Why Shooting Commercials Upstate is a Smart Move.

ATTENTION COMMERCIAL PRODUCERS!

We’ve got something big to share…

Although the New York State Commercial Tax Credit Program is designed to incentivize commercial production across the state, the greatest savings are found just NORTH of the city.

That’s right! The program was specifically designed to give higher rewards to those filming in UPSTATE New York.

Let’s dive into the behind-the-scenes action, and see how these commercial tax credits are making Upstate New York “THE place to be” – even for commercial production 😀

Higher Credit Percentage

Filming in Upstate New York offers 50% more benefits than filming in the city. 

If you choose to shoot at Cobalt Woodstock, you’ll receive 30% back of qualified production expenses. If you film in the 5 boroughs of New York City, that savings will drop to 20%. 

Lower Spending Threshold

The minimum spending threshold for shooting in Upstate New York is only $100,000 per annum. After spending that amount, you can start collecting on the credit. 

However, if you’re filming in The 5 Boroughs of New York City, you must spend at least 5 times that… $500,000, before you can collect anything…. Sadly.

This tiny detail proves crucial when it comes time to recoup your expenses.  And come to find out… in neighboring New Jersey… you get ZIPPO 😕

Less Competition

Like every tax credit program, the state has a limit on the amount it will grant each year. In NYC, that amount is $4 million. Given the high costs and sheer number of businesses, the competition for the purse is pretty fierce.

In contrast, the nature of Upstate New York yields less competition. There aren’t as many applications, and there are fewer people pulling from the same pool of funds.  Come on up!

In the New York State Commercial Tax Credit Program, “qualified” expenses refer to specific production-related costs that are eligible for tax credits.

These expenses must meet certain criteria set by the New York State Governor’s Office for Motion Picture and Television Development to qualify for the credit. 

Here’s a detailed look at what constitutes qualified expenses under this program:

Pre-Production Costs

• Expenses related to script development, casting, and location scouting within New York State.
• Fees for legal services, if directly related to the production process.

Production Costs

• Labor Costs: Salaries and wages for crew members, cast, and extras who work in New York State. This includes wages for behind-the-scenes personnel such as camera operators, makeup artists, and sound technicians.
• Location Fees: Costs associated with securing filming locations in New York State.
• Set Construction: Expenses for building and decorating sets, including materials, labor, and rental fees for equipment used in construction.
• Costume and Wardrobe: Costs for purchasing, renting, and maintaining costumes and wardrobe used in production.
• Equipment Rental: Fees for renting cameras, lighting, sound equipment, and other necessary gear from vendors based in New York State.
• Props: Expenses for acquiring or renting props used during production.
• Catering and Meals: Costs for providing meals and craft services to the cast and crew during production days.

Post-Production Costs

• Editing: Expenses related to editing the film or commercial, including labor costs for editors and rental fees for editing suites.
• Visual Effects: Costs for creating and implementing visual effects in New York State.
• Sound Editing and Mixing: Expenses for sound design, editing, and mixing conducted within the state.
• Music Scoring and Composition: Costs for composing, recording, and licensing music, provided the work is done in New York State.

Transportation and Accommodation

• Costs for transporting equipment, cast, and crew to and from filming locations within New York State.
• Expenses for lodging and accommodation for out-of-town cast and crew members, provided they are staying within the state. Example:  I have secured hotel accommodations for Cobalt guests at $129/night, BUT with the credit…. It’s only $90.  C’mon producers… let’s not lose sleep about that one!!

Certain expenses do not qualify for the tax credit under the program, including:

Marketing and Distribution Costs

• Expenses related to advertising, promotions, and distribution.

Development Costs

• Initial development expenses incurred before pre-production, such as optioning scripts or acquiring underlying rights.

Expenses Outside New York State

• Any production-related costs incurred outside New York State, even if related to the same project, are not eligible for the tax credit.

For example, let’s say you’re a commercial producer with a client who wants to shoot in New York twice a year. 

Out of habit, you choose a location in New York City. At the end of the year, when you go to apply for tax credits, you realize that both commercial budgets only total $375,000. This means you are totally ineligible for any rebates :/

HOWEVER, had you shot for the same client, with the same budget, at Cobalt Woodstock in Upstate New York… NY State would have cut you a check for up to $112,500. WOW!!! Enough to make you say hmmmmmm….

In addition, most producers only need to shoot one commercial (to hit the $100K threshold) in Upstate New York to receive credits from the NYS Commercial Tax Credit Program.

It’s no surprise that working and filming in New York City leads to some exorbitant fees. There’s no way around it… and housing a crew, especially a large one, is going to be a costly venture.

Upstate New York has a lower cost of living and operating compared to New York City. This is important to keep in mind, as it translates to lower costs for accommodations, catering, transportation, location fees, and crews.

These reduced costs amplify the benefits of the tax credits by lowering the overall budget needed for production.

What’s a production without a talented crew? At Cobalt Stages, we have tendrils in the local community. That means experienced crews, more affordable day rates, savings on local hotels, personal recommendations for dining, fun weekend excursions, and much more.

In this case, it’s not just about dollars and cents, it’s also about convenience. That’s what makes us a turnkey studio. We’re in the business of making your experience a positive one and will do what’s necessary to assist with travel and creative solutions!

Access to local resources is what makes the NYS Commercial Tax Credit Program (part of the greater New York State Film Tax Credit Program) even more beneficial in Upstate New York.

Let’s give a standing ovation to the dynamic benefits the NYS Commercial Tax Credit Program brings to producers and their clients. With reduced costs, production companies can focus more on creative elements, pushing the boundaries of innovation and storytelling.

Producers can take greater risks and explore innovative ideas that might have been previously unaffordable. This leads to more engaging, original, and high-quality commercials that stands out in a crowded market.  Not to mention, our Virtual Production capabilities here at Cobalt…

The support from local businesses and the availability of state-of-the-art facilities also ensure that all logistical needs are met – all under one roof.

In the competitive world of commercial production, location is everything. The NYS Commercial Tax Credit Program gives New York (in general) a serious edge over other states and countries. 

These attractive tax credits act like magnets, drawing in projects that might otherwise have headed to Hollywood or exotic locales. Just this month, we have TWO new West Coast clients shooting with us.  Nuf said.

New York’s charm isn’t just in its iconic skyline or scenic landscapes; it’s in the financial savings that make it an irresistible choice for production companies – especially in Upstate New York.

Roll the credits, because it’s clear that the NYS Commercial Tax Credit Program is the unsung hero here. By offering financial incentives, creating jobs, and boosting the creative process, this program is a game-changer. 

The result? More productions are looking to Upstate New York as their backdrop, turning the region into a bustling hub of creativity and innovation.  Upstate New York is ready for its close-up, and the future of commercial production looks brighter than ever. 

Lights, camera, action – let’s make some magic happen!

Ready to get started on your commercial shoot? 

Let’s talk.

P.S. – Wanna double check my research?  I encourage you to do so!  

Call Irina at (212) 803-3225.  

Or email her at:  irina.krassilnikova@esd.ny.gov