AFTRA New York Celebrates the Signing of the New York City "Runaway Production Bill"
On Monday, January 3rd, Mayor Michael Bloomberg signed into law New York City's 5% tax credit for qualified film and television productions as part of its "Made in New York" incentive program.
The new law, complementing the state's recently enacted 10% tax credit, provides an additional 5% tax credit, up to $12.5 million per calendar year, for below-the-line costs as an incentive to keep productions from heading outside the country.
"This film tax credit will make New York City more competitive and provide more jobs to professionals in this key economic sector," Bloomberg said. "This law will help return New York City to prominence as a location for film and television production, ensuring that films that are set in New York City are actually shot there."
Speaking on behalf of the acting community were AFTRA New York Local Vice-President, Ed Fry, SAG President Paul Christie and SAG National Vice-President Cynthia Vance. Fry stated, "As we said in our testimony before the Finance Committee, this bill is about real jobs with real paychecks. And we thank Councilman Yasskey for his leadership on this, as well as Chairman Weprin for his speedy action on this bill. And, of course, we thank the Mayor for his steadfast support of our industry." The state and city laws now provide tax rebates for productions of under $3M when 75% of their shooting days are done within NY state and/or New York City, and for productions of over $3M when 75% of their production is done at a qualifying NY state and/or city studio of a qualifying size. The dual programs end in 2009.
The signing took place in the Blue Room of City Hall. In attendance were the sponsors of the legislation, City Councilman and Finance Committee Chairman David Weprin, Councilman David Yasskey, Councilwoman Sears, as well as Kathryn Oliver, Mayor's Office of Film, Theatre and Television Commissioner.
For productions shot in New York City, the Office of Film, Theatre and Television's "Made in New York" program includes a marketing credit for film and television productions completing 75% of their work in the city. Qualifying productions will be offered outdoor media valued at 1% of New York City production costs in a co-branded advertising strategy.
Present to support the new legislation were such industry heavyweights as "Law & Order" exec producer Dick Wolf and Greene Street president John Penotti, ("Pinero"). Penotti declared that the credit made an immediate difference in his choice of locales for the Jared Leto starrer "Awake." "We were a breath away from shooting it in Europe…I was there scouting when the legislation was announced," he explained. "Within 24 hours, we changed strategies and are shooting it here in New York."
"This is a major event," Penotti said, "and I'm not just being a cheerleader. Sometimes 5% is our initial profit margin."
