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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
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Governor Kathy Hochul has officially signed the 2025–26 New York State Budget, introducing a suite of powerful new enhancements to the Empire State’s film and television tax incentive program.
Long known for its competitive production credits, New York is now doubling down—with more funding, expanded access, and added bonuses designed to attract both studio tentpoles and indie films.
In this post, we’ll break down all of the exciting new changes to the New York film tax credit program, including what these updates mean for producers and how your next project can qualify.
New York has long been a premier destination for production, with the New York film tax credit program serving as a cornerstone of the state’s film and television industry.
First introduced in 2004 to curb runaway production and lure back projects lost to other states, the program offers a 30% to 40% fully refundable tax credit on qualified production expenses.
As a fully refundable film tax credit, New York’s incentive is highly appealing.
If a production company does not have any tax liability, the full amount of the credit is rendered as a tax refund. If the production company does owe income tax, the amount owed is first reduced by the amount of the credit. No matter what, productions can expect to receive money back for eligible production spending incurred in New York.
With significant funding—$700 million annually before this latest increase—the New York State Film Tax Credit Program is also one of the most substantial production incentives in the country. But it’s not without competition.
Georgia and New Jersey recently ramped up their own production incentives and several states appear poised to follow suit. Sizable credits, grants, and rebates offered across the country—from California to Louisiana—continue to entice producers with serious savings.
The new enhancements to New York’s film tax credit, enacted by the 2025-26 budget, aim to keep the Empire State competitive and maintain New York’s status as a preeminent home for entertainment production.
The 2025-26 New York State Budget includes a number of provisions that dramatically expand the New York State Film Tax Credit Program. With enhancements to support both studio and indie production alike, the program is now more appealing than ever.
Under the new state budget, the annual funding cap for New York’s film and TV credit will increase to $800 million—the highest in the program’s history.
This means that the New York film production incentive program will be able to dole out up to $800 million in credits each calendar year.
With the increased funding, New York’s program becomes the largest capped program in the country—only a few programs like those in Georgia and Illinois have no defined annual funding cap.
Of the $800 million in annual funding, $100 million is earmarked exclusively for independent productions, marking a substantial commitment to supporting indie filmmaking.
To be eligible for funding from the $100 million pool, indie producers must meet the new definition of a “qualified independent production company,” i.e., a company that is not publicly traded and not majority owned (51% or more) by a company publicly traded on a US stock exchange.
Additionally, $20 million of the $100 million is set aside for indie projects with budgets less than $10 million. The remaining $80 million is set aside for qualified independents with budgets of $10 million or more.
Along with dedicated funding for independents, the enhanced New York film tax credit program includes increased support for companies that commit to producing multiple projects in the state.
Production companies and their affiliates that submit two or more initial applications to the incentive program can be eligible for additional bonuses through the new Production Plus Program.
If accepted in the Production Plus Program with combined qualified spending of at least $20 million from the initial applications, the company and its affiliates will be eligible for a 5% increase in their total credit for all subsequent productions until the end of 2028.
If accepted into the program with $100 million or more in combined qualified spending from the initial applications, the company and its affiliates will be eligible for a 10% increase in their total credit for all subsequent productions until the end of 2028.
Additionally television series that enter the Production Plus Program by December 31, 2028 will remain eligible for the life of the series.
These new bonuses are designed to incentivize slate production in the state and offer meaningful support to studio partners who bring consistent work to the streets and soundstages of New York.
Enhancements to the New York State Film Tax Credit program also include a new music scoring bonus.
Qualified projects can now receive a 10% credit for qualified spending on music scoring costs incurred within the state, provided at least five musicians are hired to perform work in New York.
Previously, the program limited credits on above-the-line compensation to only the first $500,000 paid to individual cast and crew.
The updates in the 2025-26 budget remove this $500,000 ATL compensation cap, allowing projects to qualify more of their cast and crew payroll.
It should be noted, however, there still remains an overall cap of 40% on below-the-line and vendor costs—no project can receive a credit of more than 40% for spending on these categories.
The upgrades don’t end with production related expenses. New provisions in the budget further enhance credits for post-production, VFX, and animation work conducted in the state.
Previously, productions seeking the post-production-only credit were required to complete at least 75% of their non-VFX post-production work in New York.
The updated guidelines introduce a more accessible threshold: projects can now qualify by completing either 75% of post-production in-state OR spending at least $1 million on post-production within New York.
In a significant win for visual effects and animation teams, New York has also eased the requirements for claiming the VFX/animation-only credit.
Under the old rules, productions needed to complete 20% of their VFX/animation budget in-state or spend a minimum of $3 million in New York. Now, the bar has been lowered to just 10% of the budget or $500,000 in qualified New York spend—opening the door for more projects to bring their post pipeline back to the Empire State.
Producers will rejoice at the improvements the new provisions make to the payout timeline for New York film tax credits: for applications filed after January 1, 2025, productions can now claim their credits in the same allocation year.
For applications filed before January 1, 2025, the previous payout timeline remains in effect:
The new timeline for applications filed after January 1, 2025 is designed to streamline and expedite the credit payout process, ensuring productions can get their money back faster.
Finally, the new incentive enhancements come with a guarantee of predictability, as the program is now extended through the end of 2036.
By ensuring New York film tax credits are here to stay for the next decade, this extended sunset date gives producers and financiers the freedom to plan for future projects knowing they can count on New York.
Since all of these changes are enacted by the 2025-26 New York State budget, all enhancements are retroactively effective and apply to applications submitted after January 1, 2025.
With more funding, generous new bonuses, and clearer long-term stability, New York has sharpened its pitch to both major productions and small indies seeking world-class infrastructure and a talented pool of filmmaking professionals.
The increased annual cap and newly introduced bonuses send a clear message to major studios: New York is open for blockbuster business.
By offering a 5% to 10% bonus credit to companies that commit to producing multiple projects in the state, the revised program rewards high-budget, long-term investment in New York’s filmmaking infrastructure.
Tentpole productions often chase the most lucrative savings, and so these enhancements help position New York as a go-to destination for marquee titles and streaming juggernauts.
For independent producers, the creation of a dedicated $100 million fund offers more than a financial boost—it provides a strong signal that New York values projects of all sizes.
Indie filmmakers frequently get crowded out of the incentive pipeline by higher-budget projects that can more easily meet eligibility thresholds and secure limited funding.
The new carveout levels the playing field, making it easier for independent voices to access meaningful support and ensuring that New York’s creative ecosystem remains as diverse and dynamic as the stories it helps tell.
As more productions are greenlit and spending ramps up across the state, the economic ripple effects are expected to be substantial.
Local crew hires, equipment rentals, location fees, and catering contracts are just the beginning. These incentive enhancements are likely to generate thousands of jobs and inject millions of dollars into local economies—from NYC’s five boroughs to towns upstate.
For policymakers and local communities, the expansions to New York’s film tax credit program will deliver both increased cultural capital and real economic return.
New York’s investment in the entertainment industry isn’t just about boosting spending—it’s about building long-term capacity. As demand increases, so too does the need for physical infrastructure.
High-profile developments like Wildflower Studios in Queens, spearheaded by Robert De Niro and designed to be one of the most advanced soundstage complexes in the world, signal a commitment to creating facilities that can rival those in Los Angeles, Atlanta, and London.
Updates to the film tax credit program enacted today provide the certainty developers need to invest in the production hubs of tomorrow.
So what ramifications might New York’s upgraded production incentives have on the entertainment landscape at large?
Let’s take a look at how these changes fit within both the context of production inside the United States and also the industry’s increasingly competitive global footprint.
New York's incentive overhaul is a direct response to intensifying competition from other states.
Georgia’s uncapped credit and well-developed infrastructure have long made it a magnet for large-scale productions. New Jersey, with its rapidly expanding studio development and local crew incentives, has made serious gains in recent years.
By increasing funding for incentives and rewarding repeat business, New York is staking its claim as a top-tier production state that wants to attract and keep business.
Competitive financial incentives amplify the state’s already compelling offerings—New York has a cultural cachet and workforce depth that few other states can match.
The race for production dollars is not confined to U.S. borders—far from it.
Countries including Canada, the UK, and Australia continue to attract producers with beneficial exchange rates, deep crew bases, and—most importantly—strong incentives.
By lowering post-production thresholds and offering additional slate bonuses to compliment existing upstate credit bumps, the Empire State is making a play for projects that might otherwise go offshore—ensuring that New York remains an international player in the ever-evolving production landscape.
With increased funding, expanded bonuses, and a clear invitation to both major players and indie voices, the upgraded New York State Film Tax Credit Program puts the Empire State’s full weight behind the entertainment industry.
To learn more about how your project can qualify for incentives in New York and beyond, visit our Production Incentive Center. There you’ll find up-to-date information about eligibility requirements and application procedures for programs all across the U.S.
You can also check out our deep dive on the New York Film Office to discover all the ways—incentives and more—that New York supports filmmaking. See you on set, New York.
