New York Tax Incentives May Depend on WGA Strike Resolution

We recently looked at a juicy new set of tax incentives on the table for shows filmed in the New York area. However, the New York State legislature this week called on the AMPTP to return swiftly to the bargaining table with the WGA with a veiled threat that the strike’s outcome could affect future funding of the tax incentive program. Blake & Wang P.A entertainment lawyer, Brandon Blake, has all the news.

Brandon Blake

Expanded Program

New York expanded their film incentives program from $400M to $700M as part of the state budget approved in April 2023. The recent threat is backed by 20 state senators and 34 members of the state Assembly, and encourages the AMPTP to return to the bargaining table as soon as possible, echoing many of the same talking points we’ve seen the WGA themselves raise since the strike began.

‘Essential to Well-Being’

The communication is surprisingly strongly worded, too, including the following statement:

“It is unacceptable for writers to have their earnings decline, in some instances as much as 23%, inflation-adjusted, in the last ten years while studio, network, and streaming companies’ profits soar.”

In the statement, they circle back to the number of tax dollars spent on AMPTP projects in the state, and lampoon the association for utilizing these credits but seeming unwilling to enter into ‘fair collective bargaining agreements.’ They also cite the number of WGA members living and working in the NYC area, and the importance of these careers to the state, and state:

“We find it distasteful that companies insist on hiring writers on a day-to-day basis in a race to the bottom to make employment in this area akin to the gig industry rather than treating members of the Writers Guild of America as the professionals they are.”

The message ends with a call to return to the bargaining table with a fair mindset on all sides. It’s perhaps the most powerful independent statement on the state of the striking industry we’ve seen to date. Will it have an impact? Dangling the future of their tax incentive program as bait may well get some attention, but so far, there seems to be little progress in ending the stalemate. We’ll keep you updated as things change.

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