Incentives Alert: Applications Open for NY Independent Film Tax Credit July 2025

In this incentives alert, Entertainment Partners brings you important updates regarding the New York State Independent Film Tax Credit Program, which opened its first application window on July 14, 2025.

The Independent Film Tax Credit Program offers a highly attractive 30% refundable tax credit on eligible in-state expenditures, with a potential increase to 40% if filming in certain counties. It is designed to support independent productions with dedicated annual funding.

Production Plus+ Credit Uplift

Independent production companies that undertake multiple productions in New York State, and meet the threshold requirements, may be eligible for an additional 5-10% credit on qualified costs on subsequent productions, through participation in Production Plus+.

To be eligible for Production Plus+, with an additional 5% credit on multiple productions, a production company must be a qualified independent film production company that submits a minimum of 2 applications that meet the threshold requirement of $20 million minimum in qualified production costs in total.

To be eligible for Production Plus+, with an additional 10% credit on multiple productions, a qualified independent film production must submit a minimum of 2 applications that meet the threshold requirement of $100 million minimum in qualified production costs in total. After meeting the threshold requirement, the company may be eligible to receive an additional 5-10% on all subsequent films or television series.

A production may also receive an additional 10% credit for scoring costs if the production’s scoring costs include payment to a minimum of five musicians.

Key parameters to consider if applying under Production Plus+:

• For each applicant, a maximum of 2 applications per calendar year will be accepted.
• The amount of tax credit issued cannot exceed the estimated tax credit amount on the initial application.
• Qualified production costs, excluding labor, cannot exceed $60 million on an initial or final application.
• Above-the-Line (ATL) costs qualify, however, they cannot exceed 40% of the total qualified production spend in the state.

What productions qualify under the Independent Film Tax Credit?

The Independent Film Tax Credit program is limited to feature films, television series, relocated television series, and films for television. 'Qualified  film' shall not include a television pilot, documentary film, news or current affairs program, interview or talk program, or how-to  (i.e., instructional) film or program.

Additionally, the designation of 'qualified film' also excludes films or programs consisting primarily of stock footage, sporting events or sporting programs, game shows, award ceremonies, film or programs intended primarily for industrial, corporate or institutional end-users, fundraising film or programs, daytime dramas (i.e., daytime soap operas), commercials, music videos or reality programing.

For the NYS Independent Film Tax Credit Program, an independent producer is defined as a qualified independent film production company that is:

• Not majority-owned (50% or more) by a publicly traded entity.
• Principally engaged in the production of a qualified film and controls the film during production.

Key differences between the Independent Film Tax Credit and general NYS Production Tax Credit programs

• Credit Claim Timing: Unlike the general Production Tax Credit, where you might wait 18 months or more to claim your credit (NYS is currently in the 2027 allocation year), the Independent Film Tax Credit is not tied to the NYS allocation year and can be claimed in the year your project is completed.
• Annual Allocation & Rollover: NYS has allocated $100 million annually for the Independent Film Tax Credit program. Once these annual funds are fully allocated, no more funds will be available for the year. Unlike the general Production Credit, this funding does not roll into future allocation years.
• Application Basis: Applications are reviewed and accepted on a first-come, first-served basis.

Important application details for the Independent Film Tax Credit

• Production Commencement: Applicants must begin principal and ongoing photography within 180 days from the submission of the initial application.
• Online Application: Please note that the NYS online application can be found in the Application Materials section of the website.

Producers should be aware of these critical and narrow application windows:

Round 1 application window: July 14, 2025 (10:00 AM EDT) to July 17, 2025 (4:00 PM EDT)

• For productions that began principal photography between January 1, 2025, and July 13, 2025
• Pool 1 Credit Allocation: $5 million
• Pool 2 Credit Allocation: $20 million

Round 2 application window: July 21, 2025 (10:00 AM EDT) to July 24, 2025 (4:00 PM EDT)

• For productions that plan to begin principal photography between July 14, 2025, and July 20, 2025
• For productions that will begin principal and ongoing photography within 180 days from the submission of the initial application
• Pool 1 Credit Allocation: $15 million
• Pool 2 Credit Allocation: $60 million

Program categories based on qualified costs

• Pool 1: Productions with total qualified costs of $10 million or less
• Pool 2: Productions with total qualified costs more than $10 million

Due to the narrow application windows and first-come, first-served nature of this program, we strongly recommend preparing your materials in advance to ensure timely submission.

If you have any questions or would like assistance with your application, please don’t hesitate to reach out to the Entertainment Partners Incentives Team at incentives@ep.com.

No matter where you are producing, Entertainment Partners helps ensure you have the most up-to-date incentive information available. To learn more, visit ep.com/production-incentives.