# New York Film Tax Credit

Source: https://storiara.com/incentives/us/new-york
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> New York's Film Production Tax Credit is a refundable credit of 30% of qualified production and post costs. Shoots with budgets over $500,000 that film most of principal photography in designated upstate counties get 10% more on qualified labor. Minimum budgets are $1 million in New York City and its nearby counties and $250,000 elsewhere, and most productions must use a qualified production facility.

## How the 30% is earned

Empire State Development runs the credit and describes it as a [refundable tax credit](https://storiara.com/glossary/refundable-tax-credit) of 30% on qualified costs. The program is funded at $700 million a year through 2036. The FY 2026 state budget, passed in May 2025, made three changes that matter to a finance plan: it extended the program from 2034 to 2036, removed the $500,000 cap on above-the-line pay per person, and ended the tiered payout for applications filed on or after January 1, 2025. The credit now arrives in full in one tax year.

Above-the-line wages still count only up to 40% of all other qualified costs. On a production with $600,000 of below-the-line and production costs, at most $240,000 of director, writer, producer, and cast pay can be added.

## The facility rules come first

New York ties the credit to stage work at a qualified production facility (QPF). ESD's rules depend on size and ownership:

| Production | Stage requirement |
|---|---|
| Budget $15M+ or majority owned by a public company | At least 10% of principal photography days at a Level 2 QPF in NYC, or any QPF outside NYC |
| Under $15M and not majority publicly owned | At least one day at any QPF in the state |
| Pilots | Exempt from the 10% rule, but still need one QPF day |

Beyond the stage days, location work counts when the production meets ESD's 75% test for work at the QPF. Productions spending under $3 million at a QPF also need at least 75% of location principal photography days in New York. At $3 million or more at the QPF, all New York pre-production, location, and post costs are eligible.

Minimum budgets are $1,000,000 for productions based in New York City or Westchester, Rockland, Nassau, and Suffolk counties, and $250,000 in all other counties.

## The upstate uplift

Budgets over $500,000 that shoot at least 50% of principal photography in ESD's listed counties get another 10% on qualified labor, above-the-line included. The list has every county except the five boroughs, Westchester, Rockland, Nassau, and Suffolk, so Albany, Buffalo (Erie), Rochester (Monroe), Syracuse (Onondaga), and the Hudson Valley counties of Dutchess, Orange, Ulster, and Putnam all qualify. A separate 10% applies to New York music scoring that pays at least five musicians.

## Worked example: $1,000,000 feature in Buffalo

A drama shoots 18 of its 20 days in Erie County, with one day on a QPF stage. Qualified costs: $600,000 in production costs and below-the-line wages, plus $160,000 of above-the-line pay (under the $240,000 limit). Qualified labor totals $460,000.

- Base: $760,000 x 30% = $228,000
- Upstate labor uplift: $460,000 x 10% = $46,000
- Total credit: $274,000

Based in Brooklyn instead, the film just meets the $1,000,000 minimum for the NYC area and loses the uplift: $760,000 x 30% = $228,000.

## Worked example: $5,000,000 NYC series pilot

Qualified costs of $3,900,000 at 30% give $1,170,000. With more than $3 million spent at a Level 2 stage, the production's New York location days count without the 75% location-day test.

## The independent film program

A separate Independent Film Production Tax Credit also pays 30%, with $100 million a year split into Pool 1 (about $20 million, projects with $10 million or less in qualified costs) and Pool 2 (about $80 million, larger projects). The company must be independently owned, no more than 50% owned by a publicly traded entity, and qualified costs excluding labor can't exceed $60 million. ESD shows Pool 1 fully allocated for 2026, with a Pool 2 window opening September 16, 2026 at 10 a.m. Principal photography must begin within 180 days of applying. You can't claim both programs on one project.

## Applying

1. Submit the initial application before principal photography; ESD recommends at least 10 business days ahead. Include the diversity plan.
2. ESD deems the application complete and confirms eligibility for a final application.
3. After post, file the final application with the diversity report. A pre-qualified CPA firm's review can speed approval.
4. ESD issues a Certificate of Tax Credit, which you claim on your return.

## New York against its neighbors

[New Jersey](https://storiara.com/incentives/us/new-jersey) pays 35% outside a 30-mile radius of Columbus Circle but only 30% inside it, the same rate as New York. [Pennsylvania](https://storiara.com/incentives/us/pennsylvania) pays 25% to 30%. Check [Connecticut](https://storiara.com/incentives/us/connecticut), [Massachusetts](https://storiara.com/incentives/us/massachusetts), and [Vermont](https://storiara.com/incentives/us/vermont) too. Our [incentives hub](https://storiara.com/incentives) and [incentive calculator](https://storiara.com/tools/incentive-calculator) compare them, and [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work) explains how refundable credits are financed. For permits inside the five boroughs, see [film permits in New York City](https://storiara.com/blog/film-permit-new-york-city), and for what counts toward the base, our [qualified spend](https://storiara.com/glossary/qualified-spend) entry.

Storiara's [budgeting feature](https://storiara.com/feature/budgeting) splits a budget into above the line, below the line, post, and other.

## Frequently asked questions

### How much is the New York film tax credit?

30% of qualified production costs, refundable. Productions over $500,000 that shoot at least half their principal photography days in designated upstate counties get an additional 10% on qualified labor, including above-the-line wages.

### What is the minimum budget for the New York film credit?

$1,000,000 for productions based in New York City or Westchester, Rockland, Nassau, or Suffolk counties, and $250,000 for productions in all other New York counties.

### Is there a separate New York credit for independent films?

Yes. The Independent Film Production Tax Credit pays 30% from its own $100 million yearly fund, split into a pool for projects with $10 million or less in qualified costs and a pool for larger ones. A project can't claim both programs.

### Do I get the whole New York credit in one year?

For applications filed on or after January 1, 2025, the FY 2026 state budget removed the tiered payout, so the taxpayer receives 100% of the credit in the same year rather than over two to three years.

## Sources

- [Empire State Development, NY State Film Tax Credit Program: Production](https://esd.ny.gov/new-york-state-film-tax-credit-program-production)
- [Empire State Development, NYS Independent Film Production Tax Credit Program](https://www.esd.ny.gov/new-york-state-independent-film-production-tax-credit-program)
- [Empire State Development, Film Credit Program Guidelines](https://esd.ny.gov/sites/default/files/media/document/Film_Credit_Guidelines_W_Appendix_20250418_0.pdf)
- [NYC Mayor's Office of Media and Entertainment, FY 2026 tax credit expansions (May 9, 2025)](https://www.nyc.gov/site/mome/news/05092025-ny-tax-credit.page)