senate Bill S498

Amends the empire state film production credit to provide differing percentages of credit depending on which county the production costs are paid or incurred in

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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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  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Amends the empire state film production credit to provide differing percentages of credit depending on which county the production costs are paid or incurred in during the production of qualifying films.

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Bill Details

Versions:
S498
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง24, Tax L

Sponsor Memo

BILL NUMBER:S498

TITLE OF BILL:
An act
to amend the tax law, in relation to amending the empire state
film
production credit

PURPOSE:
This bill will more effectively encourage film production in New York
State by increasing the tax credit percentage for films produced
farther from New York City.

SUMMARY OF PROVISIONS:
Section 1. Amends paragraph (2) of subdivision (a) of section 24 of
the tax law, as amended by section 4 of part Q of chapter 57 of the
laws of 2010 by increasing the tax credit in five percent increments,
as production takes place away from New York City, over three steps,
until the tax credit maxes out at forty-five percent

Section 2. Effective date.

EXISTING LAW:
Paragraph (2) of subdivision (a) of section 24 of the tax law provides
a tax credit of thirty percent of qualified costs for films produced
in New York State, regardless of where the film is produced in the
state.

JUSTIFICATION:
The current Empire State film production credit does not effectively
encourage film production in New York State. Undoubtedly some films
would be produced regardless of the tax credits.
However, the tax credit has its greatest effect on films produced
outside of New York City.
Because necessary film crews are based in New York City, the costs of
moving and housing these crews to other areas in the State increase
proportionally with the distance from New York
City. In order to encourage more films to be produced in the various
regions of the state, the tax credit must be graduated to account for
the increased costs of filming in these locations. This bill achieves
that by increasing the tax credit in five percent increments, as
production takes place away from New York city, over three steps,
until the tax credit maxes out at forty-five percent. Because the
total allocation to the film production credit remains unchanged,
this bill does not require any additional state funding in order to
increase the number of films being produced in New York State.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.


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

                                   498

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- 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 amending  the  empire  state
  film production credit

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

  Section 1. Paragraph 2 of subdivision (a) of section  24  of  the  tax
law,  as  amended  by  section  4 of part Q of chapter 57 of the laws of
2010, is amended to read as follows:
  (2) The amount of the  credit  shall  be  the  [product]  SUM  OF  THE
PRODUCTS (or pro rata share of the product, in the case of a member of a
partnership)  of:  (I) thirty percent [and] FOR the qualified production
costs paid or incurred in THE COUNTIES OF BRONX, KINGS, NEW YORK, QUEENS
OR  RICHMOND  DURING  the  production  of  a  qualified  film[,];   (II)
THIRTY-FIVE  PERCENT FOR THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED
IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM, ROCKLAND,  SUFFOLK,
SULLIVAN,  ULSTER  OR  WESTCHESTER, DURING THE PRODUCTION OF A QUALIFIED
FILM; (III) FORTY PERCENT FOR THE QUALIFIED  PRODUCTION  COSTS  PAID  OR
INCURRED  IN THE COUNTIES OF ALBANY, COLOMBIA, GREENE, RENSSELAER, SARA-
TOGA, SCHENECTADY, WARREN OR WASHINGTON DURING THE PRODUCTION OF A QUAL-
IFIED FILM; AND (IV) FORTY-FIVE PERCENT  FOR  THE  QUALIFIED  PRODUCTION
COSTS  PAID  OR  INCURRED IN ALL COUNTIES NOT REFERENCED IN SUBPARAGRAPH
(I), (II) OR (III) OF THIS PARAGRAPH DURING THE PRODUCTION OF  A  QUALI-
FIED  FILM;  provided  that:  [(i)]  (1)  the qualified production costs
(excluding post production costs) paid or incurred which  are  attribut-
able to the use of tangible property or the performance of services at a
qualified  film  production facility in the production of such qualified
film equal or  exceed  seventy-five  percent  of  the  production  costs
(excluding  post  production costs) paid or incurred which are attribut-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01013-01-3

S. 498                              2

able to the use of tangible property or the performance of  services  at
any  film  production  facility  within  and  without  the  state in the
production of such qualified film[,]; and [(ii)] (2) except with respect
to  a  qualified  independent film production company or pilot, at least
ten percent of the total principal photography shooting  days  spent  in
the  production of such qualified film must be spent at a qualified film
production facility. However, if the qualified production costs (exclud-
ing post production costs) which are attributable to the use of tangible
property or the performance of services at a qualified  film  production
facility  in  the  production  of such qualified film is less than three
million dollars, then the portion  of  the  qualified  production  costs
attributable  to  the  use  of  tangible  property or the performance of
services in the production of such qualified film outside of a qualified
film production facility shall be allowed  only  if  the  shooting  days
spent  in  New  York  outside  of  a  film  production  facility  in the
production of such qualified film equal or exceed  seventy-five  percent
of  the total shooting days spent within and without New York outside of
a film production facility in the production of such qualified film. The
credit shall be allowed for the taxable year in which the production  of
such  qualified  film  is completed. However, in the case of a qualified
film that receives funds from additional pool  2,  no  credit  shall  be
claimed before the later of [(1)] (A) the taxable year the production of
the qualified film is complete, or [(2)] (B) the taxable year immediate-
ly  following  the allocation year for which the film has been allocated
credit by the governor's office for motion picture and television devel-
opment. If the amount of the credit is at least one million dollars  but
less  than  five million dollars, the credit shall be claimed over a two
year period beginning in the first taxable year in which the credit  may
be claimed and in the next succeeding taxable year, with one-half of the
amount  of  credit  allowed being claimed in each year. If the amount of
the credit is at least five million dollars, the credit shall be claimed
over a three year period beginning in the first taxable  year  in  which
the  credit may be claimed and in the next two succeeding taxable years,
with one-third of the amount of the credit allowed being claimed in each
year.
  S 2. This act shall take effect immediately.

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