Hal Rosenbluth, the President of Kaufman Astoria Studios, considers the New York State and New York City film production tax credits “the single best marketing tool that the New York production industry has ever had outside of the city itself and the state itself.”
That Governor David Paterson would replenish the state’s exhausted film credit coffers is “common sense,” Rosenbluth insists. Yet Rosenbluth and his “friendly competitors” at other local studios like Silvercup, as well as labor unions representing the industry employees, are caught in a thriller that could end with producers taking their projects elsewhere.
Administered by the Governor’s Office for Motion Picture and Television Development, The New York State Film Production credit was established in August 2004, providing a refundable 10 percent tax credit – which was increased to 30 percent by Governor David Paterson in April, 2008 – for qualified feature films, episodic television, pilots and miniseries produced within the state’s borders. In early 2005, Mayor Michael Bloomberg signed an additional five percent city tax credit, the Made in New York incentive, into law.
While the city continues to allocate funds for its credit, no more state money can be allocated for film and television projects until additional funding is made available – even though the program was intended to run through 2013. The state will still accept producer applications and place them in a queue.
But nervous studio executives have an ally in State Senator George Onorato, whose 12th Senate District includes Silvercup and Kaufman-Astoria. In a letter urging Governor Paterson to provide additional funding to the program, Onorato wrote that during tough times when New Yorkers are struggling, “all of us in government must think long and hard about making thoughtful investments in New York State that will provide significant returns aimed at helping our economy recover and prosper.”
Pledging to continue his efforts through budget negotiations, Onorato pointed to $2.5 billion-worth of new production industry business created in the city since the state and city tax incentives were enacted. Additionally, he said, employment in the city’s film sector increased nearly 12 percent in the first eleven months of 2008 – the largest job spike among all industries.
Studio heads like Rosenbluth attest to the tremendous economic boost the production industry provides New York. Besides the hundreds of pizzas and burgers routinely ordered from local eateries, private money is invested in the studio infrastructure. Kaufman-Astoria’s property is home to a Starbucks, a Pizzeria Uno, an Evolution Gym and a move theater, and Rosenbluth says the studio was instrumental in striking a deal to move the Frank Sinatra School of Arts into a new building in Astoria.
“Our neighboring states and others are licking their lips – they can’t believe this is going on,” Rosenbluth said, adding that around 40 states in the country offer a film tax credit. California has begun chasing shows like “Ugly Betty,” he said, by offering a bonus to bring production back to the West Coast.
Silvercup CEO Alan Suna said in an email that he has spoken with Senator Onorato and is “working with all interested stakeholders to keep this successful job creating program going.”
Rosenbluth – who, along with other stakeholders is campaigning in Albany this week – agreed that while local studios have “been friendly competitors for years,” the push to renew the film tax credit calls for increased solidarity. “This is about the health of the industry and we will join hands,” he said.
