By Nathan Duke
Western Queens studio heads were pleased about Gov. David Paterson’s proposal to reinstate a tax credit for films and television shows shot in New York back into the state’s budget. But they said the governor’s plan falls short in keeping productions on their lots.
Paterson proposed putting $350 million back into the state’s budget for the program, which rewards films shot in the state with a 15 percent tax credit. The state was slated to vote on the budget this week.
But Hal Rosenbluth, president of Kaufman Astoria Studios, and Stuart Match Suna, chief executive officer of Long Island City’s Silvercup Studios, said the governor’s proposal only runs through 2010. They said most TV shows plan three to five years ahead of time and will not commit to the borough if they are unsure whether they will qualify for the tax credit a few years down the road.
“We’re appreciative of the governor’s effort, but it doesn’t go far enough,” Suna said. “This tax credit generates revenue for the state two years in advance. I don’t think there will be an exodus yet of existing TV shows, but we will likely not be attracting new shows.”
Silvercup currently has plans for a $1 billion expansion along the western Queens waterfront. But Suna said the project would not move forward if the state’s tax incentive program is discontinued. TV shows “Gossip Girl,” “Ugly Betty” and “30 Rock” are still shooting at the studio, but Suna said Silvercup will soon have three empty stages. The studio is currently trying to attract feature films and commercials.
The state’s tax credit, which has brought productions back to the city in record numbers during the past few years, was originally set to expire in 2013, but ran out of money earlier this year. The credit drew 19 TV pilots to shoot in the five boroughs last year, but there are none so far in 2009.
A spokeswoman for Kaufman Astoria Studios said “Nurse Jackie” and “Sesame Street” are the only shows currently shooting at the studio.
“We haven’t been receiving calls since money for the credit ran out,” she said. “It’s an uncertain future. We can’t attract TV shows when we’re only in the budget for one year.”
The studio, which recently lost canceled show “Life on Mars” and provided sets for Woody Allen’s upcoming “Whatever Works” and the remake of “The Taking of Pelham 1, 2, 3,” is in the process of a $20 million expansion project that includes a new soundstage and support. Rosenbluth said he would not have started the project at this time had he known the tax credit’s future would be up in the air.
Western Queens businesses said they would also be affected if the tax credit is not extended beyond 2010.
“For every one person in production, there are four or five times that amount who supply the movie studios,” said Matt Dienstag, vice president of Long Island City’s LeNoble Lumber Co. “We’ve been providing movie studios with lumber for 40 years. If the credit is not renewed, it could be devastating.”
State Assemblyman Michael Gianaris (D−Astoria) said he plans to push the state Legislature for more money for the credit.
“The solution was short−sighted,” he said. “I’m glad the success of the program was recognized, but the partial solution that was achieved does damage to the TV segment of the industry, which has brought us the most jobs and revenue over the past several years.”
City and state tax credits cover up to 35 percent of production expenditures.
Reach reporter Nathan Duke by e−mail at nduke@cnglocal.com or by phone at 718−229−0300, Ext. 156.
