senate Bill S7244A

Signed by Governor

Relates to the allocation of credit for the empire state film production credit; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 02 / May / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / May / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / May / 2012
    • PRINT NUMBER 7244A
  • 31 / May / 2012
    • 1ST REPORT CAL.977
  • 04 / Jun / 2012
    • 2ND REPORT CAL.
  • 05 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 18 / Jun / 2012
    • PASSED SENATE
  • 18 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2012
    • REFERRED TO WAYS AND MEANS
  • 18 / Jun / 2012
    • SUBSTITUTED FOR A10244A
  • 18 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.327
  • 18 / Jun / 2012
    • PASSED ASSEMBLY
  • 18 / Jun / 2012
    • RETURNED TO SENATE
  • 20 / Jul / 2012
    • DELIVERED TO GOVERNOR
  • 24 / Jul / 2012
    • SIGNED CHAP.268

Summary

Relates to the allocation of credit for the empire state film production credit.

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Bill Details

See Assembly Version of this Bill:
A10244A
Versions:
S7244
S7244A
Legislative Cycle:
2011-2012
Law Section:
Tax Law
Laws Affected:
Rpld Part P §7, Chap 60 of 2004; amd §§24 & 31, Tax L

Sponsor Memo

BILL NUMBER:S7244A

TITLE OF BILL:
An act
to amend the tax law, in relation to the allocation of credit for the
empire state film production credit; and to repeal section 7 of part P
of chapter 60 of the laws of 2004, amending the tax law relating to the
empire state film production credit, relating thereto

PURPOSE:
This bill would increase the percentage amount of funds currently
available for post production film tax credits to facilitate a
greater utilization of those funds, throughout New York State.

SUMMARY OF PROVISIONS:
Section 1 - Section 7 of part P of Chapter 60 of the laws of 2004,
amending the tax law relating to the empire state film production
credit is repealed.

Section 2 - Section 24 of the tax law is amended by adding a new
subdivision (e) which creates film tax credit and post production tax
credit language in the tax law. This language was previously
unconsolidated law.

Section 3 - Paragraph 2 of subdivision (a) and subdivision (c) of
section 31 of the tax law, as added by section 12 of part Q of
chapter 57 of the laws of 2010 are amended to reflect an increase
of the post production credit from 10 to 30% within the MTA region
and to 35% outside the MTA region with no change to qualified expenses.

Section 4 - Effective date.

JUSTIFICATION:
Currently the $7M allocated for post production film tax credits
within the film tax credit funding pool has been under utilized.
Increasing the percentage would create a greater incentive for
production companies to conduct business within New York State.

LEGISLATIVE HISTORY:
New bill

FISCAL IMPLICATIONS:
None. This funding was previously allocated within the State Budget
for the NYS film tax credit.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7244--A

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to the allocation of credit for
  the empire state film production credit; and to repeal  section  7  of
  part  P of chapter 60 of the laws of 2004, amending the tax law relat-
  ing to the empire state film production credit, relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  7  of  part P of chapter 60 of the laws of 2004,
amending the tax law relating to the empire state film production  cred-
it, is REPEALED.
  S  2. Section 24 of the tax law is amended by adding a new subdivision
(e) to read as follows:
  (E) ALLOCATION OF CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  THIRTY-SIX  OF  SECTION TWO
HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAP-
TER IN ANY CALENDAR YEAR SHALL BE TWENTY-FIVE  MILLION  DOLLARS  IN  TWO
THOUSAND  FOUR AND TWO THOUSAND FIVE, SIXTY MILLION DOLLARS IN TWO THOU-
SAND SIX AND TWO THOUSAND SEVEN, SIXTY-FIVE MILLION DOLLARS IN TWO THOU-
SAND  EIGHT,  SEVENTY-FIVE  MILLION  DOLLARS  IN  TWO   THOUSAND   NINE,
EIGHTY-FIVE  MILLION DOLLARS IN TWO THOUSAND TEN, NINETY MILLION DOLLARS
IN TWO THOUSAND ELEVEN AND TWO THOUSAND  TWELVE,  AND  ONE  HUNDRED  TEN
MILLION DOLLARS IN TWO THOUSAND THIRTEEN. SUCH AGGREGATE AMOUNT OF CRED-
ITS  SHALL  BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND
TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY  BASED  UPON
THE  DATE  OF  FILING  AN  APPLICATION FOR ALLOCATION OF FILM PRODUCTION
CREDIT WITH SUCH OFFICE.  IF  THE  TOTAL  AMOUNT  OF  ALLOCATED  CREDITS
APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS  SHALL  BE
TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
YEAR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15574-05-2

S. 7244--A                          2

  (2) THE AGGREGATE AMOUNT  OF  TAX  CREDITS  ALLOWED  PURSUANT  TO  THE
AUTHORITY  OF  SUBDIVISION  (B)  OF SECTION TWELVE HUNDRED ONE-A OF THIS
CHAPTER IN ANY CALENDAR YEAR SHALL BE TWELVE MILLION FIVE HUNDRED  THOU-
SAND  DOLLARS  IN  TWO  THOUSAND  FOUR  AND TWO THOUSAND FIVE AND THIRTY
MILLION  DOLLARS  IN  TWO THOUSAND SIX THROUGH TWO THOUSAND ELEVEN. SUCH
AGGREGATE AMOUNT OF CREDITS  SHALL BE ALLOCATED BY THE MAYOR'S OFFICE OF
FILM, THEATER AND BROADCASTING AMONG  TAXPAYERS  IN  ORDER  OF  PRIORITY
BASED  UPON  THE  DATE  OF  FILING AN APPLICATION FOR ALLOCATION OF FILM
PRODUCTION CREDIT WITH SUCH OFFICE. IF THE  TOTAL  AMOUNT  OF  ALLOCATED
CREDITS  APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT
OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER  THIS  SECTION,  SUCH  EXCESS
SHALL  BE  TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE
SUBSEQUENT YEAR.
  (3) ADDITIONAL POOL 1 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL  BE  INCREASED  BY  AN  ADDITIONAL
THREE  HUNDRED  FIFTY  MILLION  DOLLARS IN TWO THOUSAND NINE. THIS ADDI-
TIONAL AMOUNT SHALL BE ALLOCATED BY THE  GOVERNOR'S  OFFICE  FOR  MOTION
PICTURE  AND  TELEVISION  DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH
SUBDIVISION (A) OF THIS SECTION.
  (4) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN  ADDITION  FOUR
HUNDRED  TWENTY MILLION DOLLARS IN TWO THOUSAND TEN, FOUR HUNDRED TWENTY
MILLION DOLLARS IN TWO THOUSAND  ELEVEN,  FOUR  HUNDRED  TWENTY  MILLION
DOLLARS  IN  TWO THOUSAND TWELVE, FOUR HUNDRED TWENTY MILLION DOLLARS IN
TWO THOUSAND THIRTEEN AND FOUR HUNDRED TWENTY  MILLION  DOLLARS  IN  TWO
THOUSAND  FOURTEEN PROVIDED HOWEVER, SEVEN MILLION DOLLARS OF THE ANNUAL
ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST  PRODUCTION
CREDIT  PURSUANT  TO  SECTION  THIRTY-ONE OF THIS CHAPTER.   THIS AMOUNT
SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE-
VISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF
THIS SECTION. IF THE  DIRECTOR  OF  THE  GOVERNOR'S  OFFICE  FOR  MOTION
PICTURE  AND TELEVISION DEVELOPMENT DETERMINES THAT THE AGGREGATE AMOUNT
OF TAX CREDITS AVAILABLE FROM ADDITIONAL POOL 2  FOR  THE  EMPIRE  STATE
FILM  PRODUCTION  TAX  CREDIT HAVE BEEN PREVIOUSLY ALLOCATED, AND DETER-
MINES THAT THE PENDING APPLICATIONS FROM  ELIGIBLE  APPLICANTS  FOR  THE
POST  PRODUCTION TAX CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAP-
TER  IS  INSUFFICIENT  TO  UTILIZE  THE  BALANCE  OF  UNALLOCATED   POST
PRODUCTION TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING
APPLICATIONS  ARE  CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN
THE EMPIRE STATE FILM TAX CREDIT PURSUANT TO THIS  SECTION,  SUBDIVISION
THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX
HUNDRED  SIX  OF  THIS CHAPTER. THE GOVERNOR'S OFFICE FOR MOTION PICTURE
AND TELEVISION DEVELOPMENT MUST NOTIFY  TAXPAYERS  OF  THEIR  ALLOCATION
YEAR  AND  INCLUDE THE ALLOCATION YEAR ON THE CERTIFICATE OF TAX CREDIT.
TAXPAYERS ELIGIBLE TO CLAIM A CREDIT MUST  REPORT  THE  ALLOCATION  YEAR
DIRECTLY  ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM FOR EACH
YEAR A CREDIT IS CLAIMED AND INCLUDE A  COPY  OF  THE  CERTIFICATE  WITH
THEIR  TAX  RETURN.  IN THE CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS
FROM ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL  BE
CLAIMED BEFORE THE LATER OF THE TAXABLE YEAR THE PRODUCTION OF THE QUAL-
IFIED  FILM  IS  COMPLETE, OR THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE
ALLOCATION YEAR FOR WHICH THE FILM HAS  BEEN  ALLOCATED  CREDIT  BY  THE
GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S  3. Paragraph 2 of subdivision (a) and subdivision (c) of section 31
of the tax law, as added by section 12 of part Q of chapter  57  of  the
laws of 2010, are amended to read as follows:

S. 7244--A                          3

  (2)  The  amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of [ten] THIR-
TY  percent  and  the  qualified  post  production  costs  paid  in  the
production  of  a qualified film at a qualified post production facility
LOCATED  WITHIN  THE  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT AS
DEFINED IN SECTION TWELVE HUNDRED SIXTY-TWO OF  THE  PUBLIC  AUTHORITIES
LAW  OR THIRTY-FIVE PERCENT AND THE QUALIFIED POST PRODUCTION COSTS PAID
IN THE PRODUCTION OF A QUALIFIED FILM AT  A  QUALIFIED  POST  PRODUCTION
FACILITY LOCATED ELSEWHERE IN THE STATE.
  (c)  Notwithstanding  any  other provision of law to the contrary, the
aggregate amount of tax credits available under this section  shall  not
exceed the amounts allowed pursuant to PARAGRAPH FOUR OF subdivision (e)
of section [seven of part P of chapter sixty of the laws of two thousand
four]  TWENTY-FOUR  OF  THIS  ARTICLE and shall be allocated in the same
manner as provided for in PARAGRAPH ONE  OF  subdivision  [(a)]  (E)  of
section  [seven  of  part P of chapter sixty of the laws of two thousand
four] TWENTY-FOUR OF THIS ARTICLE.
  S 4. This act shall take effect immediately.

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