By Lisa W. Foderaro

After watching neighboring states raise their film tax credits to lure film production, New York State has moved to triple its tax incentive — to 30 percent — under the budget approved this week by the State Legislature.

State and county officials, as well as representatives of the film industry, cheered the increase, saying it put New York back in the running with Connecticut, Massachusetts, Rhode Island and other states that had expanded their film incentives. The proposed tax credit would become law when Gov. David A. Paterson signs the budget, which he is expected to do.

“They upped the ante in the other states, and the gap had grown,” said Hal Rosenbluth, president of Kaufman Astoria Studios in New York City. “That’s always been the goal — to narrow the gap between the costs in New York and the costs in other areas. This is going to bring those jobs back here and get us back on track.”

“This will keep New York in the forefront of the film production world,” said Pat Swinney Kaufman, executive director of the Governor’s Office for Motion Picture and Television Development.

Connecticut’s film credit took effect in July 2006, and the state soon saw a spurt in film activity, to 66 feature films, television shows and commercials, from the occasional shoot, yielding $400 million in production costs.

The impact on New York was immediate, state officials said. Ms. Kaufman’s office reported that in the 12 months before the introduction of Connecticut’s tax credit, the New York State film office received 60 applications from feature films for the 10 percent incentive, with a projected total expenditure of $966 million. In the 12 months after, there were 39 applications, with a total projected budget of $215 million.

Connecticut’s incentive is, in some ways, still more attractive than New York’s since it covers more than “below the line” costs, like crews’ wages, wardrobe, props, catering, location fees and equipment rentals. Unlike New York’s, Connecticut’s credit also covers the salaries of actors, directors and producers, as well as script development.

Officials in Westchester County, which has witnessed a big drop in feature films, were jubilant nonetheless. “This is really good news for Westchester and for the state, especially during this period of economic downturn,” said William J. Ryan, chairman of the county’s Board of Legislators, who had pushed for the increase.

Production companies that make movies in New York City will continue to receive an additional 5 percent tax credit from the city government, bringing the total incentive to 35 percent.