Evaluating the Impact: Funding Popular TV Shows with Taxpayer Money

Governor Kathy Hochul of New York has introduced a proposal to boost the film tax credit to remain competitive with neighboring New Jersey and other states.

The Economic Contribution of New York Residents

Residents across New York, much like those in other states, have been contributing financially to the entertainment industry, aside from their subscriptions to services like Netflix and Hulu.

Since 2017, every household in New York has invested approximately $16 in taxes towards producing the drama series “Billions.” Additionally, they paid nearly $14.50 to support production incentives for “Saturday Night Live” and $4.60 for the movie “The Irishman,” among numerous other film and TV projects.

The Scope of Investment

Collectively, New York has dedicated over $5.5 billion to production incentives since 2017. With a new year approaching, Governor Hochul plans to allocate an extra $100 million in credits for independent projects, raising the annual film subsidy to $800 million, nearly doubling the 2022 figure.

Throughout the United States, states engage in a competitive race to attract Hollywood productions by offering tens or hundreds of millions in tax credits, based on the notion that these incentives stimulate the local economy. A crucial consideration for both voters and policymakers is determining whether a state truly recovers more than it spends on these incentives or simply retrieves a fraction of the original investment.

A Closer Look at New York's Tax Credit Program

New York boasts one of the country's most extensive tax credit programs and makes the majority of its data publicly accessible. By analyzing this data, we can identify which productions have benefited the most from these financial incentives.

Note: Individual projects can encompass multiple seasons. There may be a delay of several years after filming before the tax credit gets audited and reported. Financial amounts are rounded to the nearest 10 cents or million.