The State Assembly and Senate last week passed as part of its 2008-2009 budget the Education, Labor and Family Assistance Budget, that included a provision that calls for the increase of the film and television production tax credit from 10% of "below the line costs" to 30%. New York Governor David Patterson is expected to sign the bill. County officials say that the increase could result in an estimated $10 billion in overall revenue and economic impact to the state.

The state of Connecticut raised its tax credits to film and TV production studios to 30% in 2006 and saw a dramatic increase in business. State officials said that more than $450 million has been spent in connection with film productions in the Nutmeg State within a year after the increased tax credits went into effect. Earlier this year, due in large part to the Connecticut incentives, Blue Sky Studios, a digital production company, revealed it was moving from White Plains to approximately 106,000 sf at the Greenwich American Centre in Greenwich, taking with it approximately 300 jobs.

Commenting on the tax credit increase in New York State, Westchester County Board of Legislators chairman William Ryan says, "This is great news for Westchester and for the state, especially during this period of economic downturn. We were starting to see a real erosion of an important revenue source. Now, we're in a position to reverse that and hopefully provide a boost to our local economies. This is critical because we're constantly looking for ways to relieve the burden on property taxpayers." Ryan says that in addition to Westchester County, the New York State Association of Counties also lobbied for the incentives to be raised.