NY State taxpayers give NBC 30% tax credit worth $20+ million a year for its Fallon late night show in NY City
A "30 percent tax credit aimed at luring "Tonight" away from California after four decades is reportedly saving NBC more than $20 million a year....The language of the 30 percent annual tax credit was remarkably specific: It would only benefit a show that had filmed at least five years in another state before moving to New York (check), spends at least $30 million in production costs (check) and films in front of a studio audience of at least 200 people (check). In other words: "The Tonight Show.""...
3/21/13, "Exclusive: Tentative state budget includes ‘Jimmy Fallon’ tax credit to lure ‘The Tonight Show’ back to New York," NY Daily News, Kenneth Lovett
"Budget documents state that ‘a talk or variety program’ that gets the credit ‘must be filmed before a studio audience’ of at least 200, have a production budget of at least $30 million or run at least $10 million in capital expenses — and has to have been shot outside New York for at least 5 seasons prior to relocation."
"Call it the Jimmy Fallon tax credit.
Quietly tucked into tentative state budget is a provision that would help NBC move “The Tonight Show” back to New York, the Daily News has learned.
The provision would make state tax credits available for the producers of “a talk or variety program that filmed at least five seasons outside the state prior to its first relocated season in New York,” budget documents show.
The state's tax credit for movies filmed in New York is to include for the first time certain television shows. And not just any shows, but “a talk or variety program that filmed at least five seasons outside the state prior to its first relocated season in New York,” according to budget documents.
In addition, the episodes “must be filmed before a studio audience” of at least 200 people. And the program must have an annual production budget of at least $30 million or incur at least $10 million a year in capital expenses.
In other words, a program exactly like “The Tonight Show.”
The iconic program is not identified by name in the documents, but reports are circulating that NBC is preparing to replace host Jay Leno with Fallon and move the granddaddy of late-night TV shows back to New York, which it left in 1972.
Said one Cuomo aide, “This is simply part of our ongoing effort to attract more entertainment to the state and more economic activity.”
NBC is building Fallon a new studio at 30 Rockefeller Plaza — but it has not announced that it will relocate “The Tonight Show” from California.
New York already gives companies producing movies or television series in the state a tax credit equal to 30% of production costs. It costs the state $420 million in revenue a year.
But under current law, only shows that start up in New York are eligible for the credit — not shows that relocate to the state.
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