The communication & media services industry in New York State continues to evolve, and as a result of this dynamic marketplace, there are a number of tax incentives for Telecommunications, Film and New Media/Internet companies.
 
 
Film, Motion Pictures and Television

• Empire State Film Production Credit – a refundable credit for qualified film production companies equal to 30% of the qualified production costs paid or incurred in the production of a qualified film, provided that at least 75% of the production costs (“stagework”) are spent in New York State.
• Empire State Commercial Production Tax Credit – a credit ranging from 5% to 20% of qualified production costs for a qualified commercial production company in New York State.  To be eligible for this credit, at least 75% of the production costs (excluding post production costs) paid or incurred directly and predominately in the actual filming or recording of a qualified commercial must be incurred in New York State.
• Investment Tax Credit (ITC) – the ITC is available for  property principally used as a qualified film production facility, where the taxpayer (owner of the facility) is providing three or more services to any qualified film production company (an entity principally engaged in the production of a qualified film and which controls the qualified film during production) using the facility.    

 

For more information on these and other incentives for the film, motion pictures and television industry, email the NYS Governor’s Office of Motion Picture and Television Development.
 
 
Internet/New Media

• Internet Data Center Sales Tax Exemption – machinery, equipment and certain other tangible personal property sold to a person operating an Internet data center that is required and directly related to the provision of Internet Web site hosting and other Web site services at the data center are exempt from sales/use tax.
• Telecommunications and Internet Equipment Sales Tax Exemption – tangible personal property used directly and predominantly in the receiving, initiating, amplifying, processing, transmitting, re-transmitting, switching or monitoring of telecommunications services for sale or Internet access services for sale is exempt from sales/use tax.
• Internet Access Service Sales Tax Exemption – Internet access service is exempt from sales tax.  Incidental services such as Internet communications or navigation software, an email address and news headlines when offered in conjunction with Internet access are considered part of the exempt service.
  

 

Emerging Technologies – qualifying entities engaged in emerging technologies, including information and communication technologies, may be eligible for the following tax credits:

• Qualified Emerging Technology Employment Credit – a refundable tax credit equal to $1,000 per net new full-time employee (employees in excess of base year employment level), available for one 3-year period.
• Qualified Emerging Technology Company Capital Credit – a tax credit equal to 10% or 20% of each qualified investment in a qualified emerging technology company.  The credit equals 10% for qualified investments that are certified to be held for at least four years (maximum credit per taxpayer of $150,000); 20% for qualified investments certified to be held for at least 9 years (maximum credit per taxpayer of $300,000).
• Qualified Emerging Technology Company Facilities, Operations and Training Credit – a refundable tax credit equal to:
  • 18% of  the cost or other basis for federal income tax purposes of “research and development property” acquired by the taxpayer by purchase and placed in service during the taxable year;
  • 9% for “qualified research expenses” paid or incurred by the taxpayer in the taxable year; and
  • 100% of “qualified high technology training expenditures” paid or incurred by the taxpayer, up to $4,000 per employee per taxable year.
    

 

Additional Resources
New York State Department of Taxation & Finance

 

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