The State Assembly and Senate last week passed as part of its2008-2009 budget the Education, Labor and Family Assistance Budget,that included a provision that calls for the increase of the filmand television production tax credit from 10% of "below the linecosts" to 30%. New York Governor David Patterson is expected tosign the bill. County officials say that the increase could resultin an estimated $10 billion in overall revenue and economic impactto the state.

The state of Connecticut raised its tax credits to film and TVproduction studios to 30% in 2006 and saw a dramatic increase inbusiness. State officials said that more than $450 million has beenspent in connection with film productions in the Nutmeg Statewithin a year after the increased tax credits went into effect.Earlier this year, due in large part to the Connecticut incentives,Blue SkyStudios, a digital production company, revealed it wasmoving from White Plains to approximately 106,000 sf at theGreenwich American Centre in Greenwich, taking with itapproximately 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, especiallyduring this period of economic downturn. We were starting to see areal erosion of an important revenue source. Now, we're in aposition to reverse that and hopefully provide a boost to our localeconomies. This is critical because we're constantly looking forways to relieve the burden on property taxpayers." Ryan says thatin addition to Westchester County, the New York State Associationof Counties also lobbied for the incentives to be raised.