ALBANY — More than three dozen movie and television productions benefited in the first quarter of this year from New York’s generous film tax-credit program.

The biggest beneficiary was “The Tonight Show Starring Jimmy Fallon,” which scored a state tax credit of $20.9 million, according to a report issued by the New York State Empire State Development Corp.

All told, the state dished out a total of $153.9 million in credits to 38 entertainment-industry participants in the first quarter.

Since 2004, New York has awarded about $3 billion to entice producers to bring their projects to the state.

Critics of the tax incentives see them as a giant subsidy on the backs of other taxpayers, while advocates say the funding has paid major dividends through job creation and spending in the state.

‘TOP DESTINATION’

“The data from our most recent public report further solidifies New York state’s reputation as the country’s top destination for film and television projects,” said Jason Conwall, a spokesman for Empire State Development, an agency controlled by Gov. Andrew Cuomo.

Conwall said the demand to site programs and films in New York is rising, with 43 new applications being filed in the first quarter for projects that, in total, would result in $460 million in spending statewide.

State lawmakers have extended the program through 2022. Annually, it awards $420 million in rebates to the industry.

BIGGER REBATE UPSTATE

A study released in January by Camoin Associates, an economic development firm whose report was commissioned by Empire State Development, found that the program is responsible for generating more than $6.5 billion in spending in the state economy in 2015 and 2016.

The TV and film companies that commit to work in New York get a 30 percent rebate for production costs.

As the result of 2016 legislation, the fully refundable credit rises to 40 percent for most upstate counties, including Clinton, Essex and Franklin.

NBC’s “Law & Order Special Victims Unit” drew $13.6 million from the program for locating its Season 16 run in New York, while “The Knick,” a Cinemax medical drama, got $17.2 million in incentives for having its second season in New York City. Cinemax announced in March that it is canceling “The Knick.”

The productions that were awarded the credits in the first quarter, according to the state report, collectively spent $713.4 million in New York and employed 46,230 production workers.

‘ESCAPE’ FILM

The film getting the most attention in the North Country is “Escape at Dannemora,” an eight-part miniseries by actor/producer Ben Stiller and Showtime Network.

The series is based on the 2015 escape from Clinton Correctional Facility by killers David Sweat and Richard Matt, aided by prison employee Joyce Mitchell.

Information on whether an application for production tax credit on a project of that name was not immediately available.

If it hasn’t been done yet, however, there is still time for producers to apply.

SEEN AS WASTE

But fiscal conservatives question whether such credits are needed to entice producers of shows and movies to come to the state.

A prime example, argued E.J. McMahon, research director for the Empire Center for Public Policy, an Albany think tank, is the Fallon show. He noted that the show’s creator, Lorne Michaels, once told the New York TImes that it was always the program’s intention to locate in New York City.

“This is just an out-and-out giveaway to a wealthy industry” that has pumped generous donations into the campaign accounts of politicians, McMahon said.

OTHER STATES COMPETE

New York is not alone in beckoning the entertainment industry with such incentives. The competition to host major TV productions has become increasing fierce, with more and more states offering similar credits.

Some have upped the ante, enhancing the ones they already offered.

In March, Virginia Gov. Terry McAuliffe announced his state had lured “Homeland,” an award-winning Showtime drama, to film in the Richmond area, with its package of credits and grants tied to the number of Virginians who would be hired along with the purchase of goods from Virginia.

Meanwhile, California’s film commission, whose film credit was recently enhanced, declared this month that it has poached two shows from New York — “The Affair,” a Showtime production, and “The OA,” a Netflix mystery drama — and two from Vancouver — “Legion,” an FX drama, and “Lucifer,” a Fox fantasy drama.

The Golden State commission said a total of 11 shows have relocated there since tax credits were beefed up two years ago.

DIVERSITY BONUS

In Albany, state lawmakers came up with a new way to pour even more public money into the entertainment industry.

In June, the Senate and Assembly passed a measure called the “Diversity in TV Tax Credit.” It would provide up to $5 million in incentives for television production companies to hire women and members of minority groups as writers and directors.

The measure is being reviewed by Cuomo.

One of its authors, Assemblyman Marcus Crespo (D-Bronx), called his legislation “a job creator that opens doors of opportunity for minorities in an industry very much void of diversity.”

© 2017 CNHI