Manhattanites pay good money for that “Live from New York!” shout-out every weekend on Saturday Night Live. According to The New York Times, the show has received $111 million in tax incentives since 2017. That’s a Staten Island ferry full of cash, though SNL isn’t the biggest beneficiary.
The Blacklist, Blue Bloods, Billions, Bull and Madam Secretary also received nine figures worth of incentives, with The Blacklist leading the way at $170 million total over that same span of years. But SNL’s total is nothing to sneeze at. New York residents are practically producers at this point, with each of the state’s households contributing a couple of bucks a year to defray the cost of Kenan Thompson’s wigs.
Don't Miss Why all the cash for SNL and other productions? In theory, when films and TV shows are created in any state, jobs are created that offset incentive costs. New York — again, in theory — gets money back through payroll taxes when crew members get hired.
Other businesses, like catering services, also get more work and generate more tax revenue. Plus, there’s the publicity and prestige when Clifford the Big Red Dog is filming in your neighborhood. Some question whether states are just flushing money away, even as New York Governor Kathy Hochul proposes doubling those givebacks.
While one study concluded that states receive $1.70 for every dollar spent on production incentives, several economists say states are losing money on the deal. Case in point: The New York State Department of Taxation and Finance estimated a return of only 31 cents on the dollar. So why does New York’s governor want to hand out even more cash?
Other states have decided they want to be in show business as well, offering their own enticements to lure film crews. States that don’t want to lose media production, like California, are also considering doubling current incentives. In other words, if New York wants to stay in the game, it has to compete.
Advertisement “There is a race that is taking place among the states, and that is why we have to adjust it,” says New York State Senator Michael Gianaris, a lawmaker who doesn’t want to see The Tonight Show Starring Jimmy Fallon ($81 million in incentives since 2017) move to New Jersey. “It’s constantly a re-evaluation based on what other jurisdictions are doing and whether we need to adjust our program to maintain our success.” But another New York state senator, James Skoufis, wants out. “It’s a race to the bottom,” he argues.
“The loser is the taxpayer.”
