New York has given its tax credit a big boost, up to 30% from 10%, in a bid to keep film and TV crews working across the Empire State. The move could also lure away service business that otherwise would have come to Canada.

Governor David Paterson unveiled the long-awaited legislation at the opening of this week’s Tribeca Film Festival, promoting New York as the leading destination outside of Hollywood for filmmakers.

‘It is vital to our state’s economy that New York remains a premier destination for film and television productions,’ commented Paterson in a release.

The legislation also extends the tax program, originally set to expire in 2011, for an additional two years. Over the next six years it will also raise the total amount that can be awarded to productions during a calendar year to US$110 million, up from US$60 million.

U.S. states including New Mexico and Louisiana have offered more competitive tax breaks, which have cut into Canada’s share of Hollywood shoots.

American filmmakers welcomed the news. Nancy Fox of the Screen Actors Guild said the legislation will ‘create a wave of employment for many businesses in the state.’