senate Bill S115

Amended

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation

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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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • PRINT NUMBER 115A

Summary

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation.

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Bill Details

Versions:
S115
S115A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง24, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7023

Sponsor Memo

BILL NUMBER:S115

TITLE OF BILL:
An act
to amend the tax law,
in relation
to the aggregate annual amount of the empire state film production
credit against state taxes

PURPOSE:
Provides for an annual increase in the aggregate annual amount of
empire state film production credits taken, based upon inflation

SUMMARY OF PROVISIONS:
Section 1 of the bill amends paragraph 4 of subdivision e of section
24 of the tax law relating to the empire state film production
credit, as added by chapter 268 of the laws of 2012, to provide for an
annual aggregate amount of the Empire State Film Credits that may be
taken against state taxes in 2015 and beyond, based on an inflation
adjusted calculation of the amount provided in the final funded year
of 2014.

Section 2 establishes the effective date.

JUSTIFICATION:
The Empire State Film Production Tax Credit has been an unqualified
success for the State of New York, both culturally and financially.
Despite the fact that New York's tax credit is significantly less
generous than the credits offered by competing states (including
Connecticut and Massachusetts), it continues to be a premier
destination for films and television shows, shining light on the
State's rightful status as a world capital for the arts. The tax
credit program has also proven to have a consistently beneficial
impact on the State's bottom line. In 2009, an Ernst & Young study
estimated that the program had cost the state $690 million while
generating $2.6 billion in tax revenue. Even more importantly, the
program has helped create tens of thousands of new jobs in this state.

While the 2010-2011 state budget extended the program by five years in
2010, it failed to address a major institutional problem which
dissuades television shows from setting up roots in the state. Unlike
movie productions, television productions are "quasi-permanent"
institutions that ordinarily must run for at least four years to
reach syndication length and become truly profitable. This means that
as soon as the second year of a five-year tax credit extension,
television production companies considering putting down roots in the
state can no longer be assured that the credit will still be in place
when their shows reach sufficient length.
Consequently, in order to consistently attract the most promising
television series, it is critical that production companies be given
the peace of mind that, if their shows are successful, they will not
be forced to uproot production and move elsewhere in a few short years.

This bill gives television producers that peace of mind by providing
inflation adjusted annual funding for the Empire State Film Tax
Credit program. A simple funding extension would only delay the


problem instead of providing the genuine solution that is called for.
This bill does not increase the percentage of production costs
eligible for a tax credit, and it only increases the aggregate total
insofar as is necessary to keep pace with inflation. Consequently,
the State would remain largely insulated from risk while seeing
increased benefits.

Between 2002 and 2009 the number of states offering film-production
tax credits rose from 5 to 44. The vast majority of those states offer
more substantial credits to individual productions than New York, and
many are considering increasing the percentage of costs that can be
credited still further. Fortunately, New York does not need to take
part in this film tax credit arms race.
Television production companies want to come here, even if it costs
more. They simply want to be assured that funding for the program
will still be in place when their shows become profitable.
If we are to continue to attract top-shelf television productions we
must make certain that our own program follows the basic dictates of
common sense. This bill provides that common sense solution.

LEGISLATIVE HISTORY:
2011-12: S.7023

FISCAL IMPLICATIONS:
To be determined.

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
________________________________________________________________________

                                   115

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the aggregate annual  amount
  of the empire state film production credit against state taxes

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

  Section 1.  Paragraph 4 of subdivision (e) of section 24  of  the  tax
law,  as added by chapter 268 of the laws of 2012, is amended to read as
follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall  be  increased  by  an  [addition]
ADDITIONAL 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 AND THEREAFTER, EXCEPT THAT  IN
TAX  YEARS  AFTER  TWO  THOUSAND FOURTEEN, SUCH AMOUNT SHALL BE ADJUSTED
ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE CONSUMER
PRICE  INDEX  FOR  ALL  CONSUMERS,  ALL  ITEMS,  NORTHEAST  REGION,  NOT
SEASONALLY  ADJUSTED,  OF  THE PREVIOUS YEAR, BUT IN NO EVENT SHALL SUCH
AMOUNT BE LESS THAN FOUR HUNDRED TWENTY MILLION DOLLARS; provided howev-
er, 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 gover-
nor's office for motion picture and television development among taxpay-
ers 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 addi-
tional pool 2 for the empire state film production tax credit have  been

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00314-01-3

S. 115                              2

previously  allocated, and determines that the pending applications from
eligible applicants for the  post  production  tax  credit  pursuant  to
section  thirty-one  of  this  chapter  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 gover-
nor'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 quali-
fied 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 qualified 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 2. This act shall take effect immediately.

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