Thursday, August 15, 2013

Post-Production Continues to Leave Los Angeles For New York Due to Tax Credits

One of the myths local LA business writers and California politicians like to repeat is that it doesn't matter if film and TV production leave because everything will still come back here for post-production.  
Well, that is just another lie as Brent Lang explains in today's TheWrap.
y Brent Lang
New York has increased post-production hiring by 25 percent since the Empire State tripled the tax incentives it hands out for doing film editing, visual effects and other film work within its borders.
Data released by the pro-production credits group, the Post New York Alliance, found that 173 new people have been hired to work in post-production since the same time last year when the changes went into effect.
It anticipates that post-production business will generate nearly $70 million in spending in the state and claims that post-production companies reported spending nearly $18 million on equipment to meet the demand for their services.
In return for that investment, companies participating in the incentive program say their revenues have increased an average of 31 percent.
New York has been very aggressive when it comes to luring film work away from Hollywood and other states. Last year its post-production credit was increased from 10 percent to 30 percent in the New York City area when lawmakers decided that earlier credits were not sufficiently enticing. New York also offers up to 35 percent for post-production work done in other parts of the state.
Sixty-one productions have applying for post-production credit, which is three times the number of  applications the state received during a two-year period under the previous tax credit. In addition, seven post-production companies have established offices in New York in the past year.
Read the rest of the story at TheWrap.

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