Image pipelines are the secret sauce behind Virtual Production and fantastical visual effects. You’ve got to be prepped and ready at all times, and one of the best ways to get ‘er done is through strategy.

When it comes to Virtual Production, image pipelines are the superheroes behind the scenes. Here’s a quick overview of what an image creation pipeline is, why it’s important, and how to get started, right now.

Image creation pipelines refer to the systematic process of generating visual content, typically in digital formats. These pipelines are critical in various industries, including game development, animation, VFX, and film production. 

Components of an image pipeline can include (but are not limited to):

• Asset search and Optimization
• Scaling and color correction
• Any frame rate conversions (if necessary)
• Animations production (if/ as necessary)
• Asset management and archiving
• Testing and integration

Now that you understand all the elements involved in the process, how do you plan it?

Here’s a general overview of the steps involved in an image creation pipeline:

Step #1) Conceptualization

At this stage, we kick off the creative process by brainstorming ideas and concepts for images and artwork. This can involve sketching, storyboarding, or creating mood boards to visualize the intended outcome. 

You should also consider the concept of previsualization. In this technique, 3D artists take ideas a step further by creating low-poly 3D models and representations of scenes. 

This collaboration with the production team helps set up camera angles and block out complex scenes, ultimately saving time and resources during the live-action shoot.

Step #2) Pre-production

Detailed planning takes center stage during pre-production. Here, the concept is finalized, the script or narrative (if applicable) is developed, character and environment designs are created, and a comprehensive production plan is crafted.

Step #3) Creating Assets

At this stage in Virtual Production, we roll up our sleeves to create various assets required for the project. This encompasses modeling 3D objects, texturing, rigging characters (if necessary), designing backgrounds, and crafting props or other elements.

If the image involves animation, this stage also includes animating characters, objects, or other elements according to the storyboard or script.

Step #4) Lighting and Rendering

After creating assets, it’s time to meticulously place them in scenes and apply lighting. This involves setting up virtual lights, adjusting their properties, and positioning them for the desired visual impact. Once the lighting is perfected, we render the scene to generate the final image.

Step #5) Compositing

The compositing stage involves blending various elements, such as characters, backgrounds, and effects, to produce the final image. This phase may include tasks like color grading, adding visual effects, and fine-tuning overall image attributes.

Step #6) Quality Assurance (QA)

Before finalizing the image, it undergoes QA to ensure it meets meticulous quality standards. This may involve reviewing for errors, inconsistencies, or visual artifacts.

Step #7) Delivery

Upon approval, the image is prepared for delivery to its intended audience or client. This may require exporting the image in various formats and resolutions suitable for its intended use.

Collaboration and clear communication among team members is critical throughout this process. This ensures the final image aligns with our vision and requirements established during conceptualization and pre-production. 

Additionally, iteration and feedback loops play a crucial role in refining the image and addressing any issues encountered during production.

All of these tasks add up to one bottom line:

We’re in a new era of filmmaking.

An image pipeline is essential for streamlining production processes while promising efficiency, consistency, and quality control throughout the creation of visual content. 

It enables collaboration among team members, optimizes resource utilization, and facilitates iterative improvements, ultimately leading to the timely delivery of high-quality images tailored to meet project requirements.

Typical goals of an image pipeline can include:

• Perceptually pleasing end results
• Colormetric precision
• A high degree of flexibility
• Low cost/low CPU utilization/long battery life
• Reduction in bandwidth/file size

The image creation pipeline serves as an unsung hero. It works to weed out the gaps and overlaps in processes. From conception to delivery, each of these steps plays a vital role in shaping the final product.

So, whether you’re a seasoned pro or just starting out, let’s keep riding this wave of creativity together. The future of filmmaking looks brighter than ever, and there’s no telling where our imaginations will take us next. 🎥✨

Have questions on your image pipeline? 

Let’s Talk.

Explore our complimentary tools, amenities & extras.

With our vast equipment inventory and comprehensive capabilities, we’ve been compared to a Swiss Army Knife—and yes, we do have a corkscrew. From our onsite scissor lift to our well-stocked woodshop, our space is equipped with thoughtful amenities that we offer our clients, as needed, for your productivity and convenience.

All-in-one efficiency.

Cobalt’s soundstages include a level of access and support that’s rare in the industry. All our tools and amenities are selected by seasoned professionals who understand precisely what’s needed to deliver the optimal client experience.

Comprehensive and cutting edge.

We’re early adopters, always investing in cutting-edge production tools. In particular, our motion control tools and Virtual Backlot are the most diverse and extensive that are available to the public on the East Coast. Schedule a tour today to explore the creative possibilities.

Virtual Production is at the forefront of innovation in the Industry. It’s one of the most creative tools we’ve got, and it continues to flourish among today’s visionaries.

Why? It’s one of the easiest, most creative and most cost-effective ways to tell a story!

So, what exactly is Virtual Production, and what can we expect in the next few years?

Virtual Production is a filmmaking technique that combines computer-generated imagery (CGI) with live-action footage. It involves virtual environments, digital sets, and computer-generated characters or objects to create immersive scenes and visual effects throughout the filming process.

Exploring future trends in VP, from emerging tech to evolving strategies, is essential given how quickly technology is developing. Here are a few trends to keep an eye out for:

NeRF in VFX.

It’s not the foam darts you’re thinking of…

NeRF stands for “neural radiance field” and is an AI-based image-generating process. It’s comprised of a fully-connected neural network that can generate novel views of complex 3D scenes, based on a partial set of 2D images. 

What does this all mean? 

It’s a fancy way of saying a networked neural engine that is creating new views of scenes based on limited input imagery. 

Basically, you feed it a few images and it will use the NeRF engine to generate a three-dimensional view, filling in whatever gaps there may be. The system is trained to use a rendering loss to reproduce input views of a scene.

NeRF in VFX represents a new era of what’s possible in image creation pipelines. In the same way AI can take your prompt online and create an image, it will take your input imagery and decide what goes in the gap, making advanced assumptions about brightness, texture, and reflectivity.

Expanding the Use of Virtual and Augmented Reality.

AR and VR technology enables actors to interact with virtual objects and characters as if they were truly present while enhancing their performances and fostering a deeper sense of immersion.

This type of tech allows filmmakers to augment their physical set with digital elements that can be seen in real-time through on-set monitors or AR glasses. 

In addition to streamlining the development of virtual environments, this trend improves teamwork among creative individuals, enabling them to work remotely. 

In the future, we expect VR and AR to play a major role in shaping narratives.

Global Collaboration in Real-Time.

Virtual Production is normal. It eliminates geographical boundaries and facilitates global collaboration, making the future pretty promising. The advent of cloud-based workflows with real-time data means creative teams can work together from all corners of the world.

This trend will boost creativity, opening doors for diverse perspectives and talents. Virtual Production facilitates a global network of creatives working together effortlessly.

AI-Driven Content Generation.

Artificial intelligence (AI) will revolutionize content creation in Virtual Production. It can generate realistic animations, textures, lighting, and even entire scenes, reducing workload and speeding up production. 

As AI continues to evolve, we’ll be seeing a more efficient and cost-effective content development process. Virtual Production will continue to involve a symbiotic relationship between computers and human creativity. We believe in our heart of hearts that the human element will always prevail.

The future also looks bright for indie filmmakers and commercial producers. Virtual Production is not just for big-budget productions. VP has made it easier for content creators to work with smaller budgets while producing eye-popping results.

The future of Virtual Production is filled with exciting possibilities. From NeRF and VR/AR to AI-driven content and global collaboration, the industry is on the cusp of remarkable advancements.

Ready to learn more about Virtual Production, and how it can streamline your project today?

Let’s Talk.

In the blink of an eye, we’ve gone from the early days of blue and green screens to using hyper-realistic virtual production that is indistinguishable to the human eye. 

A virtual set uses game engines and other technologies to display life-like environments and backgrounds on ultra-high-definition LED screens, strategically placed behind actors while filming. So far, it’s game-changing. Productions can be made faster, better, and for less money than on-location shoots.

Here are a few movies you didn’t realize were shot on virtual sets.

While watching The Irishman on Netflix, did you wonder how the actors transition from their 30s in the beginning to their 60s by the end? According to Vulture, the team at Industrial Light & Magic (ILM) made it happen using virtual production.

Based on Charles Brandt’s biography of a mob hit man, Frank Sheeran, “I Heard You Paint Houses,” the story spans approximately seven decades. 

To appropriately age and de-age the actors, ILM used artificial intelligence, motion-capture technology, and a three-camera system to virtually reproduce sets and locations. This allows the actors to shoot their scenes without the need for hours in the makeup chair or special mo-cap suits.

The film stars Dwayne Johnson as an FBI agent chasing art thieves, played by Ryan Reynolds and Gal Gadot. 

To meet Netflix’s tight deadline, visual effects company Lux Machina built a virtual set consisting of LED walls, an LED ceiling, and mobile screens that were moved where needed.

A large volume of screens were used to create a fight on board a moving train, as well as a scene on a helicopter. The film was the fifth most streamed movie on any platform in 2021.

The racing, the stunts, the crashes, most of that was real, but not everything. Virtual production was used to extend the courses, add to the crowds, and build some from scratch.

The production team used Unreal Engine, another game engine, to fix angles, create rain during a race, and tie footage together. They used similar stylization to better match the original, traditionally shot footage.

With Top Gun: Maverick, what you see is what you get. All the aerial maneuvers, the barrel rolls, the ups and downs, they’re all real.

Well, almost…

This film used very little digital FX. However, scenes where it would’ve been impossible to mount a camera on a fighter jet traveling at the speed of sound, were the scenes in which virtual production was used. 

Without the tech, shots of the pilot’s facial expressions and the cockpit in flight wouldn’t exist, and the film would be all the lesser for it. The team at Lux Machina used a game engine called Disguise to render 270-degree views by blending images from 15 projectors.

For the last 20 years, video production has sparked conversation about a massive transformation in the Industry. Will we soon be using AI to make actors, screenwriters, directors, and producers obsolete? Not likely. It’s far more possible that the entertainment industry will work with technology to continue to improve the moviegoing experience. 

The more authentic a story is, and a movie seems, the more plugged in we are. Virtual production creates realistic settings that get viewers emotionally involved in the story. We end up caring about the protagonist and rooting for their win. Films like Red Notice know to capitalize on that relationship to bring in more viewers.

Have more questions on virtual production? 

Let’s talk.

Just when you thought a 40-45% tax credit was huge, here’s another remarkable program to swoop in and save the day!  

We’re always investigating ways to help you save. Cuz when you save, we save, and everybody wins 💥💥💥

We understand sales tax can get heavy, especially for big productions. But, when you have the right production partners 😉 there’s actually quite a few different ways to reduce your costs and streamline the budget.

Here, we take a quick peek at how you can take advantage of some of these ample tax programs in New York. 

Waving away sales tax is one of the best programs NYS has to offer for us folks in the Industry. Read on…

New York’s tax credit programs have been instrumental in the growth of the state’s film industry. One of the many tax benefits associated with filming in New York State is the Sales Tax Exemption Program offered through The Governor’s Office of Motion Picture & Television Development (MPTV).

And while it’s one of the benefits of filming in New York, it’s not entirely clear how to sign up to receive the exemption. 

Here, we’ll take a look at New York State’s Sales Tax Exemption Program, the credits available, and the latest regulation changes.

The Purpose Behind the Program

The tax benefits are offered in New York State to encourage film production and bring more jobs to the region.

What Does it Cover?

Film and video productions get a sales tax exemption for all production consumables, equipment rentals, purchases, and related services. 

The exemptions cover almost every aspect of film, video production, and post-production. To qualify, the production company must register as a vendor with New York State.

The term film includes, but is not limited to:

• feature films
• television films
• commercials
• documentary films and shorts
• similar film and video productions

Film production activities that are eligible for the exemption from sales tax are:

• pre-production
• production
• post-production
• sale and distribution

Ready to Apply?

Start by downloading a copy of Publication 28: A Guide to Sales Tax for the Film Industry. It uses plain English to describe everything you need to know to receive the sales and use tax exemptions.

You must first apply online for a Certificate of Authority with New York State’s Department of Taxation and Finance. The website says processing time averages to about five days. However, Publication 28 mentions leaving room for a 20-day lead time ahead of the first day of pre-production.

Would you prefer to mail your completed form rather than apply online?

Alternatively, you can download, print, and fill out Form DTF-17.1, Application for Registration as a Sales Tax Vendor, and the Instructions for Form DTF-17. 

Remember to keep a copy for your records. Mail the completed original to: 

NYS Tax Department
Sales Tax Registration Unit 
W A Harriman Campus
Albany, NY 12227

Upon approval, you’ll be issued a Certificate of Authority, which will display your vendor identification number. Make sure to display your certificate everywhere you’re filming.

To Claim an Exemption

To request an exemption when making exempt purchases of tangible personal property used directly and predominantly in the production of a film, your suppliers will need your completed Form ST-121: Exempt Use Certificate.

Tangible Personal Property Used in Film Production

Tangible personal property used or consumed directly in the production of a film for sale may be purchased, leased, or rented, exempt from sales tax. 

Property is used predominantly in film production if more than 50% of its use is directly in the production of a film. 

Services to Property Used in Film Production:

Services that you purchase for tangible personal property used predominantly in the production of a film are exempt from sales tax. 

Utilities, Utility Services, and Fuel Used in Film Production:

Gas, electricity, refrigeration, steam, and fuel that you purchase for use or consumption directly and exclusively in the production of a film are exempt from tax. 

What’s exempt and what is not:

• Electricity for actors’ trailers is taxable.
• Electricity for office is taxable.
• Electricity used by set lighting equipment is exempt.
• Gasoline or diesel motor fuel used by a vehicle moving equipment to another location is taxable.
• Gasoline or diesel motor fuel used by a vehicle used as a prop in a commercial is exempt.

To purchase utilities and utility services exempt from tax, you must issue a properly completed Form ST-121, Exempt Use Certificate, to your supplier.

To claim an exemption for gasoline and/or diesel used directly in film production, you must pay the sales tax at the time of purchase. You’ll then claim a refund of the tax paid by filing Form FT-500, Application for Refund of Sales Tax on Automotive Fuels.

You Must File Sales Tax Returns

For sales tax purposes, once you receive your Certificate of Authority, you are considered to be in business, even if you never make a sale.

Filing sales tax reports on time is important. Filing late could cost you penalties. Filing sales tax returns online is easy using the Tax Department’s Online Services. 

Summing it Up

Filming in New York makes good business sense. Doing so opens up financial benefits that you won’t see anywhere else. Their sales tax exemption could save a production anywhere from several hundred to several thousand dollars. These exemptions could help offset other production costs.

New York State offers optimal filming locations across the state. The financial benefits of filming here can vastly offset other production expenses and streamline production costs.

Any more questions?

Let’s talk.

The New York State Film Tax Credit Program is worth $700 million, and with its recent upgrades, is one of the best in the nation.

Ulster County-based production and post-production efforts benefit from the highest level of NY film tax credits available in NYS and the country, at large.

Did you know, Woodstock (in Ulster County) is THE prime place to collect the most?! So, why aren’t you filming here, right now?

The Film Tax Credit Program is divided into two distinct programs:

• Program #1: The Film Production Credit
• Program #2: The Post-Production Credit

Learn more about the New York State Film Tax Credit Program.

#NYS #Filming #Taxes #Entertainment #taxcredit #savemoney

Ready to go?
Let’s talk.

The massive soundstage doors are open, and Cobalt Woodstock is up and running! Recently, we’ve had some of our long-time LA clients in town for production. They absolutely raved about the area, and the Cobalt campus we’ve put together in the Hudson Valley 🙂

And they fell in love…

What’s not to love? The crisp air. The towering trees. The rolling hills, the rivers, the history, the vibrant arts community that’s been calling this place home for over half a century…Even the Woodstock Film Festival draws an impressive crowd to Ulster County.

Our LA clients are not only wowed by our production studio, but also by the exceptional dining options in the area. Whether it’s organic, farm-to-table fresh at Silvia, French faves at Le Canard Enchaine, or classics from the Catskills at Butterfield, there’s something for everyone in your production, cast, or crew. We’re not joking when we say Woodstock is magic, and we know you’ll feel it too.

Speaking of food, what’s cookin’ at Cobalt?

We had our client’s Head Chef feel right at home in our fabulously well-appointed kitchen. But it’s the Cobalt extras that make the difference. And, let’s just say they were ready to leave a 5-star review of the Cobalt Experience!

What made this shoot so special?

Why do our clients come from LA to work with us?
Here’s a peek at what our clients take advantage of during their shoot at our turnkey soundstage:

Motion Control and Custom Rigging

We’ve got a huge inventory of robotics, from full-on camera cranes to sleds and sliders. Our MoCo inventory ranges from 50ft to micro-miniature sliders for ECU work, rotators from 4 ft diameter to jewelry work, multiple x/y tables, pan/tilt/roll heads, and three independent control stations.

We’ve also got a little trick up our sleeves called the Berkey System. Think of it as an erector set for the rigging team. It allows us to create custom rigging on the fly, and to accommodate the unique demands of every shot. Our over-under rig is shaped like a horseshoe, and lets us whip cameras up-and-over subjects with ease.

Cobalt Stages also has various mechanical sliders that move subjects and allow us to create absolutely precise movements, ensuring we get the perfect shot. It’s focused and measured motion control through state-of-the-art camera robotics.

For our LA clients, we needed cilantro to gently rain down into a bowl of guacamole. The only way to get the precision and pacing right was to send those delicate little leaves a-flutter from a purpose-built tiny conveyor belt. No problem!

Custom-built Bakeup Oven

Our custom oven is one of 2 in the whole world. The whole world! You have to see this thing in person. Imagine a fully functional oven with clear Pyrex on 4 sides and the top, so you can experience the food doing its magical transformation.

An Almost Endless Prop Room

Nothing like having items at hand when you’re in a crunch! The big items take care of themselves, but it’s the little ones that often are the “sweeteners”…

Pyro

Who doesn’t love to play with fire? With our valved pyro control system, we’re able to animate flames and control the nuances of pyrotechnics. So that while it looks dramatic… it also looks authentic.

That’s just scratching (scorching?) the surface of what we can do. It’s the sum of all the parts that defines Cobalt.

We can level up your production in 2024.

Dear Friends 💕

Thank you for being a part of our labor of love, and letting us be a part of yours!

Happy Valentine’s Day!
Team Cobalt

New York State Film Tax Credit Program (Post-Production)

The New York State Film Tax Credit program and Post-Production program offers the entertainment industry one of the country’s most stable, strategic, and successful tax credits. Of the $700 million available in the program, $45 million every year has been allotted to expenses for post-production costs.
The Film Tax Credit program is divided into two distinct programs:

1. the Film Production Credit
2. the Post-Production Credit

While the production credit is available for businesses that film a substantial portion of their project in New York State, the post-production credit is available even if the majority of the project was filmed outside of the state. 

Creators are also encouraged to apply if they were ineligible for the production tax credit program. This happens when the production company contracts their post-production work to NYS post-production companies.

Here we take a quick look at the New York Post-Production Film Tax Credit program including a brief overview, eligibility, and how to apply.

Objective and Overview

The main goal of the Post-Production Tax Credit program is to strengthen the post-production industry in New York State, and boost the positive impact it has on the economy.

Who Can Apply?

The Film Tax Credit program provides incentives to qualified production companies that produce:

• Feature films
• Television series
• Relocated television series
• Television pilots
• Television movies
• and/or incur post-production costs associated with the original creation of these film productions

Program Highlights

To encourage companies to develop their film projects in New York and to help create and maintain jobs, productions that comply with program requirements may be eligible for:

• A fully refundable tax credit of 30% of qualified post-production expenses. This Post-Production tax credit program is funded at $45 million a year through 2034.

• An additional 5% credit is available with the Post-Production program for costs incurred in Upstate NY, outside the Metropolitan Commuter Transportation District (MCTD).

• Projects with budgets over $500,000 can receive an additional 10% credit on qualified labor expenses incurred in the following counties:

Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates.

Click here for specific tax credits for Ulster County.

Eligibility

rat, helvetica, arial, sans-serif;”> New York Post-Production program is limited to the post-production of feature films, television series, relocated television series, television pilots, and films for television.

The post-production credit is available when the project was filmed predominantly outside of New York State, and the film production company contracts their post-production work to companies in NYS specializing in post-production work.

Post-Production Credit

Post-production costs (associated with the production of original content for a qualified film) incurred at a qualified post-production facility in New York State are eligible.

What is a qualified post-production facility?

A qualified post-production facility is any company located in NYS and engaged in providing post-production services to film and television.

A film production company can qualify for the post-production credit if it meets either one or both of the following thresholds:

#1) Visual Effects and Animation

The qualified VFX/Animation costs incurred at a qualified post-production facility in NYS must EITHER meet or exceed:

– 20% of the total VFX/Animation costs paid;

– OR incurred for VFX/Animation for the qualified film at any post-production facility anywhere;

– OR $3 million Post-Production.

The qualified post-production costs incurred at qualified facilities in NYS (excluding cost for VFX/Animation) must meet or exceed 75% of the total qualified post-production costs paid or incurred in the post-production of the film at any post-production facilities.

#2) Fully Animated Production/Post-Production

A company engaged in the production of a fully animated film is eligible for the Post-Production Credit if the qualified production and post-production costs meet the VFX/Animation threshold of 20%; expenses in the Producer, Director, and Deliverable Elements categories are also qualified if they meet the Post-Production 75% threshold.

Ready to Apply?

Application Process

Applicants complete and submit the Project Summary Form online.

All other documents that comprise a complete application are submitted through the secure file transfer system. It is highly recommended that applications be submitted at least 10 business days prior to the start of principal photography.

When submitting an application for the Post-Production Credit, all materials must be submitted in order for the application to be considered complete.

• Online Application Form
• Chart of Application Materials for the Film Tax Credit
• Application Instructions
• Program Guidelines

Post-Production Credit

Complete initial and final application forms are either online or downloadable.

The Post-Production Credit application must be filed prior to incurring any qualified costs in New York State. Thus, it is recommended (but not required) that the initial application be submitted prior to the start of principal photography on the qualified film (or tv pilot/series).

Upon completion of post-production, a final application must be submitted with actual project information. When the final application is deemed complete, the program Office will notify an applicant that the application is ready for audit.

After the audit, a Certificate of Tax Credit may be issued and sent to the applicant listed in the final application.

• Post-Production – Initial Application Template Book – The Post-Production Credit Initial Application Template file contains the following templates for submission via the online application:
  • Budget Cost Qualifier (Live Action and Animation)
  • Schedule of Qualified Expenditures (Live Action and Animation)

• Project Summary – Post-Production Credit – Final Application (Online Application Form)
• Post-Production – Final Application Template Book – The Post-Production Credit Final Application Template file contains the following templates for submission via the online application:
  • Budget Cost Qualifier Summary Page (Live Action and Animation)
  • Budget Cost Qualifier Detail Page (Live Action and Animation)
  • Schedule of Qualified Expenditures (Live Action and Animation)
  • Employment Report
  • Retained Assets Report
  • Related Party Transaction Report

CONTACT INFORMATION

For more details or if you have specific questions, please contact the Film Tax Credit program at (212) 803-2328 or via email at filmcredits@esd.ny.gov.

All New York State Tax Incentives

New York State has a variety of film tax programs to incentivize the film and television industry in the form of tax credits, sales tax exemptions and grants to support workforce diversity, training and job creation.

Summing it Up

Filming your movie in Upstate New York comes with the added benefit of the state’s robust film production tax credit program. New York offers filmmakers a competitive incentive package for post-production credits which include:

• A fully refundable tax credit of 30% of qualified post-production expenses.
• An additional 5% credit may be available in the Post-Production program for costs incurred in Upstate NY.
• An additional 10% credit on qualified labor expenses.

These post-production tax credits will significantly alleviate production costs making Upstate New York an economically attractive choice for filmmakers. 

New York’s commitment to supporting the film industry extends far beyond financial incentives helping to foster a thriving, creative community that offers valuable resources for filmmakers. 

Choosing Woodstock as your prime location not only provides a visually captivating backdrop, but presents a strategic financial advantage that ensures a compelling and cost-effective production experience.

Ready to get started? 

Come visit Cobalt Woodstock.

Let’s talk.

What is the New York State Film Tax Credit Program?

Did you know filming in New York has incredible tax benefits? The Governor’s Office of Motion Picture & Television Development (MPTV) offers film, television, and commercial production and post-production tax credits for qualified expenditures in New York State.

This $700 million film incentive program is one of the best in the nation!

However, WHERE you film in the state can mean the difference between saving 25% or 45% in film tax credits. For a larger production, this could be huge.

Ulster County-based production and post-production efforts benefit from the highest level of NY film tax credits available in NYS and the country, at large.

Here we take a quick look at the New York State Film Tax Credit Program, including the type of credits available, eligibility, and the latest changes in regulation.

The Purpose Behind the Program

The initial purpose behind the New York State Film Tax Credit Program is that it was designed to increase the film production and post-production industry presence and overall positive impact on the state’s economy.

What does it do?

The Film Tax Credit Program provides incentives to qualified production companies that produce:

• Feature films

• Television series

• Relocated television series

• Television pilots

• Television movies

• and/or incur post-production costs associated with the original creation of these film productions.

The Film Tax Credit Program is divided into two distinct programs:

Program #1: The Film Production Credit

Program #2: The Post-Production Credit

The first program is outlined in detail below, and you’ll find the post-production program on the next blog.

Why New York State?

New York State has a dynamic and diverse film and television production presence, worldwide, boasting a strong infrastructure and robust economy. It’s one of the top states with film credits and offers some of the highest percentages for film tax relief.

Upstate New York

Upstate New York really has it all. It offers unique features and services to accommodate any number of film projects, including varied terrain, period and futuristic settings, urban and small-town backgrounds, local crew and warehouses, plenty of office space, and a local government that supports and encourages filming.

And if you can’t find your typical location, Upstate New York houses the new Cobalt Stages facility just outside the historic town of Woodstock. Cobalt Woodstock has brought its EFX and Virtual Production to the already vibrant Hudson Valley Film scene.

Upstate New York boasts four distinct seasons, allowing you to capture the changing beauty of nature throughout the year. Additionally, New York tax credits can significantly reduce production costs and make your project more economically viable. 

The welcoming and supportive local communities further contribute to the practical advantages of choosing Upstate New York as your filming location and production hub. The region not only offers a visually compelling setting, but practical incentives help to level up your production.

Amount of Credit Available

Program credits of $700 million per year are allocated and used to encourage companies to film projects in New York, and create and maintain film industry jobs. 

Film Production Credit applicants are eligible to receive a fully refundable, baseline credit of 30% of qualified production costs incurred in New York State (NYS). You are eligible to receive an extra 10% off for production in Upstate NY. Then, Upstate even offers an extra extra 5% on post. This all relates to outside the Metropolitan Commuter Transportation District (MCTD). 

This brings the entire possible New York state tax credit to a total of 40% savings for production and 45% for post-production in Upstate territories.

Please note, that there are no per-project caps for credits, and there is a rollover in the annual $700 million allocation going forward until 2034. 

Eligible Counties for an Additional Credit

In addition to the 30% NYS film tax credit, from 2015-2034, any production with a budget over $500,000 can receive an additional 10% credit on qualified labor expenses incurred in the following counties:

Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates.

Click here for specific tax credits for Ulster County.

Eligibility Criteria

The Film Tax Credit Program is limited to film production companies producing feature films, television series, relocated television series, television pilots, and television movies. Television series and relocated television series must submit separate applications for each complete season to be eligible for New York tax credits.

The production credit is available for companies that film a substantial portion of their project in NYS.

Eligibility requirements vary based on the type of company and the budget.

• Level 2: If the film has a production budget over $15 million and/or is being produced by a publicly traded entity; at least 10% of the total principal photography shooting days must be at a qualified production facility (QPF) in NYS on a set built expressly for the production. This can also include virtual production.
• Level 1: Productions with budgets of $15 million or less produced by companies that are independently owned must shoot at least one full day of principal photography at a QPF on a set built expressly for the production.

For the purposes of this program, a full day means a minimum of eight hours from the first unit crew call to wrap.

Principal photography is defined by criteria including, but not limited to, the presence of first unit crew, director, and principal performers, and the recording of scenes in which lines of dialogue are spoken.

Re-shoot days with actors, directors, and crew are considered principal photography. Second-unit shoots and pickup shots without director and actor(s) are not considered principal photography.

Excluded Categories

Documentaries, news or current affairs programs, interview or talk shows, variety talk, variety sketch and variety entertainment shows, instructional videos, sports shows or events, daytime soap operas, reality programs, commercials, and music videos.

Latest Changes to the Tax Credit Program

Some of the latest changes to the tax program (as of 2023) that you may need to be aware of include:

• The base tax credit rate has increased to 30%.
• Effective April 1, 2023, those applicants with a tax credit allocation year of 2024 and thereafter may file a return for the first taxable year in the allocation year cited on the New York tax credit certificate.
• Annual allocation has increased to $700 million, of which $45 million is allocated to the Post Production Tax Credit Program. Allocation for the program continues through 2034.
• These Above-The-Line (ATL) salaries are qualified for the tax credit:
  • Director
  • Writers
  • Actors
  • Composers
  • 2 Producers (one EP responsible for overall creative management, and one LP responsible for overall production management).
• ATL salaries identified are subject to a $500,000 cap per individual and limited to 40% of all other qualified production costs.
• A Relocating Talk/Variety series must be in production outside NYS for two years only (reduced from 5 years).
• Relocating Television series (narrative dramatic or comedy series) must have been in production outside NYS for a minimum of six episodes with a per-episode budget of $1 million minimum.
• For network/cable, the length requirement is at least 30 minutes with commercials; for streaming media, the length must be at least 75 minutes for the total number of episodes in the season.
• Production costs of up to $6 million for relocation (excluding salaries) are eligible for the NY film tax credit for the first season in NYS.
• Effective January 1, 2023, applicants to the NY State Film Production tax credit program are required to file a diversity plan outlining specific goals and strategies for hiring a diverse workforce.

Ready to Apply?

Application Process

Applicants complete and submit the Project Summary Form online.

All other documents that comprise a complete application are submitted through the secure file transfer system. It is highly recommended that applications be submitted at least 10 business days prior to the start of principal photography.

When submitting an application for Film Production Credit, all materials must be submitted in order for the application to be deemed complete.

• Online Application Form<
  
• Chart of Application Materials for the Film Tax Credit<
  
• Application Instructions<
  
• Program Guidelines
  

For the Film Production Credit, applications must be submitted prior to the start of principal and ongoing photography.

Summing it Up

Filming your movie in Upstate New York comes with the added benefit of the state’s robust film production tax credit program. New York offers filmmakers a competitive incentive package, which includes:

• A 30% tax credit on qualified production expenditures
• An additional 10% credit for qualified productions in certain upstate counties
• A 45% credit for post-production work

These film production tax credits can significantly alleviate production costs, making Upstate New York an economically attractive
choice for filmmakers.

New York’s commitment to supporting the film industry extends beyond financial incentives fostering a thriving creative community that
offers valuable resources for filmmakers.

Choosing Woodstock as your prime location not only provides a visually captivating backdrop, but presents a strategic financial advantage
that ensures a compelling and cost-effective production experience.

Ready to get started?
Let’s talk

Come visit Cobalt Woodstock.