New York extends film/TV tax break for one year

By Michelle Nichols

NEW YORK (Reuters) - New York state has extended a 30 percent film and television production tax credit for one year, which the industry welcomed on Wednesday but said lacked the long-term certainty needed to attract business.

As part of a $132 billion budget unveiled on Tuesday aiming to tackle a two-year $17.7 billion deficit, New York Governor David Paterson and legislative leaders agreed to provide $350 million to extend the production tax break.

The budget has been passed by the lower house Assembly and is likely to be voted on by the Senate later this week.

The industry had been lobbying either for a multi-year extension or for the tax credit to be made permanent.

"We're pleased the legislature and the governor extended the program but disappointed that it's not a multi-year program, and we're hopeful that they will consider revisiting it before the end of the legislative session," said Vans Stevenson, senior vice president of the Motion Picture Association of America.

New York state implemented its 10 percent tax credit in 2004 and raised it to 30 percent last year. However, $460 million in funding that had been expected to last until 2013 was exhausted in less than a year and ran out in February.

As a result, Warner Bros. Television has moved production of its hit science-fiction series "Fringe" to Vancouver and no pilot shows are due to be filmed in New York this year, compared with 19 last year.

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