New York (Commercials)

Be a qualified commercial production company (QCPC) or a sole proprietor that exercises control over all relevant phases of production; at least 75% of the production costs (excluding postproduction) paid or incurred directly or predominantly in the actual filming or recording of each qualified commercial must be qualified production costs; meet the minimum spending requirements of more than $500,000 for the Downstate Credit or more than $100,000 for the Upstate Credit; and file an electronic application between the first day of business in January of the year succeeding the year in which the commercial work was performed and April 1st of such year. Eligible projects must be recorded for multimarket distribution via radio, television networks, cable, satellite, internet, or cinema.

Qualified production costs means production costs only to the extent such costs are attributable to the use of tangible property or the performance of services within New York State directly and predominantly in the production (including preproduction and postproduction) of a qualified commercial and include below-the-line labor costs, costs for technical and crew production, use of commercial production facilities and/or locations costs, props, make-up, wardrobe, etc. Costs for the story, script, and compensation for writers, directors, music directors, producers, and performers, excluding background actors and musicians, are specifically excluded from the definition of qualified costs.

This program is not administered on a first-come, first-served basis. The Downstate credit is available for filming in areas within the Metropolitan Commuter Transportation District (MCTD) and is initially calculated at 20% of qualified production costs over the $500,000 minimum spend requirement. Credits are distributed on a pro rata basis among applicants for the Downstate credit. The Upstate credit is based on filming or recording qualified commercials outside the MCTD but within New York State and is initially calculated at 30% of all qualified production costs. Credits are distributed on a pro rata basis among applicants for the Upstate credit. If the amount of the credit exceeds the tax liability for that year, 50% of the excess will be refunded to the applicant. In the subsequent tax year, the applicant will file for the remaining credit. If there is any amount of credit remaining in excess of the applicant’ s tax liability for that year, it will be refunded. This program is scheduled to sunset on December 31, 2028.