New York State, which has seen a surge in film and television production in recent years thanks in large part to tax credits, has up the incentives to lure more production. But other states began to offer credits making competition fierce. Per a press release from the New York Production Alliance:

In recent years New York has been losing its film and television business to neighboring states that enacted their own tax credits – a loss that has cost the New York economy approximately $750 million. NY’s aggressive state legislation triples the percentage of qualified film production costs eligible for the credit from 10 percent to 30 percent. Additionally, it extends the program, which was originally set to expire in 2011, for an additional two years to 2013. The program will generate new tax revenue, expand economic activity and provide additional employment opportunities for New Yorkers.

The new provisions also raise the aggregate amount that can be awarded under this credit during a calendar year from $60 million to $110 million over a six-year period. The credit cap will increase to $65 million in 2008, $75 million in 2009, $85 million in 2010, $90 million in 2011 and 2012, and $110 million in 2013.