

editing.

Post-Production Facility means any company located in NYS and engaged in providing post-

production services to film and television.

Post-production, Qualified NYS Employees refers to the number of NYS Production Employees

engaged only in the post-production process who are qualified, whether resident or not.

Post-Production End Date means the date post-production on the qualified film has been

completed and the project is ready for delivery to a distributor. Post-production can continue

beyond a festival screening. No costs related to festival screenings are qualified costs. Post-

production does NOT include activities related to marketing, promotion or distribution. In the

case of a film with a planned theatrical release or a television project with a broadcast or cable

release, post-production does NOT include any activity specifically related to DVD or home video

distribution. In the case of a Television Series, the production season will be considered complete

when post-production on the final episode of the season is completed and the entire season is

ready for delivery.

Pre-production means the process of preparation for actual physical production and is

considered to begin with the establishment of a dedicated production office, the hiring of key

crew members such as a Line Producer and/or Unit Production Manager, and includes, but is not

limited to, activities such as location scouting, hiring of crew, construction of sets, etc. Pre-

production does NOT include the development process.

10 Terms and Definitions

Primary Contact refers to the responsible officer of the applicant and should be a person of

authority such as a corporate officer, general partner, managing member, or sole proprietor

and will ultimately be responsible for supervising the preparation of the application and all

future communication or correspondence with the Department. A Primary contact can

designate another person to be the Designated Contact.

Principal and Ongoing Photography means the filming of major and significant portions of a

qualified film that involves the principal actors and director. Additional criteria for determining

if a camera roll day is a major and significant portion of the film include the presence of members

of the first unit production team, (e.g., DP, first assistant director, etc.); or scenes in which lines

of dialogue are spoken. For questions regarding whether a given shoot day can be considered a

part of Principal and Ongoing Photography and counted towards the facility and location

thresholds, call the Film Tax Credit Program office at (212) 803-2328.

Principally engaged in the production of a qualified film and controls the qualified film during

production” means that the legal entity is responsible for payment of the direct production

expenses, (including pre- and post-production), and is a signatory to the qualified film’s

contracts with its payroll company and facility operators.

Principal Photography End Date means the date Principal and Ongoing Photography is

concluded.

Principal Photography Start Date means the first date of Principal and Ongoing

Photography filming of major and significant portions of a qualified film that involves the

main actors.

Project Summary is the initial/final online application document. This document contains

personnel, budget, QPF and location shoot day information, etc. This document must be signed

electronically by an authorized corporate representative of the Applicant entity.

Privacy Act Notification refers to the fact that individuals must provide their social security

numbers pursuant to Tax Law § 658(b) or New York City Administrative Code § 11-102.1 and 42

USCS § 405(c)(2)(C)(i). Social security numbers will be used in administering the NYS Film

Production Tax Credit Programs as well as to establish and maintain a uniform system for

identifying taxpayers entitled to claim the credits on their State tax returns, and for any other

lawful purpose.

Production Costs means any costs for tangible property used and services performed directly

and predominantly, (including pre-production and post-production), in the production of a

qualified film. Production costs shall not include (1) costs for a story, script or scenario to be

used for a qualified film; (2) licensing or rights associated with the production of a qualified

film; or (3) salaries of producers excluded from the ATL salaries deemed to be qualified effective

April 1 2023, i.e., only 1 Executive Producer and 1 Line Producer are qualified; Production costs

generally include technical and crew production costs, such as expenditures for film production

11 Terms and Definitions

facilities, or any part thereof, props, makeup, wardrobe, camera, sound recording, set

construction, lighting, shooting and meals.

Projected Release/Air Date. Refers to the date the production will be ready for release or

broadcast if there is no distribution agreement in place, and no tentative projected release or

air date.

Qualified Facility NYC on Budget Cost Qualifier: all qualified costs related to all activity/days at a

NYC Qualified Production Facility (QPF) are indicated in column under this heading.

Qualified Facility NYS –on Budget Cost Qualifier: all qualified costs related to all activity/days at a

Qualified Production Facility (QPF) in NYS but OUTSIDE NYC are indicated in column under this

heading. Do not include NYC costs in the Qualified Facility NYS column of the Budget Cost Qualifier

because doing so would result in double counting of the facility costs.

Qualified Film means a feature-length film, television film, relocated television production,

television pilot and/or series, regardless of the medium by means of which the film, pilot or

episode is created or conveyed. Qualified film shall not include:

(1) 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, fund-

raising film or program, daytime drama (i.e., daytime soap opera), commercials, music

videos or “reality” program; or

(2) 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). Title 18, United

States Code, is available for public inspection and copying at the following address: New

York State Department of Economic Development, 625 Broadway, 8th floor, Albany, NY

12245; or

(3) other than a relocated television production, a television series commonly known as

variety entertainment, variety sketch and variety talk, i.e., a program with components

of improvisational or scripted content (monologues, sketches, interviews), either

exclusively or in combination with other entertainment elements such as musical

performances, dancing, cooking, crafts, pranks, stunts.

(4) A compilation of short films or webisodes aggregated to meet either the definition

of television film or television series under these regulations.

12 Terms and Definitions

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.

Qualified Independent Film Production Company means a corporation, partnership, limited

partnership, or other entity or individual, that or who (1) is principally engaged in the

production of a qualified film with a maximum budget of fifteen million, and (2) controls the

qualified film during production, and (3) either is not a publicly traded entity, or no more than

five percent of the beneficial ownership of which is owned, directly or indirectly, by a publicly

traded entity.

Qualified Post-Production Facility means a post- production facility located in the state,

engaged in providing post-production services, e.g., compositing, recording, mixing, which

contribute to the finishing of a qualified film.

Qualified Film Production Facility means a film production facility in NYS, which contains at

least one sound stage having a minimum of 7,000 square feet of contiguous open unimpeded

production space, provided, however, that except with respect to a qualified film production

facility being used by a qualified independent film production company:

(i) a film production facility in NYC must contain at least one sound stage having a minimum of

seven thousand square feet of contiguous open unimpeded production space that is sound

proof with a Noise Criteria ("NC") of 30 or better, has sufficient heating and air conditioning for

shooting without the need for supplemental units, incorporates a permanent grid and sufficient

built-in electric service for shooting without the need for generators, and is column-free with a

clear height of at least sixteen feet under the permanent grid for facilities constructed on or

after January first, two thousand nineteen, and at least twelve feet under the permanent grid

for facilities constructed before and which have otherwise met the requirements of this section

by January first, two thousand nineteen;

and (ii) an armory owned by NYC or NYC the state or city of New York located in NYC that does

not satisfy the criteria of subparagraph (i) of this paragraph shall be treated as a qualified film

production facility upon certification by the governor's office of motion picture and television

development of a petition submitted to that office by a qualified film production company

establishing that no qualified film production facility is available in the city of New York that has

stage space available for shooting such company's film. Such petition shall be submitted no later

than ninety days prior to the start of principal photography for the qualified film and the

governor's office of motion picture and television development shall have ten days to certify or

reject the petition. A stage will be deemed unavailable if consideration has been paid for its use

or such stage is currently under an agreement with an option for use and, in either circumstance,

such period of use includes the petitioner's estimated start date of principal photography.

Qualified Production Costs means production costs only to the extent such costs are

attributable to the use of tangible personal property or the performance of services within NYS

directly and predominantly in the production, (including pre-production and post-production)

of a qualified film. Generally Qualified Production Costs includes most ‘below the line’

13 Terms and Definitions

expenditures, such as costs for technical and crew production, use of film production facilities,

props, makeup, wardrobe, extras, camera, sound recording, set construction, lighting, and

meals. Certain types of costs are specifically excluded, e.g. Qualified Production Costs shall NOT

include:

(i) costs for a story or script to be used for a qualified film and wages or salaries or other

compensation for producers (with the exception of 1 Executive Producer and 1 Line

Producer). Please note the comments provided on the Schedule of Qualified

Expenditures, and contact the Department for further clarification, if necessary.

Qualified Production Facility (QPF) means a Qualified Film Production Facility certified by the

MP/TV Office and listed on website (https://esd.ny.gov/soundstage-directory)

Relocated Television Production refers to a television production that is a talk or variety

program that filmed at least five two seasons outside NYS prior to its first relocated season in

NYS; the episodes are filmed before a studio audience of two hundred or more, and the

production incurs at least:

(i) 30 million dollars in annual production costs in NYS, or

(ii) 10 million dollars in capital expenditures at a QPF in NYS.

Relocated Television Series refers to a television series with narrative dramatic or comedy content

and links between episodes presented via network/cable or streaming media. For network/cable

and for streaming media/digital platform, series must have produced a minimum of 6 episodes with

a production budget of minimum $1 million per episode which have been produced outside New

York.

Relocation Costs refers to relocation production costs incurred by a Relocated Television Series

prior to or during the first season of production in NYS. Qualified Relocation costs exclude salaries

and are capped at $6 million dollars.

Secure File Transfer System is the method for submitting support documentation for the Film

Production and Post-Production Tax Credit Program after the online application has been

submitted.

Schedule of Qualified Expenditures is a form which indicates, line by line, whether a particular

budget line item is considered a qualified production cost that can be used in the calculation of the

facility and location thresholds and eligibility for the tax credit. Applicants must refer to the

Schedule to determine if a particular cost can be considered a qualified production cost when filling

out the Budget Cost Qualifier.

Second (2

) Unit Photography” includes action sequences and shots generally without principal

performers and dialogue, filmed by a crew different from 1st unit crew and directed by a 2nd unit

14 Terms and Definitions

director. Second Unit shooting would typically include inserts, , action sequences and establishing

shots, etc. Second Unit Days are not included in threshold calculations for Principal Photography.

Other Days refers to shooting not included in Principal Photography threshold calculations.

Makeup and costume tests, camera tests, etc., would also be considered Other Days and are not

included in any threshold calculation.

Sound Stage means a large interior space which provides a controlled environment in which

filming takes place on sets built or assembled specifically for the production.

Target Populations means Asian and Pacific Islander persons having origins in any of the Far East

countries, South East Asia, the Indian subcontinent or the Pacific Islands; Black persons having

origins in any of the African racial groups; Hispanic / Latino persons of Mexican, Puerto Rican,

Dominican, Cuban, Central or South American Descent of either Native American or Latin American

origin, regardless of race; Native American or Alaskan native persons having origins in any of the

original peoples of North America.

Television Film, also known as “made for television movie” means a production intended for

broadcast on television, whether free or via a subscription-based service, which has a running

time of at least ninety (90) minutes (inclusive of commercial advertisement and interstitial

programming).

Television Pilot means the initial episode produced for a proposed television series which has a

running time of at least thirty (30) minutes (inclusive of commercial advertisement and interstitial

programming).

Television Series, also referred to as “episodic television series,” means a regularly occurring

production intended in its initial run for weekly broadcast on television, whether free or via

subscription- based service, that has a running time of at least thirty (30) minutes (inclusive of

commercial advertisement and interstitial programming). A television series produced by and for

media services providers described as streaming services and/or digital platforms (and excluding

network/cable) shall mean a regularly occurring production intended to run in its initial release in

a series of narrative and/or thematically related episodes, the aggregate length of which is at least

75 minutes, although the episodes themselves may vary in duration from the thirty (30) minutes

specified for network/cable production. Television Series/episodic programs should apply per

production season and indicate the number of episodes included in the application. The production

season is considered complete when post-production on the final episode of the season is

completed.