Hudson Valley Film Tax Credit

Posted in Creative Class | Last Updated April 6, 2020




Update: November 5th, 2016.

As we reported last month, for some reason the 2013-2014 New York State Budget included tax credit language for “upstate” counties.

It did not include the counties within the Hudson Valley area in the language.

Fortunately, on Saturday, November 5th, Governor Cuomo signed a measure to expand the tax credit by 10 percent to place it at the 40 percent rate now in effect in the New York metro region.

And for lovers of the history and beauty of the Hudson Valley, the decision is giving cause to celebrate.


Background on the bill:


Fortunately, a small group of committed people got involved, started petitions, and encouraged Assemblywoman Aileen Gunther (D, I,WF-Forestburgh) to introduce legislation (A.9415) in order to include Hudson Valley counties:

  • Sullivan
  • Ulster
  • Orange
  • Dutchess,

From Assemblywoman Gunther’s website: “The Hudson Valley has a right to every economic advantage available in other parts of the state,” said Assemblywoman Gunther. “We are fortunate to live in an area rich in natural beauty, historic architecture, and extraordinary talent. Increasing opportunities for film production in our region will potentially bring billions of dollars into our economy, creating jobs and supporting businesses of all kinds, from restaurants to retail; hardware to software. For years, movies set in the Catskills have been filmed anywhere but in the Catskills. My great hope is this legislation will go a long way to making that a thing of the past.”

According to the Hudson Valley Film Commission’s website: “The New York State Film Tax Credit Program offers film productions a 30% fully refundable tax credit statewide on QUALIFIED BELOW-THE-LINE production expenses. The new legislation increases the credit to 40% on qualified labor for the following counties Greene, Ulster, Columbia, Warren, Saratoga, Washington, Rensselaer, Dutchess, Sullivan, Orange, Putnam and Suffolk. There is a $420-million annual limit, which (if used entirely) grosses $1.4-BILLION in BELOW-THE-LINE film production expenses. ABOVE-THE-LINE* and INDIRECT PRODUCTION COSTS increase those expenses significantly.

*ABOVE-THE-LINE expenditures (expenses that do not qualify for tax credit) reflect the expected line item compensation for an official above-the-line member’s role in a given film project including the screenplay is based, production rights to the screenplay, compensation for the screenwriter, producer, director, principal actors and other cost-related line items such as assistants for the producers, director or actors.

The Hudson Valley Film Commission estimates that for every $500,000 in additional tax credits, at least $5-MILLION worth of movie production revenues will benefit the MID-HUDSON VALLEY.”

What the future holds:

More from the Hudson Valley Film Commission’s website;

“This film tax credit is integral to further expanding our creative economy, leveling the playing field among upstate counties and creating high-quality film industry jobs right here in Ulster County,” Ulster County Executive Michael Hein said in a statement Friday evening.

Hein said Cuomo, in signing the bill, “recognizes the economic importance of the entertainment industry in New York state.”

Thankfully, the Hudson Valley is now on a par with the New York Metro area in terms of the tax benefits offered and derived.