FY 2026 Empire State Film Production, Digital Game, and NYC Music & Theatrical Tax Credit Expansions

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The NYC Mayor’s Office of Media and Entertainment (MOME) is celebrating the passing of the FY 2026 NYS State budget, most specifically the amendments to the Empire State Film Production, Digital Gaming Media Production, and NYC Musical and Theatrical tax credit programs, which will all serve MOME’s mission to support NYC’s creative sectors, and make them accessible to all New Yorkers.

The following outlines the amendments to the Empire State Film Production, Digital Gaming Media Production, and NYC Musical and Theatrical Production tax credit programs:

• Film and TV Tax Credits will be extended from 2034 to 2036, and includes:
  • Introduction of a new “Production Plus Program”
    • Allows qualifying production companies that submit 2 or more tax credit applications to be eligible to receive an additional 5% to 10% tax credit on future productions through 2028
  • Introduction of new Empire State Independent Film Production Credit
    • Adds $100M in annual film tax credits for independent films
    • Applies a 30% tax credit to qualifying costs for independent films
  • Changes the definition of “Qualified Independent Film Production Company”
    • Removes $15 million budget cap per film
  • Removal of the tiered payout structure for tax credit applications filed on January 1, 2025 or later
    • Taxpayer receives 100% of the tax credit in the same year (instead of being paid out over 2-3 years under the current law).
  • Removal of the $500,000 cap on above-the-line compensation per person
  • Adds an extra 10% tax credit for qualified costs for music scoring incurred in NYS and the scoring costs include payment to a minimum of 5 musicians.
• NYC Musical and Theatrical Production Tax Credit will increase from $300 million to $400 million and extend timing by two years.
• Digital Gaming Media Production Tax credit will allow unused funds to rollover to subsequent fiscal years.

These tax credit enhancements come as the City of NY prepares to host major events that continue to make NYC the creative capital of the world, including the NYC Video Game Festivalon May 31, New York Music Month throughout the month of June, and the “Made in NY” Awards at Gracie Mansion on June 16.