Increase to Film Tax Credit for Hudson Valley

In November 2016, Gov. Andrew Cuomo signed legislation to increase economic incentives to productions that film in the Hudson Valley.

Under the revised law, the 40% tax credit that film productions in 42 norther New York counties are currently eligible to receive now also applies to an additional 12 counties: Greene, Ulster, Columbia, Warren, Saratoga, Washington, Rensselaer, Dutchess, Sullivan, Orange, Putnam and Suffolk.

The state’s $420 million annual Empire State Film Production Tax Credit covers 30% of qualified expenditures in New York City and surrounding areas. To stimulate production in counties outside the city, state officials in 2014 increased the 30% fully refundable tax credit to 40% for shows and films with budgets over $500,000 that are made in 40 upstate counties. Last year, Albany and Schenectady counties were added, but Hudson Valley (north of Westchester and Rockland counties) and Catskills counties were left out.

With support from local leaders and groups including Middletown Mayor Joseph DeStefano, Assemblywoman Aileen Gunther fought to have the Hudson Valley and other counties included in the 40% break.

“Bizarrely, Hudson Valley counties, including Sullivan, Ulster and Orange, were not considered ‘upstate’ for the purposes of the credit and have been unable to tap into this lucrative economic development opportunity,” Gunther said in a statement.

Gunther, in collaboration with Sen. George Amedore, introduced legislation in March 2016 to expand the tax credit to a dozen counties. The legislation passed the Senate and Assembly in June.