senate Bill S2027A

Relates to the empire state film production tax credit

download pdf

Sponsor

Bill Status


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

actions

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Mar / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Mar / 2014
    • PRINT NUMBER 2027A

Summary

Relates to the allocation of the empire state film production credit against taxes for certain film production costs issued by a city having a population of one million or more.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A5621A
Versions:
S2027
S2027A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1201-a, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2883, A5562
2009-2010: S5674, A8761

Sponsor Memo

BILL NUMBER:S2027A

TITLE OF BILL: An act to amend the tax law, in relation to the
allocation of such credit against taxes for certain film production
costs issued by a city having a population of one million or more

PURPOSE: This legislation would ensure the "Made in NY" film
production tax credit would be sustained through 2014.

SUMMARY OF PROVISIONS:

Section 1 of this bill would amend Tax Law § 1201-a(b), the section
that authorizes the City of New York to amend its General Corporation
Tax ("GCT") and its Unincorporated Business Tax ("UBT") with respect
to the Empire State Film Production Credit. This proposal would (1)
reduce the City credit rate from five percent to four percent; (2)
phase out the credit for television series: after three years of
receiving the full credit, a television series would receive a three
percent credit in year four of the program, a two percent credit in
year five, and no credit thereafter; and (3) establish a cap of
$250,000 in credits per qualified film or episode of a qualified
television series; for those productions incurring more than 75t of
their post production costs in New York City, the cap would be
$300,000.

Section 2 of the bill provides that the law would take effect
immediately and would apply to taxable years beginning on or after
January 1, 2014, and to applications filed on or after such date.

JUSTIFICATION: Given the fiscal constraints facing the City, this
legislation contains measures to better target the "Made in NY" film
production credit in order to bolster its effectiveness as an
incentive. These proposals embody a carefully crafted plan to cope
with the fiscal challenges facing the City by sharing the sacrifices
needed, while preserving the film production credit program as a
viable incentive to attract film and television production to New York
City. The legislation does not apply to that portion of the program
that is particular to New York City, which has been enacted through
the City's GCT and the UBT.

The overall reduction of the City credit rate from five percent to
four percent would limit the City's exposure to excessive program
costs and allow for improved future fiscal planning. The television
series phase-out would provide a credit for the first five years of a
series, after which these successful and established television series
would no longer be eligible for the credit. The per-production cap
would preserve the full credit for independent features and for
television series, which provide year-round employment, and a
graduated percentage reduction for large-budget feature films.

The film and television industry is an important contributor to the
City's economy and as such both the City and State have taken a number
of important steps to provide it incentives. The New York City's
Mayor's Office of Film, Theatre & Broadcasting has dramatically
enhanced the range of services that it offers to the industry. The
"Made in NY" film production tax credit, enacted in January 2005 and
extended through 2019 in April 2013, combined with the State credit,


has been a major success in attracting film and television production
to New York City. According to a study released by the Boston
Consulting Group in May 2012, production spending for the film and
television industry increased significantly since 2004, accounting for
$7.1 billion in direct spending while providing tens of thousands of
additional jobs. These increases were evident in all production areas:
feature films, independent films, television series and pilots.

Through the "Made in NY" film production tax credit, New York City is
the only municipality in the United States offering a tax credit
incentive to the film and television industry. This extension of the
program will ensure its continued success.

LEGISLATIVE HISTORY: 2012: S.2883/A5562 (Squadron/Englebright) 2010:
S.5674/A.8761 (Schneiderman/Englebright)

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, 2014; provided
further that this act shall apply to applications filed on or after
January 1, 2014.

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

                                 2027--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. SQUADRON -- 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 allocation of such cred-
  it  against  taxes  for certain film production costs issued by 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) (I) the percentage of qualified production costs used to calculate
such credit shall be [five] FOUR percent,
  (II) FOR A TELEVISION SERIES WITH RESPECT TO WHICH A CREDIT  HAS  BEEN
ALLOWED  (1)  IN  THREE TAXABLE YEARS, THE AMOUNT OF THE CREDIT SHALL BE
THREE PERCENT, (2) IN FOUR TAXABLE YEARS, THE AMOUNT OF THE CREDIT SHALL
BE TWO PERCENT, AND
  (III) NO CREDIT SHALL BE ALLOWED WITH RESPECT TO A  TELEVISION  SERIES
FOR WHICH A CREDIT HAS BEEN ALLOWED IN FIVE TAXABLE YEARS;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05563-02-4

S. 2027--A                          2

  (B)  SUCH  CREDIT  SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS
PER QUALIFIED FILM OR EPISODE OF  A  QUALIFIED  TELEVISION  SERIES  WITH
RESPECT  TO  QUALIFIED  PRODUCTION COSTS; PROVIDED, HOWEVER, THAT IF THE
QUALIFIED POST PRODUCTION COSTS PAID OR INCURRED WHICH ARE  ATTRIBUTABLE
TO THE USE OF TANGIBLE PROPERTY OR THE PERFORMANCE OF SERVICES AT A FILM
POST  PRODUCTION  FACILITY WITHIN THE CITY OF NEW YORK IN THE PRODUCTION
OF SUCH QUALIFIED FILM EQUAL OR EXCEED SEVENTY-FIVE PERCENT OF  ALL  THE
POST PRODUCTION COSTS PAID OR INCURRED WHICH ARE ATTRIBUTABLE TO THE USE
OF  TANGIBLE  PROPERTY  OR  THE PERFORMANCE OF SERVICES AT ANY FILM POST
PRODUCTION FACILITY WITHIN AND WITHOUT THE CITY  IN  THE  PRODUCTION  OF
SUCH  QUALIFIED  FILM,  THEN THE AGGREGATE ANNUAL MAXIMUM ALLOWED CREDIT
SHALL BE THREE HUNDRED THOUSAND DOLLARS,
  [(B)] (C) whenever such section twenty-four references the state, such
words shall be read as referencing the city,
  [(C)] (D) such credit shall be allowed only to a taxpayer which  is  a
qualified film production company, [and
  (D)]  (E)  the  effective date of such credit shall be July first, two
thousand six. Such credit shall be 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 corporation tax and the unincorporated
business tax, AND
  (F) FOR PURPOSES OF THIS SUBDIVISION, "TELEVISION SERIES" OR "EPISODIC
TELEVISION SERIES" MEANS A RECURRING PRODUCTION INTENDED IN ITS  INITIAL
RUN   FOR   BROADCAST   ON   TELEVISION,   WHETHER   FREE   OR   THROUGH
SUBSCRIPTION-BASED SERVICE, THAT HAS A RUNNING TIME OF AT  LEAST  THIRTY
MINUTES  IN  LENGTH, INCLUSIVE OF COMMERCIAL ADVERTISEMENT AND INTERSTI-
TIAL PROGRAMMING.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014; provided further that  this
act shall apply to applications filed on or after January 1, 2014.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.