senate Bill S115A

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:S115A

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 amended by section 3 of part B of chapter 59 of the laws of 2013,
to provide for an annual aggregate amount of the Empire State Film
Credits that may be taken against state taxes in 2014 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--A

                       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 -- 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, 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 amended by section 3 of part B of chapter  59  of  the  laws  of
2013, 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 additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [nineteen] FOURTEEN, 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 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 article in
two thousand thirteen and two thousand fourteen and twenty-five  million
dollars of the annual allocation shall be available for the empire state
film post production credit pursuant to section thirty-one of this arti-
cle  in  each year starting in two thousand fifteen through two thousand
nineteen. This amount shall be allocated by the  governor's  office  for
motion  picture and television development among taxpayers in accordance

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00314-02-4

S. 115--A                           2

with subdivision (a) of this section. If the  commissioner  of  economic
development  determines  that the aggregate amount of tax credits avail-
able from additional pool 2 for the empire  state  film  production  tax
credit  have  been previously allocated, and determines that the pending
applications from eligible applicants for the  empire  state  film  post
production  tax credit pursuant to section thirty-one of this article is
insufficient to utilize the balance of  unallocated  empire  state  film
post  production  tax  credits from such pool, the remainder, after such
pending applications are considered, shall be made available  for  allo-
cation  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. Also, if  the  commissioner  of
economic development determines that the aggregate amount of tax credits
available  from  additional  pool  2  for  the  empire  state  film post
production tax credit have been  previously  allocated,  and  determines
that  the  pending  applications from eligible applicants for the empire
state film production tax credit pursuant to this  section  is  insuffi-
cient  to utilize the balance of unallocated film production tax credits
from such pool, then all or part of the remainder,  after  such  pending
applications  are considered, shall be made available for allocation for
the empire state film post production credit pursuant to  this  section,
subdivision  forty-one 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  allo-
cation  year  directly  on their empire state film production credit tax
form for each year a credit is claimed and include a copy of the certif-
icate 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 qualified film is complete, or the taxable year imme-
diately following the allocation year for which the film has been  allo-
cated  credit by the governor's office for motion picture and television
development.
  S 2. This act shall take effect immediately.

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