Film and Television Production Incentives Supported 28,900 Jobs, $6.9 Billion in Economic Spending in New York State in 2011
A new study released today on the economic impact of New York State's film and television production tax credits finds that production incentives supported 28,900 jobs across all sectors of the state's economy and generated $6.9 billion in economic spending in the state in 2011. The study was conducted by HR&A Advisors and assesses the economic and fiscal impact of production tax credits on the state in 2011, the most recent full year for which data is available. The study also finds that the jobs HR&A analyzed within the film and television production industry in New York State grew by nearly 25 percent between 2008 and 2011, while private sector employment as a whole declined by 1.6 percent in New York State during the same time frame.
"These findings further confirm that the New York State production incentives have grown into a major economic driver in the state's economy," said Senator Chris Dodd, Chairman and CEO of the Motion Picture Association of America. "Not only does film and television production in New York employ the thousands of men and women working on some of the most popular television shows and films, it also supports small businesses in every sector of the economy – dry cleaners, restaurants, florists -- who benefit when a production comes to town. Film and television production is a critical piece of New York State's economy."
Key findings from the study include:
• The production industry in New York State has grown despite an overall decline in private sector employment statewide. In New York State the jobs analyzed within the film production industry grew by nearly 25 percent between 2008 and 2011, while private sector employment as a whole declined by 1.6 percent.
• In 2011, the Credit supported 28,900 jobs across all industries in New York State, including 12,600 jobs directly associated with productions and 16,300 supported downstream in related businesses, as captured by multiplier effects.
• The Credit also generated $6.9 billion in economic spending and $4.2 billion in personal income to the New York State economy in 2011.
• Estimated tax revenues to New York State and New York City totaled $748 million. Compared to the present value of the 2011 credit distribution of $335 million, this results in a return on investment (ROI) of 2.23 for the Credit, i.e. for every $1.00 of credit distributed, the State and City received a combined $2.23 in taxes.
• Since 2004, the number of productions participating in the program has steadily increased from a total of 18 productions in 2004 to 135 productions in 2011. Spending on goods and services in New York State by these qualified productions has also significantly grown from $600 million in 2004 to $1.5 billion in 2011, an increase of 155 percent.