Will Gov. Paterson Save Tax Credit Program?

Photograph of Law & Order's courtroom set by Jake Dobkin

As the tax credit funds dry up, and productions begin to flee New York City, those in the entertainment industry gathered at Kaufman Astoria Studios in Queens last night to hold a news conference and ask politicians to expand the program. The NY Times reminds us that it "offers studios tax credits from the city and state for up to 35 percent of the production costs," but as previously reported, the $690 million meant to last another four years is already gone.

On top of bringing money to the city and state, it also helps preserve up to 19,000 jobs and generates money for local businesses. To put the importance of the incentives in perspective, last year 19 pilots were filmed here, and right now there are zero planned for this year. On top of that, shows that already film here are departing—Fringe is heading to Vancouver come May, leaving 200 workers behind. One idea from the conference was to lower the percentage from 30 to 20 percent "and limit the total amount distributed to $100 million a year."

The fate of the program is now in Paterson's hands, and hopefully he'll listen to one of the folks who spoke last night—one Law & Order crew member declared: "This program more than pays for itself. This is not charity. It generates revenue at a time when the state is desperately in need of money."

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By Jen Carlson in Arts & Entertainment on March 3, 2009 3:37 PM

Comments [rss]

coldpie

Its not the actors or producers who will be out of work their jobs they will just move with the show. Its the local crews and businesses that will suffer.

Bottomless Chips

How about no tax or a low tax in the first place?

Oh yeah, we gotta pay for Medicaid shortfalls, our failing education system, and other state pet projects.

Not only do you save jobs, you help struggling local businesses of all kinds--the mom & pop bodega I spend a hundred bucks at every morning for breakfast for the crew, hardware stores, local catering companies, etc. We donate money to churches and community centers to use their halls for crew lunches, to neighborhood associations, etc.

Unfortunately, liberals and centrist conservatives don't understand the law of unintended consequences. It's spend spend spend.

JacqueMehoff

I also believe this is the industry who invented the "two books" system.

how bout the high paid talent take a pay cut? the producers take a smaller cut. I've seen how much these guys make.

sunnyqueens

It's not as though the film industry is asking for a bailout or something-- they're not in trouble at all. It's that the film industry has traditionally been seated in southern California, and NY created the tax incentive program to lure production here (since NY doesn't have the facilities, space, and even weather that LA has). They have no reason to shoot here aside from the saved money, and without that, they're fine with heading back to LA or to places like Vancouver (and now even Connecticut and Jersey) that are offering their own tax incentive packages.

Spirit of 76

I wouldn't hold my breath. Paterson doesn't seem to care about NYC.

sunnyqueens

I work for a show that is planning to relocate because of the tax incentive situation and will be out of a job, along with 200+ people, in May. Not only do you save jobs, you help struggling local businesses of all kinds--the mom & pop bodega I spend a hundred bucks at every morning for breakfast for the crew, hardware stores, local catering companies, etc. We donate money to churches and community centers to use their halls for crew lunches, to neighborhood associations, etc. And if you doubt that there are no "real benefits", check out the Ernst & Young study predicting that NY will earn $2.7 billion in tax revenue, of which only $685 million will be returned as a tax credit. So I would call that a "real benefit".