SUCCESS ON NEW YORK STATE "RUNAWAY PRODUCTION" BILL. 
Empire State Film and Television Production Credit bill signed

The New York Film & Television Initiative, a coalition of New York unions, including AFTRA; the Screen Actors Guild; the Motion Picture Association of America (MPAA); the Association of Independent Commercial Producers (AICP), and the State AFL-CIO, had an early success with the passage and adoption of the Empire State Film and Television Production Credit, a "runaway production" measure that offers producers a tax credit for production done primarily in New York.

Governor George Pataki signed the measure in August, after quick, late summer passage by the Assembly and Senate. The measure provides producers a tax credit equal to 10% of qualified production costs. For qualifying productions of over $3 million, at least 75% of qualified costs must be "attributable to the use of tangible property or the performance of services at a qualified film production facility" within NY. For qualifying productions under $3 million, 75% of the total shooting days must be in NY.

The program has a $25 million annual cap. A sister bill has been introduced in the City Council by Brooklyn Councilman David Yassky that would provide an additional 5% credit, with an annual cap of $12.5 million.

The coalition has been meeting for months to begin a study of film and television production in New York. The study, managed by Cornell’s School of Industrial and Labor Relations in conjunction with the Fiscal Policy Institute, began this fall and will look at all aspects of film and television production in the New York area. It is due to be completed next spring and will offer a factual basis with which to seek legislative incentives to stop "runaway production" and create more work opportunities in the New York area.

Assistant Executive Director Terry Casaletta, head of the Entertainment Department of the New York Local, said: "Guided by the strong leadership of Pat Kaufman, director of the New York State Governor's Office for Motion Picture and Television Development, and Katherine Oliver, Commissioner of the New York City Mayor's Office of Film, Theatre and Broadcasting, the entire production community pulled together to support this tax initiative. It was important to all of us, no matter what this bill overlooked, to get an incentive program to keep the New York television and film community working. AFTRA members should be very proud of its leadership, especially the active roles Ed Fry and Roberta Reardon took in achieving this amazing piece of legislation."

Ed Fry, AFTRA’s member representative to the coalition, expressed his gratitude to Governor Pataki for "investing in New York’s film and television industry, an investment that will pay big dividends with both more film and television production and more jobs for our members.

Next year, armed with the new study, the coalition will look to include commercial production in the measure, something that was not achieved this year. Said Mr. Fry, "This bill certainly isn’t the entire answer to runaway production in New York. But it is a solid start and one we are eager to build on. Our focus, as always, is on jobs: more of them and more of them under union contracts."

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