What’s the Impact of State Tax Incentives for Productions at the Local Level?

There’s no question that film and TV production are huge revenue drivers for states. In New York State alone, the 55 new and returning TV shows shooting in 2018 will generate an estimated $2.4 billion in spending statewide this year—up almost 31 percent compared to the same period in 2017. Productions are also a boon for jobs, representing more than 142,000 hires—a 30 percent increase from last year.

How do these benefits impact communities on a local level though? Film and TV productions have a trickle-down effect that resonates throughout entire communities.

A "Bashira" set inside the WNED TV studio in Buffalo, NY (photo credit: Rich Wahl)

This summer, "Bashira," a Japanese-inspired horror film and GreenSlate client project, filmed in western NY, creating jobs in the Buffalo area; the 60-person crew was primarily comprised of local residents. And “Castle Rock,” the buzzy Hulu series that’s an homage to Stephen King’s work, was a boon for the small town of Orange, Massachusetts, where most of the show was filmed. The production rented homes for various departments, frequented local restaurants, and even paid to revamp a rundown riverside park. Now that the series has been renewed for a second season, local business owners are banking on the likelihood of fans visiting in droves to see “Castle Rock” for themselves too.

New York’s film tax incentives and burgeoning film and television production industry also allow local businesses like GreenSlate to flourish.

In Delaware County in upstate New York, GreenSlate plans to expand the company’s presence this year with an office expansion in Delhi that will nearly double the office size. “For GreenSlate, the New York State Film Tax Credit Program has been an engine of growth,” explains John Finn, GreenSlate’s CEO, “The large number of film and television productions in New York enables us to support a thriving office in Delaware County.” Having grown up in Delaware County, Finn said he is “proud to be contributing to the growth of the local community” and is keen on continuing to tap the area’s “exceptional untapped talent.” He also hopes that GreenSlate’s growth will serve as a model for other local businesses.   

Not surprisingly, the state tax credit battle is heating up as states compete to attract productions to reap the economic rewards of these projects, and film incentives continue to be an influential factor in determining where a film or TV show is ultimately produced.

Weighing all your options to decide which state is best for your next production? GreenSlate’s tax credit management tools make it easy to compare film tax incentives state by state. Easily search, compare, and calculate production incentives on any device.

Have questions? Contact Michele Miller, GreenSlate’s Director of Accounting Services, for any tax incentive inquiries.