PSA: The $100,000 Tax Credit Typo

Many US states and other regions offer incentives to film in their areas. But New York State is unique in that it has not one, but two separate film incentive programs: a Production tax credit program, and a Post Production tax credit program.

Like most such programs, they come with a clear set of requirements for placing acknowledgement language and logos in your end credits.

Get these simple requirements wrong, and you could end up costing your production hundreds of thousands of dollars.

Different programs, different end credits language

It’s important to understand that:

• NY State’s two separate programs have different set of requirements for your end credits; and
• the requirements are written into the state law that regulates the programs.

Because these are based on state legislation, there can’t be any exceptions. So it’s critical that you get it right the first time.

What’s at stake?

Simple: if you get these requirements wrong in your end credits, it could jeopardize getting your tax credit.

We’re not talking about pocket change. For example, on a film with a $500,000 budget, 70% of costs could be eligible for the tax credit of 30%. In other words, the tax credit at stake could be over $100,000.

That’s a very expensive typo.

How can I get it right?

It’s easy enough to avoid using the wrong language:

• Always reach out directly to your film office. They will provide the exact logo and the exact language for your specific production.
• Follow their instructions to the letter.
• Never copy and paste the language from a previous job. You might be accidentally referencing the wrong program, or using outdated requirements.

Since requirements are subject to change, make sure that you reach out to the film office again for every film you produce.

To contact the New York State Governor’s Office of Motion Picture & Television Development about your film’s end credit requirements, call 212-803-2330 or send an e-mail to nyfilm@esd.ny.gov.