senate Bill S880A

Authorizes additional tax credits for certain costs incurred in film and television productions in N.Y. city

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Bill Status


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

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 09 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 09 / Jan / 2012
    • PRINT NUMBER 880A

Summary

Authorizes additional tax credits for certain costs incurred in film and television productions in a city having a population of one million or more.

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Bill Details

See Assembly Version of this Bill:
A1377A
Versions:
S880
S880A
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1201-a, Tax L; amd Part P §7, Chap 60 of 2004
Versions Introduced in 2009-2010 Legislative Cycle:
A8805, S5842, A8805

Sponsor Memo

BILL NUMBER:S880A

TITLE OF BILL:
An act
to amend the tax law and part P of chapter 60 of the laws of 2004,
amending the tax law relating to the empire state film production
credit, in relation to authorizing additional tax credits for certain
costs incurred in film and television productions in a city having a
population of one million or more

PURPOSE:
This legislation would ensure the continued growth of the film
production industry in New York City through 2014.

SUMMARY OF PROVISIONS:
Section 1 amends adds a new definition of "qualified independent film
production company" to tax law 51201-a(b). This section authorizes
New York City to amend its General Corporation Tax ("GCT") and its
Unincorporated Business Tax ("UBT").

Section 2 amends section 7(b)of part P of Chapter 60 of the Laws of
2004, to increase the aggregate amount of the tax credits allowed
by the City of New York by an additional $24 million a year in 2011,
2012 and 2013. These new credits may not be claimed before taxable
years beginning January 1, 2011, and payout in any year is capped
at $24 million, with any amount in excess to be claimed in the
subsequent year. There is an exception for qualified independent film
production companies, which may claim credits up to $250,000 per
qualified film in the taxable year in which film production is
completed.

JUSTIFICATION:
In the 2009-2010 State budget, the Empire State Film Production Credit
program was provided an additional $350 million in State funding.
That legislation did not apply to the New York City program, which
has been enacted through the City's GCT and the UBT.
This bill will secure funding for the New York City film production
credit through 2013.
Given the fiscal constraints facing the City, this legislation
contains measures to enhance the effectiveness of the incentive and to
better target the tax credit, and also defers the cost to the City of
providing the additional credits to tax years beginning on or
after January 1, 2012.

The City and State have taken important steps to provide incentives to
the film and television industry, because it is an important
contributor to the City's economy. The New York City's Mayor's Office
of Film, Theatre & Broadcasting dramatically enhanced the range
of services that it offers to the industry. Combined with the State
credit, the New York City "Made in NY" film production tax credit,
enacted in January 2005, has been a major success in attracting film
and television production to New York City. Production spending
or qualifying film and television projects increased significantly
since 2004, accounting for an additional $5 billion in direct spending
while providing thousands of additional jobs. These increases


were evident in all production areas: feature films, independent
films, television series and pilots.

LEGISLATIVE HISTORY:
S.5842 of 2009-10, Referred to Investigations & Government Operations

FISCAL IMPLICATIONS:
No new fiscal implications to the State.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012.

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

                                 880--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the  tax law and part P of chapter 60 of the laws of
  2004,  amending  the  tax  law  relating  to  the  empire  state  film
  production  credit,  in relation to authorizing additional tax credits
  for certain costs incurred in film and  television  productions  in  a
  city having a population of one million or more

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

  Section 1. Subdivision (b) of  section  1201-a  of  the  tax  law,  as
amended  by  section  5  of part Y of chapter 62 of the laws of 2006, is
amended to read as follows:
  (b) Empire state film production credit. Any city in this state having
a population of one million or more, acting through its  local  legisla-
tive body, is hereby authorized to adopt and amend local laws to allow a
credit  against the general corporation tax and the unincorporated busi-
ness tax imposed pursuant to the  authority  of  chapter  seven  hundred
seventy-two  of  the  laws  of nineteen hundred sixty-six which shall be
substantially identical to the credit allowed under section  twenty-four
of  this chapter, except that (A) the percentage of qualified production
costs used to calculate such credit shall be five percent, (B)  whenever
such  section twenty-four references the state, such words shall be read
as referencing the city, (C) such credit shall  be  allowed  only  to  a
taxpayer which is a qualified film production company OR QUALIFIED INDE-
PENDENT  FILM  PRODUCTION  COMPANY,  and  (D) the effective date of such
credit shall be July first, two  thousand  six.  Such  credit  shall  be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03856-02-2

S. 880--A                           2

applied in a manner consistent with the credit allowed under subdivision
thirty-six  of  section two hundred ten of this chapter except as may be
necessary to take into account differences between  the  general  corpo-
ration  tax and the unincorporated business tax.  A "QUALIFIED INDEPEND-
ENT FILM PRODUCTION COMPANY" IS AN INDIVIDUAL OR A CORPORATION, PARTNER-
SHIP, LIMITED PARTNERSHIP OR OTHER ENTITY THAT IS NOT  PUBLICLY  TRADED,
AND  PUBLICLY  TRADED COMPANIES THAT DO NOT OWN, DIRECTLY OR INDIRECTLY,
MORE THAN FIVE PERCENT OF  THE  QUALIFIED  INDEPENDENT  FILM  PRODUCTION
COMPANY,  AND  THE  INDIVIDUAL  OR  ENTITY IS PRINCIPALLY ENGAGED IN THE
PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE  QUALIFIED  FILM  DURING
PRODUCTION.
  S  2. Subdivision (b) of 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,  as  amended by section 2 of part Y of chapter 62 of
the laws of 2006, is amended to read as follows:
  (b) (1) The aggregate amount of tax credits allowed  pursuant  to  the
authority  of  subdivision  (b)  of section 1201-a of the tax law in any
calendar year shall be $12.5 million in 2004 and 2005 and $30 million in
2006 through [2011] 2012. 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 applica-
tion 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.
  (2)  NOTWITHSTANDING  PARAGRAPH (1) OF THIS SUBDIVISION, THE AGGREGATE
AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY  OF  SUBDIVISION
(B) OF SECTION 1201-A OF THE TAX LAW SHALL BE INCREASED BY AN ADDITIONAL
$24  MILLION  IN  2012. THIS ADDITIONAL AMOUNT SHALL BE ALLOCATED BY THE
MAYOR'S OFFICE OF FILM, THEATER  AND  BROADCASTING  IN  ACCORDANCE  WITH
PARAGRAPH (1) OF THIS SUBDIVISION. A TAXPAYER ALLOCATED CREDITS FROM THE
AMOUNTS  AUTHORIZED  UNDER  THIS  PARAGRAPH SHALL NOT CLAIM SUCH CREDITS
BEFORE TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  1,  2012.  NOTWITH-
STANDING  THE  YEAR TO WHICH CREDITS AUTHORIZED UNDER THIS PARAGRAPH ARE
ALLOCATED BY THE MAYOR'S OFFICE OF FILM, THEATER AND BROADCASTING,  SUCH
CREDITS  SHALL  NOT BE CLAIMED IN EXCESS OF $24 MILLION IN A GIVEN YEAR.
CREDITS AUTHORIZED UNDER THIS PARAGRAPH AND ALLOCATED IN EXCESS  OF  $24
MILLION  IN  A  GIVEN  YEAR  SHALL  BE  CLAIMED  IN THE SUBSEQUENT YEAR.
NOTWITHSTANDING THE FOREGOING, A TAXPAYER WHICH IS A QUALIFIED INDEPEND-
ENT FILM PRODUCTION COMPANY WHO IS ALLOCATED CREDITS UP TO $250,000  PER
QUALIFIED  FILM  FROM  THE AMOUNTS AUTHORIZED UNDER THIS PARAGRAPH SHALL
CLAIM SUCH CREDITS FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH
QUALIFIED FILM IS COMPLETED.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012.

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