Production companies should be aware that dual film production tax credits are available to New York State taxpayers – a State film production credit and also a film post-production credit.   This means that significant benefits may be available to film production companies that incur production costs outside of New York State, but incur costs in New York post-production of original content such as computer graphics, sound and music scoring, composition, and editing, visual effects, and the like.

Empire State Film Production Credit:  The traditional New York State Film Production Tax Credit is available to qualified film production companies or members of a partnership (including members of LLCs) who are allowed a credit equal to 30% of the qualified production costs paid or incurred in the production of a qualified film, provided that the 75% of production costs are attributable to costs incurred within the State; and, at least 10% of total principle photography shooting days are at a qualified New York film production facility.

 
Empire State Film Post Production Credit: Companies that may be ineligible for the film production credit (but who may nevertheless be eligible for state film production tax credits in neighboring states such as New Jersey or Connecticut) may qualify for the post production credit.  To be eligible for the credit, 75% or more of the total post production costs must be attributable to property or services incurred in New York State.
 

“Post production costs” means production of original content for a qualified film employing traditional, emerging and new workflow techniques used in post production for picture, sound and music editorial, rerecording and mixing, visual effects, graphic design, computer graphics, original scoring, animation, and musical composition; but excludes the editing of previously produced content for a qualified film.
 

The post production credit, which is allowed for the taxable year in which the production of the qualified film is completed, is equal to 10% of qualified post production costs paid for a qualified film at a qualified post production facility.

 
The Empire State film production credit and one-half of the film post production credit are refundable.